'Why even high earners feel broke’: Financial advisor breaks down the psychology of spending

Even with steady paychecks and decent savings, many people often wonder why they still feel financially strained. Shedding light on this common paradox, Chartered Accountant and finance educator CA Nitin Kaushik believes the issue is rarely about money itself — it’s about mental energy. 

In a post on X (formerly Twitter), Kaushik wrote, “Most people think they have a money problem. In reality, they have a mental energy problem. Money doesn’t run out first — energy does.” 

Kaushik explained that emotional fatigue often triggers impulsive spending. After a tiring workday, many tend to “swipe away” stress by ordering food, booking cabs, or buying things they don’t need — not because of lack of discipline, but because of depleted willpower. “It’s not about ₹200 coffee or ₹350 delivery charges. It’s about the fatigue behind that swipe — the silent trade between your willpower and your wallet,” he observed. 

He suggested that the root of impulsive spending lies in emotional exhaustion, not poor budgeting. “If you ever track your expenses for a week, add one more column next to it — ‘What was I feeling before I spent this?’ You’ll notice something scary yet obvious: most impulsive spends happen right after something drains your will — stress, conflict, boredom, pressure.” 

According to Kaushik, around 70-80% of unplanned spending occurs as a response to emotional fatigue rather than actual need. People subconsciously try to “buy their calm back,” using money as a coping mechanism. This, he said, is why even those with comfortable incomes can feel perpetually broke — not because they lack financial knowledge, but because their decision-making energy is constantly running on low battery. 

Kaushik emphasised that true financial control is not built by obsessing over every rupee but by protecting one’s mental energy. “You can’t think long-term when your mind is running on survival mode,” he cautioned. 

To combat impulsive purchases, Kaushik recommended a simple but powerful practice — silence before spending. “Take 10–15 minutes before every big purchase — no phone, no talking, just a pause. Half of the impulsive buys vanish when your mind cools down. That’s not self-control — that’s clarity returning.” 

Ultimately, Kaushik reframed money management as an exercise in energy management. “Money management is less about numbers and more about energy allocation. When you protect your willpower, you protect your wealth,” he concluded. 

He added that calmness, not luck, is what unlocks opportunities: “Luck often shows up when your mind is calm enough to recognize opportunity. Financial progress begins the day you stop counting receipts and start counting peaceful moments.”