Why Most Indians Struggle With Wealth Despite Income
Why Most Indians Struggle with Wealth The Truth Hidden Behind Pay Slips: In India, even high-income professionals often feel financially stressed. Individuals earning ₹15–20 lakhs a year report feeling broke mid-month. Despite strong salaries, they’re caught in debt cycles, under-saving, and constantly firefighting financial issues. This disconnect between income and financial well-being isn’t rare. It’s widespread and solvable. Income ≠ Wealth A high salary is not the same as financial freedom. Think of income as water from a tap and wealth as the water collected in a tank. If the tank has holes—like poor financial habits, emotional spending, and lifestyle pressure—the tank never fills. Wealth isn’t about how much you earn. It’s about how much you keep, grow, and protect. Seven Reasons Why High Earners in India Stay Broke 1. Lifestyle Inflation With every raise, people upgrade their lifestyle: Bigger car Larger home with higher EMIs Expensive gadgets Fine dining, more frequent vacations This upgrade feels deserved, but it consumes the extra income and prevents wealth accumulation. Expenses grow at the same rate—or faster—than income. 2. Lack of Financial Education Schools and colleges don’t teach personal finance. Most people learn about money through trial and error or from friends and family. This leads to: Poor savings discipline Wrong insurance products Overexposure to risky investments No budgeting or cash flow planning Without knowledge, even high earners make beginner-level financial mistakes. 3. Overdependence on Parents’ Advice Many working professionals rely on their parents for financial decisions. While well-intentioned, older generations often recommend outdated products like endowment plans or FDs. Today’s financial landscape requires updated thinking—SIPs, term plans, asset allocation, and tax efficiency. Financial independence includes independent financial decision-making. 4. Absence of Financial Goals Most professionals do not have clear, written financial goals. Without goals, investments are reactive: Random SIPs Last-minute ELSS purchases for tax Taking advice from unqualified sources Clear goals bring purpose to every rupee saved and invested. 5. Blind Faith in Corporate Benefits Health insurance, EPF, and group term cover are helpful, but not enough. These benefits disappear if you switch jobs, take a break, or retire early. Relying solely on corporate perks leaves you underprepared for emergencies and long-term security. 6. Peer Pressure & Social Comparison Comparison drives unnecessary financial decisions: Buying a car because a friend did Signing up for premium club memberships Borrowing to fund lifestyle choices This leads to stress, low savings, and poor asset growth. Matching others’ lifestyles doesn’t help you reach your personal wealth goals. 7. Lack of Financial Communication In many households, couples avoid talking about money. Parents don’t involve children in financial decisions. Professionals don’t seek advice or clarity. Avoidance leads to financial misalignment within families and missed opportunities for smarter planning. Shift from Income-Based Living to Wealth-Based Living The solution lies in shifting focus: From earning more → to managing better From spending emotionally → to spending intentionally From hoping → to planning High income is a strong start. But sustainable wealth requires discipline, structure, and action. Seven Habits That Build Real Wealth 1. Pay Yourself First Before spending on anything, save a fixed percentage of your income. Automate investments. Build the habit. This one move ensures consistent wealth growth. 2. Live Below Your Means Wealthy people don’t overspend—even when they can. Choose peace over pressure. Choose future freedom over present comparison. Spend less than you earn. Always. 3. Have Written Financial Goals Goals give direction to money. Set clear goals for: Emergency fund Retirement Children’s education Home purchase Passive income Break them down into amounts, timelines, and monthly contributions. 4. Start Investing Early The earlier you start, the more compounding works in your favor. Even small SIPs, when started early, grow into crores over 20–30 years. Don’t wait for perfection. Start with what you have. 5. Get Insured the Right Way Take term insurance to protect your family. Have personal health insurance outside your job. Avoid mixing investment and insurance. Financial security comes from being prepared for life’s uncertainties. 6. Track and Review Finances Monthly Use a spreadsheet, app, or pen and paper—just track. Check: Income vs. expenses Net worth growth Savings rate Investment performance Monthly reviews help you course-correct before problems arise. 7. Keep Learning Read. Attend webinars. Ask questions. Learn about: Mutual funds Tax planning Debt management Retirement strategies Financial literacy compounds just like money. Reflect on These Questions Use these to assess your financial health: Do I save before spending—or save what’s left over? How many months of expenses can I survive without income? Have I calculated my retirement number? What financial habits do I want to pass on to my children? Am I building assets—or just collecting liabilities? Conclusion: Wealth Is Built, Not Earned India is full of salaried professionals and business owners with strong incomes but low wealth. The difference-maker isn’t how much they earn. It’s how they think and behave with money. Wealth is built through intention, discipline, and a repeatable system. No matter your background, degree, or city—you can start building peaceful wealth today. The goal isn’t to look rich. The goal is to live free. And the journey begins with the decision to take control.
