How the Middle Class Can Build Wealth: Zerodha CEO Nithin Kamath’s Game-Changing Advice

In today’s fast-paced world, more and more people are turning to investments in hopes of securing a better financial future. But in chasing quick profits, many end up losing hard-earned money. Addressing this issue, Zerodha’s Co-founder and CEO, Nithin Kamath, shared a thought-provoking message that cuts through the noise. I often get asked for a stock tip, something that will make people rich. 😬Unfortunately, there are no shortcuts to getting rich. It takes good habits and patience. Things like buying stuff you don't need, or worse, borrowing to buy them. The other big one is not having health insurance. Things like these can really hold you back.

I often get asked for a stock tip, something that will make people rich. 😬

Unfortunately, there are no shortcuts to getting rich. It takes good habits and patience. Things like buying stuff you don't need, or worse, borrowing to buy them. The other big one is not having health… pic.twitter.com/qWYaDuhZKe

— Nithin Kamath (@Nithin0dha) April 10, 2025

Apart from this, he also shared a clip from Zero1ByZerodha, where the speaker Prateek Singh explains why so many of us feel stuck in a financial loop. In the video, he notes that most people are trapped in a cycle – study hard, get a job, take a loan, buy a house, and keep spending. It may look like success from the outside, but inside, it’s an endless loop with no freedom. The root of the problem, Singh points out, is that most people treat their salary as a stream meant to be spent, not saved or grown.

 Steps to Escape the Middle-Class Trap

Track Your Expenses & Start Investing

Write down your monthly expenses. Cut back on wasteful spending. Even investing just 1% of your income in simple tools like index funds can set the foundation.

Build an Emergency Fund

Save at least 6 months' worth of living expenses. Example: If you spend ₹30,000/month, aim to save ₹1.8 lakh. This cushion can help you survive a job loss without panic.

Get Health Insurance

With skyrocketing medical costs, not having health insurance is a huge risk. Always stay covered.

Stay Disciplined & Avoid Greed

Don’t fall for get-rich-quick schemes. Build wealth slowly and steadily through regular investing and long-term planning.