Imagine to earn your jaw £40 Lakh per year, salary for many, just to try to allow a simple holiday. It is not a hypothetical scenario, but a sharp financial reality of 32 -year -old IT professional, decoded by authorized Kaushik authorized accounting Nitin in a viral x post. His story was deeply resonated and caused by an extensive conversation about financial literacy and danger “rich in cash, cash”.
Kushik’s contribution emphasized the case of IT professional in Mumbai and earned robust £2.2 lakh per month. Despite this seemingly robust intake, the individual is barely scratched. As? Let’s analyze the numbers that shocked the Internet.
Debt trap
The primary culprit is according to Kaushik and £1.5 crore apartment purchased in the Bombai mulund. After a £25 Lakh backups, IT professional took massive £1.25 crore loan. Result? Stunning £1.12 Lakh per month Emi-this is half of the household salary that disappears only at the cost of housing.
“Welcome to the fact that they are” rich in the house, poor in cash “,” Kaushik joked, perfectly encapsulating a situation where a significant asset is owned, but the cash flow is seriously limited due to loan obligations.
The illusion of high income
In addition to housing loans, further expenditures further disrupt the monthly income:
- AUTO EMI: £15,000 per month
- Monthly Expenditure (General): £50,000
This leaves a modest £30,000 to £40,000 in net savings, and that’s only “when everything goes perfectly”. Kushik warns that “one holiday, emergency or work switch – and that collapses.” This fragile financial state is a sharp reminder that high CTC does not automatically transfer to financial security.
Alarming Lack of Financial Planning
Kushik’s analysis has determined several critical pitfalls in which many high -income earnings fall:
- No real investment: Emphasis is placed on immediate satisfaction and consumption, not on creating wealth.
- No liquidity: Funds are tied up in illicient assets, making it difficult to access cash in emergencies.
- Hardly any emergency fund: The basic security network is missing, so individuals are vulnerable to unexpected financial shocks.
- Lifestyle inflated to income: as income grows, expenditures that often do not do not do any saving potential.
- Planning of retirement = non -existent: the future is thought out and threatens long -term financial stability.
Cash Flow is a king
The main message Ca is powerful: “High intake does not mean high wealth. Assets that do not create income are liabilities in disguise. Do not be fooled by your net assets – cash flow is the king.”
It emphasizes the importance of understanding that valuable asset, such as home while contributing to net fortune, does not create income and can release funds through high emissions and maintenance.
Kushik concludes a major advice for all, especially young experts focused on financial stability: “Instead of mere persecution of larger salaries and start chasing financial freedom.” This includes:
(Tagstotranslate) High income
