Building wealth is often seen as a long and difficult process, but financial experts say the secret lies in consistency and time. For young professionals, even a modest sum invested regularly can grow into a sizeable retirement corpus if they begin early. The effect of compounding—the ability of returns to generate further returns over time—can turn small monthly investments into multi-crore savings.
Chartered Accountant Nitin Kaushik recently illustrated this point on X (formerly Twitter), using a simple example to show the importance of starting early. He noted that a person who begins investing Rs 5,000 every month at age 25 could accumulate close to Rs 3 crore by the time they turn 60, assuming a 12 percent annual return.
Heavy Price of Delaying Investments
The difference becomes stark when the same investment is delayed by 10 years. Starting at 35, with the same Rs 5,000 monthly contribution and the same rate of return, would only result in about Rs 95 lakh at age 60. Kaushik highlighted that this 10-year delay reduces the final corpus by more than Rs 2 crore.
The reason is the compounding effect, which multiplies wealth when given more time. Losing the first decade means missing the stage when returns begin to accelerate exponentially, making it difficult to match the lost potential later.
Lesson for Young Earners
Kaushik emphasized that the key to wealth creation is not about trying to time the market but about staying invested for as long as possible. He urged young earners to start immediately, warning that waiting to invest with the thought of “I’ll begin later” can become their most expensive financial mistake.
The message for investors is straightforward: consistent investing, even with small sums, can build multi-crore wealth if started early. Delays, on the other hand, can cost several crores over a lifetime, proving that time in the market is more valuable than timing the market.
Chartered Accountant Nitin Kaushik recently illustrated this point on X (formerly Twitter), using a simple example to show the importance of starting early. He noted that a person who begins investing Rs 5,000 every month at age 25 could accumulate close to Rs 3 crore by the time they turn 60, assuming a 12 percent annual return.
Heavy Price of Delaying Investments
The difference becomes stark when the same investment is delayed by 10 years. Starting at 35, with the same Rs 5,000 monthly contribution and the same rate of return, would only result in about Rs 95 lakh at age 60. Kaushik highlighted that this 10-year delay reduces the final corpus by more than Rs 2 crore.
The reason is the compounding effect, which multiplies wealth when given more time. Losing the first decade means missing the stage when returns begin to accelerate exponentially, making it difficult to match the lost potential later.
🚨 The ₹2 Cr Mistake Most People Make in Their 20s
— CA Nitin Kaushik (@Finance_Bareek) September 3, 2025
Post:
➥ Start investing ₹5,000/month at 25 → ~₹3 Cr by 60
➥ Start the same at 35 → ~₹95L by 60
Same ₹5,000.
Same 12% return.
Only difference = 10 years of compounding lost
That delay costs you over ₹2 Cr.
👉 Lesson:…
Lesson for Young Earners
Kaushik emphasized that the key to wealth creation is not about trying to time the market but about staying invested for as long as possible. He urged young earners to start immediately, warning that waiting to invest with the thought of “I’ll begin later” can become their most expensive financial mistake.
The message for investors is straightforward: consistent investing, even with small sums, can build multi-crore wealth if started early. Delays, on the other hand, can cost several crores over a lifetime, proving that time in the market is more valuable than timing the market.
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