Rs 3 Lakh Salary Isn’t Enough?: Expert Explains How To Achieve Financial Freedom

Chartered Accountant Nitin Kaushik has offered a reminder about the misconception that a high salary automatically equates to financial freedom. In a post titled “The Harsh Truth About ‘High Salary = Freedom’” on X (formerly Twitter), Kaushik said that earning Rs 3 lakh per month does not grant true freedom if one cannot quit their job at short notice.

“Earning Rs 3L/month isn’t freedom if you can’t quit tomorrow. That’s just being trapped in a golden cage,” he wrote, emphasising that relying solely on a salary can leave even well-paid individuals financially constrained.

Kaushik, who often advises people on budgeting, planning and taxes, added that genuine wealth comes from creating a situation where money works harder than the individual. In other words, financial freedom is achieved when passive income exceeds one’s monthly expenses. For instance, if monthly expenses are Rs 1 lakh, he says that to be truly free, passive income must meet or surpass this amount.

He further illustrated the concept with a calculation. At a 6% return on investments, one would require a corpus of Rs 2 crore to generate Rs 1 lakh per month. If the returns are higher, say 10%, the required corpus drops to Rs 1.2 crore.

“Your job pays bills. Your investments buy freedom,” Kaushik wrote, highlighting the distinction between earned income and wealth that generates itself.

Kaushik ended his post with a clear piece of advice for those chasing high salaries. He wrote, “Stop chasing a bigger paychecks. Start chasing assets that pay you forever.”

Here’s Kaushik’s complete post:

Kaushik advocates prioritising investments in assets that generate passive income, such as equities, fixed-income instruments or real estate, over a pursuit of higher earnings through employment alone.

Through his post, Kaushik challenges a common belief in modern financial planning, that climbing the corporate ladder automatically leads to independence. Instead, he stresses the importance of building a self-sustaining portfolio of assets, saying that financial freedom lies not in what one earns, but in what one owns.

Kaushik often advises people on budgeting, financial management, planning and taxes. In August, he highlighted an issue of lifestyle inflation, explaining how even a monthly income of Rs 4.5 lakh can fall short if spending rises unchecked, and how capping lifestyle inflation can help restore financial stability. Drawing on an experience with one of his clients, Kaushik said that financial contentment often depends less on the figures on a payslip and more on mindset and expectations, reinforcing his earlier advice that freedom comes from building assets, not just chasing a high salary.