3-step formula to build wealth, according to a CA: Doing it is simple. Discipline isn’t

Despite the overwhelming number of financial strategies and tools available today, many people continue to struggle with building real, lasting wealth. For most, the process feels confusing, time-consuming, or out of reach. However, financial discipline doesn’t need to be complex. Some experts argue that the basics of wealth creation remain unchanged — and mastering them is far more effective than chasing trends.

One such voice is Chartered Accountant Nitin Kaushik, who recently shared a simplified three-step formula for wealth creation in a post on X (formerly Twitter).

Step 1: Focus on Increasing Income

Kaushik emphasised that the foundation of wealth doesn’t begin with budgeting but with growing your income. He urged individuals to explore various ways to boost their earnings — whether through side hustles, freelancing, acquiring new skills, or even switching jobs.


The key idea, he noted, is to increase the top line before thinking about expenses. A stagnant income severely limits the potential for meaningful savings or investment, regardless of how frugally one lives.

Step 2: Live Below Your Means

The second step in Kaushik’s formula stresses the importance of spending less than you earn. While this advice might seem obvious, he pointed out that many people struggle with it due to lifestyle inflation — the habit of spending more as income rises.

He advised maintaining control over discretionary spending and resisting the urge to upgrade lifestyle choices too quickly. According to Kaushik, accumulating wealth requires the discipline to consistently save and avoid unnecessary expenses, even when income improves.

Step 3: Invest With Purpose

Finally, Kaushik underscored the importance of putting money to work through strategic investments. He cautioned against keeping all savings in traditional bank accounts, where growth is limited.

Instead, he recommended investing in asset classes like stocks, mutual funds, index funds, real estate, and businesses. These options, he said, allow compound interest to play a significant role over time, which is key to long-term wealth generation.


Kaushik concluded that while the steps to building wealth are simple in theory, the challenge lies in consistent execution. He noted that those who can maintain focus, control spending, and invest regularly are the ones most likely to succeed financially over the long run.