Whenever we talk about NRIs, there’s a common belief. They must be earning a lot, saving a lot, and becoming rich. After all, when their investments in India grow, the numbers look huge. Lakhs turn into crores. On paper, it feels like winning. But one NRI recently shared a moment of realisation that changed how he saw his money completely.
He said that for years he felt proud watching his India net worth grow in crores. Every rise in the market felt like success. Then one day, he did something simple but uncomfortable. He converted those crores into dollars. That is when reality hit. The problem was not that he was bad at investing. The problem was that he was measuring his success in the wrong currency.
Dollar Milkshake theory
What he experienced is not just personal. It fits into a bigger global idea called the Dollar Milkshake Theory, explained by macro strategist Brent Johnson. Imagine the world’s money as a giant milkshake. Every country has poured money into it by printing currency, lowering interest rates, and borrowing heavily.
Now imagine the US dollar as a straw placed inside this milkshake. When the world feels scared, during wars, inflation, debt crises, or market crashes, money rushes toward safety. That safety, more often than not, is the US dollar. The straw starts sucking up the milkshake.
Why the Dollar gets stronger when things go wrong
The US has some big advantages. Its financial markets are deep. Its government bonds are trusted. Many global loans, trade deals, and reserves are already in dollars. So when trouble comes, investors don’t run away from the dollar. They run toward it. This demand makes the dollar stronger, even when other countries are doing “well” on paper.
This is why the rupee falling from around Rs 40 to nearly Rs 93 per dollar isn’t random. It is not just about India doing something wrong. It is about global money getting pulled toward the dollar. Even if Indian stocks rise and Indian bonds pay higher interest, the currency loss can slowly eat away those gains for anyone who lives and spends in dollars.
The hidden trap of emotional investing
Many investors feel proud investing in their home country. There is emotion, patriotism, and comfort involved. But money doesn’t care about feelings. It only cares about where it grows and what it’s worth when you actually use it. If you earn and spend in dollars but measure success in rupees, you may feel richer while actually standing still or even going backward.
NRI who shared this story said he wishes someone had explained this to him ten years earlier. His approach now is simple. He keeps most of his wealth in the currency of the country where he lives and spends. He still invests in India, but as a growth opportunity, not as his main financial base. In short, he stopped reacting to headlines and started aligning his money with his real life.
Disclaimer: The content in this article is based on a viral social media discussion and is intended for informational and entertainment purposes only. The financial figures and strategies mentioned are personal to the user and have not been independently verified. This story does not constitute financial advice or an endorsement of any specific investment strategy. Readers are advised to consult a SEBI-registered investment advisor before making financial decisions.