He earns Rs 3 lakh monthly but Rs 15 lakh car is unaffordable: One money management trap that makes even high earner struggle financially

Having a high monthly salary does not necessarily mean that you can spend. A person earning Rs 3 lakh a month might seem in a good position to buy a car costing Rs 15 lakh but existing financial commitments can make even such a purchase difficult. A recent Reddit post has highlighted this gap between making good money, building wealth, and having enough money on hand to spend.

In the post, a person described a conversation with his cousin, who holds a senior position at a large organisation. Explaining the situation, the person wrote, "He has been planning to purchase a car, somewhere in the range of 15-18L but surprisingly he said, 'Yaar liquidity issues ho rahe hai (There are issues with my liquidity)'"

For the person, who viewed his cousin as a high earner, the revelation raised a bigger question, if someone earning so much could not comfortably buy a car, what would managing similar financial responsibilities look like for others?


The responses, however, suggested that the cousin's situation might have less to do with financial hardship and more to do with how he chooses to use his income.

Why Rs 3 lakh salary is till less

Revealing where the cousin's money goes, he wrote, "When I asked him about it in detail, he said he has a 1.25L home loan EMI going out every month (ending in next 3 years), 1L monthly SIP (non negotiable) he does not want to stop it, 50k monthly expenses and the rest is random shopping, maintenance etc."

That leaves approximately Rs 25,000 from his estimated Rs 3 lakh take-home salary before additional expenses. A car loan requiring an EMI of Rs 40,000 to Rs 50,000 would add another substantial hit to an already tightly allocated budget.

One Reddit commenter summed up the situation, "Your cousin is not struggling financially, he's just committed almost his entire salary already!"

Another user made a similar point, writing, "There is no liquidity issue, there is a choice and priority issue."

Difference between having wealth and having cash

As one commenter explained, "Net worth and liquidity are two different things." Someone can be building wealth through property and investments while having relatively little cash available for a car's down payment or its monthly instalments.

The cousin could potentially make room for the purchase by reducing his SIP contributions. But he has chosen not to do so, preferring to continue investing rather than redirect that money towards a depreciating asset.

Not everyone felt this was necessarily the way forward. One commentor said future spending needs should also be part of the investment equation, adding that there’s little point in investing money without a plan for how to use some of that money toward personal goals.

Next three years could be a game changer

His cousin’s home loan will be over in three years, which will greatly improve his cash flow on a monthly basis. If his income and other commitments remain the same, the Rs 1.25 lakh currently going toward EMI would be available for other priorities.

One Reddit user spoke about this and said, "once he’s done with the home loan, he has a huge gain of owning a major asset + a potentially income-earning one."

The Reddit post offers a lesson for anyone whose salary has grown but whose financial flexibility has not kept pace. Putting a lot of income toward loan payments and investments can speed up long-term goals but may not leave enough for everyday decisions and can make large purchases a challenge. An emergency fund and separate savings for short-term goals can help balance wealth creation and liquidity.