Many people dream of becoming a millionaire and most believe that a high salary is the key to achieving that dream. However veteran investor Vijay Kedia has a different perspective it’s not your salary but your savings that make you wealthy. This simple yet powerful idea can change the way you think about money and set you on the path to financial freedom.
A high salary might look impressive, but it doesn’t guarantee wealth
Earning a lot of money is only part of the equation. If you spend everything you earn you will never build wealth no matter how big your paycheck is. For example someone earning $10000 a month but spending it all on luxury cars, vacations or expensive gadgets will have nothing left to show for it. On the other hand someone earning $3000 a month but saving $1000 consistently can grow their wealth over time through smart investments. The difference lies in discipline and prioritizing savings.
Saving is the foundation of wealth building because it gives you the capital to invest. Money saved today can be put into assets like stocks, mutual funds or real estate which grow over time. This is where the magic of compounding comes in. For instance if you save $500 a month and invest it at an 8% annual return you could have over $150000 in 15 years. The longer you save and invest the more your money works for you. This is why Kedia emphasizes that savings, not salary are the real game changer.
To start saving effectively, you need a plan
First track your expenses to understand where your money is going. Many people are surprised to see how much they spend on small unnecessary things like daily coffee or online subscriptions. Next create a budget and stick to it. A popular rule is the 50-30-20 rule use 50% of your income for needs (rent, food) 30% for wants (entertainment, dining out) and save or invest 20%. Even if you start small consistency is key.
Another important step is to avoid lifestyle inflation. As your salary increases it’s tempting to upgrade your car, house or wardrobe. But if you keep living below your means you can save more and invest the extra income. Kedia’s advice reminds us that wealth is not about showing off but about building a secure future.
Stay patient
Building wealth through savings takes time but it’s worth it. Small regular savings can grow into a large sum with discipline and the right investments. So whether you earn a modest salary or a high one focus on saving a portion of it every month. As Vijay Kedia wisely said it’s your savings that will make you a millionaire not just your salary. Start today and let your money work for you.