It’s a familiar story. Salary gets credited at the start of the month, and for a few days we feel like kings and queens. By the 10th or 15th, we’re already waiting for the next payday. No matter how much we earn, money seems to slip away faster than we’d like.
Why does this happen? And more importantly, how do we break this cycle?
The Trap of Modern Lifestyle
Two big shifts have changed the way we spend money today:
1. Quick Commerce – Groceries, gadgets, and gourmet snacks delivered in 10 minutes. Convenience at a cost. The temptation is just one tap away.
2. Lifestyle Creep – With every salary hike, our expenses go up. A better phone, a fancier vacation, more dining out. We start living paycheck-to-paycheck even with higher incomes.
Everyday Situations That Drain Our Salary
If you look closely, the leakages are everywhere in our day-to-day lives:
The Daily Coffee Habit – That ₹200 latte may not feel like much, but at 20 days a month, it’s ₹4,000 gone without realizing.
Food Delivery Apps – A home-cooked meal might cost ₹100, but when ordered online, the same jumps to ₹300–₹400 with delivery and convenience fees.
Subscriptions Everywhere – Music, OTT, cloud storage, gym, e-learning – individually small, collectively they eat a chunk of your monthly budget.
“One-Day Sale” Traps – E-commerce notifications push us into buying things we don’t need, just because they’re discounted.
Impulse Electronics – That latest smartwatch, headphones, or phone upgrade often takes away the money that could have gone to investments.
These aren’t luxuries anymore; they’ve become “defaults” in our spending behavior. And that’s where the problem lies.
Mis-Selling: When Products Buy Us
On top of lifestyle choices, there’s another challenge. Salespeople from banks and financial institutions pitch products — insurance, ULIPs, credit cards — because they have targets to meet. We end up buying things we don’t fully understand.
They aren’t entirely wrong (it’s their job), but the problem is we don’t stop to ask: “Does this fit into my financial plan?”
What We Forget to Ask Ourselves
Every financial decision should begin with 3 questions:
1. Emergency Corpus – Do I have at least 6 months of expenses saved in liquid funds for emergencies?
2. Monthly Discipline – How much should I set aside each month before I start spending?
3. Retirement Plan – What’s my roadmap for life after work, when salary stops but expenses don’t?
Yet, most of us don’t pause to think about these basics.
Building the Right Money Habits
Here’s a simple framework:
1. Pay Yourself First – The moment salary hits, put aside at least 20–30% into savings/investments. Treat this as a non-negotiable “expense.”
2. Emergency First, Fancy Later – Before chasing high returns, build an emergency fund. This is your financial seatbelt.
3. Goal-Based Investing – Instead of buying random products, map out goals: child’s education, home purchase, retirement. Then pick the right instrument.
4. Budget Your Lifestyle – Use the 50-30-20 rule:
50% of income = needs (rent, EMI, groceries)
30% = wants (lifestyle, travel)
20% = savings & investments
5. Review Before You Buy – Before signing any financial product, ask:
Does this help my goals?
What are the costs/charges?
Is there a simpler alternative?
Why This Matters?
We often believe financial freedom comes with higher income. But the truth is, it comes from discipline, clarity, and planning. Without that, even a 7-figure salary can vanish in a fortnight.
Remember: Money is a tool. Either you control it, or it controls you.
Call to Action for Readers: – Starting this month. Before you make your next discretionary purchase, pause. Set aside for your emergency fund, review your retirement plan, and then spend. The peace of mind is worth far more than the latest gadget or instant indulgence.
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