Earning Rs 1 lakh salary? You’re already broke, points out expert

India’s urban middle class is facing a harsh reality check: even a Rs 1 lakh monthly salary isn’t enough to keep pace with rising living costs. Chartered Accountant Nitin Kaushik has laid it out bluntly—if you’re earning Rs 1 lakh and still struggling, it’s not your spending habits, it’s inflation eating away your earnings.

“People think Rs 1 lakh a month is a comfortable income. But when you break it down, you’re barely surviving,” said Ca Nitin Kaushik.

Let’s break it down:

Rent alone can eat up Rs 25,000.

Groceries and food? Another Rs 12,000.

Transportation costs around Rs 7,000, while phone and Wi-Fi bills take Rs 3,500.

Toiletries and laundry? Rs 2,500.

Then come the essentials — emergency fund contributions, basic savings, insurance, eating out, entertainment, and retirement planning—which together add up to over Rs 50,000. By the time you allocate Rs 15,000 for investments like SIPs, PPF, and gold bonds, your Rs 1 lakh paycheck is stretched thin.

“Even after living modestly and planning smart investments, most salaried people don’t have any real buffer left,” Kaushik pointed out. “One medical emergency or job loss, and you’re wiped out.”

He noted that rising inflation, hidden expenses, and increasing lifestyle costs are eroding purchasing power. “The biggest illusion is thinking a high salary means you’re rich. The reality is, if your savings rate is low, your financial freedom is a myth.”

Kaushik urges young earners not to delay financial planning. “Don’t wait for a hike or bonus to start saving. Budget ruthlessly, track your spends, and keep reviewing your investments every month.”

He also warns against being misled by flashy online advice. “Ignoring personal finance basics and blindly following finance influencers is dangerous. Your goals are different. You need a solid, customised money plan—not just fancy jargon.”

In a time when rent, food, and insurance premiums are rising faster than salary hikes, financial literacy is more crucial than ever. “The system isn’t designed to make you wealthy on just your salary. You have to be intentional with every rupee,” Kaushik stressed.

In short, if you think a Rs 1 lakh salary gives you financial security, think again. Inflation doesn’t care about your paycheck—it quietly makes you poorer every day.