Rs 1.2 crore in 10 years built by middle-class families using simple formula, CA explains
Home Ownership without Financial Strain
Preparing for Retirement Proactively
Simple Money Habits Make the Difference
The Result After a Decade
Rs 72 lakh through mutual funds
Rs 28 lakh via PPF, EPF, and NPS
Rs 8 lakh in fixed deposits and emergency funds
Rs 15 lakh in home equity after adjusting for loans
Building substantial wealth can feel out of reach for many middle-class families, especially when incomes are modest and expenses are high. However, a disciplined and consistent approach to saving and investing can help accumulate over Rs 1.2 crore within a decade, according to Chartered Accountant Nitin Kaushik.He recently shared steps on X that reveal how average earners can secure their financial future without relying on high salaries or risky shortcuts.Kaushik emphasizes the importance of setting clear priorities. For families focused on a child's future, starting an investment plan from the child's birth is key. By investing around Rs 10,000 monthly through a combination of systematic investment plans (SIPs) in index funds and Public Provident Fund (PPF), parents can aim to accumulate approximately Rs 60 lakh over 15 years. This approach works by earning an estimated annual return of 12% on mutual funds, combined with the safety and tax benefits of PPF and occasional top-ups.Owning a house remains a top priority for many, but Kaushik advises against rushing into home loans. Instead, renting while investing allows families to build a strong down payment, ideally covering 25% of the property cost before purchase. He recommends opting for shorter loan tenures of 10 years rather than stretching EMIs over 20 years. Keeping EMIs within 35% of monthly income helps reduce interest burden, ensures faster loan repayment, and offers greater financial peace of mind.Relying solely on Employees' Provident Fund (EPF) may fall short of retirement needs. Kaushik says that smart earners progressively increase contributions to the National Pension System (NPS) and maintain separate retirement SIPs, targeting a corpus of Rs 30-35 lakh within 10 years. This diversified approach safeguards against future uncertainties and inflation risks.Kaushik stresses the value of steady habits over flashy income growth. Avoiding lifestyle inflation, tracking expenses through simple tools like spreadsheets, delaying vacations until savings goals are met, and celebrating small milestones such as reaching a Rs 5 lakh SIP mark or prepaying loans are fundamental to sustained wealth building.Following these disciplined strategies, families often accumulate:He stated that accounting for liabilities like home loans averaging Rs 22 lakh, the net worth surpasses Rs 1.2 crore in 10 years.Kaushik concludes that wealth is built through patience, consistent investing, and making prudent financial choices even on average salaries. The journey involves small, steady sacrifices rather than quick gains. This methodical approach proves achievable for middle-class families who begin early and remain disciplined.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
13 minutes ago
- Economic Times
Capex by CPSEs, four key government agencies declines 23% y-o-y in July
Synopsis Capital expenditure by large central public sector enterprises moderated in July, declining 23% year on year to ₹53,406 crore, attributed partly to an unfavorable base effect. However, spending between April and July rose 2.5% to ₹2.21 lakh crore, driven by a strong June quarter. The Railway Board and NHAI remained the top spenders during this period. Agencies Representation New Delhi: Capital expenditure by large central public sector enterprises (CPSEs) and four key government entities moderated 23% year on year in July to ₹53,406 crore, partly due to an unfavourable base, a senior official capex, including that by CPSEs, remains critical to the country's economic growth this fiscal, as external headwinds-especially uncertainties caused by the US' announcement of a 50% additional tariff on India-can potentially weigh on domestic private investments, experts reckon. To be sure, spending by the CPSEs and four large government agencies having annual capex targets of at least Rs 100 crore each-the Railway Board, National Highways Authority of India (NHAI), Delhi Metro Rail Corporation and Damodar Valley Corporation-rose 2.5% on year between April and July to ₹2.21 lakh crore, thanks to a 15% expansion in the June quarter. In July last year, capex by CPSEs and the four agencies had surged, thanks to the release of pent-up demand following deceleration in the June quarter caused by the administrative slowdown around the 2024 general election. For its part, the central government, too, has sharply raised its capital spending this fiscal. Its capex jumped 52% in the June quarter to ₹2.75 lakh crore, albeit on a favourable base. The finance ministry has already asked various departments and CPSEs to undertake capex regularly, and has been monitoring it regularly. This is crucial because the intended capex of private players is expected to decline to ₹4.9 lakh crore this fiscal from ₹6.6 lakh crore in 2024-25, according to the first round of the Forward-Looking Survey on Private Sector Capex Investment released by the statistics ministry on April 29. Rail Board remains top spender Between April and July, the Railway Board remained the top spender, with a capex of ₹79,152 crore, followed by the NHAI at ₹45,683 crore, showed the latest finance ministry data. ONGC, with ₹11,155-crore capex in the first four months, Indian Oil Corporation (₹10,733 crore), NTPC (₹11,782 crore), PowerGrid Corporation (₹9,045 crore), BPCL (₹4,806 crore), and Coal India (₹4,702 crore) are among the top CPSE CPSEs and the four government entities have set a total capex target of ₹7.85 lakh crore for 2025-26, which is almost 3% lower than the actual spending of ₹8.07 lakh crore last fiscal. The International Monetary Fund had in July projected India to remain the world's fastest-growing major economy over the next two years. It had pegged the country's growth at 6.2% for FY26 and 6.3% for FY27, more than double the global averages. But with US announcing extra tariff on India now, various agencies are trimming their earlier forecasts for the country, with some expecting a 30-80 basis point hit to growth due to the duty burden.
