Latest news with #NitinKaushik
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Business Standard
an hour 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
20 hours ago
- 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.
Time of India
5 days 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
5 days 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
6 days ago
- Business
- Time of India
CA says you don't need Rs 50 lakh in bank to invest like the rich, suggests a 3 small steps to start with
Think investing is only for the rich? Think again. Chartered Accountant Nitin Kaushik has gone viral on X after dropping a brutally simple truth bomb: you don't need Rs 50 lakh in your bank account to start investing like a millionaire—you just need three smart habits. His post is now resonating with thousands who've realised that building wealth isn't about working harder, but working smarter with your money. Here's his three-step game plan that even beginners (and the broke) can adopt: Explore courses from Top Institutes in Select a Course Category Design Thinking Data Science Others Public Policy Product Management Operations Management Digital Marketing Degree Artificial Intelligence Leadership healthcare PGDM Technology Healthcare MBA CXO Management Finance Data Science Project Management Skills you'll gain: Duration: 25 Weeks IIM Kozhikode CERT-IIMK PCP DTIM Async India Starts on undefined Get Details Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details 1. Why are you investing? Kaushik says the wealthy don't invest randomly—they always have a goal. Whether it's short-term goals like building an emergency fund, buying a new iPhone, or planning a solo trip, or long-term ones like early retirement, a child's education, or a dream house—every investment has a 'why' behind it. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The advice? Write down your goals and stick them on your fridge. That daily visual reminder keeps you focused and motivated. — Finance_Bareek (@Finance_Bareek) 2. Always budget Budgeting isn't about killing joy—it's about buying freedom. Kaushik suggests tracking every rupee coming in and going out using a Google Sheet or finance app. Once you've taken care of essentials like rent, bills, and groceries, the next step is to save—and most importantly—invest 10–20% of your monthly income. Even starting with Rs 5,000 a month can grow into over Rs 46 lakh in 20 years (assuming 12% returns). His simple hack? Cancel just one unnecessary expense—like that second Zomato order—and channel it into your SIP instead. 3. Automate investing What sets wealthy investors apart? Systems—not willpower. Kaushik recommends setting up a Systematic Investment Plan (SIP) with a fixed amount and date, so it auto-deducts from your account each month. Once it's set, forget it. The key is to avoid panic-selling when markets dip and to review your plan every 6 to 12 months, increasing the SIP as your income grows. Automation ensures consistency, even when motivation wanes. Why does it matter? Most people believe investing is something you do after you get rich. Kaushik flips that logic: investing is how you get there. The takeaway? Start small, stay consistent, and let compounding work its magic.
