Latest news with #NitinKaushik
Time of India
8 hours ago
- Business
- Time of India
Your salary won't make you rich. CA shares a simple formula that can help you build wealth
What is the simple formula? CA's message RECOMMENDED STORIES FOR YOU In a world where everyone's chasing bigger paychecks, CA Nitin Kaushik is urging people to pause and ask the uncomfortable question—is your salary really making you wealthy? Spoiler: In most cases, the answer is no. And according to him, there's a simple reason a viral post on X, Kaushik drops what he calls a truth bomb about how the Indian economy works—and why many salaried people are stuck in a cycle of earning without actually building wealth. He points out that while India has over 140 crore people, only about 7–8% actually pay income tax. At the same time, the top 1% of Indians own close to 40% of the country's wealth, while the bottom 50% make do with just 15%. The gap isn't just wide—it's Kaushik doesn't just highlight the problem; he offers a shift in mindset. Most people follow a money formula that sounds logical but doesn't work in the long run: Income – Expenses = Savings. We spend first and save whatever's left. The wealthy, however, flip that around. Their formula? Income – Savings = Expenses. In simple words, they pay themselves first. They make saving and investing non-negotiable, and then figure out how to live within the remaining Nitin Kaushik's message is simple but powerful: your salary alone won't make you rich unless you learn how to use it right. Wealth isn't just about how much you earn—it's about what you do with it. He concluded by saying, "Your money is your responsibility. Period."
Time of India
2 days ago
- Business
- Time of India
Rs 1 lakh salary, still broke? CA points out 7 financial blunders you might be making
You just got your salary. The message pops up — Salary credited. Feels good, right? But before you know it, half your paycheck's already gone: dinners, impulsive shopping, EMIs, subscriptions you forgot you had. And by the end of the month, you're wondering — Where did all my money go? If this sounds familiar, you're not alone. According to CA Nitin Kaushik , even people earning ₹50,000 to ₹1 lakh a month often feel broke — not because they don't earn enough, but because they fall into the same money traps again and again. He recently shared 7 classic financial blunders that most Indians make, along with smart ways to break the cycle. Explore courses from Top Institutes in Please select course: Select a Course Category 1. Spending before budgeting The biggest mistake? Spending first, budgeting later — or never. The CA gives an example where you earn Rs 50,000. You blow Rs 12,000 on weekend takeout and random online buys. By mid-month, you're scraping by. Instead, he says to flip the script and follow the 50-30-20 rule: - 50% on needs (like rent and bills) - 30% on wants (like Netflix or dinners) - 20% on savings and investments 2. No emergency funds Emergencies don't wait until you're 'ready.' According to Nitin Kaushik , a sudden Rs 15,000 hospital bill or job loss can throw your entire month into chaos. Start building an emergency fund now — even Rs 2,000/month can add up. Your goal: at least Rs 75,000 to Rs 1 lakh, parked safely in a liquid fund or fixed deposit. — Finance_Bareek (@Finance_Bareek) 3. Saving, but not investing Stashing Rs 20,000 in a savings account sounds responsible — until you realise it earns just 3% interest (that's Rs 600 a year). Instead, he suggests trying SIPs (Systematic Investment Plans). Investing Rs 5,000/month for 10 years with decent returns (12–14%) can grow to over Rs 11–13 lakhs. That's the power of compounding. 4. Lifestyle inflation Got a raise? Congrats — but the CA warns to not rushing to upgrade your phone, wardrobe, or car. This is where most people lose money. Your salary grows, but your expenses grow faster. He recommends trying this instead: keep your lifestyle steady for a year. Channel the 'extra' money into investments and let it grow. Live like you're still earning less — future-you will thank you. 5. Impulse shopping The CA further points out that ordering on apps like Zomato, Amazon, and Myntra means temptation is everywhere. Before you know it, you've spent Rs 5,000 on stuff you didn't need. Use the 24-hour rule: Add to cart. Wait 24 hours. Still want it? Buy it. If not, let it go. Your bank balance will look a lot healthier. 6. EMIs that trap you 'Rs 5,000 EMI? That's nothing!' But over a year, that's Rs 60,000+ of your salary gone. Kaushik suggests keeping EMIs under 15% of your net monthly income. And always ask yourself: 'Can I afford this if I lose my job tomorrow?' If the answer is no, rethink that purchase. 7. Not tracking your money The simplest fix? Know where every rupee goes. Most people don't track their spending, then wonder why their money disappears. Just 30 days of tracking (via a free app or even a Google Sheet) can completely change your money habits, he said. CA's final advice: Your salary is not just for spending. It's your launchpad. Your first investor. Your key to freedom. Whether you earn Rs 30,000 or Rs 1 lakh, the way you handle your money makes all the difference. Control it now — or spend years letting it control you.
