‘Wealth isn’t built from leftovers’: CA explains why ₹1.2 lakh monthly salary may still leave you with no savings

A higher income is often viewed as a fast track to financial security, but a recent LinkedIn post highlighted how that assumption does not necessarily hold true at all times. According to Meenal Goel, a chartered accountant by profession, many individuals earning over ₹1 lakh a month struggle to build savings, highlighting a gap between income growth and actual wealth creation.

She said that the problem is not how much people earn, but how quickly their expenses rise alongside their income. This phenomenon, often referred to as lifestyle inflation, can block your attempts to build savings even at higher salaries.

“High income doesn’t mean you’re building wealth. I’ve seen people earning ₹1.2L a month and still ending up with barely anything saved. The issue isn’t income, it’s how quickly lifestyle expands with it, ” Goel wrote in a LinkedIn post on Thursday.

Where do people go wrong? Goel explains

Explaining where most individuals may go wrong, Goel pointed to how quickly expenses may eat into income. “Rent ₹35K, EMI ₹30K, lifestyle spends ₹20K+, utilities and basics ₹15-20K. Suddenly, most of the income is already committed before the month even begins,” she said. All these costs leave little room for savings, which is the main issue she has flagged in the post.

She added that whatever remains is often treated as savings, and this approach may not allow wealth creation. “And whatever is left becomes ‘savings.’ That’s where it goes wrong because wealth isn’t built from leftovers, it’s built by design.”

“The moment fixed costs take over your income, flexibility disappears. And once that happens, even a good salary starts feeling tight. The real risk isn’t spending more. It’s locking yourself into a life that your income has to keep chasing,” Goel said at the end of the detailed post.

Goel's post was written in response to another Reddit post, where a 22-year-old woman was seeking help in budgeting. In that post, the poster claimed that she is earning around ₹1.2 lakh a month, yet she ends up with just ₹15,000 in savings. She asked people to help her plan a budget through which she can cut expenses and save at least ₹30,000 each month from her paycheque. The Reddit post also detailed the individual's monthly expenses, including rent, groceries, gym membership, among others.

Netizens react to the post

The post gained traction on the platform, with several people offering different opinions and insights on building meaningful savings. While some advised that people should focus on earning more, others noted down some ways of making investments to create a safety net.

“Rather than focusing solely on cutting expenses, I recommend investing in skill development to boost your income sustainably,” a person commented under Goel's post. Meanwhile another person's comment focused on investments. “Instead of starting with fixed expenses, one should think of starting with fixed investments, and then go towards spending,” they said.

Another person said, “This is so true. Lifestyle creep is silent but powerful. The moment expenses become fixed commitments, financial stress increases even with higher income. Designing cash flows matters more than chasing raises.”