No side hustle? No family fortune? CA reveals 'dull' wealth equation that works while you sleep

A chartered accountant recently made waves on social media with a headline-grabbing post on money management and long-term wealth generation. CA Nitin Kaushik, who has made a name for himself in the domain of personal finance, took to platform X to demystify the age-old philosophy of spending what is left after saving—instead of saving what is left after spending. He based this insight on the wisdom of master investor Warren Buffett, and he reminded individuals that accumulating wealth is not just about numbers—it's about living life in freedom, choice, and security.

Kaushik emphasized that every rupee invested becomes a tireless worker, one that operates around the clock without asking for breaks, benefits, or promotions. When money is strategically invested, it forms an invisible but powerful force that continues to grow, forming the foundation for lasting financial independence.

Harnessing the Power of Time and Compounding

To illustrate how money can multiply with consistency and patience, Kaushik provided a striking example. An investment of Rs 10,000 every month at an 8% rate of return would grow into Rs 18.29 lakh in ten years, Rs 59.31 lakh in twenty years, and a whopping Rs 1.5 crore in thirty years. This power of compounding has nothing to do with following high returns but having time as a strong ally. Consistency is the actual driver—making consistent contributions over a period of time.

Simple Steps to Begin Building Wealth

Kaushik presented a line of practical advice to those who are embarking on their financial journey. To start off: start as soon as possible, no matter how little money one has. Even ₹1,000 per month can accumulate into a significant amount when provided with time. The sooner one starts, the more power compounding will have.

He also urged emphasis on assets that appreciate in value and pay out income—such as equities for wealth appreciation, real estate for rental income, mutual funds for diversified risk investments, and even business enterprises that yield compounding returns through reinvested earnings.

Another habit he supported was the reinvestment of dividends. Rather than spend the dividend, leaving them invested allows compounding to gain momentum, converting lowly savings to considerable wealth over the years.

Steering Away from Financial Traps

Steering away from unproductive debt is also crucial. Kaushik suggested avoiding debts like credit card expenses or loans for luxury goods and instead employing useful debt like home or business loans to buy appreciating assets. Lastly, he told his audience that growing riches is not about rushing but doing persistent, patient work over decades.

About Nitin Kaushik

As per his LinkedIn profile, Nitin Kaushik is a commerce graduate from Delhi University and a chartered accountant. His suggestions aren't just based on theoretical knowledge but also due to years of experience in finance, with the intent to guide others to become financially independent through wise investments.