Despite earning what many would call a dream salary, a large chunk of India’s middle class still feels stuck in survival mode. Chartered Accountant Nitin Kaushik recently took to X to explain why even professionals earning Rs 15–25 lakh a year often feel like they’re barely getting by. And according to him, the problem isn’t with their income—it’s with how the system quietly traps them in a cycle of stagnation.
Kaushik calls it a “financial ambush”—one where taxes, inflation, lifestyle debt, and lack of financial education silently drain even high earners. A salary of Rs 20 lakh may sound impressive, but once you subtract taxes (Rs 2.5–3.5L), add home and car EMIs, school fees, rent, and basic expenses, there’s barely anything left. In his words, “What you make isn’t wealth. What you keep and grow is.”
No second income
He points out that most middle-class professionals have no income beyond their 9-to-5 job. There’s no second stream—no dividends, no rental income, no compounding. If the salary stops, so does life. Unlike the wealthy, who stack income layers, the middle class survives on a single paycheck that comes with a giant pause button.
Liabilities vs assets
Another mistake? Confusing liabilities with assets. That fancy new car or flat may look great on paper, but EMIs don’t build wealth. They just eat into future earnings. Meanwhile, actual investing—like in stocks or real estate—is often ignored due to fear or a lack of knowledge.
Parking money in savings account
Kaushik also criticises the habit of parking large sums in savings accounts where returns don’t even beat inflation. He says that Rs 10 lakh earning 2.5–3% interest while inflation runs at 6% is effectively losing money every year.
Financial Literacy
Then there’s the mindset issue. Many working professionals shy away from financial literacy, even while spending hours on Netflix. They mimic the wealthy’s lifestyle—buying Rs 15K shoes, brunching every weekend—but skip what actually matters: SIPs, emergency funds, or owning equity.
His final advice? Break the trap. Grow income streams, spend intentionally, own real assets, take calculated risks, and upskill often. Because financial freedom doesn’t come from a paycheque—it comes from what you do with it.
Kaushik calls it a “financial ambush”—one where taxes, inflation, lifestyle debt, and lack of financial education silently drain even high earners. A salary of Rs 20 lakh may sound impressive, but once you subtract taxes (Rs 2.5–3.5L), add home and car EMIs, school fees, rent, and basic expenses, there’s barely anything left. In his words, “What you make isn’t wealth. What you keep and grow is.”
No second income
He points out that most middle-class professionals have no income beyond their 9-to-5 job. There’s no second stream—no dividends, no rental income, no compounding. If the salary stops, so does life. Unlike the wealthy, who stack income layers, the middle class survives on a single paycheck that comes with a giant pause button.
Liabilities vs assets
Another mistake? Confusing liabilities with assets. That fancy new car or flat may look great on paper, but EMIs don’t build wealth. They just eat into future earnings. Meanwhile, actual investing—like in stocks or real estate—is often ignored due to fear or a lack of knowledge.
THE MIDDLE CLASS ISN’T BROKE — THEY’RE FINANCIALLY AMBUSHED 🧨
— CA Nitin Kaushik (@Finance_Bareek) July 30, 2025
They’re not poor.
They’re not foolish.
They’re just systematically trapped — by taxes, inflation, and borrowed dreams.
Here’s the brutal truth why most people earning ₹15–25L a year feel they’re just surviving:… pic.twitter.com/XwHhKCobXr
Parking money in savings account
Kaushik also criticises the habit of parking large sums in savings accounts where returns don’t even beat inflation. He says that Rs 10 lakh earning 2.5–3% interest while inflation runs at 6% is effectively losing money every year.
Financial Literacy
Then there’s the mindset issue. Many working professionals shy away from financial literacy, even while spending hours on Netflix. They mimic the wealthy’s lifestyle—buying Rs 15K shoes, brunching every weekend—but skip what actually matters: SIPs, emergency funds, or owning equity.
His final advice? Break the trap. Grow income streams, spend intentionally, own real assets, take calculated risks, and upskill often. Because financial freedom doesn’t come from a paycheque—it comes from what you do with it.
