When a middle-class person thinks about saving money, the biggest question is how to build a substantial amount of wealth for the future. Creating a fund of millions of rupees seems difficult amidst limited income and rising expenses. However, financial expert and chartered accountant Nitin Kaushik believes that with discipline in saving and investing, even an average earner can build wealth exceeding ₹1.2 crore in 10 years.

According to Nitin Kaushik, a high salary alone is not enough to become wealthy. The real difference lies in how you manage your money. Those who stick to the right investment options in the long term and make decisions based on planning rather than emotion are the ones who gradually build a strong financial position.

Start with clear financial goals

The first step for any family should be to define their financial goals. Parents who are concerned about their child’s future should start investing as soon as their child is born. If approximately ₹10,000 is invested every month in index fund SIPs and PPF, it is possible to build a corpus of around ₹60 lakhs in 15 years. The average annual return of 12 percent from mutual funds, combined with the security and tax benefits of PPF, provides significant advantages. Starting early makes compound interest your greatest strength.

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Consider the balance of investments before buying a house

Every family dreams of owning their own home, but taking out a large home loan in a hurry can increase financial stress. Nitin Kaushik advises that it is wise to continue investing while living in rented accommodation, so that at least 25 percent of the property value can be accumulated as a down payment. It is also better to take a shorter-term home loan for 10 years instead of 20 years. If the EMI is kept within 35 percent of the income, the interest burden is reduced and mental stress is minimized.

Do not neglect retirement planning

Most salaried individuals rely solely on EPF for retirement, but this may not be enough for the future. According to Nitin Kaushik, it is crucial to increase contributions to NPS alongside income and start a separate SIP for retirement. With proper planning, it is possible to build a retirement fund of ₹30 to 35 lakhs in 10 years, which will provide protection against inflation and uncertainties.

Controlling expenses is the real power

More important than earning more is developing the right spending habits. Avoid increasing your lifestyle expenses unnecessarily. Simple tools like spreadsheets can be helpful for tracking expenses. Celebrating small financial milestones, such as accumulating the first significant amount in an SIP or paying off a portion of a loan, helps maintain motivation.

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How to build a net worth of crores of rupees in 10 years

By following all these systematic methods, an average family can build substantial wealth in 10 years. Through investments in mutual funds, it is possible to save approximately 70 lakh rupees, and another 28 lakh rupees through safe options like PPF, EPF, and NPS, along with 8 lakh rupees from emergency and fixed funds. Additionally, an extra benefit of approximately 15 lakh rupees can be gained through property value appreciation and reduction in the principal amount of the loan. Even if the remaining home loan amount is around 22 lakh rupees, the net worth, after deducting all liabilities, could exceed 1.20 crore rupees.