A CA decodes why Rs 20 LPA in a metro could be a financial illusion
Chartered Accountant Nitin Kaushik
recently took to X (formerly Twitter) to break down the hard reality that a Rs 20 LPA CTC in a metro city doesn't translate to financial freedom—it barely keeps you afloat in the middle class.
Kaushik's post dismantles the illusion around hefty CTC packages, revealing that after tax deductions, PF, and other components, the in-hand salary is around Rs 1.25 lakh per month. Sounds good on paper—until life starts billing you.
CA breaks it down
Rent alone for a decent 1–2 BHK in cities like Mumbai, Bangalore, or Delhi can eat up Rs 40,000. Add a basic car EMI at Rs 25,000, and daily living expenses such as groceries, utilities, and fuel at Rs 30,000. Subscriptions, occasional outings, and small emergencies tack on another Rs 10,000. That's already Rs 1.05–Rs 1.10 lakh gone, before you've even tried saving or investing. What's left? Maybe Rs 15,000–Rs 20,000, if you resist lifestyle inflation, he points out.
— Finance_Bareek (@Finance_Bareek)
Kaushik emphasises that Rs 20 LPA isn't poverty, but it's also not the financial haven people imagine. The real trap lies in letting lifestyle expand with income. His advice: avoid unnecessary EMIs, build high-value skills to break income ceilings, and prioritise investing early.
In today's urban India, your CTC might look like success, but your bank balance tells a different story. According to Nitin, the real game is all about keeping more and growing.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
7 minutes ago
- Indian Express
Eye on Bihar elections, here are the projects PM Modi will be inaugurating on July 18
PM Modi Bihar Visit July 18: With an eye on Bihar Assembly elections scheduled this year, Prime Minister Narendra Modi has intensified efforts to inaugurate and launch several infrastructure and development projects aimed at boosting the state's economy and addressing long-pending public demands. The current legislative assembly's term is set to conclude in November. On July 18 (Friday), PM Modi will visit Bihar to lay the foundation stone, inaugurate and dedicate to the nation multiple development projects worth over Rs 7,200 crore at Motihari. According to the details available, PM Modi will also address a public function. The Prime Minister will lay the foundation stone, inaugurate and dedicate to the nation development projects catering to Rail, Road, Rural Development, Fisheries, Electronics and Information Technology sectors. During his visit, the Prime Minister will dedicate to the nation multiple rail projects. It includes automatic signalling between Samastipur-Bachhwara rail line that will enable efficient train operations in this section. Doubling of Darbhanga-Thalwara and Samastipur-Rambhadrapur rail line part of Darbhanga-Samastipur doubling project worth over Rs 580 crore that will enhance the capacity of train operations and reduce delays. PM will also lay the foundation stone for multiple rail projects. Rail projects include development of infrastructure for maintenance of Vande Bharat trains at Patliputra. Automatic signalling on Bhatni-Chhapra Gramin rail line (114 km) to enable streamlined train operations. Upgradation of traction system in Bhatni-Chhapra Gramin section to enable higher train speeds by strengthening the traction system infrastructure and optimising energy efficiency. Darbhanga-Narkatiaganj rail line doubling project worth around Rs 4,080 crore to increase sectional capacity, enable operation of more passenger and freight trains, strengthen connectivity between North Bihar and the rest of the country. He will also flag off four new Amrit Bharat trains between Rajendra Nagar Terminal (Patna) to New Delhi, Bapudham Motihari to Delhi (Anand Vihar Terminal), Darbhanga to Lucknow (Gomti Nagar) and Malda Town to Lucknow (Gomti Nagar) via Bhagalpur improving connectivity in the region. The Prime Minister will also lay the foundation stone for 4-laning of Ara bypass of NH-319 that connects Ara-Mohania NH-319 and Patna-Buxar NH-922 providing seamless connectivity and reducing travel time. He will also inaugurate the 4-lane Parariya to Mohania section of NH-319, worth over Rs 820 crore, part of NH-319 which connects Ara Town to NH-02 (Golden Quadrilateral) that will improve freight and passenger movement. Among others, a 2-lane with paved shoulder from Sarwan to Chakai of NH-333C which will facilitate the movement of goods and people and act as a key link between Bihar and Jharkhand. He is also scheduled to inaugurate New Software Technology Parks of India (STPI) facility at Darbhanga and State of the art Incubation Facility of STPI at Patna for promoting IT/ITES/ESDM Industry and Startups. These facilities will help in boosting IT software and service exports. The PM will inaugurate a series of fisheries development projects sanctioned under Pradhan Mantri Matsya Sampada Yojana (PMMSY). This will mark the launch of modern fisheries infrastructure including new fish hatcheries, biofloc units, ornamental fish farming, integrated aquaculture units, and fish feed mills across various districts in Bihar. Later in the day, the PM will release Rs 400 crore to around 61,500 Self-Help Groups in Bihar under Deendayal Antyodaya Yojna-National Rural Livelihoods Mission (DAY-NRLM). With a special focus on women-led development, over 10 crore women have been connected to Self-Help Groups (SHGs). He will also hand over keys to some beneficiaries as a part of Griha Pravesh of 12,000 beneficiaries and release over Rs 160 crore to 40,000 beneficiaries of Pradhan Mantri Awaas Yojana-Gramin.