Time of India
6 days ago
- Business
- Time of India
'Modern slavery' packaged as lifestyle 'upgrades'? How to break the consumer trap that makes you overspend, CA explains
In an age where new gadgets, apps, and trends constantly flood the market, the pressure to keep up is stronger than ever. Whether it's the latest smartphone, a new car, or premium subscriptions, people are often made to believe that frequent upgrades reflect progress. But this relentless cycle of spending may be more harmful than helpful. Chartered Accountant Nitin Kaushik recently shared insights on social media, questioning whether these so-called 'lifestyle upgrades' are actually a form of modern financial slavery. A Cycle of Spending Disguised as Progress Kaushik, a practicing CA, shared a post on X (formerly Twitter) highlighting how people unknowingly fall into a consumer loop that gradually drains their income. He argued that while these purchases are framed as improvements, they often serve to trap individuals in an endless cycle of financial commitment. From buying a new phone every two years to replacing a car within a decade, most expenses are not driven by need — but by habit. Explore courses from Top Institutes in Please select course: Select a Course Category Degree Finance Management CXO Data Analytics Artificial Intelligence Data Science Technology healthcare Design Thinking Others Leadership Digital Marketing MBA Public Policy others Operations Management Project Management Cybersecurity Product Management Data Science PGDM MCA Healthcare Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details He pointed out that even large assets like homes aren't spared. Residential redevelopment typically occurs every 20–25 years, with the financial burden often falling on the homeowner. Instead of providing security, such purchases become recurring expenses. — Finance_Bareek (@Finance_Bareek) Built to Expire, Designed to Replace Kaushik further explained that many products are intentionally built with short life cycles. Laptops are seen as outdated within three years, especially for users of premium brands. Mobile phones push out frequent updates and camera improvements, making older models seem obsolete — even if they still function well. The issue extends to software and digital services. Subscription-based apps often lure users in, only for interest to fade within weeks, even as recurring payments continue. On top of that, loan cycles reinforce the same pattern: once one loan is cleared, another is often taken, keeping people financially tied down. The Illusion of Upgrades, The Cost of Peace Kaushik described this phenomenon as a treadmill — people keep running but never actually move forward. He warned that this isn't truly about improving life; it's about replacing things that could still serve their purpose. 'Nothing grows old gracefully anymore,' he noted, stressing that the system is built to encourage replacement over repair. His key message: instead of chasing superficial upgrades, individuals should prioritize peace of mind. Financial freedom comes not from buying more, but from resisting the pressure to spend unnecessarily. According to Kaushik, in a world that constantly pushes consumption, stepping off the treadmill might be the most valuable upgrade of all.
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Business Standard
6 days ago
- Business
- Business Standard
Earning well, still broke: CA explains reason for techie's financial stress
IT professional trapped in 'house rich, cash poor' cycle despite earning monthly salary of Rs 2,20,000 Indian working professionals would regard an annual salary package of Rs 40 lakh as financial bliss. But even that kind of money won't be enough without financial planning, according to a social media post by chartered accountant Nitin Kaushik. Kaushik wrote about a 32-year-old Mumbai-based IT professional who is financially stretched despite earning Rs 2,20,000 as monthly salary. The reason? Lifestyle, loans, and limited investments. The breakdown: Where the money really goes Here's how the IT professional spends his salary: -Car EMI: Rs 5,000 -Living expenses: Rs 50,000 monthly -Monthly savings or investments: Rs 30,000- 40,000, if everything goes to plan A disruption, like job change or a medical emergency, could derail his finances. 'Welcome to being house rich, cash poor,' said Kaushik on X, summing up a situation where an individual owns assets but lacks sufficient liquid cash to stay financially secure. The real issue: Poor financial planning, not income Kaushik's post reflects a larger trend in India's urban salaried class. The key problems he highlights include: No emergency fund: A basic safety net is missing Lifestyle inflation: Spending rises as income grows No retirement planning: Long-term goals are ignored in favour of short-term comfort Lessons for every high earner Kaushik's message is simple but critical: a high salary doesn't guarantee wealth. Net worth may look impressive on paper, but cash flow is king. Here's what professionals can do differently: 1. Spend mindfully: Avoid expanding lifestyle in step with income 2. Invest for returns: Prioritise mutual funds, equities, or other productive assets liquidity: Keep an emergency fund that covers 6–12 months of expenses 4. Beware of aspirational debt: Don't borrow for the sake of social image or peer pressure High salary without a sound money plan will make you feel broke. As Kaushik puts it: 'Instead of just chasing bigger salaries, start chasing financial freedom.' For young professionals, the takeaway is clear: real wealth is about smart money management, not just a big paycheque.
