Ever wondered why some people seem to glide through life while others are stuck living paycheck to paycheck? CA Nitin Kaushik breaks it down like a treasure map — wealth isn’t a single leap, it’s a seven-level journey. Each stage feels different, and most people get stuck before they even start truly building freedom. From surviving month-to-month to living in rich mode, here’s how money evolves when you play it smart.
Most people think financial freedom is a far-off dream, but it’s really a staircase you climb step by step. At Level 1, you’re drowning in debt with no safety net, barely scraping by, according to the CA. Level 2 sees you debt-free but fragile — one unexpected expense can throw everything off balance. Level 3 is the turning point: a six-month emergency fund gives you breathing room and confidence.
By Level 4, you’ve acquired your first property or built Rs 2.5–3 Cr in liquid investments, feeling secure and halfway to real wealth. Level 5 is Coast Financial Independence and Retire Early (FIRE) — your money works quietly in the background, growing even if you pause active investing. Level 6 is Full FIRE, where work becomes optional and freedom takes centre stage. Finally, Level 7 is Rich Mode — wealth fuels choice, freedom, and impact, letting life be about what truly matters.
CA Nitin Kaushik warns that most people stall at Level 2, stuck between debt-free survival and real financial freedom. Understanding the steps, building the bridge carefully, and playing the long game are what separate dreamers from those living life on their own terms.
In mid-2025, with equity markets soaring, many young investors—especially those who hadn’t experienced a full market cycle—started dreaming of early retirement. Blame it on long work hours, bullish markets, or media hyping FIRE (Financial Independence, Retire Early). Forty suddenly felt like the new 60. A recent Grant Thornton survey reveals that 43% of Indians under 25 aim to retire between 45 and 55, with 55% expecting a monthly pension above Rs 1 lakh. Ambitious? Absolutely. Achieving this requires funding 3–4 decades without income and building a massive corpus.
How can youngsters achieve FIRE smartly?
Start by setting a clear target: calculate your future expenses, inflate them for retirement, and assume a lifespan to know your corpus. Stick to a budget, keeping lifestyle expenses around 40% of income and investing 50–60%. Separate goals—don’t touch retirement funds for gadgets or travel. Build a strong foundation with a 6-month emergency fund, health, and term insurance. In your 20s, focus 80–90% on equities, shifting to debt closer to retirement. Top up investments with each raise and avoid lifestyle inflation, increasing savings as income grows.
Most people think financial freedom is a far-off dream, but it’s really a staircase you climb step by step. At Level 1, you’re drowning in debt with no safety net, barely scraping by, according to the CA. Level 2 sees you debt-free but fragile — one unexpected expense can throw everything off balance. Level 3 is the turning point: a six-month emergency fund gives you breathing room and confidence.
By Level 4, you’ve acquired your first property or built Rs 2.5–3 Cr in liquid investments, feeling secure and halfway to real wealth. Level 5 is Coast Financial Independence and Retire Early (FIRE) — your money works quietly in the background, growing even if you pause active investing. Level 6 is Full FIRE, where work becomes optional and freedom takes centre stage. Finally, Level 7 is Rich Mode — wealth fuels choice, freedom, and impact, letting life be about what truly matters.
CA Nitin Kaushik warns that most people stall at Level 2, stuck between debt-free survival and real financial freedom. Understanding the steps, building the bridge carefully, and playing the long game are what separate dreamers from those living life on their own terms.
In mid-2025, with equity markets soaring, many young investors—especially those who hadn’t experienced a full market cycle—started dreaming of early retirement. Blame it on long work hours, bullish markets, or media hyping FIRE (Financial Independence, Retire Early). Forty suddenly felt like the new 60. A recent Grant Thornton survey reveals that 43% of Indians under 25 aim to retire between 45 and 55, with 55% expecting a monthly pension above Rs 1 lakh. Ambitious? Absolutely. Achieving this requires funding 3–4 decades without income and building a massive corpus.
Most people think wealth is one giant leap. It’s not. It’s 7 levels — and each feels completely different.
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) October 22, 2025
Level 1: Debt + no emergency fund. Every month is survival mode.
Level 2: Debt-free, but fragile. No assets, no safety net. One unexpected expense and you’re back to…
How can youngsters achieve FIRE smartly?
Start by setting a clear target: calculate your future expenses, inflate them for retirement, and assume a lifespan to know your corpus. Stick to a budget, keeping lifestyle expenses around 40% of income and investing 50–60%. Separate goals—don’t touch retirement funds for gadgets or travel. Build a strong foundation with a 6-month emergency fund, health, and term insurance. In your 20s, focus 80–90% on equities, shifting to debt closer to retirement. Top up investments with each raise and avoid lifestyle inflation, increasing savings as income grows.
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