Opt for regular investing over extreme frugality

Extreme frugality carries the risk of a backlash, akin to a person on a near-starvation diet lapsing and going on an eating binge

The Guptas, who are in their early thirties, work in top multinationals and have a joint income exceeding Rs 50 lakh per annum. They spend only Rs 15 lakh in a year (including rent) and save the balance. Despite an eye-popping 70 per cent savings rate, their existing investment corpus was intriguingly small. They explained that most of their earlier earnings had gone into paying off a family liability. The Guptas were now in a tearing hurry to create enough assets to be financially independent in the next 10 years, hence the frugal lifestyle.

As a part of our structured life