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It sounds like the dream, doesn’t it? Rs 40 lakh per annum. Swanky job in tech. A 1.5 crore apartment in Mumbai. A shiny car in the parking lot. From the outside, it’s a picture of success. But peel back the curtain, and the reality is sobering: a 32-year-old IT professional with a CTC of Rs 40 LPA is broke. Not just metaphorically — he literally cannot afford a single stress-free vacation. Welcome to India’s newest illusion: high income with zero financial freedom. Chartered Accountant Nitin Kaushik recently broke down this alarming financial profile on X.
CTC: Rs 40 LPA
In-hand salary: Rs 2.2 lakh/month
Flat in Mulund (Mumbai): Rs 1.5 crore
Home loan: Rs 1.25 crore
EMI: Rs 1.12 lakh/month
Right off the bat, more than 50% of his salary goes toward the home loan. That’s not including maintenance, property tax, or rising interest rates. Add to that: Car EMI: Rs 15,000/month, living expenses (food, utilities, social life): Rs 50,000/month. What’s left? A razor-thin saving margin of Rs 30,000–Rs 40,000/month, if everything goes perfectly. But life rarely plays by the rules. One minor health issue, one job switch, or even a trip abroad — and the entire house of cards tumbles.
CA points out the real trap
- Asset-rich, liquidity-poor- Lifestyle inflated income
- With no real investments or emergency fund
- Retirement planning is becoming non-existent
How to chase financial freedom instead?
If income isn’t translating into peace of mind, then it’s time to reset the approach. Here’s what Kaushik suggests — and what thousands are now waking up to:- Control spending: Don’t let your income decide your expenses. Let your goals decide.
- Building an emergency fund in liquid form — non-negotiable.
- Invest in real assets: Mutual funds, index funds, stocks — anything that compounds, not depreciates.
- Say no to lifestyle debt
