No Passive Income? No Inheritance? CA Shares Proven Wealth Strategy Formula That Feels Like a Dream

2 min read

“You don’t need a side hustle or a rich family—just financial discipline.” That’s the powerful message from CA Nitin Kaushik, a chartered accountant who believes small, consistent habits can build true wealth—without shortcuts or luck.

---

1. Save First, Spend Later 🪙

Kaushik emphasizes the principle: “spend what remains after saving”, not the other way around .

• Treat savings like a fixed expense

• Automate transfers to investments before your salary hits your account

This disciplined mindset mirrors Warren Buffett’s advice—and ensures you control your money, not the reverse.

---

2. Harness the Power of Compounding

Time is your secret weapon. Kaushik illustrates with concrete figures:

• Invest ₹10,000/month at an 8% annual return:

  • After 10 years → ₹18.3 lakh

  • After 20 years → ₹59.3 lakh

  • After 30 years → ₹1.5 crore

The key is consistency—not chasing market highs, but giving compounding time to work its magic.

---

3. Start Small, Start Immediately

You don’t need ₹50,000 a month to begin. Even ₹1,000 monthly can snowball over time .

Starter checklist:

• Open an SIP in an index fund or mutual fund

• Consider equity or real estate for their long-term growth potential

• Reinvest all earnings—don’t touch the gains
  
  
  

---

4. Avoid Unproductive Debt

Kaushik warns: credit cards & personal loans are wealth-killers.

• Focus on good debt (home, education, business)—that builds assets

• Eliminate liabilities that drain your cash flow
  

  

This reinforces financial discipline and frees up money for savings.

---

5. Invest in Growth Assets—Equities & Real Estate

To truly “work while you sleep,” Kaushik suggests:

• Equities/mutual funds for capital appreciation

• Real estate for passive rental income

• Reinvest returns relentlessly to power compounding

These assets generate returns that earn returns—no active effort required.

---

Numerical Example: The ₹10,000 SIP

Let’s break it down:

• Monthly SIP: ₹10,000

• Annual return: 8%

• In 20 years → ₹59.3 lakh

• In 30 years → ₹1.5 crore

Consistency matters—it's the compounding over time, not high returns, that grows a fortune.

---

🧭 Practical Steps for Beginners

• Automate investments: make them paycheck-dependent

• Track expenses: identify and remove unnecessary spending

• Reinvest everything: dividends, rent, interest—all get reinvested

• Prioritize emergency funds: aim for 3–6 months of expenses

Avoid debt traps—especially high-interest ones.

---

Reflection & Call to Action

CA Nitin Kaushik’s advice might seem “boring,” but it’s powerful because it’s simple, repeatable, and time-tested . It proves you don’t need schemes or shortcuts—just the right habits.

Your next step?

1. Set up an automatic SIP today

2. Write down your 10-year wealth goal

3. Comment below: What monthly amount can you commit now toward your future?

---

• economictimes.indiatimes.com