Akshat Shrivastava, a Finfluencer and the founder of Wisdom Hatch, recently shared a brutally honest post on X that exposes the truth behind the wealth many Indians chase. His central message: earning or saving ₹1 crore isn’t enough; what truly matters is what remains after factoring in inflation, taxes, and poor financial decisions.
He starts by presenting a simple example: If you invest ₹21,000 each month at a 12% annual return, you could accumulate ₹1 crore in 15 years. While this sounds like a solid financial strategy, Shrivastava highlights a harsh reality: inflation.
With an average inflation rate of 7%, the purchasing power of that ₹1 crore diminishes significantly. In just 10 years, it’s worth only ₹50 lakh; in 15 years, it drops to ₹36 lakh; and in 20 years, it’s reduced to ₹25 lakh. This gradual erosion of value is the quiet, yet powerful, impact of inflation.
Next, Shrivastava brings attention to the effect of taxation. To actually have ₹1 crore after taxes, you would need to earn ₹1.4 crore, assuming a 30% tax rate. That means you have to work 40% harder for the same end result. This demonstrates how taxes can substantially diminish your wealth-building efforts.
But it doesn’t stop there. Shrivastava warns that even inheriting ₹100 crore is no guarantee of wealth if you don’t know how to manage it. He points out that poor investment choices could wipe out your wealth in a single year. Essentially, without a solid plan or portfolio, even substantial amounts of wealth can disappear quickly.
The most overlooked factor, according to Shrivastava, is the impact of costs, such as commissions and fees. Even a seemingly minor increase in fees can have a dramatic effect over time. He uses the example of a ₹21,000 monthly SIP (Systematic Investment Plan) over 40 years. At an 11% return, you would end up with ₹14.78 crore. But if the return were just 1% higher, at 12%, you would accumulate ₹19.58 crore. That small difference in returns — just 1% — results in a 32.4% loss, which amounts to ₹4.8 crore.
In conclusion, Shrivastava emphasizes the power of compounding but reminds readers that inflation, taxation, lack of knowledge, and hidden costs can silently erode decades of financial effort. His advice is clear: don’t bury your head in the sand. Be proactive, stay informed, and make smart financial decisions to protect and grow your wealth.