Time of India
22 minutes ago
- Time of India
VMRDA launches works worth Rs 21 crore in Bheemili
Visakhapatnam: The Visakhapatnam Metropolitan Region Development Authority (VMRDA) inaugurated several projects and laid foundation stones for new ones worth Rs 21 crore in Bheemili assembly constituency on Sunday. VMRDA chairman MV Pranav Gopal, Bheemili MLA Ganta Srinivasa Rao, VMRDA metropolitan commissioner KS Viswanathan, participated in the programme. After inaugurating a convention centre built at a cost of Rs 9.50 crore, they laid foundation stones for various major road development projects planned at a cost of Rs 12 crore. Speaking on the occasion, VMRDA chairman M V Pranav Gopal said that following the guidance and vision of chief minister Chandrababu Naidu, utmost priority is being given to providing basic infrastructure facilities in all constituencies within the VMRDA jurisdiction. He expressed happiness at the inauguration and foundation laying of projects worth approximately Rs 21 crore in the Bheemili constituency. He added that a state-of-the-art convention centre, capable of accommodating 1,000 guests, has been made available at a cost of about Rs 9.50 crore. With funds of Rs 5.86 crore, a master plan road is being constructed — 80 feet wide and approximately 1 km long — from Lakeview Layout to Nagarampalem Colony, including CC drains and culverts. Additionally, Rs 3 crore has been allocated for the construction of a 40-foot-wide road connecting Nagarampalem to NH-16, a project that was previously left incomplete. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
22 minutes ago
- Time of India
Bodakdev man loses 13.5cr in property fraud, wife files plaint
Ahmedabad: A 40-year-old resident of Bodakdev on Saturday lodged a complaint with Satellite police, accusing three men of defrauding her husband of Rs 13.52 crore. The alleged scam revolves around a fraudulent property investment scheme involving apartments and agricultural land. The complaint details that the husband, who runs a building material supply business for the past three years, was introduced to a property broker in June 2024. This broker allegedly then introduced the man to two others, who were partners in a real estate firm and reportedly developing residential projects in Ahmedabad. The trio allegedly convinced the man to invest in their upcoming project near Bopal with promises of lucrative returns. On July 23, 2024, the man agreed to buy five flats valued at a total of approximately Rs 8 crore. He paid Rs 5 crore through RTGS procured through a loan and an additional Rs 3 crore in cash, paid in instalments at the accused's office and residence. The accused provided a promissory note, assuring the delivery of property documents at a later date. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad However, instead of delivering the flat documents, the accused allegedly proposed selling agricultural land in Moje-Agol village, Kadi, valued at Rs 20 crore, at a discounted rate to settle the previous payment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Susan Boyle Is Now so Thin and Looks Beautiful! Undo The business, along with his associate, paid an additional Rs 2 crore via RTGS and Rs 4.81 crore in cash. Despite multiple visits to the sub-registrar's office in April, May, and June 2025, the land transfer was never finalized, and the accused allegedly became unresponsive. The complaint accuses the three of conspiring to defraud Rs 13.52 crore without delivering the promised flats or land, nor returning the funds. Satellite police have registered a case under sections pertaining to cheating and criminal breach of trust, and an investigation is currently underway. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
