"Earns Rs 1.3 Lakh Monthly But Still Broke": Man Shares Struggles Of Middle-Class Trap

A 26-year-old Indian professional recently shared his bittersweet story on social media platform Reddit, after his salary jumped from Rs 40,000 to Rs 1.3 lakh per month following a few job switches. Though his income has tripled on paper, he reveals that debt and financial commitments still leave him feeling trapped and unable to enjoy the increased earnings.

His family carries significant debt largely due to his father's ongoing health issues and lack of private medical insurance, which was denied due to pre-existing conditions. Most of his previous salary went toward EMIs and hospital bills. Even now, with a relocation to a more expensive city and higher living costs, his fixed expenses consume around Rs 70,000 - Rs 75,000 monthly, covering rent, food, transport, and multiple EMIs.

Went from 40k to 1.3LPM salary… but it feels like I am still broke
byu/Unlucky-Whole-9274 inpersonalfinanceindia

Despite living frugally, walking to save on transport and avoiding luxury splurges, he struggles to see financial freedom ahead. His plans include increasing monthly investments (SIP) from Rs 2,000 to Rs 15,000, securing medical insurance for his parents, and making part-prepayments on loans to clear debt faster. Additionally, he hopes to start saving for his wedding planned in two years.

The question on his mind: how to balance investing, debt repayment, and future expenses effectively, especially amid pressures from peers' financial progress. He also seeks advice on securing medical insurance for parents with pre-existing conditions. 

Many young earners connect with his story, and these young professionals are also juggling increased income, debt burdens, and city living costs while chasing financial independence.

"You are paying the debt for your parents. You are able to survive and sustain yourself. I would say, as a man/person, you succeeded in life, bro. The goal is to be happy and able to provide for others. Don't take expenses by heart," commented a user.

"Before any investment, pay the debt first. Marriage can wait. Don't fall for some agent that will give you a cheap policy; your claim will get rejected in hospital," wrote another user.