Latest news with #Finance_Bareek
Time of India
20 hours ago
- Business
- Time of India
'A hug from parents costs Rs 1.5 lakh': CA points out the hidden cost of life outside India
While social media often paints a glossy picture of life abroad—gleaming roads, skyscrapers, spotless subways, and picture-perfect brunches—CA Nitin Kaushik is here with a reality check that's now striking a chord with thousands. Taking to X, Kaushik shared a brutally honest post titled 'Still dreaming of moving abroad? Here's the reality they don't show you!'—a reflection on the emotional, cultural, and financial toll that comes with chasing the so-called foreign dream. He begins by addressing the emotional cost. Loneliness, he writes, is a silent tax you pay every day. Festivals lose their warmth, family dinners become video calls, and you blow out birthday candles alone. "A simple hug from parents costs a 15-hour flight and a Rs 1.5 lakh ticket,' Kaushik laments. Explore courses from Top Institutes in Select a Course Category Operations Management Artificial Intelligence Design Thinking Others Data Science Data Science MCA Degree Project Management healthcare Technology PGDM Management others Healthcare MBA Digital Marketing Public Policy Data Analytics Leadership Cybersecurity Finance Product Management CXO Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details He then turns to a detail many Indians take for granted: domestic help. In India, a maid is often a part of daily life. Abroad? Be ready to wash, clean, and cook—often after a full day's work. And if you try to outsource it? Prepare to shell out $25 to $50 an hour. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo Kaushik also takes a hard look at healthcare, calling it 'a highway to bankruptcy.' An ambulance ride can cost over Rs 80,000, and even basic tests can leave a dent in your wallet. 'In India, quality healthcare is still within reach for the middle class,' he notes. — Finance_Bareek (@Finance_Bareek) Racism, too, isn't left out. Whether subtle or direct, Kaushik says it exists through judgments based on skin tone, accents, or cultural identity. For those raising children abroad, Kaushik highlights the cultural dilemma. Indian values often clash with Western lifestyles, leaving kids caught between two worlds. 'In India, sanskaar comes naturally from the environment,' he says. Even the financial freedom that often lures people abroad isn't without caveats. 'You earn in dollars, but you spend in dollars too,' Kaushik warns. Every outing, meal, or activity adds up quickly, whereas in India, he argues, a moderate income can offer a royal lifestyle. He ends with a stark contrast many overseas Indians relate to: identity. No matter how long you live abroad, the question 'Where are you originally from?' never quite disappears. 'In India, you are, and always will be—Apna.' His final thought? 'Living abroad gives money. Living in India gives meaning.'
Time of India
21 hours ago
- Business
- Time of India
Tax-free, risk-free, and effort-free. But CA says many employees make mistakes that cost lakhs in lost savings
You may think you are investing smart, but you are actually losing out on earning crores and a life of early retirement. Taking to X, chartered accountant Nitin Kaushik explained that while stocks and mutual funds may promise a higher return, employee provident funds (EPFs) are an underrated earning tool that guarantees steady earnings but are overlooked by most. Understanding the Basics of EPF The Employees' Provident Fund, often dismissed as a routine salary deduction, is actually a government-backed savings tool that quietly builds long-term wealth, argued the CA. Under this scheme, 12% of your basic monthly salary is automatically contributed towards your EPF. What most people don't fully appreciate is that your employer is also legally required to contribute an equivalent amount, essentially giving you an additional 12% in free savings every month. Explore courses from Top Institutes in Select a Course Category healthcare Finance CXO Data Analytics Data Science Product Management Artificial Intelligence Others Leadership Data Science MCA Healthcare Cybersecurity Management MBA Degree Operations Management Design Thinking Digital Marketing Technology Project Management Public Policy others PGDM Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details — Finance_Bareek (@Finance_Bareek) For the financial year 2024–25, EPF contributions earn an annual interest of 8.15%. These returns are not only guaranteed by the government but also entirely exempt from income tax. With no requirement for personal effort, trading knowledge, or app-based management, EPF emerges as one of the most secure ways to accumulate retirement funds. The Long-Term Value: Simple Calculations with Major Impact Kaushik explained that an individual with a basic monthly salary of Rs 40,000 contributes Rs 4,800 to EPF. Their employer adds another Rs 4,800, making the total monthly contribution Rs 9,600. At the current interest rate of 8.15%, this individual could accumulate Rs 1.02 crore in 25 years—without including future salary increases. This significant sum is built passively, without the stress of tracking markets or fearing losses. Unlike investments requiring active management, EPF simply compounds in the background, steadily building wealth while you go about your daily life. Why EPF Outperforms Many Investment Alternatives There are several reasons why EPF outshines traditional savings and even many stock market portfolios, stated Kaushik: The interest earned is tax-free It typically offers higher returns than fixed deposits It is not exposed to stock market volatility It builds a habit of disciplined saving The employer's contribution accelerates compounding It eliminates emotional investment decisions such as panic-selling or timing the market These factors combined make EPF an incredibly strong foundation for long-term wealth creation . Common Mistakes That Cost You Dearly Despite the numerous advantages, many individuals fail to fully leverage the EPF system. Some of the