From savings to splurges: CA shares 7 rules for building real wealth

Luxury fades, habits don't: Nithin Kaushik suggests ways to ensure financial freedom

Social media equates luxury with success but a viral X post by a chartered accountant Nithin Kaushik (@Finance_Bareek) urges people to save and invest. “Most people hustle for money. But the real flex? Making your money hustle for YOU,” he said.

 

Kaushik recommended seven habits to help individuals become “financially unshakeable.” His advice doesn’t require crores of capital or complex strategies, just discipline, planning and consistency.  Calculate EMI: EMI Calculator Tool

 

Here’s a breakdown of the seven habits:

 

Save two months’ salary

 

Start with the basics: aim to save at least two months' worth of your salary. This simple cushion can eliminate the end-of-the-month stress and give you breathing room for unexpected expenses.

 

 

2. Build an emergency fund

 

Life is unpredictable. Whether it's a sudden job loss or a medical emergency, having three to six months of living expenses set aside means you're prepared for life’s curveballs.

 

3. Budget for guilt-free spending

 

Saving doesn’t mean you have to give up all indulgences. Allocate 5-7 per cent of your income for luxuries, whether it’s a new shoe, gadget or a weekend trip. As Kaushik puts it, “Life’s short, buy the damn shoes (within limits).”

 

4. Start a retirement fund

 

Your future self is depending on you. Save 5-10 per cent of your income for retirement, even if you’re young. The earlier you start the more power compounding has to work in your favour.

 

5. Create passive income streams

 

Don't rely solely on your job. Think about renting out items, creating digital products, or other side hustles that can earn while you sleep. Building passive income is a long-term strategy for financial independence.

 

6. Invest consistently

 

Kaushik recommended putting 5-10 per cent of your income into investments, whether it’s stocks, SIPs, or gold. The goal is to grow your wealth steadily without active effort.

 

7. Use the debt snowball method

 

“Use the debt snowball”, high-interest debt is your biggest enemy. Pay off loans with interest rates above 7 per cent as quickly as possible. The “snowball method” focuses on clearing smaller debts first to build momentum.