Beyond Quick Riches: The Truth About Building Wealth
Sustainable wealth does not come from viral crypto bets or gambling in the stock market. It comes from consistency, patience, and a well-planned approach. Today, we are going to cover a straightforward and proven method on wealth building for beginners, straight from the desk of a Chartered Accountant who has seen it all – CA Nitin Kaushik.
Inspired by Warren Buffett’s timeless advice, his post reminds us that true wealth isn’t just about money. It’s about building a secure, independent life with more freedom and fewer worries.
Introducing CA Nitin Kaushik’s ‘Boring’ Wealth Formula
CA Nitin Kaushik is not a course seller. He won’t tell you that by next weekend, you can be a millionaire. He offers a formula that sounds really boring.
But here is the thing: it works! No side hustle required, no unsafe trades, just good financial discipline, smart investing, and a little help from time.
Let us unpack the wealth-building formula that anyone can follow.
1. Save First, Spend Later: The Buffett Principle
We’ve all heard this before, but most of us don’t follow it. We earn, then spend and save what’s left. But CA Nitin flips that around: He tells us to Earn, then Save and Spend what’s left.
Start by automating your savings as soon as your salary is deposited into your account. Whether it’s ₹1,000 or ₹10,000, lock it away. You won’t miss it, and you’ll be amazed at how quickly it adds up. The point is to make saving a habit, not a leftover.
2. The Magic of Compounding: Let Your Money Work for You
If there’s something all beginners should know, it’s compounding. Albert Einstein called it the 8th wonder of the world, and he was right.
Let’s think about compounding in a very simple way. You earn money. You invest it. That money earns money. That money earns money too. Then it goes around again.
CA Nitin said, “Compounding won’t work the first few years, but when it does, it won’t stop.” The trick is to give it time.
Also Read: Power of Compounding.
3. Start Early, Start Small: Time is Your Greatest Ally
You don’t need big money to start investing.
With SIP mutual funds in India, you can begin with as little as ₹500/month. And if you start in your 20s, you have the biggest advantage in wealth building, which is time.
For example, someone who invests ₹5,000 per month from the age of 25 to 60, earning a 12% return, will end up with over ₹3 crore. But if they start at 35? That number drops by more than half.
Moral of the story is to start now. Even if it’s small. (Learn more about Why Starting Early is Crucial for Investment Success.)
4. Focus on Appreciating Assets: Where to Invest Wisely
Saving is the first step, but your money has to grow to create wealth. That’s where investing comes in. According to CA Nitin, invest in appreciating assets, those that appreciate and create value over time.
Equities & Mutual Funds (SIPs)
This is the simplest and most user-friendly option. SIPs (Systematic Investment Plan) work to invest small amounts on a regular basis into a mutual fund. And, you don’t have to track the stock market every day. (Find a guide on How to Choose the Right SIP for Beginners.)
Choose index funds, blue-chip equity funds, or hybrid funds based on your risk level. Over time, these investments beat inflation and grow your wealth significantly.
Real Estate (Strategic Investing)
Real estate can be a great long-term investment if done right. Buying in upcoming areas, understanding rental potential, and avoiding overpriced properties. Don’t stretch your budget or take unnecessary loans just to own property. Strategic is the keyword here.
5. Steer Clear of Unproductive Debt: The Silent Wealth Killer
Debt isn’t always a bad thing. It could be okay for certain types of debt. It might be okay to go and borrow money for a home loan. But credit card debt, EMIs for gadgets, or a personal loan for a vacation is unproductive debt. It diminishes your savings and your peace of mind. (Understand the difference between productive and unproductive debt in our article on Smart Debt Management.)
If we take CA Nitin’s advice to heart, if it doesn’t add value to your income or value to your assets, then it’s probably not worth going into debt. If you truly want financial freedom, you must stop giving up your future income to the bank.
Consistency and Patience: The Unsung Heroes of Wealth Creation
Here’s the part that people don’t like to hear. Wealth does not appear after 6 months. Wealth is built slowly, quietly, almost boringly, like water filling up a tank drop by drop.
But for those folks who stick to the plan – saving at regular intervals, investing wisely, and not inflating their lifestyle at every opportunity – when they wake up one day, they will be surprised at how much they have in the bank.
If your wealth-building journey feels boring, you’re probably doing it right.
Implementing the ‘Boring’ Formula for Your Financial Freedom
You don’t need a finance degree to apply this formula. Here’s a quick action plan:
- Track your expenses. Know where your money goes.
- Save at least 20% of your income by automating it.
- Start a SIP: even ₹500/month is a start.
- Avoid bad debt: no EMIs for status symbols.
- Invest in appreciating assets, such as mutual funds, equities, and property.
- Be patient: give your investments 10–15 years.
- Ignore the noise: you don’t need to time the market, just stay in it.
Final Thoughts
This is just a system that works when you give it time. CA Nitin Kaushik’s “boring wealth formula” might not go viral, but it’s helped countless people move from financial anxiety to freedom. No fancy side hustle needed. No luck involved. Just smart, steady action.
So if you’re new to wealth building for beginners, remember this:
You don’t need to be a genius to get rich. You just need to be consistent, patient, and a little bit boring.