Time of India
23-07-2025
- Business
- Time of India
'One medical emergency can wipe you out': Why is this CA saying Rs 1 lakh salary isn't enough for India's middle class
India's urban middle class is grappling with a tough truth: a monthly salary of Rs 1 lakh no longer guarantees financial comfort. Chartered Accountant Nitin Kaushik puts it plainly—if you're earning Rs 1 lakh and still feeling the pinch, it's not poor budgeting but inflation that's eroding your income. Check full text of post here: Let's decode a ₹1,00,000 salary and see where it actually goes. This might surprise you: Monthly Salary: ₹1,00,000 (CTC or in-hand depending on job type) Expenses Breakdown: Rent / PG / Apartment: ₹25,000 Food & Groceries: ₹12,000 Transport (Cab/Metro/Fuel): ₹7,000 Phone + Wi-Fi: ₹3,500 Toiletries + Laundry: ₹2,500 — Finance_Bareek (@Finance_Bareek) Emergency Fund Contribution: ₹5,000 Basic Savings (5%): ₹5,000 Insurance (Term + Health): ₹5,000 Eating Out (3 times a month): ₹3,000 Personal/Entertainment/Fees: ₹10,000 Retirement Planning (EPF/NPS): ₹10,000 Investments: ₹15,000 Investment Breakdown (₹15,000): SIP in Mutual Funds: ₹6,000 PPF (Public Provident Fund): ₹3,000 Gold / Sovereign Gold Bonds: ₹2,000 Direct Equity (Stocks): ₹2,000 Emergency Fund (Fixed Deposit): ₹2,000 Reality Check: Even with a controlled lifestyle and basic savings, there's barely any buffer. A single unexpected event—like a medical emergency—can wipe you out. Moral of the Story: Don't wait for a bigger paycheck to start saving. Budget ruthlessly, invest smartly, and review finances regularly. Your salary isn't your wealth—your savings rate is. India's household savings continue downward trajectory India's household savings continued their downward trajectory for the third straight year, slipping to 18.1 per cent of GDP in financial year 2024 (FY24), as per CareEdge Ratings. The report added that Gross domestic savings declined to 30.7 per cent of GDP in FY24 from 32.2 per cent in FY15. On the other hand, household financial liabilities surged to 6.2 per cent of GDP, nearly doubling over the past decade, reflecting growing reliance on credit amid consumption needs, the report observed. It highlights that despite the concerning savings trend, rural India offers a silver lining. Explore courses from Top Institutes in Please select course: Select a Course Category Degree healthcare Data Analytics Management others Leadership Operations Management Cybersecurity Design Thinking Finance Product Management Project Management Artificial Intelligence MBA Data Science MCA Digital Marketing Technology Others CXO Public Policy PGDM Data Science Healthcare Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details Wage growth for rural male workers rose by 6.1 per cent year-on-year in February, outpacing rural inflation for the fourth consecutive month. This, along with easing food inflation and favourable agricultural prospects, is supporting rural demand recovery, the report added. Rural consumer confidence, hovering around the neutral 100 mark, reflects a cautious optimism. In contrast, urban consumer confidence remains in pessimistic territory, though expectations for the year ahead remain upbeat across both segments, the report added. In the broader economy, labour cost growth for major IT firms has slowed significantly from a peak of 26 per cent in Q3 FY23 to just 4 per cent in Q3 FY25, highlighting a broader trend of cost rationalisation in the corporate sector, as per the observations of the report. On the inflation front, CPI eased to 3.2 per cent in April 2025, the lowest since August 2019. However, high prices of edible oils (17.4 per cent) and fruits (13.8 per cent) continue to keep overall food inflation in check. The upcoming Rabi harvest, healthy reservoir levels, and forecast of above-normal monsoon rains are expected to further support food price stability, the report added. "Going ahead, RBI policy rate cuts, lower tax burden and continued easing of price pressures remain key tailwinds for the broad-based demand recovery," the report said Live Events As per the government data, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25.
