How to build wealth as a paid middle-class employee? Zerodha CEO Nithin Kamath shares simple “1% rule”
Kamath accompanied his post, videotaping Prateek Singh, founder and CEO of LearnApp, where he explained the meaningless formula of India’s salary class, hoping to build long-term wealth.
Nithin Kamath – The billionaire CEO (CEO) of online brokerage Zerodha shares some key tips to help salaried middle-class employees build wealth.
He said there is no shortcut to get rich, which requires patience and good habits. “I’m often asked for stock tips, which will make people rich,” Kamath, 45, wrote in a post on X.
He added that there are several things that can prevent a person from building wealth. “Such as buying things you don’t need, or worse, borrowing them to buy them. Another big company doesn’t have health insurance.”
1% rule
Kamath accompanied his post, which recorded a video by Learnapp founder and CEO Prateek Singh, where he explained the meaningless formula of India’s salary class, hoping to build long-term wealth: reduce your spending by just 1% and invest in those savings.
“Your salary should give you freedom. But for many people, it has become a chain,” Singh said in the video. “Money comes in, disappears in fees and loans, and the cycle repeats.”
“Cut down 1% of monthly expenses. If you spend Rs 50,000 per month, that’s Rs 500. Skip that food order and invest that money.” “As time goes by, this small step forms a strong habit, which is much greater than the quantity.”
“The magic is about doing this”
Singh further recommends starting with index funds with an annual return of 10 to 12%, which emphasizes the consistency of investments to complexity. “You already know what to do. The magic lies in what to do. The moment you take the first step, your life starts to change.”
