Why Earning More Salary Isn’t Enough: The Secret of Smart Money Habits

October 9, 2025

Earning a good salary doesn’t always make you rich. A story shared by CA Abhishek Walia proves this well. One client earned ₹80,000 every month for five years, but his net worth hardly grew. He lived a normal life — paying rent, buying groceries, managing EMIs, and enjoying weekend treats. Nothing out of the ordinary. Still, money vanished mysteriously. The real problem? How he handled his earnings.

Lifestyle creep silently drains your wealth

Every time his salary increased, so did his spending. A small raise of ₹5,000 got spent on a new subscription. A ₹10,000 hike ended up buying a fancy gadget. Without planning, these tiny increases quietly turned into bigger expenses. This left no room for real savings. This hidden money leak is called "lifestyle creep," and many don't even notice it.

Designing a system that works

CA Abhishek Walia stepped in to help. Instead of just telling the client to save, he set a simple, smart system. Right when the salary came in, 30% went straight into investments—SIPs and an emergency fund. The client used one debit card only for essentials and a credit card for fun spending. They also did monthly check-ins to catch and stop money leaks.

Results without earning more

Six months later, the client’s savings grew to ₹1.9 lakh — all without earning a single rupee more! The magic was not in making more money but in creating habits and systems that protect and grow wealth.

The real lesson

Many think wealth depends only on higher pay. The truth? It’s about smart money management and consistent habits. Get raises, but don’t let your habits steal your gains.

Smart money game plan for salaried people

According to CA Nitin Kaushik, every Indian salaried worker in 2025 must follow a smart money plan. First, live on only half your salary. Save and invest the rest instead of upgrading your lifestyle with every raise. Spread your investments across mutual funds, gold, retirement plans, stocks, even crypto if you understand it well.

Build a second income with freelancing or side projects. Never skip buying health and term insurance—it’s a must. Avoid comparing yourself with others. Use loans to buy assets, not liabilities. Stop lifestyle money leaks like impulse shopping and excessive food delivery. Don’t rely on inheritance. Remember, a ₹70,000 vacation feels good now, but a ₹70,000 SIP builds security for life.

Smart habits today mean peace and freedom tomorrow. So, start your money game plan now!