CA explains how Rs 80,000 per month income can beat Rs 2 lakh

A chartered accountant and financial advisor has said that managing money isn't solely about earnings, but rather about aligning finances with personal goals. Abhishek Walia, a Chartered Accountant and Founder of Zactor Tech, uses a case study from his practice to illustrate this point. "Managing money isn't about how much you earn," he writes. "It's about how well you align your money with your goals."advertisementOne example Walia shared involved a young professional earning Rs 90,000 monthly. "A few months ago, a young professional came to us," Walia recounts. "She earned Rs 90,000 a month. No side hustle. No major investments. But she had zero debt, a six-month emergency fund, and SIPs set up for her MBA dream three years down the line." Her financial strategy, though simple, was effective. This approach allowed her to focus on her long-term goals without the stress of immediate financial instability.In contrast, Walia describes another client earning 2.5 lakh per month who faced financial instability. "She was always broke at month-end. No emergency fund. No investments. Just lifestyle upgrades, FOMO spending, and no clear direction." This highlights the importance of having a financial plan, regardless of income level. The lack of a structured approach led to a cycle of financial distress, despite a higher income.
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The takeaway, according to Walia, is that wealth depends on mindset more than income. "People confuse a bigger paycheck with financial success. But wealth is what you keep, not what you earn," he notes. "Without a plan, even 2 lakh a month can vanish by the 25th." This serves as a cautionary tale that underscores the necessity of financial literacy and planning.Walia identifies the issue as one of clarity, stating, "It's a clarity issue," he says. "The 90K earner knew her 'why'. The 2.5 lakh earner didn't." The statement underscores the need for clarity in financial planning. Understanding one's financial priorities can make a significant difference in achieving long-term stability.Walia puts it simply. "Money without clarity will quietly disappear. But money with purpose? That compounds," he said. His insights suggest that intentional financial management is key to wealth building. A clear financial purpose can transform how resources are allocated, leading to sustainable growth.He also cautions against the obsession with merely earning more. "We live in a world obsessed with earning more. But wealth starts with more intention," Walia advises. His post urges a shift from seeking higher income to managing existing resources more effectively. This shift in perspective can lead to more meaningful financial outcomes.advertisementWalia's advice is simple but powerful: Instead of asking, 'How do I earn more?', ask, 'What am I doing with what I already have?' It's a shift in mindset that urges individuals to reassess their spending, align money with purpose, and build security not from a higher income but from smarter choices.

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