CA warns: Common money mistake can become a 'financial suicide' and cause lakhs of loss

In a time when many young earners are chasing quick gains and viral stock tips, a chartered accountant has flagged a simple but often ignored mistake that, over the years, can cost people lakhs. The warning is not about risky trading or scams, but about something more basic: delaying or ignoring the power of compounding.

Chartered accountant Nitin Kaushik recently shared his views on X, where he broke down how small, consistent investments can grow significantly over time, and why avoiding them can turn into a major financial setback.

The cost of doing nothing

In his post, Kaushik explained, “The math of ignoring basic compounding is a slow financial SUICIDE.” He pointed out that many people underestimate how much they lose simply by not starting early. Instead of investing, a lot of individuals either keep money idle or spend years waiting for the “right time” or a big opportunity that rarely arrives.


To explain his point, he used a straightforward example. “If you start a ₹3,000 monthly SIP and let it run for 15 years at a 12% return, you end up with over ₹15 lakh from a total investment of just ₹5.4 lakh.”


The numbers show the difference clearly. A relatively small monthly amount, when invested regularly, grows into a much larger corpus over time. What stands out here is that a big portion of that final amount doesn’t come from what you put in, but from the returns generated along the way.

Why people still miss out

Despite such examples being widely known, many investors continue to chase faster results. As Kaushik noted, “Most people waste that same amount of time trying to pick ‘hot’ stocks or waiting for a massive windfall that never comes.”

This approach often leads to inconsistency. People enter and exit markets based on trends, and in the process, they miss out on the steady growth that disciplined investing can offer.


Kaushik also stressed that building wealth does not always require complex strategies. “Moving money into an index fund or a simple mutual fund isn’t about being a genius; it is about automating the 180% growth that happens while you aren’t looking.”


The idea here is not to outsmart the market, but to stay invested long enough for compounding to do its work. Regular contributions and patience tend to matter more than timing the market.

Another key takeaway from his post is how much of the final wealth comes from returns rather than the initial investment. “Once you see that nearly two-thirds of your final corpus is just pure interest, it becomes impossible to justify keeping cash idle.”

This highlights why delaying investments can be costly. The longer money stays uninvested, the more compounding time is lost, and that gap becomes harder to recover later.