CA says Rs 8 crore won't make you financially free if you lack this one thing

Many people believe building a net worth of several crores is the ultimate sign of financial freedom. But according to CA Nitin Kaushik, that assumption can be dangerously misleading if most of the money is locked away and cannot be accessed when needed.

Taking to X, CA Nitin Kaushik explained that having Rs 8 crore invested in real estate and Employees' Provident Fund accounts does little to help if you have less than two months' worth of liquid cash. He stressed that true financial independence is not measured only by the size of your assets but by how easily you can access money during emergencies or major life changes.

To illustrate the point, Kaushik described a couple in their 40s with a net worth of Rs 8 crore spread across home equity and locked Provident Fund accounts. Despite their wealth on paper, they remain trapped in high-stress jobs because their money is tied up in illiquid assets. Accessing those funds comes with practical challenges and, in some cases, tax penalties.


He pointed out that real estate cannot pay for everyday expenses such as groceries, while retirement accounts that are not easily accessible may not be able to support immediate career transitions or unexpected emergencies without significant friction.


Kaushik also warned against concentrating too much wealth in illiquid investments. According to him, if 90% of a person's net worth is locked in property and other inaccessible funds, they do not truly have financial freedom. Instead, they are living with what he described as "gilded handcuffs", where wealth exists on paper but offers little financial flexibility.


The chartered accountant emphasised that genuine financial independence comes from maintaining accessible cash flow rather than relying solely on a high net worth. His message serves as a reminder that alongside building long-term assets, maintaining adequate liquid savings is equally important for handling emergencies, career changes, and everyday financial needs.