Emotional Wellbeing

Riding the Wave of Inflation: A Guide to Investments

November 11, 2022
Usha Mallya
Riding the Wave of Inflation: A Guide to Investments

Inflation is a long-term pattern of rising prices across the economy yearly. Inflation rates indicate the rate of erosion of the value of an investment over time as well as the loss of purchasing power. Investing in assets requires a return on investment consistent with their living standard. 

To overcome the effects of inflation on your investment, you must have financial planning and knowledge. Here are a few things you should know. 

Inflation: What Causes It?

Inflation occurs when the demand for an item or service exceeds the supply of that good or service. This is referred to as demand-pull inflation, and it causes price increases. 

Inflation is also caused by a rise in the cost of producing products and services. As the cost of manufacturing an item rises, manufacturers raise the selling price in order to achieve or maintain a specified profit. This is referred to as cost-pull inflation.

Here's a chart demonstrating how a lakh's value decreases over time to help you comprehend this better.

‍Inflation: What Causes It?

Financial vs Physical Investment

Physical assets can be felt, seen, touched, or held, such as real estate, precious metals, jewellery, plant and machinery, vehicles, tools, etc. These assets must be maintained, repaired, and upgraded, which can lead to expenses.

An intangible asset, such as shares, bonds, deposits in banks, accounts receivables, goodwill, copyrights, patents, etc., cannot be seen or touched, except for the records proving ownership of the asset, for example, shares, bonds, deposits in banks. The value of financial support does not depreciate or diminish with time. Nevertheless, depending on market conditions, the value of a financial asset can appreciate or depreciate.

Asset Classes and Inflation

The value of liquid assets tends to rise less over time than the value of other types of assets since inflation affects them similarly. Because of this, liquid assets are more susceptible to inflation's effects. The larger economy tends to retain fewer liquid assets when inflation rates are high.

Although illiquid assets can generate interest and grow in value, inflation also affects them. Investing in stocks, bonds, and mutual funds is one of the best ways to protect savings against inflation. In times of high inflation, people often spend their liquid assets on consumer goods or invest them in interest-paying assets.

Systematic Investment in Equity Mutual Funds

Mutual Funds offer a Systematic Investment Plan (SIP), a means of investing a fixed amount at regular intervals, say once a month or once a quarter, instead of making a lump-sum investment. Instalments could be as low as INR 500 per month and are similar to recurring deposits. Moreover, it is convenient since your bank can give you standing instructions to deduct the monthly amount.  

Here are some examples of the power of compounding

‍Systematic Investment in Equity Mutual Funds

Three Golden Rules of Investment

Start Early

It is recommended that you start early in order to gain greater financial wellbeing and to maximise your returns on investment. If you allow your investment portfolio to generate returns over time, your returns will essentially create more returns. In technical terms, this is called compounding, proving that even small investments can accumulate into large sums over time.

Invest Regularly

Regularly investing rather than attempting to time a lump sum investment can help you become a more disciplined investor. Ultimately, you must invest no matter how high or low the price is. As a result, investing becomes less emotional, and you can put your money to work more quickly.

Invest for Long Term

The relationship between volatility and time is an advantage of long-term investing. The volatility of investments held for a more extended period tends to be lower than the volatility of assets held for a shorter period. The longer you invest, the more likely you will survive market downturns.

Investments with their risk vs return potential

Three Golden Rules of Investment

Conclusion

If the returns on an investor's assets are less than the rate of inflation, even if they show profits, they will lose money. Additionally, individuals should ensure that their income increases at least as much as inflation; otherwise, they are technically earning less than they would otherwise and losing financial stability.

Personal Wellbeing

Dreamland Duty: Your Blueprint to a Blissful Slumber

September 21, 2022
Dr. Manan Mehta
Dreamland Duty: Your Blueprint to a Blissful Slumber

We recently conducted a survey of the young to middle-aged urban population and found alarming rates of sleep deprivation. Only a quarter of the respondents were getting 8 hours of sleep, and the majority of them indicated waking up tired and needing more rest. 

Besides being essential to life and survival, sleeping affects our mind body soul. Counting sheep is not as simple as closing your eyes and closing your eyes.

Neuroscientists define sleep as a state of active unconsciousness, in which the brain is in a state of relative rest and is reacting primarily to internal stimuli. Simply put, it is a state where the body slows down in almost all departments, none more so than the brain.

