CTC is Rs 40 LPA but cannot even afford a vacation: CA decodes a 32-year-old techie's financial reality

It sounds like the dream, doesn’t it? Rs 40 lakh per annum. Swanky job in tech. A 1.5 crore apartment in Mumbai. A shiny car in the parking lot. From the outside, it’s a picture of success. But peel back the curtain, and the reality is sobering: a 32-year-old IT professional with a CTC of Rs 40 LPA is broke. Not just metaphorically — he literally cannot afford a single stress-free vacation. Welcome to India’s newest illusion: high income with zero financial freedom. Chartered Accountant Nitin Kaushik recently broke down this alarming financial profile on X.

CTC: Rs 40 LPA
In-hand salary: Rs 2.2 lakh/month
Flat in Mulund (Mumbai): Rs 1.5 crore
Home loan: Rs 1.25 crore
EMI: Rs 1.12 lakh/month

Right off the bat, more than 50% of his salary goes toward the home loan. That’s not including maintenance, property tax, or rising interest rates. Add to that: Car EMI: Rs 15,000/month, living expenses (food, utilities, social life): Rs 50,000/month. What’s left? A razor-thin saving margin of Rs 30,000–Rs 40,000/month, if everything goes perfectly. But life rarely plays by the rules. One minor health issue, one job switch, or even a trip abroad — and the entire house of cards tumbles.

The Harsh Reality of a ₹40 LPA Salary in India

Earning BIG? Still broke? Here’s how lifestyle traps silently choke your financial freedom.
(A must-read thread)👇🧵#stockmarketscrash #finance #nifty #investingtips pic.twitter.com/GqFD2Thxi6

— CA Nitin Kaushik (@Finance_Bareek) July 12, 2025

CA points out the real trap
- Asset-rich, liquidity-poor

- Lifestyle inflated income

- With no real investments or emergency fund

- Retirement planning is becoming non-existent


How to chase financial freedom instead?
If income isn’t translating into peace of mind, then it’s time to reset the approach. Here’s what Kaushik suggests — and what thousands are now waking up to:

- Control spending: Don’t let your income decide your expenses. Let your goals decide.

- Building an emergency fund in liquid form — non-negotiable.

- Invest in real assets: Mutual funds, index funds, stocks — anything that compounds, not depreciates.

- Say no to lifestyle debt

Final thoughts
According to the CA, in today’s economy, cash flow is king. So if you’re earning big but still broke, you’re not alone. But staying stuck in the trap is a choice.