The 5 Common Reasons Why Most People Fail at Budgeting (And How to Succeed)
💡 Budgeting is one of the most Googled financial terms, but also one of the most abandoned resolutions. Everyone starts with energy. Few stay with discipline. Most quietly quit by Week 2. But why? Why is it that despite knowing we should budget, we don’t? That’s exactly what we’ll unpack today — in real talk, Indian life context, and with solutions that stick. Why Budgeting Sounds Good but Fails Fast Let’s be honest. “Budgeting” feels like: No one likes that energy. We think budgeting = restriction. But the truth is… 🚫 The 5 Common Reasons People Fail at Budgeting ❌ 1. They Overcomplicate It Spreadsheets with 28 categories. Colour-coded apps. Daily logging. It starts to feel like managing a company’s accounts, not your own life. Budgeting shouldn’t feel like homework. It should feel like clarity. ❌ 2. They Budget Based on Ideal Life, Not Real Life “From now, I’ll eat out only once a month.” “My fuel cost will be ₹1000 max.” “I’ll save ₹30,000 every month.” 🙄 This is budgeting based on motivation — not behaviour. When reality hits, you overspend, feel guilty, and drop the whole thing. ❌ 3. They Track After, Not Before Most people react to expenses. “Let’s see how much I spent last month.” That’s called expense tracking, not budgeting. Budgeting is a plan for your money before the month starts, not a post-mortem. ❌ 4. They Don’t Include Joy Here’s a controversial truth: Any budget that doesn’t include fun… will fail. You need a guilt-free “fun allowance.” Even if it’s ₹1,000 a month for pani puri, chai, or a date night. ❌ 5. They Budget Alone in a Family System Especially in Indian homes, we often budget individually, but spend money collectively — spouse, kids, parents, relatives. If your partner doesn’t know the plan, If your family doesn’t align with goals… You’ll constantly feel off-track. 💥 The Big Mindset Shift: Budgeting = Buying Freedom Budgeting is not about punishment. It’s not about becoming “cheap.” It’s about this: “I tell my money where to go — instead of wondering where it went.” Budgeting is like giving your money a job. Every rupee should have a role: Suddenly, money becomes your team. You’re the CEO. The rupees are your employees. You assign. They perform. 🧠 The Shiv Budgeting Method: Freedom Budget Blueprint™ Let’s simplify your life, Shiv-style. Here’s a simple, 3-part budgeting system I use with my students: ✅ Step 1: Split Into 3 Broad Buckets Forget 25 categories. Use this clean formula: 🧾 Essentials (50%) 💸 Wealth (30%) 🎉 Joy & Growth (20%) Why this works: ✅ Step 2: Plan Monthly — Not Daily Budgeting is like a diet. If you track calories every 3 minutes, you’ll quit in 3 days. Plan monthly. Check weekly. Track broadly. Use tools like: ✅ Step 3: Automate the Wealth Bucket This is non-negotiable. Set standing instructions so that: Because discipline is best when it’s automated. 🔁 Budgeting as a Couple (or Family) If you live with a spouse or parents — budgeting is not a solo game. 🫱🏽🫲🏽 Here’s how to align: Make it collaborative, not controlling. 🧘♂️ What Budgeting Actually Gives You Let’s move beyond rupees. What budgeting gives you is: 🌿 Peace — no more wondering “where did it all go?” 🤝 Trust — between you and your partner 🚀 Momentum — because small wins feel powerful 📊 Data — so you know exactly what to fix 💰 Surplus — that’s where true wealth begins 📍 Reflective Journal Prompts (Try Tonight) Here’s how to go deeper. Take 10 quiet minutes. Ask yourself: These aren’t accounting questions. They’re healing ones. 🧱 Brick by Brick: How to Succeed at Budgeting If you take away one thing from this blog, let it be this: Budgeting is not a numbers game. It’s a habits game. And habits are not built in one day. They’re built by showing up again and again. ✅ You’ll mess up a few months. ✅ You’ll overspend sometimes. ✅ You’ll forget to track for a week. But don’t quit. The goal is not perfect budgeting. The goal is peaceful progress. And if you keep showing up, one habit at a time — You’ll become that person who doesn’t just earn money… But directs it like a leader. ✨ Final Word: Your Money Wants Leadership, Not Luck You don’t need to be a finance expert. You don’t need to say no to life. You just need to own your money story. Budgeting is your way of saying: Your ₹50,000/month can create more peace than someone earning ₹2 lakhs — if you lead it well. So start. Start small. Start messy if you have to. Because financial freedom doesn’t start with income. It starts with intentional budgeting.
