He looks rich and has Rs 5 crore in assets. But always counts dates till the next salary. CA decodes the financial mistake

Having crores in assets may sound like the ultimate mark of wealth, but is it really enough to keep life stress-free? Many people proudly chase big net worth numbers, only to find themselves still anxious about the next paycheck. Chartered Accountant Abhishek Walia recently shared a case study that perfectly highlights this financial trap — showing how paper wealth can leave you vulnerable if it doesn’t translate into steady, real cash flow.

Walia recalled a client who claimed to have Rs 5 crore in assets. At first glance, it seemed impressive. But once the numbers were unpacked, reality looked less glamorous. Out of that, Rs 4 crore was tied up in a house he neither wanted nor could afford to sell, while another Rs 1 crore sat in private investments with no liquidity. His bank balance? Barely enough to cover three months of living expenses. Despite his “crorepati” status, one job loss could push him into financial panic.



In contrast, Walia pointed to another client with a far smaller portfolio of around Rs 50 lakh. On the surface, nothing extraordinary. But this money was carefully placed in assets that generated consistent returns — rent, dividends, and interest. The result? A yearly income of Rs 4–5 lakh that comfortably covered his expenses. No pressure of EMIs, no countdown to the next salary, and no fear of sudden financial shocks.



The difference, Walia explained, is simple but critical. Net worth gives you a snapshot of wealth, but cash flow determines survival. Businesses know this, which is why they track cash flow statements more closely than flashy valuations. Individuals, he argues, should take the same approach. After all, you can’t pay school fees, hospital bills, or household expenses with “Rs 5 crore on paper.” What really matters is the income your wealth generates without you working for it. That’s the real number that decides whether you’re financially secure — or just look rich.