Many people believe that earning more money is the key to building wealth. But as countless examples show, how much you save and invest matters far more than how much you earn.

Investment advisor and CA Nitin Kaushik, in a social media post, noted that financial independence doesn’t come from a high income alone—it stems from disciplined saving, smart investing, and consistent effort over time.

He illustrated this with four real-life income scenarios:

Scenario 1: The High Earner Trap

Earn Rs 1,00,000/month, spend Rs 1,00,000/month = Working forever

Earn Rs 1,00,000/month, invest Rs 50,000/month = Rs 4.38 crore in 20 years

A high income with zero savings leads to a lifetime of financial dependence. But investing half the income at an assumed 12% annual return could yield over Rs 4.38 crore in two decades—thanks to compounding.

Scenario 2: Low Income, High Discipline

Earn Rs 30,000/month, save Rs 0 = Living paycheck to paycheck

Earn Rs 30,000/month, invest Rs 10,000/month = Rs 87.6 lakh in 20 years

Even with modest income, consistent saving and investing can build significant wealth. This proves it’s not how much you earn, but how wisely you spend and invest.

Scenario 3: Middle-Class Stagnation

Earn Rs 75,000/month, spend Rs 75,000/month = Financial treadmill

Earn Rs 75,000/month, invest Rs 25,000/month = Rs 2.19 crore in 20 years

Lifestyle inflation traps many earners. But setting aside even one-third of income for investing can lead to multi-crore wealth over time.

Scenario 4: High Income, Zero Growth

Earn Rs 2,00,000/month, spend Rs 2,00,000/month = No savings, no financial freedom

This is the most dangerous scenario—high income with no wealth creation. Without saving or investing, even top earners risk long-term financial instability.

Why investing in lean market periods matters

One of the most underrated wealth-building strategies is investing consistently during market downturns. While bear phases often trigger fear, they offer some of the best buying opportunities. Stocks and mutual funds typically trade at discounted valuations, allowing investors to acquire more units at lower prices—a concept known as rupee cost averaging.

History shows that markets always bounce back. Investors who stay the course during slumps often enjoy stronger long-term gains. Instead of trying to time the market, the real advantage lies in time spent in the market. Consistent investing—even during downturns—builds resilience and ensures your portfolio is positioned to benefit when markets recover.