₹1 Lakh Monthly Drain: CA Nitin Kaushik Explains How One Costly Choice Can Snowball Into ₹4.5 Crore
₹1 Lakh Monthly Drain: CA Nitin Kaushik Explains How One Costly Choice Can Snowball Into ₹4.5 Crore
A single financial decision can quietly chip away at wealth for years, often without people realizing its long-term impact. Chartered Accountant Nitin Kaushik has flagged what he calls one of the biggest hidden money traps — buying a luxury car.
According to Kaushik, the real cost of a high-end vehicle extends far beyond its showroom price. Monthly EMIs, steep insurance premiums and immediate depreciation together create a significant financial burden.
He points out that for a ₹50 lakh car, the combined impact of loan repayments, insurance and nearly 20% depreciation as soon as the vehicle leaves the showroom can translate into a loss of over ₹1 lakh per month. While maintenance and servicing add to the expense, the major hit comes from the trio of EMI, insurance and rapid value erosion.
Kaushik contrasts this with an alternative strategy: investing the same ₹12 lakh annual outgo into land, especially in emerging growth corridors where select pockets have historically delivered returns of up to 25% CAGR. Over a decade, he suggests, such disciplined investing could potentially build a portfolio worth around ₹4.5 crore — compared to a car that may depreciate to a fraction of its original value.
Beyond numbers, he also underlined the emotional trade-off, cautioning that many people sacrifice long-term financial freedom for short-lived luxury and brand appeal.
Disclaimer: The financial illustrations and views mentioned above are based on a social media post by CA Nitin Kaushik and are meant for informational purposes only. They do not constitute investment advice. Readers are advised to consult a certified financial advisor before making financial decisions.
