CA Kaushik explains high income trap for Rs 30 LPA earners
Updated
Updated · The Economic Times · May 5
CA Kaushik explains high income trap for Rs 30 LPA earners
3 articles · Updated · The Economic Times · May 5
He says a savings rate falling from 40% to 20% can leave higher earners poorer in time and flexibility despite tripled income.
Kaushik cites lifestyle creep, with rent turning into a Rs 50,000 EMI and luxury car payments adding Rs 35,000 a month, while taxes and subscriptions erode surplus.
He argues wealth depends on assets, liabilities and net worth, not salary alone, urging people to cap lifestyle growth below pay rises to build long-term financial security.
Is lifestyle creep a personal failure, or a trap designed by our modern economy?
How can we hijack the psychological tricks marketers use and apply them to build wealth?