Person with £50 Lakh annual salary, BMW, Gurgaon apartment and international holidays could sound like a story about success; However, this image of a “rich in paper” often means “broken in reality”, shared Priya Jain, a research analytics registered with Sebi, and inspired his daily meetings.
At LinkedIn Post Jain, he explained how extravagant lifestyle and lack of financial planning can lead to garbage -boring highly earnings professionals in India.
Jain shared an analysis in which she described in detail the life of a fictitious person who earns £50 Laks per year but bears the burden £60 Lakh in loans.
Instagram Life vs Bank Account Reality
The case emphasizes the life of the character named Priya, who works as a software engineer, controls BMW he bought on EMI and her own apartment in Gurgaon SA £40 Lakh loan.
This person also maintains active online presence, complete with holiday columns in Dubai and more than 10,000 LinkedIn followers.
LinkedIn post
Their reality, however, consists of a lot of commitments that come with a “rich in paper”. Priya has £60 Lakh in total debt, monthly issue £85 000 and zero emergency fund. He lives a paycheck and only one medical emergency outside bankruptcy, Jain said in her post.
“As an analyst with a self -confident sebit, I meet with these” rich in paper, a broken reality daily, “Jain said.
Mathematics leading to a trap on debt
Jain’s analysis reveals the illusion in numbers. AND £50 Lakh annual salary is translated roughly £2.8 Lakh rewarding houses after taxation. A fixed monthly outflow is massive – £85,000 in emissions and £50,000 in basic costs, a total of £1,35 lakh.
Also read | Man falls to death to avoid debt of £ 1.40 – 5 lessons to avoid debt trap
While it leaves the person and £1.45 Lakh savings, this surplus is quickly consumed by hidden luxury life costs, which include car maintenance, insurance and repair, along with home maintenance and company fees. Expenditure on treatment and extraordinary events in the family also increases the costs of these excess money. At the top of these expenditure, the lifestyle inflation pressure will also reduce savings.
The real remaining monthly savings are often zero, Jain said.
Trap of the middle class debt
Jain said that such a lifestyle can create a “middle class trap”. The individual seems to be successful for others, but inside is deeply emphasized. Every month it becomes a fight, but the stopping emis feels like “failure”.
Her last lesson is that “real wealth is not what you earn. That’s what you keep.” The individual’s financial health is defined as their assets minus liability. If this number is negative, then the person is broken by definition, regardless of their salary.
Also read | Burning into a trap for debt? Here’s how to get out of it, step by stepAlso read | Do Fintech applications provide a personal loan by blessing or a debt trap?
In another comparison, Jain claims to earn a delivery professional £30,000 per month but consistently saving £15 000 is financially richer than the fictitious character Priya with monthly salary £2.8 lakh.
The contribution requires that high -earnings experts to get real about their money and prefer to build wealth over the maintenance of an expensive lifestyle.
(Tagstotranslate) rich-on-papper
