Smart, Rich, and Ready: 11 Habits Fueling India’s Financial Elite
Discover how India's affluent truly manage their money—from saving unquestioningly to missing out on equity and global investing. Learn the 11 most common habits, the lessons behind them, and how to transform them into your roadmap to financial freedom.
Uncover the 11 top financial habits of affluent Indians—what works, what does not, and how to transform these insights into your path to financial freedom. Learn from a seasoned CFP’s real client stories.
When Having Money Is Not Enough
As a CERTIFIED FINANCIAL PLANNER® mentoring India's top professionals, couples, and business families, I have repeatedly witnessed that being rich in India today does not guarantee peace of mind.
My experiences include sitting across marble tables in Gurgaon penthouses and sea-view homes in Mumbai with clients who earn Rs 50 lakhs a year—or already have Rs 10 crore in assets—yet… they feel financially lost.
They worry about their children’s education abroad. Their parents’ medical emergencies. Their early retirement goals.
I have asked, “With all this wealth, why are you so anxious?”
Their silence says everything.
Being affluent is not the same as being financially free.
The Marcellus Investment Managers and Dun & Bradstreet report on HNIs (High Net-Worth Individuals) confirmed what I have seen: when wealth is not guided by structure, it can become a burden.
Today, I will walk you through 11 key financial habits of India’s affluent. You will learn what they do well, where they go wrong, and—most importantly—how you can do better.
Habit 1: They Save a Lot—But With No Direction
I coached a textile exporter from Ludhiana. Every month, like clockwork, he would transfer Rs 10 lakh into a mix of PPF, gold ETFs, and recurring deposits.
However, when I asked, “Why these instruments?” He did not have a clear answer.
“Just habit,” he said.
We created a financial vision board together, featuring his daughter’s fashion school in Milan and his dream of retiring at 55 and spending a year in the Himalayas.
Once the purpose was clear, we streamlined his savings, bringing a sense of relief and security.
The Mistake:
Most affluent couples save aggressively but without clarity. Take Vikram and Pooja, a power couple from Bengaluru. They stashed Rs 3 lakhs every month into PPF, gold, and FDs—because their parents did the same.
What Changed:
In our session, I asked, “What do you want your money to do?” Silence.
We crafted a “Couple Vision Board”: funding their child’s Stanford dream and retiring to a villa in Coorg. With this, they shifted their savings to match their goals—SIPs for education and international mutual funds for retirement.
Lesson: Saving is good. Saving with direction is transformational, turning financial anxiety into security and confidence.
Habit 2: They are Obsessed with Real Estate
A businessman in Chennai proudly told me, "I do not trust the stock market. The property is real. I own seven apartments!"
All in the same city.
When his wife needed urgent treatment in Singapore, he could not sell even one in time.
Real estate in India is often idolised. However, it is not liquid, it is not always income-generating, and it rarely beats inflation over time.
The Mistake:
Kiran and Anuja, a couple from Chennai, owned six flats, all located in the same city. However, when Anuja needed urgent surgery in Singapore, none could be liquidated in time.
What Changed:
We restructured their assets—sold two non-performing properties, built a Rs 75 lakh liquid fund, and diversified into REITs and debt funds.
Lesson: Real estate is not always absolute freedom. Make liquidity part of your wealth strategy, enlightening you about the importance of this factor.
Habit 3: They Avoid Equity Out of Fear
Only 17% of surveyed HNIs have equity holdings of over 30%.
One jeweller from Surat once told me, "Taresh bhai, shares are like Satta."
His father had lost Rs 3 lakh in penny stocks 15 years ago, and that fear stayed.
We started small—Rs 5 lakh in a Nifty 50 mutual fund. Today, he comfortably holds a balanced portfolio and uses part of his equity gains to fund an expansion in Dubai.
The Mistake:
Mitesh and Ruchi from Surat avoided equity like the plague. Mitesh's father lost money in penny stocks in the early 2000s, and that trauma stayed.
What Changed:
We started with Rs 10 lakh in a Nifty 50 ETF. They achieved stable growth, added mid-cap mutual funds, and now fund their Goa retirement plan solely from equity gains.
Lesson: Equity is not gambling—it is strategy. Educated, guided investing changes everything.
Habit 4: They Know Their Retirement Number—But Do not Act
A VP at a major MNC once told me, “I calculated—I will need Rs eight crore to retire early.”
“Great,” I said. "What is your current roadmap?"
“FDs and two flats,” he replied.
We shifted gears and introduced global equity exposure, tax-efficient mutual funds, and a systematic investment plan (SIP) for passive income. His numbers finally started to match his dreams.
The Mistake:
A Mumbai-based couple, Nandini and Sanjay, both senior executives, knew they needed Rs 12 crore to retire early. However, their assets were parked in FDs and real estate.
What Changed:
We created a roadmap that includes global ETFs, monthly SIPs, NPS contributions, and a phased withdrawal strategy. In 5 years, they were 40% closer to their target.
Lesson: Knowing is step one. Doing is what builds freedom.
Habit 5: They Forget Emergency Funds
A luxury interior designer in Bengaluru had Bentleys and penthouses. However, during the COVID-19 lockdown, when his business was paused, he prematurely broke his ELSS funds, incurring taxes and penalties.
Why?
No emergency corpus.
Now, we have built a Rs 50 lakh liquid fund covering six months of expenses—his financial oxygen.
