Recently, a Reddit post posted by a married couple in their mid-30s has gone viral as they have expressed their problems of having no savings despite earning a combined income of ₹1.7 lakh each month. As per the post, the couple revealed that they have only ₹2,520 saved at the end of every month after paying off the necessary bills.
The couple mentioned that they are feeling mentally exhausted due to their financial problems as they are unable to reach their life goals because of the lack of savings in their bank account. This post was entitled “Earning 1.7L, living paycheck to paycheck, mentally exhausted, need actionable input.” In the post, the couple mentioned the need to achieve major milestones.
Based on the financial breakup that is available online, the husband makes a salary of ₹1.02 lakhs per month, whereas the wife has a salary of ₹68,000 per month. Thus, their total monthly income stands at ₹1.7 lakhs; however, there seems to be considerable expenditure on repayment of various debts.
The total expenditure on the EMI stands at ₹86,000 per month. This consists of payment for various debts like personal loan, education loan, bike loan, and phone loan. Among these, the costliest loan is the personal loan with a repayment requirement of over ₹70,000 per month.
After deducting the expenditure related to various EMIs, the household spends ₹53,500 per month on essential expenditures that include rent, grocery bills, fuel bills, medical bills, etc. In addition, there is also an allocation of expenses for leisure and entertainment purposes. After accounting for all these expenses, only ₹2,520 is left with the couple.
The situation of the couple soon became viral, with most people citing debts as the key factor behind the problem. Commentators have advised the couple to repay the high-interest loans first before making any other considerations like buying a house.
It is not surprising how this issue has resonated within the youth professionals of India who believe that soaring cost of living and debts are leaving little room for savings despite their high-income households. The topic has become quite common on the Internet where there has been some discussion about the affordability of houses and lifestyle inflation.
Despite being emphasized by financial advisors that income is just half of the story, the story told by this couple has shed light on the problems of middle class couples, which is increasing income does not necessarily mean increased financial security when the majority of your income goes towards paying off debts and cost of living.
