In a post shared on X, Kaushik emphasizes that financial discipline is the foundation of wealth accumulation. “If you save at least half of your income consistently, you create the base for substantial wealth over time,” he points out. For someone earning ₹1 lakh per month, saving 50% sets the stage for significant growth without drastically changing lifestyle choices.
Smart Investment Choices
Saving alone is not enough. Investing wisely is the next step. Kaushik recommends putting around 70% of your savings into equities, such as systematic investment plans (SIPs), index funds, or carefully selected quality stocks. Equities, he explains, benefit from India’s growth trajectory and the long-term upward trend of markets.
“Investing consistently in equities allows your money to grow exponentially,” Kaushik notes. By focusing on long-term growth rather than short-term market fluctuations, investors can harness the power of compounding.
Consistency Over Decades
Perhaps the most critical factor, according to Kaushik, is time. Staying invested for 20 years or more can turn a monthly SIP of ₹1 lakh into more than ₹10 crore, assuming a reasonable 12% annual return. “This isn’t a fantasy or luck. It’s mathematics working quietly behind the scenes,” he adds.Kaushik stresses that investors do not need to engage in daily trading or attempt to time the market. Instead, the focus should be on believing in India’s long-term economic growth and remaining invested through market cycles.
The Three Habits To Build Wealth
From Kaushik’s insights, three habits emerge for wealth creation before 40:
- Save aggressively: Set aside at least 50% of monthly income.
- Invest wisely: Allocate the majority of savings to equities for long-term growth.
- Be patient and consistent: Maintain investments for decades to leverage compounding.
Those who adopt discipline, strategic investment, and patience now could enjoy a life of financial security and wealth accumulation in the years to come.