Most Indians are staying poor because of this one 'safe' habit, warns CA

For decades, financial safety in India has been defined by fixed deposits, gold, and early home ownership. These choices are often seen as responsible, even ideal. But what if the very habits meant to protect wealth are quietly holding people back? Chartered Accountant Nitin Kaushik has sparked a sharp conversation online, challenging deeply rooted beliefs about money and questioning whether “playing safe” is actually the reason many Indians struggle to build real, long-term wealth.

CA Nitin Kaushik recently shared his perspective on social media, arguing that a large number of Indians remain financially stuck because they treat fixed deposits as a primary wealth-building tool. While an FD may offer returns of around 7%, he explained that once inflation—hovering near 6%—and a 30% tax bracket are factored in, the real return effectively turns negative. What appears safe on the surface may, in reality, be eroding purchasing power over time.

Long-term market performance

He further pointed to long-term market performance to underline the gap. Over the past two decades, the Nifty 50 has delivered approximately 12–14% compounded annual growth, significantly outperforming gold. Despite this, many households continue to accumulate physical gold, which often remains locked away and unproductive, driven more by tradition and emotional comfort than financial efficiency.

Buying house early

Another widely accepted milestone—buying a house early in life—also came under scrutiny. Kaushik highlighted how the pressure to own property by the age of 25 can lead individuals into long-term EMIs stretching over 20 years. This, he noted, restricts liquidity at a stage when flexibility is crucial, limiting the ability to take career risks, invest in opportunities, or even upskill.

How can you build wealth?

Importantly, he addressed the common belief that wealth creation requires a high income to begin with. According to him, even small, consistent investments can outperform traditional saving habits over time. A systematic investment plan starting with as little as ₹500, he suggested, has the potential to generate better outcomes than relying solely on conventional “safe” instruments that prioritise security over growth.