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You just got your salary. The message pops up — Salary credited. Feels good, right? But before you know it, half your paycheck’s already gone: dinners, impulsive shopping, EMIs, subscriptions you forgot you had. And by the end of the month, you’re wondering — Where did all my money go?
If this sounds familiar, you’re not alone. According to CA Nitin Kaushik, even people earning ₹50,000 to ₹1 lakh a month often feel broke — not because they don’t earn enough, but because they fall into the same money traps again and again. He recently shared 7 classic financial blunders that most Indians make, along with smart ways to break the cycle.
1. Spending before budgeting
The biggest mistake? Spending first, budgeting later — or never. The CA gives an example where you earn Rs 50,000. You blow Rs 12,000 on weekend takeout and random online buys. By mid-month, you’re scraping by. Instead, he says to flip the script and follow the 50-30-20 rule:
– 50% on needs (like rent and bills)
– 30% on wants (like Netflix or dinners)
– 20% on savings and investments
2. No emergency funds
Emergencies don’t wait until you’re “ready.” According to Nitin Kaushik, a sudden Rs 15,000 hospital bill or job loss can throw your entire month into chaos. Start building an emergency fund now — even Rs 2,000/month can add up. Your goal: at least Rs 75,000 to Rs 1 lakh, parked safely in a liquid fund or fixed deposit.
3. Saving, but not investing
Stashing Rs 20,000 in a savings account sounds responsible — until you realise it earns just 3% interest (that’s Rs 600 a year). Instead, he suggests trying SIPs (Systematic Investment Plans). Investing Rs 5,000/month for 10 years with decent returns (12–14%) can grow to over Rs 11–13 lakhs. That’s the power of compounding.
4. Lifestyle inflation
Got a raise? Congrats — but the CA warns to not rushing to upgrade your phone, wardrobe, or car. This is where most people lose money. Your salary grows, but your expenses grow faster. He recommends trying this instead: keep your lifestyle steady for a year. Channel the “extra” money into investments and let it grow. Live like you’re still earning less — future-you will thank you.
5. Impulse shopping
The CA further points out that ordering on apps like Zomato, Amazon, and Myntra means temptation is everywhere. Before you know it, you’ve spent Rs 5,000 on stuff you didn’t need. Use the 24-hour rule: Add to cart. Wait 24 hours. Still want it? Buy it. If not, let it go. Your bank balance will look a lot healthier.
6. EMIs that trap you
“Rs 5,000 EMI? That’s nothing!” But over a year, that’s Rs 60,000+ of your salary gone. Kaushik suggests keeping EMIs under 15% of your net monthly income. And always ask yourself: ‘Can I afford this if I lose my job tomorrow?’ If the answer is no, rethink that purchase.
7. Not tracking your money
The simplest fix? Know where every rupee goes. Most people don’t track their spending, then wonder why their money disappears. Just 30 days of tracking (via a free app or even a Google Sheet) can completely change your money habits, he said.
CA’s final advice: Your salary is not just for spending. It’s your launchpad. Your first investor. Your key to freedom. Whether you earn Rs 30,000 or Rs 1 lakh, the way you handle your money makes all the difference. Control it now — or spend years letting it control you.
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