Middle-class money reality: Is Rs 1,00,000 montly salary only worth Rs 30,000? CA says the reason is not overspending but something else

For many middle-class professionals, earning ₹1 lakh a month was once seen as a sign of financial comfort. But with rising living costs across cities, that salary often does not stretch as far as people expect. A recent Instagram post by Gurugram-based chartered accountant Muskan Mittal has started a discussion around this very issue, with many users agreeing that higher expenses, rather than careless spending, are changing the value of money.

In her Instagram post, Mittal wrote, "₹1 lakh/month is the new ₹30,000. Not because you're spending recklessly. Because life has become expensive." She argued that for many salaried employees, a large part of their income now goes towards everyday necessities and financial planning instead of luxury spending.

To explain her point, she shared a sample monthly budget for a middle-class person earning ₹1 lakh.


According to the breakdown, ₹25,000 goes towards rent, while groceries and food account for another ₹10,000. Commuting expenses, including fuel, cabs or metro travel, take up ₹5,000. Utility bills such as electricity, Wi-Fi and mobile services add another ₹3,000.

The remaining income is spread across shopping and personal care (₹5,000), eating out and entertainment (₹5,000), insurance, medical costs and emergencies (₹7,000), and family support, gifts or miscellaneous expenses (₹5,000). Alongside these regular costs, the budget sets aside ₹20,000 for SIPs and investments and ₹15,000 for an emergency fund or additional savings.

Saving matters, but so does living today

Mittal said the purpose of budgeting is not to save every single rupee at the cost of present-day needs. As she put it, "The goal isn't to save every rupee. The goal is to enjoy today without compromising tomorrow." She ended her post by asking followers, "How would you split ₹1 lakh every month?"

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A post shared by Muskan mittal | Chartered Accountant (@ca_ingurgaon)

Social media users discuss long-term planning

The post drew several responses from users who felt the figures reflected the financial reality of many urban households. One user pointed out that saving ₹35,000 every month and investing it at a 12% annual CAGR through long-term mutual funds could grow into around ₹3.21 crore over 20 years.

The same commenter added that if both partners earn a similar income, even after future expenses like children's school fees, their combined savings could potentially reach around ₹7 crore over two decades. Others simply responded with comments such as "Fully agree," "True," and "Haa," showing that many found the budget relatable.