The middle class, once seen as the backbone of society, is now facing a crucial dilemma: Should they focus on looking rich or becoming rich? Shyam Achuthan, Founder and CEO, sheds light on this growing divide between those who prioritize appearances and those who focus on long-term financial stability.

The Struggle for Appearances vs. Financial Stability

Achuthan points out that many people are trapped in a cycle of borrowing to maintain a facade of wealth. Expensive gadgets, lavish brunches, and luxurious vacations are often financed through loans and EMIs, creating an illusion of affluence. While this may seem like "living your best life," Achuthan describes it as “financial suicide dressed up as ‘living your best life.’” This behavior may provide instant gratification but can lead to financial hardship in the future.

Building Real Wealth: A Different Approach

On the other hand, some middle-class individuals are taking a different approach. They are cutting back on lavish spending, opting for used cars or public transportation, and consistently investing in assets like mutual funds, stocks, and real estate. While they may appear less wealthy in the short term, these individuals are steadily working towards building true wealth. Achuthan predicts that in the next decade, these investors will own properties and assets, while others will still be struggling with rentals.

The Warning: Smart Financial Decisions for the Future

With rising inflation, job insecurity, and rapid technological changes, Achuthan urges the middle class to rethink their financial strategies. “Trying to keep up with the rich using a middle-class salary is like bringing a scooter to an F1 race. You’ll burn out,” he warns. The key, he believes, is to act "broke" in the short term to ensure financial security and wealth in the long term. His advice: Make smarter financial decisions today to ensure a more secure future tomorrow.