Salary disappears within 10 days? CA shares wealth strategies rich people swear by

If your bank balance looks healthy on salary day but starts gasping for air by the second week, you are not alone. For many working professionals, income flows in and quietly leaks out before the month even hits halfway. Credit cards then step in to “rescue” the situation. CA Nitin Kaushik believes this cycle is not about low income, but poor structure. And he has shared a detailed blueprint that he says mirrors how the wealthy manage money.

Eating out vs home-cooked food

Taking to X, CA Nitin Kaushik laid out a percentage-based formula for dividing income with discipline. He began with food, suggesting it should ideally account for 10 to 15 per cent of monthly earnings. Spending Rs 500 a day on eating out may feel harmless, but that adds up to Rs 15,000 a month and nearly Rs 1.8 lakh a year. According to him, cooking at home and treating dining out as an occasional indulgence can redirect serious money toward investments or travel goals.

Utilities

Utilities such as electricity, gas, Wi-Fi, and mobile bills should take up 5 to 10 per cent. These are unavoidable, but automation and annual payment plans can significantly reduce costs. Housing, he stressed, must not cross 30 to 35 per cent of income. In metro cities, many stretch this to 45 or even 50 per cent, which he warns directly compromises long-term financial growth. Considering flatmates or slightly distant suburbs could restore balance.

Commute

Transportation should stay around 10 per cent. He pointed out that cars are liabilities, not assets, especially when EMIs, fuel, and insurance quietly swallow 20 to 25 per cent of income. Public transport for daily commutes can make a visible difference.

Medical expenses

Health and medical expenses deserve a 5 to 10 per cent allocation, with health insurance described as essential. A single surgery can cost Rs 5 to 10 lakh, while major treatments can go up to Rs 15 to 20 lakh. Prevention and coverage, he noted, are far cheaper than crisis borrowing.

Emergency fund

An emergency fund must take priority, ideally 10 to 15 per cent of income, until three to six months of expenses are secured. He advised keeping this in liquid funds rather than locking it away.

Personal spending

Personal spending, including travel and lifestyle indulgences, can stay within 5 to 10 per cent. Savings and investments, however, should command at least 20 per cent. From mutual funds and index funds to PPF, NPS, stocks, and REITs, he emphasised that compounding builds wealth, not just a high salary.

Miscellaneous expense

Finally, he recommended budgeting another 5 to 10 per cent for miscellaneous cultural and social expenses such as weddings and festivals, which often derail finances in India when left unplanned.