How to build wealth as a salaried middle-class employee? Zerodha CEO Nithin Kamath shares simple '1% rule'

Nithin Kamath -- the billionaire chief executive officer (CEO) of the online brokerage firm Zerodha, has shared some key tips to help salaried middle-class employees to build wealth.
He said there are no shortcuts to get rich and it takes patience and good habits. "I often get asked for a stock tip, something that will make people rich," Kamath, 45, wrote in a post on X.
He added there are several things that can hold one back from building wealth. "Things like buying stuff you don't need, or worse, borrowing to buy them. The other big one is not having health insurance."

The 1% rule 
Kamath accompanied his post with a video of Prateek Singh, the founder and CEO of LearnApp, in which he explained a no-nonsense formula for India's salaried class looking to build long-term wealth: Reduce your expenses by just 1% and invest those savings.

"Your salary is supposed to give you freedom. But for many, it's become a chain,” he said. "Money comes in, disappears into expenses and loans, and the cycle repeats itself," Singh said in the video.

“Cut out just 1% of your monthly expenses. If you spend Rs 50,000 a month, that’s Rs 500. Skip that one food order, and invest the money," he explained. "Over time, this small step forms a powerful habit -- and that matters more than the amount."

'Magic lies in doing it'
Singh further suggested starting with index funds that yield between 10 to 12% per year, stressing on consistency of investment over complexity. "You already know what to do. The magic lies in doing it. The moment you take the first step, your life begins to change," Singh said.