₹50K earner feels rich, ₹5L earner feels broke: CA shares compounding lesson for financial discipline
With inflation, lifestyle inflation, and social pressures pushing people to spend more, the post serves as a timely reminder: wealth is not just about numbers, but about cultivating the mindset of “enough.”
- Sep 1, 2025,
- Updated Sep 1, 2025 2:56 PM IST
In a recent post on X (formerly Twitter), chartered accountant Nitin Kaushik challenged the common notion that higher income automatically translates into wealth.
“It’s not the man who has too little that is poor. It’s the man who keeps craving more that never feels rich,” Kaushik wrote, highlighting how financial security is built on contentment and discipline rather than sheer earnings.
To drive home his point, Kaushik compared two scenarios:
- An individual earning ₹50,000 a month but saving and investing 20% consistently could feel financially secure within a decade.
- Another person making ₹5 lakh a month but spending their entire income would always feel broke.
He underscored the importance of compounding, noting that even a modest SIP of ₹10,000 per month at 12% CAGR can grow into over ₹70 lakh in 20 years.
Kaushik advised individuals to rethink their approach to money. “Before you ask ‘How can I earn more?,’ first ask — ‘Am I maximizing what I already have?’ That’s where real wealth begins,” he said.
With inflation, lifestyle inflation, and social pressures pushing people to spend more, Kaushik’s message serves as a timely reminder: wealth is not just about numbers, but about cultivating the mindset of “enough.”
The power of compounding is often called the “eighth wonder of the world” because of its ability to turn small, consistent investments into substantial wealth over time. Unlike simple interest, where returns are earned only on the principal, compounding allows you to earn returns on both your original investment and the accumulated gains.
This creates a snowball effect—the longer money stays invested, the faster it grows. For example, even a modest monthly investment of ₹10,000 at a 12% annual return can grow to over ₹70 lakh in 20 years. The key lies in starting early, staying disciplined, and allowing time to do its work. Compounding proves that wealth creation is not just about how much you invest, but how long and consistently you allow your money to grow.
In a recent post on X (formerly Twitter), chartered accountant Nitin Kaushik challenged the common notion that higher income automatically translates into wealth.
“It’s not the man who has too little that is poor. It’s the man who keeps craving more that never feels rich,” Kaushik wrote, highlighting how financial security is built on contentment and discipline rather than sheer earnings.
To drive home his point, Kaushik compared two scenarios:
- An individual earning ₹50,000 a month but saving and investing 20% consistently could feel financially secure within a decade.
- Another person making ₹5 lakh a month but spending their entire income would always feel broke.
He underscored the importance of compounding, noting that even a modest SIP of ₹10,000 per month at 12% CAGR can grow into over ₹70 lakh in 20 years.
Kaushik advised individuals to rethink their approach to money. “Before you ask ‘How can I earn more?,’ first ask — ‘Am I maximizing what I already have?’ That’s where real wealth begins,” he said.
With inflation, lifestyle inflation, and social pressures pushing people to spend more, Kaushik’s message serves as a timely reminder: wealth is not just about numbers, but about cultivating the mindset of “enough.”
The power of compounding is often called the “eighth wonder of the world” because of its ability to turn small, consistent investments into substantial wealth over time. Unlike simple interest, where returns are earned only on the principal, compounding allows you to earn returns on both your original investment and the accumulated gains.
This creates a snowball effect—the longer money stays invested, the faster it grows. For example, even a modest monthly investment of ₹10,000 at a 12% annual return can grow to over ₹70 lakh in 20 years. The key lies in starting early, staying disciplined, and allowing time to do its work. Compounding proves that wealth creation is not just about how much you invest, but how long and consistently you allow your money to grow.