Why do we sleep?

It may sound strange, but we still don't know exactly why humans and other animals sleep. A variety of theories are being proposed in current research, including the Inactivity theory, the Restoration theory, the Energy conservation theory, and the Brain plasticity theory. 

It has been found that muscles repair themselves, tissues grow, proteins are synthesised, and growth hormones are released predominantly during sleep. The body has decreased metabolism by up to 10% during sleep. During sleep, the brain's structure and function are reorganised and grown.

Stages of sleep

There are essentially four stages of sleep – 3 stages of Non-Rapid Eye Movement, Sleep, and Rapid Eye Movement. These stages typically occur in 90 to 120-minute cycles. The body ideally needs 3 to 4 such cycles for restful rebuilding.

How much Should we sleep?

How much sleep do you need?
Photo by Gregory Pappas on Unsplash

Now, this is a tricky question. The importance of sleep in infants' and children's brain development explains why infants need to sleep upwards of 14 hours a day. Geriatric patients can swing from managing with 5 to 6 hours a day or needing nearly 12 hours of sleep as age advances.

A minimum of 6 to 8 hours of sleep is recommended for adults in order to maintain excellent emotional wellness. This includes a majority of it as interrupted night sleep with an optional power nap during the day; and no more than 9 to 10 hours of sleep.

"Early to bed and early to rise, makes a man healthy, wealthy, and wise." - Benjamin Franklin

Problems associated with sleep deprivation

What we do know for sure is that chronic sleep deprivation has tremendous effects on mood, productivity, immunity, and metabolism. 

In addition to an increase in the frequency and severity of infections, chronic sleep deprivation has been linked to a number of other health problems, including depression, anxiety, obesity, diabetes, heart attacks, and strokes, as well as reduced fertility rates and mental disorders.

What is insomnia?

What is insomnia?

Photo by Sander Sammy on Unsplash

Insomnia is defined as difficulty falling or staying asleep accompanied by daytime impairments related to those sleep troubles.=

It can be of two types - chronic insomnia disorder and short-term insomnia.

Insomnia, whether short-term or chronic, has certain symptoms in common. There are different types of sleep issues associated with those symptoms, including those related to nighttime sleep when a person experiences at least one of those types of sleep issues:

  • Sleeping problems
  • Not able to lead happy healthy life.
  • Not being able to stay asleep through the night
  • Getting up too early in the morning
  • Teenagers and children who resist sleeping at bedtime
  • Children and teens who have difficulty sleeping on their own (without the assistance of a caregiver)

There are also several daytime symptoms related to sleeping problems that must be present as well:

  • Tiredness
  • Memory or attention problems
  • Working, studying, or socially performing poorly
  • Mood disturbances or irritability
  • Feeling sleepy
  • Hyperactivity or aggression are examples of behavioural issues
  • Motivation has decreased
  • Accidents or mistakes occurring more frequently
  • Sleep concerns or dissatisfaction

For chronic insomnia to occur, symptoms must be present three times per week for a minimum of three months. Short-term insomnia is characterised by less frequent episodes and less than three months of symptoms.

Having difficulty falling asleep or staying asleep is not explicitly defined in the diagnostic criteria for insomnia. Adults may suffer from insomnia if they take longer than 30 minutes to fall asleep or are awake during the night for more than 30 minutes (20 minutes for children).

Causes

Recognising why you are not sleeping well is essential to treating the problem.

  • Lack of opportunity to sleep or a disruptive sleep environment. Poor socioeconomic status, cramped living, small children, or dependents needing care.
  • Medical disorders like Prostatomegaly or Diabetes causing frequent urination, OSA or sleep apnea, aches and pains, acid reflux disorder, thyroid disorder, etc
  • Sleep procrastination syndrome - it's the only me time and free time you get. So you keep scrolling mindlessly through social media sites and videos and articles.
  • Screen time: Most of our survey participants were on a screen minutes before sleep. Melatonin, an important sleep hormone, is regulated by the brightness of light falling on your retina. Gadget screens thus keep pushing the brain into an active state.
  • Anxiety - generalised, work-related, social, emotional. We all live in overloaded, busy, and stressful times.
  • Just not enough time due to work and travel.

