From Rs 5 lakh to Rs 50 crore: CA shares 5-step formula for financial freedom

Everyone dreams of financial freedom, but it’s not a single leap — it’s a ladder. Each step changes not just your bank balance, but how you handle risk, time, and peace of mind. From surviving paycheck-to-paycheck to building a multi-crore legacy, the journey is full of milestones, pitfalls, and lessons. CA Nitin Kaushik breaks down the five real stages of wealth, showing how money evolves from a tool for survival to a vehicle for lasting legacy.

Stage 1: Survival Mode (Net worth: under Rs 5 lakh)

At this stage, life is tight. Unexpected bills or rent hikes can derail everything. The goal isn’t investing — it’s creating a small emergency fund of Rs 50,000–Rs 1,00,000 to cover 3–6 months of essentials. True wealth starts when you stop fearing the next month.

Stage 2: Financially Stable (Net worth: Rs 5 lakh to Rs 50 lakh)

Groceries, bills, and small luxuries no longer feel stressful. Savings begin to have rhythm. Focus shifts to good habits like SIPs, insurance, and avoiding lifestyle creep. But this stage is fragile — big EMIs or overspending can drag you back.

Stage 3: Financially Comfortable (Net worth: Rs 50 lakh– Rs 5 cr)

Life smooths out. Home, car, vacations — freedom grows. Mindset shifts from survival to planning: children’s education, retirement corpus, and balanced portfolios. Dreams become real, but so do distractions.

Stage 4: Financially Free (Net worth: Rs 5 cr –Rs 50 cr)

Monthly budgets fade into the background. International trips, luxury cars, premium healthcare, and business-class flights are normal. Focus moves to wealth preservation, tax optimisation, and building passive income streams.

We all talk about “financial freedom” like it’s one single goal.
But in reality, money has stages.

Each stage doesn’t just change your lifestyle — it changes your relationship with risk, peace, and time.

Let’s break down the real ladder of wealth 🧵👇🏼#stockmarketscrash… pic.twitter.com/i9Tl0KXpSs

— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) October 13, 2025

Stage 5: Generational Wealth (Net worth: Rs 50 cr+)

Now wealth is about legacy — family offices, estate planning, philanthropy. Your money creates influence and sustains multiple generations. Nitin emphasises that the key isn’t skipping stages but mastering each one. Disciplined compounding and smart financial planning, not shortcuts, lead to real freedom.