The Money Mindset
CA Nitin Kaushik's observations, shared on the social media platform X, have sparked important discussions about how we perceive wealth. In a society that
is always changing and with the rising cost of living, it is tempting to compare ourselves to others, especially when we see their lives portrayed on social media. Kaushik stresses the personal nature of financial success. He suggests that before setting financial goals, we should consider our unique needs, like household expenses, children’s education, and plans for retirement. He highlights the endless chase for money and 'lifestyle creep,' emphasizing that true contentment is not found in an ever-increasing income but in a balance between lifestyle, peace of mind, and finances. Even with significant earnings, the pursuit often continues, as the target shifts with each milestone achieved. The core message focuses on finding genuine freedom when money supports you instead of controlling you.
Lifestyle Creep Unveiled
Kaushik’s analysis highlights the phenomenon of 'lifestyle creep,' where increased earnings often result in higher spending. As incomes rise, so does the inclination to indulge in luxuries like new cars, bigger homes, and expensive clothing, creating an illusion of financial progress that is constantly out of reach. He argues that the true freedom comes when your money works for you. This means your income grows, but your expenses do not increase proportionally. It’s a crucial insight, as it challenges the common belief that more money always equals more happiness. Financial experts also believe that well-being increases when money is harmonized with health, family, and leisure, which helps in reducing stress and increasing life satisfaction. According to Kaushik, the trap of thinking is that we believe contentment is only found in a specific amount. He suggests we seek a harmonious balance where lifestyle, peace of mind, and financial flow coexist.
Beyond the Numbers
Kaushik's viral post encourages individuals to reconsider their approach to wealth. Instead of obsessing over a specific income target, he suggests reflecting on whether current earnings meet one's needs. If they do, he encourages people to pause and enjoy life, prioritizing living over chasing more money. It's a fundamental shift in perspective, urging people to question the societal pressure to constantly strive for more. Personal finance experts advocate for integrating money with health, family, and leisure time to reduce stress and enhance life satisfaction. Support matters more than money, Kaushik suggests. The core message is not about the amount of money, but a balance of finances with lifestyle and peace of mind.
Practical Steps Forward
In another post, Kaushik offered advice against pursuing quick routes to wealth. He suggests three basic actions: earning more, minimizing unnecessary expenses, and investing the surplus. The approach highlights the importance of gradual progress and sustained effort over complex financial strategies. By improving skills and closely monitoring spending, small, consistent steps can lead to substantial financial success over time. Real wealth, he concludes, stems from consistency rather than relying on complex formulas. This approach promotes financial discipline and a proactive stance toward personal finance management. The consistent message is about achieving a balance where lifestyle, peace of mind, and financial flow coexist.
