Just How Well Off Are You?

wealthymatters.comDo you know if you are a HNI? Or if your income makes you rich in India?

Envy and jealousy are pretty useless but there’s nothing like goal setting to get where you want to be wealth wise. It helps to know just where you stand.

According to the National Council for Applied Economic Research (NCAER), you are rich if your family’s  annual household income exceeds  Rs 17 lakh.There are 3 million rich households in India comprising some 16 million individuals.So 1.38% of Indians are rich in income terms.

However income doesn’t equal wealth just as being rich doesn’t mean being wealthy.For more on this distinction please refer to this older post here:  https://wealthymatters.com/2011/01/26/the-definition-of-income-and-wealth/ .

According to Credit Suisse’s Global Wealth Report 2010, India has some 170,000 High Networth Individuals (HNIs) in all. These are people who are dollar millionaires at the very least: with saleable assets minus debts valued at Rs 4.5 crore or more.So in percentage terms only 0.015% of Indians are wealthy.So high incomes do not translate so easily to wealth.In fact for every 92 rich people there is only one 1 wealthy person.And its quite possible a lot of wealthy people might not have the income to be considered rich.They might just be be good wealth creators.

As a PS, assuming no taxes and investment,it will take a person/single breadwinner family earning Rs 17 lakhs per annum 26.5 years to graduate to wealthy.And with a little bit of conservative investing,there is no reason why a person cannot achieve the same goal in a decade.

About Keerthika Singaravel

No Responses to Just How Well Off Are You?

  1. Vanessa says:

    Wonderful !I like how this blog post was written. Enlightening yet concise.

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