most frequent and financially damaging missteps include Withdrawing EPF funds prematurely Neglecting dormant or past EPF accounts Not activating their Universal Account Number (UAN) Failing to update Know Your Customer (KYC) details Ignoring EPF balances after switching jobs These mistakes often lead to lost savings that could have significantly boosted one's retirement fund. When Is EPF Withdrawal Allowed? While EPF is designed as a retirement fund, there are specific scenarios where early withdrawals are permitted. These include: Funding a marriage (self or family) Paying for medical treatment Buying or constructing a house Pursuing education Facing unemployment for more than two months Permanent relocation to another country Even with these allowances, early withdrawal should be a carefully considered decision given its long-term impact on retirement savings. Who Should Invest in EPF? EPF is mandatory for salaried individuals whose basic income is ₹15,000 or less and who work in organisations with 20 or more employees. However, even high-income earners can voluntarily participate by informing their human resources department to activate or maintain their UAN. Choosing to stay invested in EPF can help high earners diversify their portfolio with a low-risk, stable growth component. The Debate: Stocks vs. EPF While stock investments may offer higher returns for those who are financially savvy, they come with considerable risks and require active monitoring, said the CA. For the average person unfamiliar with market fluctuations, EPF offers a reliable, low-stress path to wealth creation. Choosing stocks without expertise is akin to saying you prefer homemade meals but eating out daily—it sounds appealing but doesn't reflect consistent long-term discipline. EPF's Real Strength Lies in Stability Ultimately, EPF is not about exciting returns or beating the market. It's about providing Reliable, tax-free growth A steady stream of contributions from your employer Financial security without the stress of managing investments A disciplined savings routine Long-term peace of mind In an investment landscape full of noise and volatility, EPF stands out as a quiet, consistent performer — and a powerful tool for anyone aiming for a secure and early retirement.
Time of India
3 days ago
- Business
- Time of India
City life, city stress: CA says these 5 habits of villagers are financial masterclass that you should learn
While you may be busy showing off your latest iPhone model or flashing a fancy gadget, it's the villagers who are laughing their way to the bank. In a recent tweet, chartered accountant Nitin Kaushik explained how rural people are more financially savvy than we realise. He wrote that many living in villages and suburbs employ many simple but time-tested money management methods. Spending With Intention, Not Impulse In urban centers, overspending has become common, often driven by trends, social media pressure, or fear of missing out. Flashy purchases and lifestyle inflation are normalized. But in villages, a different philosophy governs spending—one of restraint and deliberate choices. People spend less than they earn, not because it's a finance strategy, but because it's deeply ingrained in their way of life. Villagers live within their means, often below them, and they prioritize saving over showing off. Explore courses from Top Institutes in Select a Course Category Cybersecurity Project Management Data Science Public Policy MBA healthcare Technology Design Thinking Management Healthcare Artificial Intelligence others PGDM Degree Others Operations Management Product Management Leadership CXO MCA Data Analytics Digital Marketing Finance Data Science Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details The Original SIPs: Community-Based Saving While fintech platforms now popularize systematic investment plans (SIPs), rural communities have long been practicing similar models through self-help groups (SHGs) and chit funds. These group-based savings models are built on trust and cooperation rather than digital apps. They encourage disciplined saving habits and provide a safety net in emergencies—something rarely found in impulsive urban financial behavior. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A failing liver is taking anshuman away! Please help him! Donate For Health Donate Now Undo — Finance_Bareek (@Finance_Bareek) Borrowing With Purpose, Not For Pleasure In cities, credit cards are often used to fund luxuries—the latest sneakers, gadgets, or dining experiences. In contrast, villagers treat loans as a last resort and borrow only for essentials like farming equipment, livestock, or seeds. Their approach turns debt into a survival mechanism rather than a financial trap, ensuring it serves a constructive purpose rather than fueling consumption. Asset Building Over Lifestyle Expenses Village economies are centered around acquiring enduring assets such as agricultural land, cattle, and gold. These hold long-term value and contribute to income generation or security. Meanwhile, city dwellers invest in depreciating items—smartphones, vehicles, and entertainment subscriptions—that offer little or no return. The rural focus on tangible, productive assets is a lesson in real wealth accumulation. Diversified Income And Future Planning Unlike many salaried millennials who rely solely on one paycheck, rural households often draw income from multiple sources like farming, dairy, and manual labor. This diversification offers resilience. Moreover, rural families begin saving for important life events—like a child's wedding—from the start, whereas urban professionals often save only what's left after lifestyle expenses. A Lifestyle Rooted In Wisdom, Not Minimalist Trends The simplicity of rural life isn't driven by social trends—it's the result of generational wisdom. Villagers may not chase viral trends or luxury brands, but they consistently make financially sound choices. Perhaps it's time for urban India to stop dismissing rural lifestyles and instead take cues from their enduring financial discipline.
