One money mistake and 70% salary lost: CA warns about the financial trap that makes 'wealth creation' difficult

A growing number of salaried professionals in urban India are earning better than before, but many still feel constantly short on money by the middle of the month. Financial experts often point to rising lifestyle costs, easy access to credit, and poor saving habits as some of the biggest reasons behind this problem. Now, Chartered Accountant Nitin Kaushik has shared a detailed observation on what he calls one of the biggest financial mismatches affecting working people today.

In a recent post, Kaushik spoke about the gap between how people earn and how they spend. According to him, many employees receive income only once every month, but expenses continue daily without any pause. He explained that this cycle slowly creates pressure even for those earning what is considered a strong salary on paper.

CA explains why monthly salaries disappear quickly

Sharing his thoughts on personal finance and spending behaviour, Kaushik wrote, “India’s biggest crisis is a total mismatch between INCOME and velocity.”


He further explained, “Most people receive a paycheck once every 30 days, yet their lifestyle triggers a cash outflow every 24 hours.”

The CA pointed out that a large chunk of salaries often gets locked almost immediately after income arrives. According to him, fixed commitments like rent, EMIs, and credit card bills take away financial flexibility very early in the month.

“By the 10th of the month, after the cycle of EMIs, rent, and credit card settlements, the average urban professional has already pre committed 70% of their earnings,” he said.

His comments struck a chord online because many working professionals say they experience the same situation despite salary hikes over the years. Rising costs in major cities, along with pressure to maintain a certain lifestyle, have made savings harder for many households.

‘Wealth creation becomes purely accidental’

Kaushik also spoke about a common mistake people make while planning finances. He said many individuals treat investments as optional instead of making them a fixed priority from the start of the month.

“When investing is treated as a leftover activity rather than a non negotiable expense, wealth creation becomes purely accidental,” he wrote.


The statement reflects a concern often raised by financial planners. Many people wait to see how much money remains after spending and then try to invest whatever is left. In reality, experts repeatedly suggest the opposite approach, where savings and investments are separated first before lifestyle expenses expand.

Kaushik ended his post with a sharp warning about how even higher salaries may fail to create financial security if spending systems are not controlled properly.

“If your system is designed to make your expenses automatic and your future optional, even a ₹20 LPA salary will feel like a struggle for survival,” he said.

Financial stress among salaried workers has become a frequent topic online in recent years. Higher rents, increasing dependence on credit cards, instant loan access, subscription spending, and lifestyle upgrades are often eating into monthly earnings much faster than expected.

Experts say the issue is not always about low income alone. In many cases, it is about the speed at which money leaves a bank account compared to how slowly it arrives. Once most of the salary is already committed to mandatory payments, even small emergencies can become difficult to manage.