Only savings won't make you rich, warns CA. He shares a simple formula to create wealth

In a world obsessed with frugality, CA Nitin Kaushik has a blunt message for anyone trying to build wealth: saving alone won’t make life rich. While cutting expenses and living frugally can grow your bank balance, it can also quietly shrink your life. True financial success comes from understanding the balance between disciplined investing and intentional spending—making your money work without sacrificing the quality of your everyday life.

Kaushik explains that allocating roughly 20–30% of your income to lifestyle while investing the rest consistently can compound wealth powerfully over time. This portion isn’t meant for mindless splurges—it’s for things that improve daily life: quality shoes that protect your health, clothes that boost confidence, trips that recharge mental energy, restful stays, or a car that genuinely saves time.



Extreme deprivation, he warns, often leads to burnout, impulsive spending later, or declining productivity—costs that never appear in spreadsheets. Life doesn’t wait until retirement, and peak energy, curiosity, and health occur far earlier than most financial plans assume. The smartest strategy isn’t maximum saving—it’s sustainable living combined with steady investing. Money should support your life today, not postpone it for decades, ensuring you build wealth while truly living.

Building wealth from scratch

CA Nitin Kaushik also shared practical advice for building wealth from scratch, emphasising that earning more isn’t enough—understanding how money works is what matters. He highlighted that financial and business education outweigh fancy degrees, as knowledge of compounding, cash flow, inflation, and taxes prevents money leaks.


Saving consistently, like Rs 20,000 a month at 8% CAGR, can grow to around Rs 30 lakh in a decade. Awareness of global economics—from interest rates to currency moves—affects everyday finances, while living frugally early creates capital for compounding. Sharing space, avoiding lifestyle inflation, and cutting unnecessary expenses aren’t hacks—they’re strategies. True wealth grows quietly over time, patiently and mathematically, proving that financial success starts with discipline, clarity, and smart choices, not flashy shortcuts.