The middle class, once considered the backbone of society with steady jobs and dreams of homeownership, is now facing a critical dilemma: should they focus on looking rich or becoming rich? Shyam Achuthan, Founder and CEO, highlights the growing divide between those who focus on immediate appearances and those who prioritize long-term financial stability.

According to Achuthan, many individuals today are trapped in a cycle of borrowing to maintain a facade of wealth. Expensive gadgets, fancy brunches, and vacations are often funded through loans and EMIs, making them appear affluent, but this strategy can lead to financial distress in the future. Achuthan describes this behavior as "financial suicide dressed up as 'living your best life,'" with individuals sacrificing their financial future to live in the present.

On the other hand, a few within the middle class are adopting a different approach. They forgo extravagant spending, choose cost-effective options like used cars or public transport, and invest consistently in mutual funds, stocks, and real estate. While they may appear less wealthy now, their investments are steadily working towards building true wealth. Achuthan predicts that in the next decade, these individuals will own properties and assets while others are still struggling with rentals.

In light of rising inflation, job insecurity, and technological disruption, Achuthan urges the middle class to rethink their approach. "Trying to keep up with the rich using a middle-class salary is like bringing a scooter to an F1 race. You’ll burn out," he warns. The key, he believes, lies in acting "broke" in the short term to ensure wealth accumulation in the long term. He concludes by advising the middle class to make smarter decisions today for a more financially secure tomorrow.