F I, started already, you have Control over Expenses and Saving @ Good Rate...
Moreover mindset is trained already... Focused and Aligned towards Real Goal.
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Liquid Net Worth - Growing or Debt Ridden
- Thread starter hender
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Moreover mindset is trained already... Focused and Aligned towards Real Goal.
Financial Planning
While financial planning varies from person to person, however, it is always better to have some factual data to corroborate and confirm whether the parameters are correct or not for one's FIRE prospects. Accordingly, some interesting factual nuggets are highlighted, to further refine our own financial planning aspects.
High Net Worth Individuals (HNWIs) in India (Source - here)
- HNWIs: Individual investors with a net worth of up to Rs. 5 crore fall under this category.
- Very High Net Worth Individuals (VHNWIs): Individual investors with a net worth between Rs. 5 - 25 crore are considered VHNWI.
- Ultra High Net Worth Individuals (UHNWIs): Individual investors with a net worth above Rs. 25 crore are considered UHNWIs.
- For IPOs. In the IPO application category, SEBI defines anyone investing an amount over Rs. 2 lakh as an HNI.
A few facts and figures are given below. (Source - here).
- India's Bottom 10%. At ₹4,347 per month, you are among the bottom 10% of India’s earners.
- India's Top 80%. At ₹11,856 per month.
- India's Top 70%. At ₹14,403 per month.
- India's Top 60%. At ₹16,969 or more per month.
- India's Top 50%. At ₹20,052 per month.
- India's Top 40%. At ₹23,986 per month.
- India's Top 30%. At ₹29,228 per month.
- India's Top 20%. At ₹38,105 per month.
- India's Top 10%. At ₹66,141 per month.
- India's Top 1%. At ₹9,23,227 or more, you are among the top 1% in India.
- In India, individual net worth required to reach the 1 per cent threshold in India is $175,000, which translates roughly to Rs 1.44 crore. (Source - here)
India's Wealth Distribution (Source - here)
- India’s top 1% now controls 40.1% of the country’s total wealth while the bottom 50% of the population hold just 6.4%.
- The top 10% earn over 57.7% of national income.
- Half the country owns barely 6.4% of the wealth.
- The Reserve Bank of India (RBI) classified anyone earning over ₹1 crore a year as part of the country’s “top 1% of income earners" back in 2023.
- The top 1% of income taxpayers in India contribute nearly 22% of total taxes, says the Central Board of Direct Taxes (CBDT).
- The Edelweiss Wealth Management Report from 2024 found that while 22% of urban Indians called themselves “rich,” only about 6% actually held assets or investments worth over ₹3 crore.
- According to the India Income Report 2024, here’s how the annual pre-tax salary landscape looked for individual earners:
City/Tier Wealthy Salary (Pre-tax, per annum) Monthly Take-Home (Approx.) Average Expenses (per month) Mumbai ₹60–80 lakh ₹3–4 lakh ₹2 lakh Delhi ₹50–70 lakh ₹2.7–3.8 lakh ₹1.7 lakh Bangalore ₹45–65 lakh ₹2.4–3.5 lakh ₹1.5 lakh Pune/Hyderabad ₹35–45 lakh ₹2–2.5 lakh ₹1 lakh Tier-2 City ₹20–30 lakh ₹1.2–1.7 lakh ₹60,000 Tier-3 City/Town ₹8–15 lakh ₹55,000–1 lakh ₹30,000–50,000
- As of March 2025, India has 284 billionaires with a total worth of Rs 98 lakh crore, which is about 1/3rd of India's GDP.
- India ranks 3rd worldwide in the number of billionaires, behind the USA and China.
- Mumbai continues to lead as the home of India's richest individuals, with 90 billionaires living in the city.
- The average age of Indian billionaires is 68, two years higher than the global billionaires' average age.
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Few other data point to consider, Like...
Many people having real estate worth of many crores but they are not into buying selling.
Many people are having gold or precious metal worth many crores and they are not into buying selling.
Few people as a family have very strong grip over wealth.
Few people still trade (BIG) in cash...
PAN Data related to people filing ITR, having fds in bank , or in stock market , or getting higher end salary are easy to track and report.
But here point is to see how we are in liquid form..
Insightful thread as usual. Tracking net worth is good for financial progress, discipline and growth.
Like the financial experts say, there are 3-4 pillars of personal finance - risk, returns, liquidity, and tax.
Risk is invisible. Only when it occurs we know it existed. (There are more things to explain here)
Returns is what everyone chases. People want more returns because they don't have enough capital and time. For corpus to grow, it needs capital and time.
