Chapters 14, 15 · The Impression of Increase · The Advancing Man
This is Article 7 of the “Science of Getting Rich × Mutual Funds” series on rahulmoney.com
There are three distinct stages in the financial journey of a salaried professional. Most people get stuck between stage one and stage two and never quite make it to stage three. Understanding which stage you are in — and what it takes to move forward — is one of the most useful things you can do for your financial future.
Stage 1: The Saver
The Saver is disciplined with money. They spend less than they earn. They have a healthy emergency fund. They put money into FDs, RDs, and maybe some PPF. Their financial life is orderly and responsible.
But the Saver’s money is not really working. FD returns of 6-7% barely keep pace with inflation, especially after taxes. The Saver’s wealth is preserved, not grown. They are financially secure in the short term but falling behind in the long term.
Most Indian middle-class households live in Stage 1 — and call it being financially responsible. It is. But it is not enough.
Stage 2: The Wealth Builder
The Wealth Builder has crossed a crucial threshold. They have connected their income to investment in a systematic way. They have SIPs running. They have a rough goal in mind. Their money is in the market, compounding.
Wallace Wattles describes this stage in Chapter 14 as “the impression of increase” — the feeling of momentum, of growing, of things getting better. This is a powerful motivator. When you open your portfolio app after three years of consistent SIPs and see your corpus, you feel it. That feeling is what keeps you going.
Track net worth, not NAV: Checking your NAV daily creates anxiety. Calculating your net worth every six months — all assets minus all liabilities — creates perspective. You want to see that number grow year on year. That growth is the real signal that you are advancing.
Stage 3: The Family Guide
Chapter 15 of Wattles’ book is about the advancing person — someone who has internalized the principles of wealth creation deeply enough that they naturally help others around them do the same.
For most of us, this begins at home. The salaried professional who has built a meaningful corpus and seen it grow often becomes the person their siblings call when they want to start investing. The person their parents trust to advise on whether to surrender an old LIC policy. The person their college friends WhatsApp when they get their first salary and want to know what to do with it.
This is a responsibility, not just a status. When you are in Stage 3, you have the knowledge and the lived experience to genuinely help the people you care about avoid the mistakes you may have made early on.
How to move from Stage 1 to Stage 3
- Stage 1 to 2: Start one SIP this month. Link it to one specific goal. Automate it.
- Stage 2 to 3: Learn enough to explain the basics to someone else. Teaching consolidates your own understanding. And the person you teach might be changed by it forever.
- At every stage: review annually, stay invested, and remember that the goal is not a number on a screen. The goal is the life that number makes possible.
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