How Skipping a Small Purchase Can Make You a Crorepati

Want to Be a Crorepati?
Young professionals often work hard and earn well, but their money doesn’t always work as hard for them. Many keep their savings idle in accounts that offer minimal interest, without investing in their future. CA Nitin Kaushik recently shared a simple yet powerful idea that could change the financial future of many. He suggests skipping a small monthly expense such as buying one Zara shirt worth Rs 5,000 and investing that amount instead.

Want to Be a Crorepati?

By investing Rs 5,000 every month in a systematic investment plan (SIP) for 30 years with an average return of 12% per year, one could accumulate a retirement fund of Rs 5.5 to 6 crore. This advice is not about being frugal; it’s about making smart financial decisions today to build wealth for tomorrow.

Kaushik’s approach emphasizes consistency. It’s not about cutting out all luxuries but making small, wise choices. Many young earners tend to spend impulsively on clothes, gadgets, or dining out, thinking they’ll save “later.” However, “later” often never comes. The key is to make small shifts in spending, like pausing one unnecessary purchase each month.

Kaushik’s advice also encourages young professionals to make their money work harder for them. Rather than just working for money, they should invest it so that it works for them over time. With consistency and patience, even a modest amount like Rs 5,000 can grow into a significant sum, providing financial security in the future.

The best part is that you don’t need a high salary or a finance degree to start. A small SIP, done consistently, can grow into a large corpus over time. So, the next time you’re about to splurge on something unnecessary, think about how much it could add to your retirement savings.

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