Hans India
9 minutes ago
- Hans India
Co-operative bank fraud case: ED raids over 10 locations in Bengaluru
Bengaluru: The Directorate of Enforcement (ED) sleuths on Thursday conducted raids in connection with the Shushruti Co-operative Society fraud case in Bengaluru. According to sources, raids were carried out at more than ten locations across the city. Earlier, in 2022, the Bengaluru Central Crime Branch (CCB) had registered a case against the Shushruti Co-operative Society. Following its investigation, the CCB had arrested several individuals. The society was established by N. Shrinivasa Murthy, who later appointed several of his family members as directors and members. The case was filed after it was found that the society had issued loans to insiders and failed to return money to depositors. Following the CCB case, the ED launched its own investigation. Based on the FIR filed by the CCB, the ED registered an ECIR (Enforcement Case Information Report) and initiated action. Sources stated that ED Karnataka is conducting search operations at more than 10 locations in and around Bengaluru in connection with Shushruti Souharda Bank, Shruthi Souharda Bank, and Shree Lakshmi Souharda Bank, along with their promoters, N. Shrinivasa Murthy and his family members. This case pertains to the alleged cheating of over Rs 100 crore from more than 15,000 depositors, who were lured into investing with promises of high interest rates, sources added. Subsequently, the collected funds were diverted through unsecured loans to associates. Most of these loans turned into non-performing assets (NPAs), and the money was laundered and used to purchase properties, indicating clear violations under the Prevention of Money Laundering Act (PMLA). The proceeds of crime (POC) in this case are estimated to exceed Rs 100 crore, according to sources. So far, more than 20 high-value properties -- previously unidentified by the Karnataka Police under the Karnataka Protection of Interest of Depositors in Financial Establishments Act (KPIDE) -- have been uncovered during the ED's ongoing search operations, sources said.
Economic Times
9 minutes ago
- Economic Times
Sona BLW shares rally over 8% after report of supply talks with Chinese automaker BYD, potential China plant
Sona BLW and BYD have reportedly been in talks for several months, with the proposed manufacturing facility in China seen as a key part of Sona BLW's broader strategy to deepen its long-term partnership with the Chinese EV major. Tired of too many ads? Remove Ads Surge in volumes, but stock still lagging YTD Tired of too many ads? Remove Ads Technical indicators reflect bearish undertone Shares of Sona BLW Precision Forgings jumped as much as 8.5% on Thursday to Rs 494 on the BSE, after a report said Chinese electric vehicle giant BYD is in discussions with the Indian auto component maker for the supply of EV company may also set up a local manufacturing facility in China as part of its long-term plans, according to a report by people familiar with the matter, the report said discussions between Sona BLW and BYD have been ongoing for several months, and the potential local manufacturing facility in China forms part of Sona BLW's long-term collaboration strategy with the Chinese finalised, the deal would mark a significant expansion for Sona BLW, which already counts Tesla, a key BYD rival, among its major customers for EV rally was supported by a spike in trading volumes, with more than 1.26 crore shares changing hands as of 12:10 pm, nearly five times the company's 10-day average the day's gains, Sona BLW's stock performance in 2025 has remained under pressure. The stock is up around 8% over the past five sessions and nearly 2% in the past month. However, it has dropped over 16% in the past six months and is down nearly 18% the technical front, the stock is trading below five of its eight key simple moving averages (SMA), specifically the 30-day, 50-day, 100-day, 150-day, and 200-day SMAs, but remains above the 5-day, 10-day, and 20-day Relative Strength Index (RSI) stands at 33.1, just above the oversold threshold of 30. Meanwhile, the Moving Average Convergence Divergence (MACD) is at -13.2 and remains below both the centre and signal lines, reinforcing a strong bearish read | MobiKwik shares down 61% from peak, charts hint at upside till Rs 300. Should you buy? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
