Earning Rs 25 lakh but no savings and broke before month-end? CA decodes the money traps you should watch out for

You know that awkward moment when your salary sounds like a dream, but your bank account looks like a horror story? Turns out, you’re not alone. Many professionals making Rs 20–30 lakh a year quietly admit that by the 25th, they’re flat broke. CA Abhishek Walia recalls a client who said, “I earn Rs 25 lakh annually, but I don’t even know where my money goes.” And that’s where the real story begins.

According to the CA, on paper, the client looked solid: high-paying job, fancy title, swanky urban lifestyle. But once Walia dug deeper, the leaks were everywhere. It wasn’t reckless shopping sprees or flashy cars, but the sneaky expenses that go unnoticed. Like weekend dinners that “don’t feel big” yet silently eat away Rs 2–3 lakh a year. Or salary hikes that instantly translated into a bigger house, shinier car, and costlier vacations—classic lifestyle creep.

Then there were the half-hearted investments. SIPs were started with good intentions, but paused whenever a “big” expense popped up, killing the consistency needed to actually build wealth. The problem wasn’t income. It was systems—or rather, the lack of them.




As Walia puts it, high salaries without money awareness create fragile finances. Most people in their 30s and 40s don’t struggle because they don’t earn enough. They struggle because they don’t track, don’t plan, and don’t set up habits that protect them from themselves. Finance isn’t just numbers on an app—it’s discipline, awareness, and small habits that keep your money from slipping through the cracks.

How to save money?

Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, says saving is the net practice before the real game of investing. In Mango Millionaire, she shares her 10-30-50 rule: save 10% of income in your twenties to build the habit, even if it’s just 1%. In your thirties and forties, raise savings to 30% as earnings grow. Post-forty, aim for 50%, since peak income must cover retirement and children’s education. Gupta stresses that consistent saving, not quick fixes, builds the foundation for long-term wealth.