'If doing SIPs, you are not...': Finfluencer shares 5 hard truths on wealth-building as middle class

In a candid post on X, finfluencer and startup founder Akshat Shrivastava shared what he calls the “five hard lessons” he learned while moving out of India’s middle-class income trap. The message was clear: making money in India is hard, and blind faith in conventional financial instruments won't get you very far.

Here’s a breakdown of Shrivastava's key points, along with user insights that struck a chord.

1. Making money in India is tough; taxes weigh you down

Shrivastava minced no words when he said, "Making money in India is tough. You have an anchor tied to your legs (in the form of taxes)."

He urged people to earn, save, and hustle, warning that depending on investments alone, especially via trading, is not a viable route to wealth.

2. Investing is essential, but not enough

While warning against over-dependence on trading, Shrivastava also cautioned against ignoring investments altogether. "If you do NOT invest well, you are working your way to poverty."

He criticised low-return instruments like fixed deposits (FDs), pointing out, "Growing your wealth at 5% (let's say in FDs) post taxes, when inflation for you is 10%, is stupidity at scale."

3. Be contrarian in your approach

Shrivastava challenged conventional retail investing trends, "If people are doing SIPs and Mutual Funds all day, be rest assured that you are not becoming rich in the long-term via that."

He warned that mutual funds could go the way of older mis-sold products, "It might very well become the new ULIPs."

4. Cut the middleman, India is a broker economy

Shrivastava was scathing in his assessment of India’s intermediation-heavy economy, "India is a broker economy. It starts from the top and percolates to the bottom. They eat into everything like parasites. And, make you hollow."

His advice is, "Try to cut them as much as possible (be it in buying a house, stocks, whatever)."

5. Positivity is not delusion; it means action

Shrivastava’s final point was on mindset: "Being positive means that you see the problem. Figure out a solution (for you). And, work towards that."

In response to the post, one user summed up a practical 5-point wealth-building strategy in reply:

1. Investing in Indian or overseas equities and generating alpha

2. Buying real estate outside India or commercial spaces within India

3. Avoiding debt-based financial instruments

4. Creating and sustaining multiple businesses

5. Learning to manage investing and wealth-creation strategies independently