From Rs 5 lakh to Rs 25 lakh salary, still broke? CA warns about a dangerous money habit that can destroy your finances

A bigger salary is often seen as proof that life is finally moving in the right direction. Better restaurants, a larger apartment, expensive gadgets, luxury vacations, and upgraded cars quickly begin to feel “deserved” after years of hard work. But according to chartered accountant Nitin Kaushik, this mindset may quietly push even high earners into financial stress. In a recent post on X, the finance expert warned that uncontrolled lifestyle inflation can leave people earning Rs 25 lakh annually feeling just as financially trapped as they were at Rs 5 lakh.

Sharing his thoughts on money habits and long-term wealth creation, CA Nitin Kaushik wrote that “a salary hike without lifestyle control is just inflation in a designer suit.” The statement struck a chord online because it reflected a growing financial reality among urban professionals. Many people assume that a rising salary automatically leads to financial security, but Kaushik argued that higher income alone means very little if expenses keep expanding at the same pace.

Explaining the pattern further, he said most individuals treat a 20 per cent increment as a signal to upgrade their lifestyle immediately. Instead of increasing investments or savings, people often move into more expensive homes, buy costlier cars, spend more on travel, and adopt habits that permanently raise their monthly expenses.



According to Kaushik, this behaviour creates a dangerous cycle where earnings grow, but savings remain stagnant. He pointed out that when someone earning Rs 25 lakh continues to live paycheck-to-paycheck exactly the way they did while earning Rs 5 lakh, it does not reflect financial growth. In his words, such people have not actually made any financial progress. They have merely “become more expensive to maintain.”



The CA emphasised that true wealth is not determined by the size of a salary package or annual CTC alone. Instead, financial stability is built through the gap between income and expenditure. Kaushik explained that the wider the gap between what a person earns and what they spend, the stronger their ability to build long-term wealth, investments, and financial freedom.


However, many professionals unknowingly shrink that gap every time their income increases. A raise at work often leads to larger EMIs, luxury purchases, upgraded social expectations, and recurring lifestyle costs that become difficult to sustain later. The finance expert warned that if expenses constantly “chase” income, people are not building a secure future. Instead, they are simply funding what he described as a “more expensive treadmill.”

His comments also highlighted a broader issue tied to modern consumer culture and social pressure. As salaries rise, many individuals feel compelled to display visible signs of success through spending, whether it is premium housing, luxury brands, fine dining, or international holidays.