By Vikram Singh, Financial Management Expert
Two Money Formulas That Decide Your Future
Most people save what’s left after spending. Wealth creators spend what’s left after saving.
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Do not save what is left after spending. Spend what is left after saving.
Every month, millions of people earn an income, pay bills, enjoy their lifestyle, and save whatever is left. It seems responsible — but this habit quietly decides whether someone will struggle financially later or build real financial freedom.
Formula #1 (Most Common)
Income – Expenditure = Savings
Monthly Income₹1,00,000
Monthly Spend₹95,000
Monthly Invest₹5,000
Return / Tenure12% • 35 yrs
Approx wealth created
₹3.28 Crores
Formula #2 (Wealth Creators)
Income – Savings = Expenditure
Monthly Income₹1,00,000
Monthly Invest (20%)₹20,000
Expenses After Saving₹80,000
Return / Tenure12% • 35 yrs
Approx wealth created
₹13.13 Crores
The difference is staggering
Both individuals earned the same income, lived in the same economy, and had the same opportunities. The only difference was the order in which they managed their money.
Difference
₹9.85 Crores
Wealth isn’t created by income alone
Wealth is created by habit, discipline, and prioritizing investments. Many believe they’ll start saving when income increases, but expenses often rise proportionately. Without a conscious “invest first” decision, wealth creation keeps getting postponed.
20% is realistic for most earners
Saving 100% is not possible, but saving at least 20% is realistic and achievable for most earning individuals. The key is making investment a priority rather than an afterthought.
Beware unqualified financial “gurus”
In today’s digital age, many unverified advisors operate on WhatsApp, Facebook, Telegram, and other platforms. Following unverified advice can lead to serious mistakes. Financial planning is about long-term discipline, structured planning, and experienced guidance — not chasing trends.
Experience note
Having worked in the financial services industry for over 23 years and managing assets exceeding ₹60 crores, I have seen how consistent investing transforms ordinary earners into financially secure individuals.