How to Break Free from EMI-to-EMI Living
☕ 1. The Monthly Date I Dreaded It was the 5th of the month. Again. My phone buzzed with the usual barrage of debit messages. “₹12,343 debited — Home Loan EMI.”“₹5,219 debited — Car Loan EMI.”“₹2,750 debited — Phone EMI.”“₹3,499 debited — Personal Loan EMI.” Sigh. I remember staring at my coffee like it would somehow cancel the next notification. “Is this what adulting is all about? Earning to just repay?” I chuckled, but not the happy kind. The chuckle you let out when you feel trapped, but you don’t want to admit it. Ever felt that way, too? 🧳 2. Life in Monthly Installments Imagine life as a suitcase. You’re trying to pack in peace, purpose, health, family time, dreams, joy. But each EMI is like a heavy stone someone keeps throwing in. TV EMI. Sofa EMI. Kitchen EMI.By the time you want to put in something meaningful—there’s no space left. That’s EMI-to-EMI living.You’re not living for yourself—you’re living for your EMIs. It’s not that loans are evil. No. But unchecked EMIs become silent handcuffs. Have you ever looked at your salary credit and felt it vanish before you could even plan what to do with it? 💭 3. The Inner Whisper We All Ignore I remember one evening, my daughter asked,“Papa, can we go for ice cream tomorrow evening?” And I responded with my go-to line: “Let’s see beta, papa has work.” But inside, I was thinking: “I don’t even know if I’ll have the money left by then.” That thought broke me. Not because of the ice cream. But because I wasn’t free. I was earning well, but I didn’t feel rich. I felt restricted. Choked. Like I was running but not reaching. That was my wake-up call. 🔄 4. Why Most of Us Fall Into the EMI Trap Let’s be honest. It doesn’t start as a trap. It starts innocently—”Why pay ₹60,000 upfront when I can pay just ₹2,000 a month?”“EMIs make it affordable,” we say. But then comes the next one. And the next. Before you realize, you’re juggling five balls in the air, hoping none fall. The illusion of affordability slowly becomes the reality of anxiety. It’s like borrowing tomorrow’s peace to fund today’s excitement. And soon, we forget what peace even felt like. 🪞 5. Reflection Time: Where Are You Right Now? Let’s pause. Grab a pen or just close your eyes and think: These are not financial questions. They’re freedom questions. 🧠 6. Breaking Free: The Mindset Shift Here’s what I learned the hard way: The first step to breaking free is not paying off the EMI. It’s understanding why you took it in the first place. Ask yourself: Once you shift from emotion-driven expenses to value-driven choices, you start taking your power back. 🔧 7. The System I Followed to Set Myself Free Let me share the exact 5-step system I used—simple, human, and practical: ✅ Step 1: List all EMIs with interest rates and tenure Most people fear this step. But clarity brings power. ✅ Step 2: Prioritize High-Interest EMIs Personal loans, credit cards—they bleed the most. Tackle them first. ✅ Step 3: Create a “Freedom Fund” A separate savings account just for closing EMIs early. Automate a fixed amount monthly. ✅ Step 4: Consolidate Wisely If you have too many, consider one lower-interest loan to close the rest. But only if you close, not add more. ✅ Step 5: Say No (Even When It’s Hard) Learn to say: “Not now.” A ₹60,000 phone won’t feel good if it brings ₹1,500 stress for the next 12 months. Every EMI you say no to is a “yes” to your future peace. 💡 8. The “Freedom Visualization” That Helped Me Close your eyes for 10 seconds. Visualize a month where: That vision? That’s your why. And it’s more powerful than any budgeting app. 💬 9. A Conversation With My Future Self This might sound funny, but I once wrote a letter to my future self. It read: “Hey, Shiv. If you’re reading this, I hope you said no to that third credit card. I hope you chose freedom over impressing the neighbors. I hope you built wealth that gave you peace. And I hope you remembered: Money is a tool, not a trap.” That letter still sits in my journal. What would your letter say? 👨👩👧 10. One Client’s Journey (That’ll Stay With Me Forever) Poonam, a 33-year-old working mom from Delhi, came to me last year, exhausted. She said, “Shiv, I earn ₹85K/month but have nothing left by the 10th.” We unpacked her EMIs—6 of them. And just like me, she felt “normal” because “everyone has them.” But normal was costing her peace. We worked together: 6 months later, she sent me a message: “I just paid off my personal loan early. I feel like I can breathe again.” That’s real wealth, my friend. 🔁 11. Breaking the Cycle Is Not About Sacrifice. It’s About Choice. People often think: “If I stop EMIs, I’ll have to give up my lifestyle.” No. You’re not giving up your lifestyle.You’re choosing a life with style—peace, dignity, clarity. Wouldn’t you rather wait 6 months for something you can buy in full, than spend 12 months being stressed about something you bought in a rush? 🔚 12. Closing Insight: Real Riches = Emotional Freedom Let’s be real. What you want is not just a zero on the credit card. You want to feel safe. Empowered. Calm. Able to look at your child, your partner, or even your mirror and say: “I’m not surviving anymore. I’m building. I’m choosing.” Money is powerful. But clarity is power.And peace of mind is the real ROI. 💬 Final Reflective Cue: Grab a cup of chai tonight. Sit with yourself and ask:“Which EMI is costing me more than money?” And when you get that answer, promise yourself:“I will start walking out of this loop—step by step, month by month.” You don’t need to do it overnight. But you do need