Rs 1.2 crore in 10 years built by middle-class families using simple formula, CA explains

Building substantial wealth can feel out of reach for many middle-class families, especially when incomes are modest and expenses are high. However, a disciplined and consistent approach to saving and investing can help accumulate over Rs 1.2 crore within a decade, according to Chartered Accountant Nitin Kaushik.

He recently shared steps on X that reveal how average earners can secure their financial future without relying on high salaries or risky shortcuts.

Prioritizing Financial Goals Early
Kaushik emphasizes the importance of setting clear priorities. For families focused on a child’s future, starting an investment plan from the child’s birth is key. By investing around Rs 10,000 monthly through a combination of systematic investment plans (SIPs) in index funds and Public Provident Fund (PPF), parents can aim to accumulate approximately Rs 60 lakh over 15 years. This approach works by earning an estimated annual return of 12% on mutual funds, combined with the safety and tax benefits of PPF and occasional top-ups.
Home Ownership without Financial Strain

Owning a house remains a top priority for many, but Kaushik advises against rushing into home loans. Instead, renting while investing allows families to build a strong down payment, ideally covering 25% of the property cost before purchase. He recommends opting for shorter loan tenures of 10 years rather than stretching EMIs over 20 years. Keeping EMIs within 35% of monthly income helps reduce interest burden, ensures faster loan repayment, and offers greater financial peace of mind.
Preparing for Retirement Proactively
Relying solely on Employees’ Provident Fund (EPF) may fall short of retirement needs. Kaushik says that smart earners progressively increase contributions to the National Pension System (NPS) and maintain separate retirement SIPs, targeting a corpus of Rs 30-35 lakh within 10 years. This diversified approach safeguards against future uncertainties and inflation risks.
Simple Money Habits Make the Difference

Kaushik stresses the value of steady habits over flashy income growth. Avoiding lifestyle inflation, tracking expenses through simple tools like spreadsheets, delaying vacations until savings goals are met, and celebrating small milestones such as reaching a Rs 5 lakh SIP mark or prepaying loans are fundamental to sustained wealth building.

💥 How Some Middle-Class Families Quietly Build ₹1.2 Crore in Just 10 Years — Even with Small Salaries, Kids & Rent to Manage! 💥

(Not a fantasy. Real math. Real habits. No shortcuts.)

Here’s how smart families are turning modest incomes into serious wealth 👇🧵… pic.twitter.com/NvIbdFOZFY

— CA Nitin Kaushik (@Finance_Bareek) August 9, 2025

The Result After a Decade
Following these disciplined strategies, families often accumulate:

• Rs 72 lakh through mutual funds
• Rs 28 lakh via PPF, EPF, and NPS
• Rs 8 lakh in fixed deposits and emergency funds
• Rs 15 lakh in home equity after adjusting for loans

He stated that accounting for liabilities like home loans averaging Rs 22 lakh, the net worth surpasses Rs 1.2 crore in 10 years.

Kaushik concludes that wealth is built through patience, consistent investing, and making prudent financial choices even on average salaries. The journey involves small, steady sacrifices rather than quick gains. This methodical approach proves achievable for middle-class families who begin early and remain disciplined.