How Indian middle-class households can create over INR 1.2 crore in just 10 years, without a huge salary-- CA gives pointers

For most middle-class Indian families, owning a house of their own, having sufficient money to send children abroad for education, over INR 1.2 crores of savings, and retiring on an auspicious note with financial security is a fantasy. With limited incomes, increasing cost of living, and surprise expenses, saving substantially always seems beyond the reach of many. But CA Nitin Kaushik thinks otherwise.

In a detailed X (formerly Twitter) post, CA Nitin Kaushik clarified that with hard work, wise planning, and regular investing discipline, even individuals with average income can create a wealth of INR 1.2 crores in 10 years. Here's how, according to Kaushik's X post:

Plan for finances early

One of Kaushik's largest tips is to prioritize right from the beginning. For parents, this means starting a child's investment plan from the moment they are born. By investing only INR 10,000 every month — divided between Systematic Investment Plans (SIPs) in index funds and the Public Provident Fund (PPF) — parents can aim to save upto INR 60 lakh in 15 years.

The mathematics takes care of itself through the compounding power: Mutual funds have the potential to earn around 12% every year, and PPF provides safety, tax advantage, and sure shot returns. Periodic top-ups increase the amount further.

Purchase a house without burning your money

For average Indians, home ownership is a big dream— but Kaushik recommends being patient with it. Rather than leaping into a long-term home loan, the families can first rent while saving aggressively on the side. Try to accumulate at least 25% of the price of the property as a down payment before purchase.

While availing a loan, keep the term period low (10 years rather than 20) and see that EMIs do not go beyond 35% of one's salary. This will cut down interest expenses, accelerate repayment of the loan, and also provide scope for other investments.

Begin saving for retirement today

Dependent solely on the Employees' Provident Fund (EPF) is not advisable. Kaushik recommends increasing contributions to the National Pension System (NPS) over a period of time and operating independent retirement-oriented SIPs. The objective: accumulate INR 30–35 lakh in retirement corpus over 10 years. This diversified scheme serves as an inflation hedge as well as unexpected expenses.

Small habits make big impact

It's not so much about how much you make, but how regularly you save. Kaushik suggests:

- Don't inflate lifestyle (don't let your spending increase just because your income is rising)

- Monitor your expenses using a basic spreadsheet

- Postpone splurging on holidays till you reach your savings milestones

- Mark achievements such as reaching ₹5 lakh in SIP investments or paying off loans

The 10-year result

By sticking to this strategy, Kaushik states that a normal family can accrue:

INR 72 lakh from mutual funds

INR 28 lakh from PPF, EPF, and NPS

INR 8 lakh in fixed deposits and liquid funds

INR 15 lakh in home equity (after loan deductions)

Even with deducting liabilities like a INR 22 lakh outstanding home loan, the net worth works out to more than INR 1.2 crore in 10 years.

Kaushik’s message is simple: Wealth is built slowly — through patience, consistent investing, and smart financial decisions — not by chasing quick profits. For middle-class families, starting early and staying disciplined can turn modest salaries into a strong financial future.