1. If you wish to accumulate wealth through investing, please realize that the investing pot comes from giving up consumption – in the initial stages at least. If that hurts, wealth accumulation is very difficult.

2. If you or your somebody else in the family spends money to show off you are not likely to accumulate wealth

3. If you end up buying many things that you do not need, one day you will be having things, not money. No point in feeling bad later on.

4. Wealth is Relative. Tatas have more wealth than Premji, Sachin has more wealth than Kohli….well as of now

5. If you have to create wealth you need to be obsessed about the whole process. It is dull and boring, but works.

6. It is not necessary to create wealth at all. As long as you have enough money to last till your retirement, that is fine.

7. If you use wealth as a scorecard of success, it is difficult to measure success. This is simply because people who are really rich do not NEED show off assets. Those who keep acquiring show off assets do not accumulate real wealth.

8. Wealth is a function of returns over a long period of time. So to enjoy the wealth you need to live long.

9. One of the worst destroyers of wealth – especially at the start of the process is poor health. One or two hospitalisations can erode your small capital. Take good care of your health – it is a brilliant wealth creation tool.

10. If you are creating wealth for your OWN consumption, there has to be a judicious balance between earning, investing and spending.

11. If you have accumulated money in the region of even Rs. 4-5 crores go to a decent lawyer and see whether you need sensible inter-generational transfer tools. Not very difficult, but a good lawyer can be useful.

12. Charitable giving is difficult if you want to do it sensibly.


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  1. Subra, where can I find a good lawyer and tax consultant for helping with tax efficient wealth preservation and transfer- help with trust, small company setup etc.

  2. Despite what you write Subra, people “think” that they are doing everything right. Some of these are NOT applicable for themselves, but for others : (

    Just to emphasize the above point.
    #7 means:
    –Big Apartment / House (read as 3+ BR apartment of 1500 sqft+, paying 60% of your salary (or worse both spouse’s salary) as EMI.
    –Buying a Big Car on EMI. This is worse than Apt. Car is a depreciating asset (i.e. value comes down), but you still pay 12% interest on EMI. Double whammy!
    –Vacation out of country. Without saving atleast 20% of your salary into proper investments (a.k.a. NOT LIC insurance policy).

  3. 13. Have no kids
    14. Do not pay for your kids’ ug or pg education. Make them earn it through scholarship or otherwise

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