Why Building Real Wealth Is About Time Freedom, Not Lifestyle Upgrades

In India’s urban centres, success is increasingly measured by lifestyle upgrades such as a bigger house, a second car or expensive interiors. But Bengaluru-based Chartered Accountant Nitin Kaushik has warned that this thinking is pushing many high-income earners into financial stress instead of financial freedom. 

In a recent column published by The Economic Times, he explained that real wealth is not about what people show, but about how much control they have over their time and choices.

The household debt in India has risen to over 41.3% of GDP, largely driven by personal loans and credit cards, a trend that reflects rising lifestyle-led borrowing rather than asset creation.

This explains why many professionals, despite earning well, remain stuck in EMIs and job pressure.

The Math Behind Building Real Wealth

The core principle behind building real wealth is simple. Money should reduce dependence on work, not increase it. Nitin Kaushik explains in The Economic Times that if long-term investments grow at 12 to 14 percent annually, compounding slowly replaces salary dependency with financial choice. He illustrates that someone earning ₹3 lakh a month but saving ₹1 lakh can build wealth faster than someone earning ₹5 lakh but saving far less, as explained in this report:

This is not a theory. According to investor education content on LoansJagat, disciplined, long-term SIPs can significantly increase small investments through compounding. 

For instance, consistently investing ₹5,000 each month in a mutual fund SIP with an average annual return of about 12 % can grow into several crores over 20 years, demonstrating that time and consistency matter more than income level when building real wealth.

Lifestyle Spending vs Wealth-Oriented Choices

This is why building real wealth is about invisible discipline, not visible consumption.

How India Slipped Into Lifestyle Debt

Over the past decade, easy credit has normalised lifestyle borrowing. Financial columns have repeatedly highlighted this risk. In another Economic Times article, Kaushik pointed out that spending ₹40 lakh on interiors or ₹12 lakh on a second car may look impressive but does nothing for long-term security:

Meanwhile, interest rates on personal loans and credit cards in India often range between 9.75% and 20%, making lifestyle borrowing one of the costliest financial habits, as repeatedly explained in LoansJagat’s debt and planning coverage.

The Silent Wealth Creators

In contrast, long-term discipline is producing extraordinary results for those who avoid lifestyle inflation. One such case highlighted by The Economic Times shows how a middle-class professional built a ₹25 crore portfolio without flashy spending, purely through consistent investing:
 

Saves ₹50,000

Saves ₹1,00,000

Heavy EMIs

Low lifestyle costs

Slower wealth creation

Faster wealth creation

Similarly, the idea that higher income alone guarantees wealth has also been challenged. Zee News explains that even moving abroad or earning more does not help unless savings and investments are structured properly.