Liquidity is important when we need money. If we cannot sell our investment at the time of need, it is as good as useless.
Taxes and death are unavoidable. Govt will eat 33% of our money whether we like it or not.
Liquid net worth helps us to boost our ego and confidence, thinking that we are not a silly person.
But it also helps to realize where we stand.
If everything comes to zero on one fine morning, how far can we go forward? That is decided by net worth.
Quality of life and things we use in life improve on a daily basis. We always need to move up, progress, grow.
We need to upgrade our cars, phone, washing machines, fridge, TV, house, scooter, clothes, chappal, food, entertainment and what not.
We cannot use the same thing for 40-50 years. Everything needs repair, maintenance, service. Everything needs money.
Money can solve all problems in life. There are no problems that money cannot solve in life.
Money is not the problem, but people don't know how to use money effectively.
India is a country where we cannot trust data at all. Less than 10% people have PAN and file ITR. More than 70% ITRs are NIL taxable income.
Almost 100 crore don't even file ITR so it is a black hole. Corruption still exists rampantly in our country sadly.
So whatever data we see is only of the minority.
Coming to the topic, as of today, we can live off with our investments for the rest of our lives IF there are no changes to the existing lifestyle.
But like I told above, we always need to improve and upgrade. Getting a new good car itself will cost around 15L and that kind of pushes you back.
So I would say keep earning income as long as possible. And make a plan so that you don't stop abruptly on one day.
Let there be small streams of money flowing in from different sources. Don't depend on one income alone.
Getting a livelihood from stockmarket is near to impossible for majority of the people. There may be people earning lakhs and crores from trading.
But that is only a minority. For a normal person, long term investments are good enough to be successful.
Liquidity is very important. It is OK to buy land, flat, apartment, villas, build house or whatever, but that should not stop you from having a big corpus in liquid assets like bank FD, provident funds, mutual funds, stocks etc.
I don't know if I answered the question asked in the post, but I just scribbled some of my thoughts. Sorry to go off topic.
Like the financial experts say, there are 3-4 pillars of personal finance - risk, returns, liquidity, and tax.
Risk is invisible. Only when it occurs we know it existed. (There are more things to explain here)
Returns is what everyone chases. People want more returns because they don't have enough capital and time. For corpus to grow, it needs capital and time.
Liquidity is important when we need money. If we cannot sell our investment at the time of need, it is as good as useless.
Taxes and death are unavoidable. Govt will eat 33% of our money whether we like it or not.
Liquid net worth helps us to boost our ego and confidence, thinking that we are not a silly person.
But it also helps to realize where we stand.
If everything comes to zero on one fine morning, how far can we go forward? That is decided by net worth.
Quality of life and things we use in life improve on a daily basis. We always need to move up, progress, grow.
We need to upgrade our cars, phone, washing machines, fridge, TV, house, scooter, clothes, chappal, food, entertainment and what not.
We cannot use the same thing for 40-50 years. Everything needs repair, maintenance, service. Everything needs money.
Money can solve all problems in life. There are no problems that money cannot solve in life.
Money is not the problem, but people don't know how to use money effectively.
India is a country where we cannot trust data at all. Less than 10% people have PAN and file ITR. More than 70% ITRs are NIL taxable income.
Almost 100 crore don't even file ITR so it is a black hole. Corruption still exists rampantly in our country sadly.
So whatever data we see is only of the minority.
Coming to the topic, as of today, we can live off with our investments for the rest of our lives IF there are no changes to the existing lifestyle.
But like I told above, we always need to improve and upgrade. Getting a new good car itself will cost around 15L and that kind of pushes you back.
So I would say keep earning income as long as possible. And make a plan so that you don't stop abruptly on one day.
Let there be small streams of money flowing in from different sources. Don't depend on one income alone.
Getting a livelihood from stockmarket is near to impossible for majority of the people. There may be people earning lakhs and crores from trading.
But that is only a minority. For a normal person, long term investments are good enough to be successful.
Liquidity is very important. It is OK to buy land, flat, apartment, villas, build house or whatever, but that should not stop you from having a big corpus in liquid assets like bank FD, provident funds, mutual funds, stocks etc.
I don't know if I answered the question asked in the post, but I just scribbled some of my thoughts. Sorry to go off topic.
👍✅Wonderful to read about your thoughts...
Ideas on the subject...
Bhai log, pls consider folks who use dark mode..cannot read anything in some sections..
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