All of us will be sleepless on some occasions or through certain phases of life. Recognise the issue and embark on a holistic approach toward solving it. Disciplined screen time, a more natural unwinding schedule, fixed waking hours, appropriate meals and meal times, and adequate exercise are some of the first steps we must take. 

Diagnosing and treating underlying medical disorders with a physician's help comes next. Then, if need be, some pharmacological support. Emotional, social, financial, and even generalised anxiety shouldn’t be ignored. 

An overwhelming majority of our respondents (primarily 25-40-year-olds) stated work and work-related anxieties as major obstacles to adequate sleep. Emotional anxieties were a close second. Therefore, workplace wellness programs are more than necessary to help employees. 

If only a fourth of our young, upwardly dynamic population are waking up naturally and feeling fresh, there is definitely something afoot that doesn’t augur well for the future. So pull up your eye masks and switch off the lights! Enough of hand sanitisers. It's time for some sleep hygiene.

Good luck and Good night!

Leadership

The Feedback Fix: Ditch the Sandwich and Build a Culture of Trust

August 6, 2024
Mohit Sahni
The Feedback Fix: Ditch the Sandwich and Build a Culture of Trust

The art of giving feedback, especially for those new to leadership, can feel like navigating a minefield. It's natural to feel anxious about how your words might be received, and the impact they could have on your working relationships. But in today's fast-paced, ever-evolving work environment, feedback is not just important, it's essential.

In a world where change is the only constant, leaders need a clear picture of what's working and what isn't. They need the unfiltered perspectives of their team members to make informed decisions and adapt their strategies effectively.

For employees, constructive feedback is a lifeline. It's a chance to understand their strengths and areas for improvement, to feel valued and heard, and to grow both personally and professionally.

But here's the catch: feedback, like any powerful tool, can be used constructively or destructively. When delivered thoughtfully, it can inspire, motivate, and bridge the gap between potential and performance. But when handled carelessly, it can create resentment, defensiveness, and a breakdown in trust.

Reframing Feedback

Let's move beyond the traditional view of feedback as a performance evaluation. Instead, let's see it as a catalyst for growth, a two-way street where both leaders and employees can learn and develop.

For new leaders, mastering the art of feedback is about more than just pointing out mistakes. It's about creating a culture of open communication, where everyone feels safe to share their thoughts and ideas. It's about recognizing achievements, fostering professional development, and building trust with your team.

Five Strategies for Thoughtful Feedback

So, how can you provide feedback that's not just constructive, but also empowering and motivating? Here are five strategies to consider:

1. A Skill, Not a Talent

Effective feedback isn't something you're born with; it's a skill honed through practice and dedication. Research shows that training in feedback techniques can significantly improve leaders' ability to deliver constructive criticism and foster positive outcomes. So, invest in your development by reading articles, watching videos, or even attending formal training sessions. Observe experienced leaders and learn from their techniques.

Remember, practice makes perfect. Start by giving feedback in low-stakes situations to build your confidence and refine your approach. Reflect on your experiences and identify areas for improvement. Over time, you'll develop a natural and impactful feedback style.

2. Intentions Matter

Your intentions play a crucial role in how your feedback is received. If your motive is to criticize or belittle, it will likely trigger defensiveness and resentment. However, if your intention is to genuinely help the recipient improve, your message will be more likely to resonate and inspire action.

Research in psychology supports this. Studies have shown that when people perceive feedback as being motivated by a desire to help them learn and grow, they're more likely to accept it and act on it.

So, before giving feedback, take a moment to check your intentions. Ask yourself: "Am I trying to help this person improve, or am I simply venting my frustration?" If your motives aren't pure, it's best to postpone the conversation until you're in a more constructive mindset.

3. Choose the Right Moment

Delivering feedback at the wrong time or in the wrong setting can significantly diminish its effectiveness. Imagine receiving critical feedback in front of your colleagues or during a high-stress situation. It's unlikely to be well-received.

Neuroscience tells us that our brains are more receptive to feedback when we're in a calm and relaxed state. So, choose a time when both you and the recipient are free from distractions and stress.

Additionally, provide feedback while the context is still fresh in everyone's mind. This ensures clarity and avoids misunderstandings.

Example:

  • Don't: "Hey, remember that presentation you gave last month? I think you could have done a better job with the visuals."
  • Do: "I wanted to chat about the presentation you gave yesterday. I think the content was great, but the visuals could have been more impactful. Let's brainstorm some ideas for next time."

