‘It’s unconscious spending’: CA explains why middle-class Indians lose track of money

For millions of middle-class Indians, that joyous “salary credited” notification at the start of every month quickly fades into a mid-month worry — “Where did all the money go?” Chartered Accountant Nitin Kaushik believes the answer lies not in how much people earn, but in how they manage what they have. 

In a viral post on X (formerly Twitter), Kaushik wrote, “Your salary just got credited. That happy alert brings a smile, doesn’t it? But 20 days later, your UPI balance makes you wonder — where did all the money go? This is the story of many middle-class Indians.” 

Kaushik argued that the problem isn’t the size of one’s paycheck, but the lack of a system. “You can earn ₹80,000 or ₹2 lakh a month. Without a proper money plan, it vanishes faster than you realise,” he said, adding that wealth is built through management and consistency, not merely income.

To illustrate the point, he shared the story of Riya, a consultant earning ₹90,000 per month who spends nearly ₹20,000 monthly on daily coffees, lunches, snacks, and weekend outings. That amounts to ₹2.4 lakh a year — money that could grow to ₹8.4 lakh in five years if half were invested with an 11% annual return. “Small choices quietly become big wealth,” Kaushik noted. 

According to him, the real culprit behind disappearing salaries is “unconscious spending” — small, unnoticed daily expenses and subscription traps that lead to “lifestyle creep,” silently draining ₹25,000-₹40,000 every month. “This isn’t inflation — it’s unconscious spending,” he emphasized. 

Kaushik recommends a simple four-account system to regain control: 

• Salary Hub: The primary income account.
• Safety Net: For emergency funds and goal-based savings.
• Growth Engine: For SIPs and automated investments.
• Daily Expenses: For UPI payments and bills, kept separate from savings. 

Timing, he said, is crucial. “Set automatic transfers on the 2nd of every month. Review expenses mid-month and prepare for the next cycle by the 25th.” For freelancers or those with irregular incomes, he advises building a six-month buffer to protect against financial stress. 

Kaushik summed up the essence of his advice in three steps: “Earning money is a skill. Saving money is an art. Compounding money is science. Master all three, and financial freedom follows naturally.”