Few Things That Should Have Been Obvious but Aren’t

Some things in life appear deceptively simple. Eat a well-balanced diet, and your body stays healthy. Obvious, right? Yet, if you want to build muscle, the equation is not as straightforward. You need to challenge your body, tear down those biceps and triceps through strength training, and then repair them with a protein-rich diet. The result? Those muscles rebuild stronger than before. Similarly, cardiovascular exercises help create new arteries, improving blood and oxygen flow to the heart, and reducing the risk of heart attacks. These concepts seem simple when explained, yet they are not obvious until we truly understand how the body works.

Financial wellness follows the same pattern—some things appear obvious, but when you look closer, there’s a deeper truth.

We all understand the importance of saving. Our parents and grandparents have always shared stories about how things were much cheaper in their time. “A litre of milk cost just 50 paise,” they’d say.

While these anecdotes make us smile, they also highlight the reality of inflation. Inflation erodes the value of money over time. If you put ₹1 lakh under your mattress today, its purchasing power in 20 years will be significantly lower.

This is where the obvious-but-not-obvious truth comes in: saving is not enough. If you don’t invest your savings in inflation-beating assets like equity or other growth instruments, you’re simply falling behind. The lifestyle you enjoy today may not be sustainable in retirement.

Here’s an example: Suppose you save 30% of your income every month but keep it in a savings account that gives a mere 3% annual return. With inflation averaging at 6-7%, your money is effectively shrinking every year. Now compare that to investing in equity markets, where historical returns have averaged 10-12% annually. Over 20-30 years, the difference is staggering.

Lesson: Saving is the starting point, not the finish line. To stay ahead, invest in assets that outpace inflation.

Albert Einstein famously called compound interest the eighth wonder of the world.

Yet, for many, compounding remains a theoretical concept. The real magic happens when you combine three elements:

1. The principal amount (your initial investment)
2. The rate of return (growth of your investment)
3. Time (the single most powerful factor)

Let’s look at two individuals: Ravi and Amit.

• Ravi starts investing ₹10,000 per month at age 25 and continues till he’s 35. He stops after 10 years but lets the money grow untouched.
• Amit starts at age 35, invests the same ₹10,000 per month, and continues for 25 years till retirement at 60.

Who has more wealth at age 60? Surprisingly, it’s Ravi—the one who invested for just 10 years. Why? Because his investments had more time to compound.

The key takeaway: Time in the market is more important than timing the market. The earlier you start, the greater your financial growth. Delaying even by a few years can cost you lakhs, if not crores, in the long run.

From childhood, we are taught to be frugal—to cut costs, save money, and avoid unnecessary expenses. It’s wise advice, no doubt. But it’s also limiting.

Let’s face it: there’s only so much you can cut. You can eliminate dining out, cancel subscriptions, or skip vacations, but at some point, you hit a wall. You still have fixed expenses like rent, food, and education.

What if, instead of obsessing over cutting expenses, you shifted focus to earning more?

Here’s a story to illustrate this point:

Anil and his friend Sunil both earn ₹50,000 a month. Anil decides to live frugally, cutting his expenses to ₹20,000 and saving the rest. Sunil, on the other hand, spends time upgrading his skills and lands a better job in two years, doubling his income to ₹1 lakh. Even though Sunil doesn’t cut his expenses as aggressively, he’s able to save far more and enjoy a better lifestyle.

The point? Cutting expenses has a ceiling. Earning potential does not.

Investing in your skills, taking calculated risks, or exploring new opportunities can help you increase your income manifold.

Lesson: Focus on growth. Earning more is often far more powerful than saving more.

Like the body, financial health requires effort, discipline, and understanding.

• Saving is necessary, but you need to invest to beat inflation.
• Compounding is magic, but it requires time to work.
• Cutting expenses is good, but earning more can transform your life.

These truths may seem obvious in hindsight, yet they are often overlooked in practice. Just as you need to tear muscles to make them stronger, you need to challenge conventional thinking to achieve true financial empowerment. The sooner you act, the greater your rewards will be—and that’s the real magic.