No generational wealth, how a Reddit user grew net worth to Rs 60 lakh; check details

A Reddit user has shared an inspiring story of how he grew his net worth from a modest salary of Rs 5,000 to Rs 60 lakh. The 34-year-old professional, a B. Tech graduate, detailed his financial journey on the social media platform, drawing attention from fellow users. Highlighting the importance of disciplined investing and living within one's means, he explained how these practices helped him achieve financial stability over the years.

The journey began in a lower-middle-class household, where modest living was the norm. Initially, the user did not fully understand the intricacies of his compensation package, particularly the Restricted Stock Units (RSUs). He stated, "At that time, I didn’t really understand how Restricted Stock Units or RSUs (stock-based compensation) worked. I picked a package with a high CTC that included mostly stocks, without realising the details." This revelation marked the beginning of his financial transformation. 

Inspired by the concept of FIRE (Financial Independence, Retire Early), he adopted a structured approach to managing his finances. "I created an Excel sheet to track everything—my PF, investments, even cash. I update it at the end of every quarter. This habit helped me stay on top of my finances," he noted. This meticulous tracking allowed him to cross the Rs 50 lakh mark in investments just four months ago.

His diversified portfolio includes an emergency fund of Rs 5 lakh, Rs 20 lakh in debt and hybrid mutual funds, Rs 15 lakh in PF and PPF, Rs 10 lakh in RSUs, Rs 2 lakh in Indian equities, and Rs 8 lakh in equity mutual funds. Reflecting on his journey, he remarked, "Rs 60 lakh may not seem like a big number to some, but for me, every step has been meaningful. I still remember how happy I felt when I reached Rs 1 lakh. Then came Rs 10 lakh, Rs 25 lakh, and Rs 50 lakh. I believe I can reach Rs 1 crore in the next 2 years, especially with more RSUs vesting and a job switch in mind."

The Redditor initially favoured debt investments to minimise risk, admitting that "Some people might wonder why I put a big portion into debt in the beginning. The simple reason is: fear." This cautious approach provided peace of mind and laid a foundation for taking more calculated risks in equity investments. He gradually shifted focus to equities once he felt more secure. "Once I felt secure, I started taking more risks with equity," he shared.

The user's story is an example of how financial discipline and strategic risk management can lead to significant wealth accumulation, even from a modest starting point. His experience underlines the importance of understanding investment options and maintaining a balanced approach to risk, especially in volatile markets.

This narrative resonates with many who seek financial independence through prudent financial strategies. As a testament to the power of informed investment and financial planning, the Redditor's journey offers valuable lessons for those aiming to optimise their financial future.