Why do 98% Indians never reach ₹1 Crore net worth?

About this Video

• Video Title: Why do 98% Indians never reach ₹1 Crore net worth?
• Channel: FinnovationZ by Prasad
• Speakers: Prasad, Kirtan Shah, Gajendra Kothari, Aniruddha Garg
• Duration: 01:15:57

Introduction

This video discusses why a vast majority of Indians (97-98%) fail to achieve a net worth of ₹1 crore (10 million rupees). The discussion involves insights from wealth management experts, focusing on core issues hindering wealth creation, including mindset, investment strategies, and financial habits.

Key Takeaways

1. Mindset is Crucial: Achieving wealth begins with believing it's possible. Setting numerical goals (like ₹1 crore) can be limiting; focus on consistent returns instead.
2. Long-Term Investment Strategy: Compounding is key. While the initial ₹1 crore might take 10 years, subsequent milestones come faster (4 years for the second, 3 for the third). Consistent investing, even small amounts, yields significant results over time.
3. Avoid Short-Term Gains: Chasing quick money through options trading (F&O) or speculative investments like cryptocurrencies often leads to losses. Patience and discipline are essential for long-term success.
4. Real Estate Considerations: Real estate is often prioritized in India, but its returns are relatively low (2-3%). It's advisable to delay major real estate purchases until a strong financial base is established through other investments with higher returns, such as equities.
5. Skill Development: Continuous learning and skill enhancement are paramount for increasing income, the foundation for wealth accumulation. Focus on improving your earning capacity to fuel your investments.
6. Debt Management: Avoid excessive credit card debt; use them only when absolutely necessary and pay off balances promptly.