Chasing Rs 10 discounts? CA explains why tracking every rupee isn't making you rich

India Today

5 days ago

Many people believe that tracking every single rupee closely means we're managing our money well. They cut down on small spends, look for the best discounts, and feel proud of every saved Rs 10. But here's the thing, these habits might make you feel in control, while your money silently loses value elsewhere.However, according to personal finance expert and CA Nitin Kaushik, this kind of micromanaging can be misleading. He wrote on X, "Most people think tracking every rupee means they're 'good with money.' But here's the harsh truth."advertisement"Obsessing over Rs 10 discounts while ignoring 10,000 in lazy savings. Refreshing stock/mutual fund prices 5 times a day instead of trusting your plan. Calling it 'budgeting' while never questioning your spending pattern. These are low-value financial habits — they feel productive, but barely move the needle," he added.
A deeper look reveals that these practices, often perceived as frugal, might not significantly contribute to wealth accumulation. For instance, maintaining a detailed monthly expense spreadsheet might seem disciplined, yet simultaneously leaving substantial sums in low-yield accounts can be detrimental. This is a common scenario where the balance appears stable, but inflation slowly erodes its value. Kaushik pointed out that such habits, which include frequently checking mutual fund or stock prices, often do not enhance long-term financial returns. Instead, they create a false sense of control while the real financial leaks go unnoticed.advertisementAccording to Kaushik, what really matters is planning smart and thinking long term. He advises investors to review their portfolios from time to time and make sure their investments support future financial goals. Don't get caught up in market rumours or random advice on social media. Also, avoid keeping large amounts of money sitting idle, let it earn more through suitable investment options. Simply tracking expenses isn't enough, your money needs direction to grow.Kaushik further wrote, "The real game? Optimising investments, reviewing goals, and cutting financial noise."The key to effective financial management, as suggested by Kaushik, lies in shifting focus from simple tracking to strategic planning. Merely noting down expenses is not enough; it's about making money work efficiently for you. Instead of getting lost in the minutiae, individuals should periodically review and rebalance their portfolios, align investments with long-term goals, and avoid getting distracted by market volatility or unsolicited financial advice.Kaushik concluded his post by saying, "Focus on strategy. Not just numbers. Don't just track money — make it work for you."In other words, money management is not just about tracking numbers. It's about strategy. Start thinking long-term. Let your money do the heavy lifting.