A post by Meenal Goyal, a chartered accountant from Bengaluru, is in the news these days. He told that many people are not able to understand their earnings and expenses properly, especially when the salary is good but at the end of the month the savings are very less. He gave the example of a 29-year-old man, whose monthly income is ₹ 1.55 lakh, but only ₹ 5,000 to ₹ 9,000 is left in his account every month. Because of this he feels troubled.
Where is the money actually going?
Meenal Goyal explained that many times the money that seems to be spent is actually being used for investment or for the future. In the example, around ₹20,000 is going into SIP (investment) and around ₹70,000 is going into EMI of the loan. According to him, this ₹90,000 is not a direct expenditure, rather it is being used to create assets for the future or to pay off debts. That means this money is being useful to you somewhere.
What is the real cost?
If these investments and loans are excluded, then the actual monthly expenditure of that person comes to around ₹ 60,000. This makes it clear that his lifestyle is not as expensive as it seems at first glance.
Discussion started from Reddit post
This matter came to light from the post of a Reddit user, who said that while living with his family, his pocket becomes almost empty due to rent, ration, travel, internet, medical expenses, child-related expenses and loan EMIs. He also told that last year his earning was around ₹19.6 lakh, while his expenditure had reached ₹18.6 lakh. Some medical reasons, such as treatment and recovery after delivery, further increased the expenses.
What is the real thing?
Meenal Goyal says that the problem is not less savings, but the way of understanding money. People look at investment, loan and daily expenses together, due to which they feel that they are not able to save. If these things are understood separately, the picture becomes much clearer and stress is also felt less.
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