Economic Times
4 days ago
- Business
- Economic Times
CTC is Rs 40 LPA but cannot even afford a vacation: CA decodes a 32-year-old techie's financial reality
An Indian techie earning Rs 40 LPA is struggling with financial freedom. (Pic credit- Istock. Image used for representative purpose only) It sounds like the dream, doesn't it? Rs 40 lakh per annum. Swanky job in tech. A 1.5 crore apartment in Mumbai. A shiny car in the parking lot. From the outside, it's a picture of success. But peel back the curtain, and the reality is sobering: a 32-year-old IT professional with a CTC of Rs 40 LPA is broke. Not just metaphorically — he literally cannot afford a single stress-free vacation. Welcome to India's newest illusion: high income with zero financial freedom. Chartered Accountant Nitin Kaushik recently broke down this alarming financial profile on X. CTC: Rs 40 LPAIn-hand salary: Rs 2.2 lakh/monthFlat in Mulund (Mumbai): Rs 1.5 croreHome loan: Rs 1.25 croreEMI: Rs 1.12 lakh/month Right off the bat, more than 50% of his salary goes toward the home loan. That's not including maintenance, property tax, or rising interest rates. Add to that: Car EMI: Rs 15,000/month, living expenses (food, utilities, social life): Rs 50,000/month. What's left? A razor-thin saving margin of Rs 30,000–Rs 40,000/month, if everything goes perfectly. But life rarely plays by the rules. One minor health issue, one job switch, or even a trip abroad — and the entire house of cards tumbles. — Finance_Bareek (@Finance_Bareek) - Asset-rich, liquidity-poor - Lifestyle inflated income- With no real investments or emergency fund- Retirement planning is becoming non-existent If your income isn't bringing you peace of mind, it may be time to rethink your financial approach. As Kaushik suggests, the first step is to control your spending — don't let your income dictate your expenses; instead, let your long-term goals lead the way. Building a liquid emergency fund is essential and non-negotiable. Focus on investing in real, appreciating assets like mutual funds, index funds, or stocks, and steer clear of lifestyle debt that only drains your to the CA, in today's economy, cash flow is king. So if you're earning big but still broke, you're not alone. But staying stuck in the trap is a choice. ( Originally published on Jul 14, 2025 )
Time of India
5 days ago
- Business
- Time of India
Rs 1 lakh salary not needed, even Rs 30,000 earners can easily be rich: CA shares financial advice to build wealth
A large paycheck is often equated with financial success, but Chartered Accountant Nitin Kaushik has offered a different perspective that questions this conventional view. According to him, earning Rs 1 lakh or more each month doesn't automatically translate into lasting wealth. What truly determines financial progress, he says, is not the income level, but the ability to manage and grow whatever income one has. Kaushik explained that people earning Rs 30,000 to Rs 50,000 monthly can still work towards meaningful financial goals if they adopt the right money practices. It's not about how much comes in, but how much stays — and what is done with it. Start Small, Stay Consistent Instead of focusing on high income alone, Kaushik stressed the importance of spending less than one earns and investing the remaining amount regularly. He encouraged individuals to begin investing even modest sums through tools like SIPs (Systematic Investment Plans). He said that even small contributions, when done consistently over a decade or more, can grow into significant sums due to the power of compounding. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Specialist Down Jackets for Ultralight Adventures Trek Kit India Learn More Kaushik emphasized patience, urging people not to seek overnight results. The focus should be on long-term consistency rather than chasing market highs or trying to time investments. — Finance_Bareek (@Finance_Bareek) Beware of Shortcuts and Risky Bets He also warned against common financial traps, particularly the temptation of high-risk options like cryptocurrency trading or frequent stock market speculation. Kaushik noted that many people end up losing more than they gain in their pursuit of quick returns. According to him, real wealth often grows quietly — through methodical steps rather than dramatic wins. He added that wealth built gradually, without shortcuts or reliance on inheritance, tends to be more stable and enduring. Discipline Over Glamour in Money Matters Kaushik's message concluded with a reminder that flashy purchases and unpredictable income boosts don't equate to financial security. Instead, it is the routine habit of saving and investing, month after month, that creates lasting wealth. He underscored the idea that in personal finance , consistency matters far more than charisma or shortcuts.
