How to earn money while you sleep? CA Nitin Kaushik explains the wealth building formula most people miss

For many Indians, owning a house or buying gold is still seen as the safest way to build wealth, something that has been passed down over generations and rarely questioned. But a recent post by Nitin Kaushik is now making people pause and rethink this approach, especially when it comes to liquidity and actual income from those assets.

In his post on X, Kaushik wrote, “Indians have all the wealth but almost none of the liquidity.” The statement captures a reality that financial planners have been flagging for years, the gap between owning assets and actually having accessible money.

Heavy Dependence on Physical Assets

Breaking down the numbers, Kaushik highlighted how Indian households allocate their wealth. “Indian households hold 51% of their total assets in real estate and another 15% in gold that’s 66% of all household wealth sitting in physical assets,” he noted.


This leaves only a small portion in financial instruments. “Only 5% sits in equities and 14% in bank deposits,” he added, pointing out how limited exposure to market-linked or income-generating assets remains.

Compared to other countries, the difference is stark. “Only 20% of personal wealth in India is held in financial assets, one of the lowest shares among all countries studied compared to 60%+ in the US, Sweden, and Taiwan,” Kaushik explained. The contrast shows how Indian households lean heavily towards traditional, tangible investments.

The Real Issue Isn’t Choice, It’s Concentration

Kaushik clarified that the problem is not necessarily about choosing real estate or gold. Instead, it’s about how much of the portfolio is tied up in these assets. “The problem isn’t the asset choices it’s the concentration,” he wrote.

This concentration creates a situation where most wealth is locked in forms that are difficult to access quickly. Even if the overall value is high, the ability to use that wealth when needed becomes limited.

He gave a simple example to explain the downside. “A ₹1 crore flat that rents for ₹25,000 a month is a 3% yield with zero liquidity,” Kaushik pointed out. While property ownership is often seen as a strong investment, the returns may not always justify the capital locked in.


More importantly, liquidity becomes a challenge. “You can’t sell 10% of your flat if you need money,” he added, underlining how such assets are not flexible in times of financial need.

Gold, another popular choice, comes with its own limitations. “Gold in a locker doesn’t compound,” Kaushik said, referring to the lack of income generation or growth unless prices rise significantly.

The Idea of Earning While You Sleep

The broader message from Kaushik’s post is about shifting mindset. “At some point, building wealth means owning assets that work for you while you sleep not assets you have to pray appreciate,” he wrote.

This idea focuses on assets that generate regular income or compound over time, such as equities, mutual funds, or other financial instruments. These options, while sometimes seen as riskier, can offer both liquidity and growth if approached with planning and discipline.

Kaushik’s observations come at a time when more Indians are exploring new investment avenues, yet traditional preferences still dominate. His post doesn’t dismiss real estate or gold but pushes for balance, a mix that allows both stability and access to funds when needed. For many households, the takeaway is simple but not easy: wealth is not just about what you own, but how effectively it works for you.