Sometimes, doing nothing can cost far more than making a wrong decision. Chartered accountant Nitin Kaushik highlighted this in a viral X post, sharing the story of a man who lost Rs 45 lakh in just a year — not due to poor investments, but because of inaction.

Kaushik emphasised that the real culprit isn’t market volatility or risky bets, but leaving money idle while inflation silently erodes its value.

How inaction led to massive losses

The story revolves around Kaushik’s friend, who sold a commercial property in Gurgaon for Rs 14 crore after decades of building and flipping real estate. The plan was to “wait for the right time” to reinvest. But as months passed, the funds remained untouched. Real estate prices surged post-COVID, the stock market appeared “too volatile,” and bonds felt “too boring.” In short, he waited — and that wait came with a hidden cost.

Kaushik explained that his friend lost nearly Rs 3–4 lakh in purchasing power every month, translating to Rs 45 lakh in a year, thanks to inflation outpacing a meagre 3.5% bank interest. To put it in perspective, that is equivalent to the cost of a luxury car or a year’s tuition at a foreign university — lost without spending a single rupee.

Meanwhile, the very property he had sold could have appreciated by another Rs 1.2 crore in just nine months. His money, still parked in the bank, remained stagnant.

A structured approach to regain lost value

Recognising the impact of inaction, Kaushik helped his friend design a simple, structured investment plan to get back on track. The plan included:

• 40% in short-duration debt and gilt funds for steady, low-risk returns
• 30% in diversified global equities for long-term growth
• 30% kept liquid for potential real estate opportunities

Kaushik stressed that the approach wasn’t about chasing market highs but simply about putting money to work. Even with conservative estimates, the plan could help recover the lost purchasing power within six months.

Lessons for investors

Kaushik’s post is a timely reminder for investors across India. Letting money sit idle, even in safe instruments, can be more costly than taking measured risks. Inflation, compounded over months, silently eats away wealth, and waiting for the “perfect moment” often results in significant financial loss.

Experts suggest a balanced approach combining debt, equities, and liquid instruments to protect against inflation while retaining flexibility for future opportunities. The key takeaway is simple: action — even imperfect — is better than inaction.