Investor’s Claim That Rs 50 Lakh Liquid Net Worth Is ‘Lower Middle Class’ Sparks Social Media Outrage

Sourav Dutta’s Controversial Post on Wealth Categories Triggers Fierce Debate and Garners Over 8 Lakh Views

24 June, 2024

An investor’s post on social media has triggered a heated debate on wealth classification, particularly the definitions of ‘rich’, ‘middle class’, and ‘poor’. The post, shared by Sourav Dutta on X (formerly Twitter) on June 20, has amassed over 8 lakh views and sparked widespread outrage.

My Definition of Wealth by Liquid Net-worth:

Poor : 10 Lacs
Lower Middle Class : 50 Lacs
Middle Class : 1 Cr
Upper Middle Class : 2 Cr
Rich : 5 Cr
HNI : 10 Cr
UHNI : 50 Cr
Don't Care Wealth : 200 Cr
Generational Wealth : 1000 Cr

Agree?

I am an HNI. What about you?

— Sourav Dutta (@Dutta_Souravd) June 20, 2024

Sourav Dutta, an investor and trader residing in Europe, posted a detailed table categorizing wealth based on liquid net worth. His classifications have caused significant backlash and intense discussions online.

According to Dutta’s post:

Poor: Rs 10 lakh liquid net worth

Lower Middle Class: Rs 50 lakh liquid net worth

Middle Class: Rs 1 crore liquid net worth

Upper Middle Class: Rs 2 crore liquid net worth

Rich: Rs 5 crore liquid net worth

High Net Worth Individual (HNI): Rs 10 crore liquid net worth

Ultra High Net Worth Individual (UHNI): Rs 50 crore liquid net worth

Don’t Care Wealth: Rs 200 crore liquid net worth

Generational Wealth: Rs 1000 crore liquid net worth

Dutta’s post read, “My Definition of Wealth by Liquid Net-worth: Poor: 10 Lacs Lower Middle Class: 50 Lacs Middle Class: 1 Cr Upper Middle Class: 2 Cr Rich: 5 Cr HNI: 10 Cr UHNI: 50 Cr Don’t Care Wealth: 200 Cr Generational Wealth: 1000 Cr Agree? I am an HNI. What about you?”

Dutta elaborated on his classifications, stating that liquid net worth should include assets that can be converted to cash within two days. He clarified, “Liquid Net-worth = all liquid assets (those which you can liquidate and get money in 2 days) – all loans. Primary House isn’t liquid Net-worth. Investment real estate and land plots can be considered but discounted by 30-50 per cent due to illiquidity. Gold is liquid.”

The public response has been swift and polarized. Many users criticized Dutta’s definitions, arguing that they are out of touch with the financial realities of most people. Comments flooded the post, with users debating the definitions of wealth and the economic conditions they imply.

The net worth is the value of a person’s or company’s assets minus their liabilities. 

Several X users disagreed with Dutta’s take. 

“I always thought I am in the upper middle class but today got to know that I’m poor,” wrote one X user. 

“This is called being a condescending prick. You don’t flaunt your wealth like this,” another person said. 

“This is just a basic classification by 1 person, not a scientific data-based research. Personally, I think this is pretty decent classification as of today,” an X user said in response to the post  

“It actually sounds funny that a crorepati is struggling to be middle class. Think of it this way …how quickly is the value of money going down,” said Alok Jain, founder of Weekendinvesting

Some argued that these categories do not reflect the economic diversity within regions and the varying cost of living standards. Others found the classifications to be an oversimplification that fails to account for the nuances of personal finance and economic stability.

Dutta’s post has indeed sparked a significant conversation about wealth, financial security, and societal classifications. The debate underscores the complexities of defining economic classes and the differing perceptions of wealth across various demographics. As the discussion continues to unfold, it remains clear that the topic of wealth classification is far from settled in the public eye.