- A chartered accountant highlighted rising living costs in India affecting Rs 1 lakh salaries
- Rent accounts for Rs 25,000 of monthly expenses for a person earning Rs 1 lakh
- Groceries, commuting, utilities, and lifestyle costs consume most of the monthly income
A growing conversation about rising living costs in India has gained attention on social media after a chartered accountant explained how a Rs 1 lakh monthly salary now feels much smaller due to inflation and everyday expenses.
A Gurugram-based chartered accountant has shared a post on Instagram discussing how the cost of living has increased and why a six-figure monthly income no longer offers the comfort it once did for many middle-class salaried people.
Muskan Mittal said that "Rs 1 lakh per month is the new Rs 30,000. Not because you're spending recklessly. Because life has become expensive."
She explained her view by breaking down how a person earning Rs 1 lakh per month may spend their income across essential needs, lifestyle costs and savings.
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According to her estimate, rent takes the biggest share at Rs 25,000, followed by Rs 10,000 for groceries and food.
She said that commuting costs such as fuel, cabs or metro travel come to around Rs 5,000 every month.
Basic utilities like electricity, Wi-Fi and mobile bills add up to nearly Rs 3,000.
She further said that shopping and personal care may cost about Rs 5,000 per month, while eating out and entertainment can also take around Rs 5,000.
Mittal added that Rs 7,000 may go towards insurance, medical needs and emergencies, along with Rs 5,000 for family support, gifts and other miscellaneous expenses.
On savings, she suggested putting Rs 20,000 into SIPs and investments, and another Rs 15,000 into an emergency fund or additional savings.
She said that when all expenses and savings are combined, the full Rs 1 lakh monthly income gets allocated, leaving very little extra money.
Mittal also said that budgeting is not about saving every rupee, but about maintaining a balance between present comfort and future financial security.
She said that "The goal isn't to save every rupee. The goal is to enjoy today without compromising tomorrow."