The Mistake:
Rhea and Akash, luxury designers in Delhi, had luxury cars and designer wardrobes—but no emergency corpus. COVID-19 froze their income, forcing them to liquidate ELSS at a loss.
What Changed:
We built a Rs 30 lakh liquid emergency fund covering 12 months. It now sits quietly in a liquid fund, giving them peace of mind.
Lesson: Emergency funds are not optional. They are your oxygen.
Habit 6: They Carry Hidden Debt
One restaurateur in Delhi had loans from five banks, all of which were for expanding his outlets. However, his repayment schedule was chaotic.
He thought he was managing fine—until we reviewed his cash flow. Interest rates were bleeding him.
We consolidated his loans, tied them to income-generating outlets, and switched to lower-interest lines.
The Mistake:
A restaurateur couple in Pune, Rohan and Meenal, had personal loans from five NBFCs to support their outlet expansion. Their cash flow was choked.
What Changed:
We consolidated their loans, switched to a business overdraft at lower rates, and improved profitability tracking.
Lesson: Leverage debt smartly—do not let it silently eat into your peace.
Habit 7: They Chase Products, Not Plans
I once reviewed a Hyderabad tech founder’s portfolio:
23 mutual funds
5 ULIPs
4 endowment policies
Random PMS from three banks
Different relationship managers sell all. None aligned with his actual life goals.
We decluttered. Built a goal-based investment roadmap. Shifted focus from “best product” to “best fit.”
The Mistake:
Neha and Arvind, a tech-savvy couple from Hyderabad, had 27 mutual funds, 6 ULIPs, and four insurance policies—all of which were suggested by different RMs. No synergy.
What Changed:
We decluttered and aligned their entire portfolio to three core goals: early retirement, global travel, and passive income. They now use one dashboard to review all assets.
Lesson: One plan beats twenty products. Clarity creates confidence.
Habit 8: They Fund Children First, Ignore Themselves
A Gujarati couple from Rajkot funded two destination weddings, a Harvard MBA, and gifted an apartment to their son.
However, they had zero passive income. At 62, they were living on rental income from one property.
I asked, “What about your next 30 years?”
They looked stunned.
The Mistake:
A Rajkot couple spent over Rs 2 crore on their children, including an MBA abroad, weddings, and an apartment gift. At 63, they had to downsize.
What Changed:
We reset. Built a reverse SIP plan. Their passive income today supports a simple, joy-filled life, along with yearly travel.
Lesson: Love your children—but do not forget your journey.
Habit 9: They Ignore Global Investing
Only 21% of affluent Indians invest outside of India.
One pharma director from Ahmedabad said, “Why should I invest in America when India is shining?”
I showed him the impact of rupee depreciation and how global tech cycles differ from those in India. His US-based ETF now mitigates the volatility in his domestic portfolio.
The Mistake:
Deepika and Ravi, NRIs who had turned returnees in Ahmedabad, did not see the value in investing abroad. "India is booming," they said.
What Changed:
We created a 40:60 India-global split. US tech ETFs balanced their domestic small-cap exposure. Their portfolio now aligns with global trends, offering lower volatility.
Lesson: Global investing protects against local risks. Think global, act wise.
Habit 10: They Think They are Diversified (But They are Not)
A logistics entrepreneur once told me, “I am fully diversified.”
Here is what he had:
55% real estate
25% fixed deposits
10% gold
10% insurance
Not a single rupee in equity. Nothing liquid. No monthly passive inflow.
Diversification is not just spreading across assets. It is aligned with goals, timelines, and risks.
The Mistake:
A Gurugram couple believed they were diversified: 60% real estate, 25% fixed deposits (FDs), and 15% gold. Nothing in equity, nothing liquid.
What Changed:
We rebalanced and introduced SIPs, health insurance, a PMS for growth, and REITs for stable income.
Lesson: True diversification blends risk, return, liquidity, and tax efficiency.
Habit 11: They Do not Involve Family
A client passed away suddenly at 58. His wife was unaware of the mutual fund logins. His daughter was unaware of term insurance. His brothers fought over business assets.
In contrast, another family I coached in Mumbai had monthly review meetings and a one-page “Family Financial Dashboard.” Even the teenage son knew how to read a mutual fund statement.
The Mistake:
I met a grieving wife from Kolkata who did not know her husband's investments after his sudden death. It led to legal battles and months of delays.
What Changed (Another Couple’s Story):
Priya and Dhruv, Mumbai-based executives, created a one-page Family Financial Dashboard. They do a 30-minute finance check-in every quarter. Even their teenage daughter now understands SIPs.
Lesson: Wealth needs to be understood, not just created.
Final Thoughts: Time to Think Richly
If you are reading this and recognise your money habits in these stories, know this:
You can change.
You can simplify.
You can build alignment between your dreams and your decisions.
Affluence without alignment is like a car without steering; it lacks direction. You will move, but without control.
Most wealthy Indians still carry outdated beliefs:
That property is always safe
That equity is gambling
That you should sacrifice for children first
That more advisors mean more clarity
However, I have seen these myths shattered.
I have guided doctors, business owners, startup founders, and global NRIs to transform from confused accumulators to confident wealth creators.
Remember:
Disclaimer & About the Author: This article is for informational purposes only. Readers should consult a qualified financial advisor before making decisions. Taresh Bhatia, CFP® and founder of The Richness Academy, empowers individuals to achieve financial freedom. Send queries to taresh@tareshbhatia.com or visit his website https://tareshbhatia.com or register for his webinar: https://couplefinanceformula.in.
