Wealth Formula Revealed: How the Middle Class Can Grow ₹1.2 Crore in 10 Years

For most middle-class families, building serious wealth feels like a distant dream. Rising expenses, limited income and daily responsibilities often make a crore-plus net worth look unrealistic. But financial expert and chartered accountant Nitin Kaushik says that with discipline, planning and the right investments, even an average earner can cross ₹1.2 crore in just 10 years.

Money management matters more than salary

According to Kaushik, wealth is not created by a high paycheck alone. The real edge comes from consistent saving, long-term investing and staying away from emotional money decisions. Those who follow a plan patiently are the ones who slowly but surely build financial strength.

Set goals early and let compounding work

Clear financial goals are the foundation. Families should begin investing as early as possible, especially for children’s future. A monthly investment of around ₹10,000 in index fund SIPs and PPF can grow into nearly ₹60 lakh in 15 years. With mutual funds offering about 12% returns and PPF adding safety and tax benefits, starting early turns compounding into a powerful ally.

Buy a home, but with balance

Owning a house is important, but rushing into a big home loan can strain finances. Kaushik advises continuing investments while staying on rent until at least 25% of the property value is ready as a down payment. Opting for a 10-year loan instead of 20 years and keeping EMIs within 35% of income reduces interest costs and financial stress.

Plan retirement beyond EPF

Depending only on EPF for retirement is risky. As income grows, increasing NPS contributions and running a separate retirement SIP is essential. With disciplined planning, a retirement corpus of ₹30-35 lakh can be built in 10 years, offering protection against inflation and uncertainty.

Smart spending builds real strength

Wealth grows faster when expenses are under control. Avoid lifestyle inflation and track spending regularly, even with simple spreadsheets. Celebrating small wins, like completing a major SIP milestone or reducing loan burden, helps maintain long-term discipline.

The crore roadmap in 10 years

By combining all these steps, an average family can build strong wealth. Around ₹70 lakh can come from mutual funds, nearly ₹28 lakh from secure options like PPF, EPF and NPS, and about ₹8 lakh from emergency and fixed funds. Add nearly ₹15 lakh from property appreciation and reduced loan principal. Even after accounting for a remaining home loan of about ₹22 lakh, the net worth can comfortably cross ₹1.20 crore, proving that disciplined planning, not a massive salary, is the real key to wealth.