'Investment hai… zarurat padti hai': Are Indians mistaking lifestyle spends for wealth-building? 

A sharp social media post by Sanjay Kathuria, CFA, is sparking debate online for calling out what he describes as India’s most glorified money mistakes—lavish weddings, idle gold, and new cars bought on EMIs—all under the guise of "investments."

The post, which breaks down three high-spend habits, highlights how deeply entrenched cultural and emotional biases continue to derail real financial growth for millions of Indians.

The new car on EMI

Kathuria starts with a familiar financial trap: buying a Rs 15 lakh car on a Rs 25,000/month EMI for five years. 

“You lose Rs 5 lakh in value the moment it leaves the showroom,” Kathuria stated, underscoring the rapid depreciation of a vehicle that neither appreciates nor generates income. Yet for many, this is seen as a milestone or a necessary life upgrade.

The gold that gathers dust

Next in line is gold—bought not for investment, but for tradition. “Stored in a locker, never used… Emotionally priceless, financially stagnant,” Kathuria notes. While India is the world’s second-largest consumer of gold, much of it sits idle. It holds no liquidity, pays no interest, and often remains untouched for decades. Despite its cultural significance, it does little to support long-term financial growth.

Weddings that cost as much as a house

Perhaps the most financially jarring is the grand Indian wedding. With families spending Rs 20–Rs 50 lakh for a three-day celebration, Kathuria points out the painful truth: “No return, only regret. Guests forget, EMIs don’t.” These expenditures are rarely budgeted as lifestyle expenses—instead, they’re often justified as social necessities or emotional investments.

The real cost: Delayed wealth creation

What ties all three together is the misplaced notion of long-term value. “None of these generate income. None appreciate meaningfully,” the post reads. Kathuria warns that such spending habits can delay or even derail wealth creation for years.

In contrast, he lists what true investments look like: SIPs in mutual funds, digital financial products, upskilling for business or career growth, and income streams that scale over time. These, he argues, offer compounding returns—the real engine of wealth.

"The real flex isn’t spending more. It’s compounding more."
This line from his post is now trending among financial influencers and everyday investors alike. It reframes financial freedom not as a byproduct of spending power but as a function of discipline and long-term thinking.

As rising consumerism meets fragile personal finance habits, Kathuria’s post hits where it hurts: exposing the cultural blind spots that often pass off liabilities as “investments”—a mindset India may need to rethink.