It's not your salary, but your savings that make you rich, says Vijay Kedia

High salaries may look impressive on paper, but they don’t guarantee wealth. What truly matters is how much you save — not how much you earn, says veteran investor Vijay Kedia. In a recent post on X (formerly Twitter), Kedia urged individuals to rethink their lifestyle choices and focus on disciplined saving to build long-term wealth.

“Your salary of lakhs doesn't make you a millionaire, your savings of lakhs makes you a millionaire,” Kedia wrote, urging individuals to rethink how they manage money and avoid consumer-driven habits.

He criticised the Western philosophy of "live for today," calling it a myth born of consumerism. “There is a theory in America that live for today, tomorrow never comes. This is an abhorrent theory,” he said, pointing out how such thinking leads to financial insecurity. According to Kedia, nearly 40% of Americans don’t have even $1,000 to meet emergencies, largely because saving is not ingrained in their culture.

While countries like the US offer social security as a safety net, Kedia argued that relying on governments is no substitute for personal financial planning. Instead, he advocated for building wealth through consistent investments. He offered a simple example: “If you are investing Rs 50,000 per month for 20 years in mutual funds with just a 12% CAGR, it becomes Rs 5 crore. This is simple math.”

He advised young earners to reduce discretionary spending — on parties, fashion, and brands — and redirect that money into savings. “The first thing to do is reduce parties, spend less on fashion and brands, and save as much money as possible,” he said.

Sharing a thought-provoking quote, Kedia added: “Either you can have a lavish young age or you can have a lavish old age. Always keep this in mind.”

Kedia summed it up with a warning that every rupee spent today carries a cost in the future. “If you are spending Rs 50,000 today could mean giving up Rs 5 crore in future value."

https://x.com/VijayKedia1/status/1913861402722177050?t=bUUzLLe1nR-9WcjNo4felg&s=08

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Many Gensols still hiding in the cupboard
Earlier, in a separate post, Kedia also weighed in on the recent controversy involving Gensol Engineering, which has been barred by SEBI from accessing capital markets for diverting public funds. "There are many Gensols still hiding in the cupboard, just waiting to tumble out with time," he warned.

Kedia hoped by the time these other companies, which he didn't mention explicitly, come out, it’s not too late by then. However, he put out 10 red flags that investors can look out that scream before a scam.

Kedia said It’s wiser to be wary of companies that: 1) Talk big and overpromise 2) Maintain constant media presence — through news coverage, hyperactive social media posts, and endless interviews 3) Magnify even the smallest developments 4) Raise funds frequently without clarity on deployment. 5) Diversify into unrelated businesses just to ride trending narratives 6) Overuse flashy buzzwords to sound innovative without real substance. 7) Flaunt lavish promoter lifestyles that don’t match company performance 8) Have high levels of promoter pledging 9) Face frequent exits of key personnel (CFOs, auditors, CXOs) and 10) Engage in excessive related-party transactions.

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