‘Boring’ money formula: CA explains simple, decade-long system that actually builds wealth

At a time when social media is flooded with stock tips, trading hacks and promises of quick riches, chartered accountant Nitin Kaushik is making a case for something far less exciting—but far more sustainable. 

In a recent post on X (formerly Twitter), Kaushik argued that financial freedom for salaried Indians is rarely about “genius investing” or outsized paychecks. Instead, he says, it is built on a deliberately unglamorous framework: disciplined saving, steady investing, risk protection, and gradual income growth. 

His message challenges a common perception among middle-class earners — that wealth creation requires market timing, complex portfolios, or unusually high salaries. 

“It needs a boring system followed emotionally strong enough to stay consistent,” Kaushik wrote. 

Step One: Survival before growth 

Kaushik stresses that wealth building does not begin with investing — it begins with financial resilience. 

He recommends setting aside six to eight months of expenses in ultra-safe instruments to cover emergencies such as job loss, medical crises or family obligations. 

This corpus, he notes, should not be treated as an investment vehicle. 

“It’s not about chasing returns. Wealth building fails if life shocks wipe you out first,” he emphasised. 

Financial planners often echo this view, warning that individuals who invest aggressively without liquidity buffers are forced to redeem long-term assets prematurely during crises — eroding compounding benefits. 

Step Two: Automate investing, avoid overthinking 

Once a safety net is in place, Kaushik advocates allocating 20-30% of income into systematic investment plans (SIPs) — preferably in low-cost, broad-market equity funds. 

His prescription is intentionally simple: 

• A single Nifty 50 index fund can suffice, or 
• A light diversification across large-cap, mid-cap, and flexi-cap funds. 

The key, he says, is not sophistication but regularity. 

“Compounding doesn’t need complexity — it needs consistency more than cleverness.” 

This aligns with a growing shift toward passive investing in India, where retail investors are increasingly choosing index-based exposure over actively managed stock picking. 

Step Three: Protection is not optional 

Kaushik warns that many salaried individuals overlook financial protection while chasing returns. 

He recommends two non-negotiables: 

• Term insurance to secure family income. 
• Personal health insurance, independent of employer coverage. 

“These aren’t investments — they’re the emotional safety net that lets you take growth risks peacefully,” he noted, highlighting how reliance solely on workplace insurance can leave families vulnerable after job changes. 

Step Four: Rethink the EMI culture 

One of Kaushik’s strongest observations is directed at India’s rising consumption-driven lifestyle. 

He argues that frequent equated monthly instalments (EMIs) for gadgets, vehicles and discretionary spending often mortgage future financial freedom. 

“Every shiny EMI you take is future freedom you sell.” 

According to him, purchases that require long-tenure financing may signal affordability gaps rather than financial progress. 

Step Five: Income growth matters more than frugality 

While savings discipline is important, Kaushik believes skill development and income expansion accelerate wealth far more than extreme budgeting. 

He encourages professionals to invest in: 

• Certifications and upskilling 
• Consulting or freelancing 
• Monetising expertise online 

Even a modest ₹8,000-10,000 monthly side income, he says, can materially change long-term financial outcomes by boosting investible surplus. 

“Income growth fuels investment growth — without it even perfect discipline feels slow.” 

Psychology behind long-term wealth 

Kaushik’s framework places unusual emphasis on behavioural finance — the ability to stay consistent through market cycles and life events. 

He argues that most successful compounding journeys begin quietly, not with dramatic investment wins but with repeatable habits sustained over a decade or more. 

“Ten years of calm consistency beats 30 years of financial anxiety,” he wrote. 

In an era dominated by algorithm-driven trading apps and viral financial advice, Kaushik’s message resonates as a reminder that wealth creation is often less about brilliance and more about endurance. 

His central thesis is simple: Financial freedom is not engineered through extraordinary moves — it is built through ordinary actions repeated long enough to matter. “This path is boring,” he concluded. “And that’s exactly why it works.”