Your SIPs won't save you if you're making these everyday money mistakes, warns CA

Building wealth often feels like a hunt for the next big opportunity. People spend hours researching stocks, mutual funds, cryptocurrencies and investment strategies in the hope of finding higher returns. But what if the biggest improvements to your finances are hiding in places you rarely pay attention to? According to Chartered Accountant Nitin Kaushik, many people are so focused on maximising investment returns that they overlook simple money leaks quietly draining their finances every month. And those overlooked basics, he argues, may matter more than people think.

Taking to X, CA Nitin Kaushik shared a thread on what he sees as one of the biggest mistakes in personal finance. He wrote, “The truth about personal finance is that most people are weak on the little basics while optimising the wrong things.” According to him, investors often become obsessed with finding the next asset class that can deliver 15% returns while ignoring opportunities that can improve their financial position immediately and with far less effort. “We obsess over finding the next 15% return asset class,” he wrote, while overlooking “guaranteed 100% returns sitting right inside our current bank accounts and monthly billing statements.”

The cost of leaving cash idle

One of the first areas Kaushik highlighted was the money sitting in ordinary savings accounts. Many people park large amounts of cash in traditional bank accounts that offer relatively low interest rates and rarely think twice about it. However, Kaushik argued that this habit comes with a hidden cost.


Referring to savings earning around 3% to 4%, he pointed out that a simple shift to alternatives such as liquid funds or higher-yield savings arrangements could potentially earn 7% to 8%. In his view, failing to explore those options means giving up returns that could be earned with minimal effort.
“You are literally donating free margin back to the banking system,” he remarked.

Why rent negotiations matter more than people realise

Kaushik then turned his attention to monthly housing expenses, which often account for one of the largest portions of a person's budget. Many tenants accept annual rent renewals without questioning the revised amount. According to Kaushik, that is a missed opportunity.

He noted that landlords are aware of the inconvenience and cost involved in finding new tenants. Because of that, simply starting a polite conversation during renewal discussions can sometimes result in meaningful savings.
“Simply initiating a polite negotiation” can often reduce rent by anywhere between Rs 2,000 and Rs 5,000 a month, he wrote.

Unlike investment gains, which depend on market performance, these savings come with what he described as “zero investment risk.” Every rupee saved through a successful negotiation remains available for spending, saving or investing elsewhere.

The insurance renewal trap

Insurance premiums were another area Kaushik believes people routinely ignore. Whether it is health insurance or vehicle insurance, many policyholders simply allow policies to auto-renew every year without reviewing competing options or reassessing their needs.

Kaushik argued that this passive approach can be costly. He advised spending a small amount of time comparing policies online or speaking directly with providers before renewal. According to him, this process often results in either lower premiums or coverage that is better aligned with current requirements.

“Taking twenty minutes to call your provider or compare alternatives online every single year,” he wrote, can frequently lead to better outcomes.

The silent drain of forgotten subscriptions

Another financial leak, according to Kaushik, comes from recurring subscriptions and services people no longer actively use. Streaming platforms, premium memberships, software subscriptions and other automated payments often continue running in the background long after their value has disappeared. He described these expenses as an “invisible bleed” that quietly chips away at finances over time.

“Subscriptions you signed up for and forgot about,” along with services that are rarely used, can drain thousands of rupees every quarter without attracting much attention. Calling it “death by a thousand auto debits,” Kaushik emphasized that small recurring expenses can add up to surprisingly large amounts when left unchecked for months or years.

Wealth is built by fixing leaks

The broader point of Kaushik's thread was that financial success is not always about finding extraordinary investments. “Real wealth creation is a game of leaks,” he wrote. In his view, even the most disciplined investment strategy can be undermined if everyday expenses remain unmanaged.

“It does not matter how hard you push your systematic investment plans if your monthly operational costs are completely unmanaged,” he explained. Rather than searching endlessly for complicated financial strategies, Kaushik encouraged people to focus on strengthening the foundations of their finances.

“Stop looking for complex financial secrets,” he advised. Instead, he urged people to begin “plugging the basic structural leaks” in their balance sheets. He concluded by stressing that consistent improvements in everyday money decisions often deliver more reliable long-term results than chasing the latest investment trend.

“Most people spend hours searching for better returns while ignoring expenses, inefficiencies and idle cash that can be optimised today,” he wrote. For Kaushik, the real foundation of wealth is not complexity or constant optimisation of investments. He added that the foundation of wealth is not complexity, but getting the basics right, consistently.