Rs 3 Lakh Salary Yet Living Paycheck to Paycheck? CA Unpacks Financial Reality

### quick Summary
– Chartered Accountant Nitin Kaushik emphasized that earning a high salary does not equate to financial freedom; true independence requires passive income from investments.
– He likened reliance solely on active income to being trapped in a “golden cage,” where lifestyle comforts are present but independence is absent.
– To achieve financial freedom, passive income must be sufficient to cover monthly living expenses, which involves building investment-driven wealth.
– Kaushik illustrated that achieving such financial autonomy requires a corpus delivering adequate returns, such as ₹2 crore yielding 6% annual returns for ₹1 lakh monthly expenses.
– Financial planning should focus on asset creation and investments over chasing higher salaries to avoid dependence on routine earnings.- Another CA, Abhishek Walia, highlighted the diminishing value of ₹1 crore due to inflation. At an annual inflation rate of 7%, it’s purchasing power erodes by nearly 75% over two decades.
– Inflation-adjusted goals and diversified investment strategies are essential for long-term financial security.

iStock

### Indian Opinion Analysis
The analysis highlights an vital cultural shift needed in India’s perception of wealth. Many salaried professionals believe high earnings signify stability; however, as explained by Kaushik and Walia, this assumption overlooks critical factors like inflation and dependency on active income. For India’s young workforce striving for upward mobility, these insights advocate for smarter wealth-management strategies revolving around passive-income generation.

Walia’s point about erosion due to inflation resonates especially for retirees or long-term planners whose fixed savings may fail against rising living costs. It emphasizes the growing need for more widespread awareness regarding assets capable of outpacing inflation-like equity markets or hybrid instruments.

For policymakers and industry stakeholders promoting financial literacy in India, the key takeaway is clear: efforts should guide individuals beyond mere savings toward robust investment practices.As perspectives shift towards balancing comfort with sustainability through passive streams, this could positively contribute towards economic resilience at both micro and macro levels.

[Read More](https://economictimes.indiatimes.com/magazines/panache/rs-3-lakh-monthly-salary-but-still-in-paycheck-to-paycheck-trap-ca-explains-bitter-truth-about-true-freedom/articleshow/123914745.cms)