Earning Rs 20 lakh to Rs 30 lakh in Bengaluru or Gurgaon? CA warns why your savings still look small

A salary of Rs 20 lakh to Rs 30 lakh a year may look like a sign of financial success, especially in corporate hubs such as Bengaluru and Gurgaon. But according to CA Nitin Kaushik, a higher income does not automatically translate into higher savings. The problem, he says, begins when lifestyle expenses grow alongside every salary increase.

Why a higher salary may not mean higher savings

CA Nitin Kaushik took to X and warned that a Rs 25 lakh salary cannot fix a lifestyle that grows faster than your income. He pointed out that many high earners in Bengaluru and Gurgaon may have salaries between Rs 20 lakh and Rs 30 lakh, yet save considerably less of their take-home income than their earnings might suggest.



The reason is lifestyle inflation. As income rises, spending often rises with it. A bigger salary can quickly be absorbed by higher rent, expensive car EMIs, frequent dining and upgraded weekend spending.

A 15% raise can disappear quickly

Kaushik highlighted how easily a salary increment can get swallowed by new commitments. For instance, a 15% raise may initially feel like a major financial boost. But if the additional income immediately goes towards a Rs 50,000 car EMI, a more expensive apartment and higher discretionary spending, the employee may see little improvement in their savings.

Instead of increasing their financial cushion, the raise simply funds a more expensive lifestyle.

The lifestyle inflation trap

According to Kaushik, increasing income without controlling fixed expenses can turn what was once a manageable budget into an expensive one. The problem is not necessarily spending more after earning more. The bigger concern is allowing recurring expenses to rise so much that they become difficult to reduce later.


A higher rent, a large vehicle loan or other fixed commitments can continue eating into income month after month, regardless of whether the employee is able to save more. This can create a cycle where every promotion or salary hike leads to another lifestyle upgrade rather than a meaningful increase in wealth.

What actually builds wealth?

Kaushik argues that building wealth is less about the size of your CTC and more about the surplus you manage to protect. In his view, real capital is created from the gap between income and expenses. If that surplus consistently increases, a higher salary can become a powerful wealth-building tool.

But if every increment is immediately converted into higher spending, the financial benefit of earning more can largely disappear.

For someone earning Rs 20 lakh to Rs 30 lakh, therefore, the key question may not simply be how much more they can earn next year. It may be how much of their existing income they can prevent from being absorbed by lifestyle upgrades.