4. Focus on Behavior, Not Identity

Feedback that focuses on personal traits or abilities can trigger defensiveness and hinder growth. Instead, focus on specific behaviors or actions that can be improved. This approach encourages a growth mindset and empowers the recipient to take action.

Research in psychology has shown that feedback is most effective when it's specific, actionable, and focused on behavior rather than personality.

Example:

  • Don't: "You're not a very good communicator."
  • Do: "During the meeting yesterday, I noticed you interrupted your colleagues a few times. It might be helpful to practice active listening and allowing others to finish their thoughts before sharing your own."

5. Create a Two-Way Street

Feedback shouldn't be a one-way street. Encourage your team members to share their thoughts and perspectives with you. This not only helps you improve as a leader but also fosters a culture of open communication and trust.

When seeking feedback, acknowledge the courage it takes for someone to share their honest opinions. Be receptive, listen actively, and express gratitude for their insights.

Remember, feedback is a gift that offers an opportunity for growth and development. By embracing it with humility and openness, you can create a workplace where everyone feels valued, heard, and empowered to reach their full potential.

Tips for New Leaders

While the five strategies we've discussed provide a solid foundation for giving and receiving feedback, let's go a step further. Here are some unconventional tips to help new leaders truly master the art of feedback and create a thriving feedback culture within their teams.

1. The "Feedback Sandwich" is Stale

The traditional "feedback sandwich" approach, where you sandwich negative feedback between two layers of positive feedback, is often seen as insincere and manipulative. It can also dilute the impact of your message and leave the recipient confused about the key takeaway.

Instead, embrace directness and honesty. Be clear about the areas for improvement while maintaining a respectful and supportive tone. Research shows that people appreciate direct feedback, as long as it's delivered with empathy and a genuine desire to help them grow.

Example:

  • Don't: "You're doing a great job overall, but I think you could improve your time management skills. Otherwise, keep up the good work!"
  • Do: "I've noticed that you've missed a few deadlines recently. I understand that things can get hectic, but it's important to prioritize your tasks and manage your time effectively. Let's work together to create a plan that helps you stay on track."

2. Ask, Don't Tell

Instead of simply telling someone what they did wrong, ask questions that encourage them to reflect on their own performance. This approach empowers them to take ownership of their development and discover their own solutions.

Studies have shown that self-generated insights are often more powerful and long-lasting than those imposed from the outside. By asking open-ended questions, you stimulate critical thinking and create a collaborative environment where learning and growth can thrive.

Example:

  • Don't: "You need to be more organized."
  • Do: "How do you feel about your current organizational system? Are there any areas where you feel you could improve? What strategies have you tried in the past that have worked well for you?"

3. Celebrate Small Wins

Don't wait for annual reviews to give positive feedback. Recognizing and celebrating achievements, no matter how small, can significantly boost morale and motivation. Research in positive psychology highlights the importance of positive reinforcement in fostering a sense of accomplishment and encouraging continued effort.

Make it a habit to acknowledge your team members' contributions regularly. A simple "thank you" or a public shout-out can go a long way in creating a positive and supportive work environment.

4. Make it a Conversation

Feedback shouldn't be a monologue. Encourage dialogue and create a space where employees feel comfortable sharing their perspectives and asking questions. This fosters a sense of mutual respect and collaboration, making the feedback process more meaningful and productive.

Research shows that two-way communication enhances understanding and promotes buy-in. When employees feel heard and understood, they're more likely to accept feedback and take action.

5. Lead by Example

As a leader, be open to receiving feedback yourself. This demonstrates humility and creates a culture where feedback is seen as a valuable tool for everyone, not just a management prerogative.

Studies have shown that leaders who actively seek feedback are perceived as more effective, trustworthy, and approachable. By embracing vulnerability and showing a willingness to learn and grow, you set a powerful example for your team.

Nurturing a Feedback-Rich Culture

Giving and receiving feedback is an ongoing process, not a one-time event. By fostering a culture of open communication and continuous learning, you can create a workplace where feedback is embraced as a tool for growth and development.

Remember, effective feedback isn't just about correcting mistakes; it's about unlocking potential, building trust, and inspiring your team to achieve their best. So, take a deep breath, embrace the challenge, and start nurturing a feedback-rich culture in your workplace today.

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