New Delhi: Angel investor and Financial Expert Ankur Warikoo believes that India is facing a silent but severe household savings crisis. He has proposed three simple formulas following which people can save more money and live a comfortable life.
said that India’s household savings rate has plunged to just 5.1 percent. In simple terms, if a family earns Rs 100, they save only Rs 5 which is the lowest level in 47 years. In contrast, our previous generations saved far more compared to us. He said that savings have crashed and debt has risen. In his words, “debt has exploded in India”.
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Warikoo said that India’s total household debt has increased to Rs 120 lakh crore. But what matters more is where this debt will take us. Historically, families borrowed primarily to buy assets like homes or gold. Nowadays, people take out loans to buy cars, phones, clothing and even vacations. He stated that consumption is rising faster than income, as is credit.
Warikoo said that a major warning sign is the surge in credit card stress. He stated that outstanding credit card balances now total Rs 3 lakh crore with 28 percent of users defaulting. He said that the average credit card balance is Rs 33,000 in a country where the national average salary is around Rs 25,000. Between 2023 and 2025, the default rate for personal loans under Rs 1 lakh was 44 percent.
Warikoo stated that financial stress is affecting mental health with some studies indicating that roughly 19 percent of suicides in India are related to financial stress.
Warikoo believes that traditional financial advice will not work in 2026. He said fixed deposits yield 6 to 7 percent but after tax returns are only around 6 percent. Real inflation is closer to 8 to 10 percent. All these indicate that your savings are losing value year after year.
Warikoo said that housing has become nearly unachievable. Property prices in many cities have risen to Rs 4 to 5 crore while salaries have grown at only 6.3 percent per year over the last decade. Because of this disparity, most people are unable to own homes.
Warikoo has offered a playbook for everyone in 2026. He claimed that if someone follows these three formulas in their financial journey then they will receive everything in life without exception.
Warikoo stated that the first step towards financial success is to upskill yourself. He said that you must focus on your skills and beat the annual average growth of salary by at least 2x or 3x.
Second, invest and take calculated risks. He said taking calculated investment risks through equity markets will help build money in the long run.
The final stage is to consider a side gig in addition to your primary source of income. He said that the side gig could be music, graphics, content or code which would help build up your money over time.
Warikoo has advised people to “Save a lot of money and live a simple and amazing life”.
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