Research analyst Palak Jain, who is registered with Sebi, has shared a post on LinkedIn about contemporary financial lifestyles, highlighting how high salaries might camouflage the story of dangerously high debt levels.
Jain began her post saying,“Rs 50 lakh salary. Rs 60 lakh debt. Meet the ‘successful' millennial who's actually broke.”
To prove her point, Jain used the example of “Priya,” a 35-year-old software engineer who makes Rs 50 lakh a year, but has Rs 60 lakh debt. She said the story was representative of many youngsters who pursue aspirational lifestyles without establishing true financial security.
Jain wrote, “Rs 50 lakh software engineer salary. BMW on EMI. Gurgaon apartment (Rs 40 lakh loan). Dubai vacation posts. 10K+ LinkedIn followers.”
https://www.linkedin.com/posts/palak-jain-financewithpalak-62406b281_highsalarybroke-debttrap-middleclassreality-activity-7378987029554089985-KVWe/?utm_source=share&utm_medium=member_desktop&rcm=ACoAABexI8kBZTKPKzteK0U0YPbsHZEW1iq37fQ
However, the figures revealed a different picture behind the glitz. Jain noted the total debt was around Rs 60 lakh, with EMIs of Rs 85,000 per month, no emergency savings and living from pay cheque to pay cheque. She added that bankruptcy was just one medical emergency away.
Such occurrences were not uncommon, Jain said. “As an SEBI-registered research analyst, I meet these ‘rich-on-paper, broke-in-reality' people daily,” she added.
She explained the calculations. She said a salary of Rs 50 lakh per year equated to around Rs 2.8 lakh after taxes. But real savings translated to zero due to loan repayments and living expenses. Jain emphasised that extra costs, such as medical bills, housing society dues etc further depleted what is left. Real savings in many cases was “zero,” she said.
She referred to this pattern as the “middle-class debt trap,” in which people may seem wealthy on the outside, but suffer in private. She said, “You look successful to others. You feel stressed inside. Every month is a struggle. But stopping EMIs feels like ‘failure'.”
“Real wealth isn't what you earn,” Jain told readers, emphasising the value of financial discipline. “It is what you keep.”
Drawing an analogy, she said the delivery guy with Rs 30,000 salary and Rs 15,000 savings “is richer than Priya.”
The key takeaway of her post was a wake-up call. “Your net worth = Assets - Liabilities. If this number is negative, you're broke regardless of your salary. Time to get real about your money.”
By highlighting the reality that a luxury lifestyle without financial stability can unravel, Jain pushed professionals to put long-term wealth generation ahead of consumption.
Jain signed off with a question, “Are you building wealth or just maintaining an expensive lifestyle?”
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