Why Most Indians Never Become RichDhan Maitri

Deepak and his neighbour Sunil both earn around ₹60,000 a month. Deepak owns two properties and a small stock portfolio worth ₹15 lakh. Sunil, after 12 years in the same job, has almost nothing saved and still asks his brother for money before Diwali every year.

Their income has been nearly identical for over a decade. So what actually separates them?

Reason 1: Spending to “look” rich instead of “becoming” rich

Sunil buys a new phone every year, upgrades his bike often, and never misses a family function without new clothes for everyone. Deepak, despite earning the same, drives an older car and often gets teased for it — but he quietly invests the difference every month. The habit of spending to maintain appearances is one of the biggest wealth killers in Indian households.

Reason 2: No system — saving only “what’s left”

Sunil saves whatever is left at the end of the month, which is usually nothing. Deepak follows the “pay yourself first” rule — moving a fixed amount to investments the day his salary arrives, before spending on anything else. (Read how Priya used this same method on a much smaller salary — Jun 7)

Reason 3: Treating loans and EMIs casually

Sunil has three ongoing EMIs — for his bike, phone, and a personal loan he took for a wedding function. A large chunk of his salary disappears into interest payments every month before he even sees the money. Deepak avoids unnecessary EMIs and only borrows for things that build long-term value, like a home.

Reason 4: No emergency fund

When Sunil’s father was hospitalised two years ago, he had to take a high-interest personal loan to cover it. Deepak had an emergency fund already in place, so the same situation in his family didn’t touch his investments at all. (Read our Emergency Fund guide — May 25)

Reason 5: Fear or ignorance of investing

Sunil keeps all his savings in a bank account, believing investing is “only for rich people” or “too risky.” Deepak started small — a ₹1,000 SIP years ago — and let time and compounding do the work. (Read our guide on investing your first ₹1,000 — Jun 17)

Reason 6: No clear financial goals

Deepak has specific targets — a certain amount for his children’s education, a certain amount for retirement. Sunil has never sat down to calculate what he actually needs, so he has nothing pulling him to save consistently.

The real difference

It was never about who earned more. It was about who built a system — saving first, avoiding unnecessary debt, protecting against emergencies, and investing consistently — and who didn’t.

Key Takeaways

Wealth is built through habits and systems, not just income
Spending to maintain appearances quietly drains most families’ potential savings
Pay yourself first, instead of saving only what’s left over
Avoid unnecessary EMIs; borrow mainly for things that build long-term value
Always maintain an emergency fund to avoid high-interest borrowing
Start investing early, even with small amounts, and stay consistent

FAQ

Q: Does income not matter at all for building wealth?
A: It matters, but far less than most people think. Someone earning less with good habits often builds more wealth than someone earning more without them, as shown by Priya’s example on a ₹20,000 salary (Jun 7).

Q: What’s the single biggest habit to change first?
A: Paying yourself first — automatically saving/investing a fixed amount the day your salary arrives, before any spending happens.

Q: Is it too late to start if I’m already 40?
A: No — the best time to start was years ago, the second best time is today. Every year of consistent saving and investing still helps.

Why Most Indians Never Become Rich?

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