With Rs 1 cr networth, stressed over Rs 50,000 repair. CA warns why Indians still struggle during emergencies

On paper, many professionals today appear financially successful. They own property, invest in retirement funds, hold ESOPs, and proudly calculate a net worth running into crores. Yet when a sudden medical bill, job loss, or even a Rs 50,000 car repair appears, panic quietly sets in. According to chartered accountant Nitin Kaushik, the problem is not always low income or lack of wealth. Instead, he says a growing number of Indians are becoming “dangerously illiquid” despite having impressive-looking balance sheets.

Taking to X, CA Nitin Kaushik shared a blunt financial reality that resonated with many working professionals online. In his post, he wrote, “You aren’t poor, you’re just dangerously illiquid.” Explaining the idea further, Kaushik pointed out that it is completely possible for someone to have a net worth of Rs 1 crore and still feel financially stressed over a relatively smaller emergency expense like a Rs 50,000 car repair bill. The reason, according to him, lies in how most people structure their wealth.

Kaushik observed that many professionals park almost all their money into long-term or locked-in assets such as provident funds, real estate, and unvested ESOPs. While these investments may increase overall net worth over time, they often cannot be accessed immediately during emergencies. He stressed that these are assets “you can’t eat or use during a crisis,” highlighting the difference between looking wealthy on paper and actually having usable financial flexibility.



The CA further explained that when nearly 90 per cent of a person’s financial value is trapped inside illiquid assets, even ordinary emergencies can become stressful. In such situations, people are often forced to rely on credit cards, personal loans, or other high-interest borrowing options simply because they cannot quickly access their own money.


Kaushik argued that this creates a painful financial contradiction where individuals effectively end up “paying a premium” just to access value that technically already belongs to them. His comments highlighted a growing issue among salaried professionals and startup employees, particularly those heavily dependent on long-term wealth creation strategies without maintaining sufficient emergency liquidity.

Many people focus aggressively on increasing net worth figures through property investments, retirement contributions, and stock-based compensation while ignoring the importance of accessible cash reserves. According to Kaushik, real financial strength should not be measured only through balance sheets, asset declarations, or investment portfolios.

Instead, he believes true financial power lies in liquidity and preparedness. He wrote that financial security is really about “how much cash you can deploy in 30 minutes without asking for permission or a loan.” The statement underscored the importance of emergency funds and liquid savings in personal finance planning.

Kaushik’s post also reflects a wider shift in financial conversations today, where more experts are warning against becoming “asset rich but cash poor.” A person may technically own expensive assets and still struggle with short-term expenses if most of their money cannot be quickly converted into usable cash.