New Delhi: Entrepreneur and finfluencer Ankur Warikoo has claimed that the savings of middle class Indians have decreased and their loans have increased.
In his latest YouTube video, Warikoo urged people to avoid frivolous spending and instead invest more in the stock market.
Warikoo said that in the five-year Sensex increased by a cumulative 90 percent between 2020 and 2024 which means that if you invested in 2020 then your investment has roughly doubled. In 2004, Nifty reached all-time highs. Mid-cap and small-cap stocks hit a rock bottom of above 25 percent, he said.
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Warikoo said that from Q2 FY 2020 to Q1 FY2020, the real income wages—inflation-adjusted income increased by 0.1 percent over 5 years. On average, the salary remained unchanged. He explained that what was worth Rs 10 lakh five years ago is now worth Rs 21 lakh due to inflation.
Warikoo said that five years ago, family household savings were 11.7 percent of national domestic income but are now 5.2 percent. This signifies that people save less than half of their income as a percentage of the national income. But credit card loans, car loans, personal loans and retail loans have increased.
According to Warikoo, this divergence is the biggest wealth divide in the country. The wealthiest one percent now owns 40 percent of national wealth. India now has 333 billionaires whose combined wealth is equal to 50 percent of the country’s GDP. However, the middle class which represents 40 percent of the population is being hollowed out. Their share of national income has plunged from 45 percent to 23 percent today.
Warikoo claims that people get wealthy not because they work longer hours or harder but because they spend their money where they know it would generate more income. He said that the middle class uses loans to brag about how much money they have. On the other hand, a wealthy person would use the same loan to buy something that would make them money.
According to Warikoo, one cannot get wealthy overnight. There are basic steps that when followed will help you make money in the long run. Warikoo advises people to avoid spending money on frivolous things. Next he recommends that people set up an emergency fund to support them in times of emergency. Finally, Warikoo advises people to invest in the stock market which will increase their wealth over time.
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