'Investment hai… zarurat padti hai': Are Indians mistaking lifestyle spends for wealth-building?

By Admin

20 Jun, 2025

In a country where tradition and emotion often shape financial behavior, a sharp social media post by financial expert Sanjay Kathuria, CFA, is turning heads and stirring conversation. His blunt critique challenges a deeply rooted belief among Indians that high-cost lifestyle choices like buying a new car, accumulating gold, or hosting extravagant weddings are somehow "investments."

But Kathuria isn’t mincing words. He calls these habits what they truly are: money mistakes disguised as wealth-building. His viral post highlights how cultural norms and emotional decisions are silently eroding India's financial potential.

The Rs 15 Lakh Trap: Cars on EMI

Kathuria begins with one of the most common financial choices made by young professionals and families buying a car on EMI. He breaks it down starkly: A Rs 15 lakh car on a Rs 25,000/month EMI for five years may seem like a life upgrade, but it loses Rs 5 lakh in value the moment it leaves the showroom.

“You lose value instantly, and it gives no returns,” he emphasizes. Yet for many, owning a car represents success even if it’s a depreciating asset that drains resources and generates no income.

Idle Gold: Emotionally Rich, Financially Poor

Next comes gold, India’s eternal favorite. While the country ranks as the world’s second-largest consumer of gold, much of it ends up locked away, untouched for decades.

“Stored in a locker, never used… Emotionally priceless, financially stagnant,” says Kathuria. The problem? Gold in lockers neither pays interest nor brings liquidity. It's an emotional asset bought for tradition, not return and it's rarely part of a sound financial plan.

The Great Indian Wedding: A Grand Expense with No Returns

Perhaps the most jarring example is the Rs 20–50 lakh Indian wedding, often hosted over a few days of festivity. While it might satisfy social expectations, Kathuria doesn’t hold back:
“No return, only regret. Guests forget, EMIs don’t.”

Families often justify these enormous expenses as a once-in-a-lifetime event, but in reality, they drain savings, delay financial stability, and add zero value to long-term wealth.

The Real Problem: Delayed Wealth Creation

What do these habits have in common? They don’t create income, appreciate in value, or generate compounding returns. Instead, they delay real wealth-building the kind that comes from consistent, disciplined investment strategies.

Kathuria contrasts these “lifestyle spends” with genuine investments:

• Systematic Investment Plans (SIPs) in mutual funds
  
  

• Digital financial products
  
  

• Upskilling for career or business growth
  
  

• Scalable income streams
  
  

These are the investments that yield results not just in numbers, but in security and freedom.

The Takeaway: Change the Mindset

One powerful line from Kathuria’s post is already becoming a mantra in personal finance circles:
“The real flex isn’t spending more. It’s compounding more.”

This message flips the script. It asks Indians to rethink what they label as “investments” and to adopt a more growth-oriented, disciplined approach to money. In a world where consumerism is on the rise, and financial education is still catching up, Kathuria’s wake-up call is both timely and necessary.