⁠Earning Rs 4.5 Lakh A Month And Still Unhappy? CA Explains Reasons And Shares Money Management Tips

Lifestyle inflation can be a major cause of financial stress, even for those in high income brackets. Chartered accountant and tax expert Nitin Kaushik shared an incident on X (formerly Twitter) where a client earning Rs 4.5 lakh a month asked him, “Why are we still unhappy?” This left Kaushik reflecting on how financial contentment often has less to do with the numbers on a payslip and more to do with mindset and expectations.

Kaushik, who often advises people on budgeting, planning and taxes, says it's not how much you earn, but how you spend that makes a difference. His response to the client, “You’ve made it. A Rs 54L/year income. Good job title. Decent car. Branded everything." He then went on to explore the reasons behind ‘why people are not satisfied despite earning well’.

He broke it down with some quick maths. A monthly income of Rs 4.5 lakh amounts to Rs 54 lakh a year. After paying roughly Rs 12 lakh in taxes, that leaves Rs 42 lakh. According to Kaushik, average urban expenses eat up nearly all of it. He says Rs 18 lakh goes toward rent and household costs, Rs 6 lakh on children’s education, Rs 4.5 lakh on groceries, fuel and domestic help, Rs 3 lakh on dining and events, Rs 4-5 lakh on travel and Rs 3 lakh on insurance and maintenance.

After all these expenses, even a high-salaried individual is left with only Rs 2-3 lakh for savings. That’s the real problem. According to Kaushik, it is not income, but expectations and comparisons. “Everyone around you is posting Europe trips, buying Rs 3 crore homes, flaunting designer brands. And you? Just trying to breathe between EMIs.”

He warns of lifestyle inflation, which is the tendency for spending going up as income increases. “From Uber to driver, from Goa to Greece. The hunger to ‘upgrade’ never ends. And now we call it standard living instead of luxury.”

High earnings, he adds, do not guarantee high satisfaction. Instead, happiness comes from “not comparing constantly, having control over your time, and knowing you’re progressing — not just consuming.”

Kaushik urges people to be clear on their priorities. “Financial independence or social validation? Freedom or fixed EMIs? Purpose or possessions?”

The world, he says, sells the lie that happiness is just one purchase away. “Peace doesn’t come from income. It comes from intentional choices.”

His solution is simple. “Cap lifestyle inflation, avoid liabilities that trap future income; build wealth, not lifestyle, and redefine success: It’s not the car, it’s the calm.”

In the end, he adds that earning Rs 4.5 lakh is worthwhile only if you have the freedom to live on your own terms. The CA suggests, “Don’t fall for curated lives on Instagram. Most of them are as broke as the filters are fake.” Ultimately, he says, true success lies in “having money and not needing to prove it.”