‘Why I paid ₹11 lakh in cash’: Startup cofounder trashes popular finance influencer advice

By Admin

22 Jul, 2025

In a world driven by financial “hacks” and return-maximizing strategies, one entrepreneur has chosen peace of mind over Excel sheet projections. Nishant Chahar, Co-Founder of AlgoPrep, recently made headlines on LinkedIn for defying the advice of countless finance influencers   by paying ₹11 lakh in cash for his Tata Nexon.

“I had every finance influencer on LinkedIn telling me I was stupid,” Chahar shared. “They kept repeating the same formula: take a car loan, invest your cash, make more money over time.”

The “Smart” Advice That He Rejected

Let’s break down what the influencers said:

• Take a ₹11 lakh loan at 9% interest over 5 years → Total repayment: ₹13.5 lakh.
  
  

• Invest ₹11 lakh instead at 12% annual return → You could have ₹19.4 lakh in 5 years.
  
  

• Net gain? ₹6 lakh.
  
  

Sounds like a win, right? But Chahar disagrees.

“What They Ignore Is Reality”

In a now-viral post, Chahar explained why he didn’t buy into this picture-perfect advice:

• 12% annual returns aren’t guaranteed.
  
  

• Invested money isn’t liquid   what if an emergency comes up?
  
  

• Capital gains taxes eat into profits.
  
  

• Market risks: What if ₹11 lakh turns into ₹8 lakh?
  
  

• EMI burden: ₹23,000 per month for 5 years isn’t a joke.
  
  

• Mental strain: “Financial stress doesn’t show up on a spreadsheet.”
  
  

Chahar’s decision was driven by more than numbers. “For me, ₹11 lakh was just 20% of my total savings. Paying cash didn’t hurt my finances. In fact, it freed me from 5 years of debt and monthly payments hanging over my head.”

Returns vs. Real Life

Finance influencers often chase one thing: maximized returns. But Chahar takes a different approach   maximized peace of mind.

“Yes, I might have made ₹2-3 lakh more with their strategy. But I sleep better knowing my car is 100% mine. No EMIs, no debt, no uncertainty.”

The Bigger Picture

Chahar’s message is clear: not all financially optimal decisions are right for your mental health.

“Stop letting people on the internet convince you that debt is the smarter choice just because it looks good on Excel. Your peace of mind is worth more.”

In a world that glorifies credit and debt as tools for growth, Chahar reminds us that sometimes the smartest decision is the one that helps you sleep at night   not the one that looks the best on paper.