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You’d think the high-income earners have it all figured out. Dream homes, fat bonuses, exotic holidays and a tidy retirement plan to top it off. But hold that thought.
A recent survey by Saurabh Mukherjee’s Marcellus and Dun & Bradstreet dove deep into the finances of India’s rich and affluent—those earning over Rs 50 lakh annually after tax.
The result? Less sparkle, more splutter.
Turns out, many of the country’s top earners are walking a financial tightrope. And it’s not due to bad luck; it’s due to bad money habits.
Big paycheques, bigger problems
India Wealth Survey 2025 reveals a sobering truth: Many of the 465 survey respondents across India are in a hot financial soup.
- Nearly 43 per cent of HNIs (those earning above Rs 50 lakh per year after tax, save less than 20 per cent of their post-tax income.
- The number is even less among those aged 30 to 45.
- Two out of 10 have a poor understanding of investment options.
- 14 per cent don’t have an emergency fund—no financial cushion despite their wealth.
In short: many affluent Indians are “high income, low net worth” individuals.
So, what’s going on?
High aspiration, low preparation
Most of the respondents, the survey found, had lofty goals:
- 75 per cent want to fund their child’s education or marriage
- 30 per cent hope to retire early
But the reality? 30 per cent admitted to poor financial discipline and a similar number are still wary of investing in equity, the one asset class that can actually help them achieve their goals.
So, if even India’s rich are struggling to save or invest in equity, what chance does the rest of us have?
However, this isn’t about lack of income. It’s about habits, choices and the psychology of money.
What you should do
If you want to build real wealth, start simple, start now and stay consistent.
- Pay yourself first: Automate your savings. Invest at least 25–30 per cent of your monthly income the moment it hits your account. Forget buying fancy gizmos. Because wealth comes before status.
- Build an emergency fund: Set aside at least six months’ worth of expenses in a liquid fund or sweep-in FD. No excuses.
- Start with mutual funds: If you’re new, begin with a flexi-cap fund or an aggressive hybrid fund. SIPs are your friend.
- Don’t chase returns, chase consistency: Wealth isn't built by timing markets or picking ‘hot’ stocks. It's built through discipline and patience.
- Get advice, not noise: Avoid tips from friends or banks. If you're confused, hire a SEBI-registered fee-only planner.
If HNIs with crores in income can mess up their finances due to poor planning, it’s a wake-up call for all of us. Income doesn't equal financial security. Habits do.
What you should know
Yes, investment returns matter. But not as much as how much you save.
Even if you earn 20 per cent annual returns and you save just 5 per cent of your income, you won’t build impactful wealth. Meanwhile, someone saving 30–50 per cent at modest returns will lap you in the long run.
Here’s how the savings rate affects your retirement timeline:
| Savings rate | Time to retire |
|---|---|
| 10% | 40+ years |
| 30% | 24 years |
| 50% | 15 years |
Your takeaway? Savings rate is your superpower and the good news is that it’s fully in your control.
The last word
Affluent India is living in a world of high aspirations and low savings.
So, whether you’re earning Rs 5 lakh or Rs 50 lakh, the golden rule holds: It’s not what you make; it’s what you keep and what you do with it.
Now go on. Save smart. Invest simply. And let compounding do the heavy lifting.
Also read: The best mutual fund to invest Rs 15 lakh?
This article was originally published on June 16, 2025.
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