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Couple Earning 1.2 lakhs Still Broke: Normal or Financially Clueless?

Ramalingam Kalirajan |8290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 16, 2025Hindi

My partner and I earn well - over 1.2 lakhs a month combined. Still, at the end of every month, we're left with scraps. EMIs, rent, Swiggy, random UPI spends - it all adds up. We're not splurging on vacations or cars. It just... vanishes. Is this normal in metro cities or are we financially clueless?

Ans: Many couples in Indian metro cities ask this exact same thing. You are not alone. And no, you are not clueless. You’re just living in a financial system where money leaks are designed to be invisible.

Let us break it down together. From a 360-degree Certified Financial Planner lens, and in simple, real-life Indian terms.

The “Vanishing Money” Problem: Is it Normal?
Yes, it is common. But no, it is not “normal”.

Metro city life runs on fast decisions and delayed consequences.

Swiggy, UPI, EMIs, rent – these are not luxuries. They are part of the lifestyle now.

The problem is not spending. The problem is unstructured spending.

That creates a loop where income rises but savings don't.

Many urban couples with Rs 1.5 lakh income feel poor by the 25th.

That emotional stress is not because you’re careless. It's because your system has no frame.

Understanding the Urban Expense Loop
Here’s how it traps even well-earning couples:

Rent + EMIs eat up 40-50% of income before you open your eyes.

UPI payments don’t feel like spending. They feel like gestures, not money.

Food delivery isn’t luxury anymore. It’s often an energy-saving choice.

Subscriptions, OTT, online groceries – they leak Rs 3K–5K per month quietly.

Random Amazon orders – never more than Rs 500. But always more than Rs 5000 monthly in total.

Weekend meals out – not for celebration, but for relief. Emotional release costs money.

No system to track – without monthly budgeting, your wallet becomes an ATM with no limits.

The Big Question: Are You Financially Clueless?
Absolutely not.

But you are financially unguided.

You are earning well. You’re not spending recklessly.

But you haven’t given your income a structure. A mission. A flow.

When money has no direction, expenses find their way.

It’s like water without pipes. It just floods the place.

What’s Really Missing? A 3-Bucket Plan
You don’t need a tight budget. You need a simple bucket plan.

Let’s give your income three fixed homes:

40% Living Bucket – rent, groceries, bills, insurance, UPI basics.

30% Lifestyle Bucket – Swiggy, weekends, subscriptions, wardrobe, gifts.

30% Wealth Bucket – SIPs, RD, term insurance, emergency fund, goals.

This will feel strange at first. But very quickly, it will feel powerful.

Fixing the Invisible Leaks
Here are invisible leaks that rob metro couples daily. Let’s fix them one by one:

Multiple OTT subscriptions – cancel what you don’t actively use monthly.

Food ordering frequency – reduce by just one order a week. That saves Rs 1500 monthly.

Impulse UPI spends – delay every random payment by 3 hours. Most will not happen.

No emergency fund – this keeps you in panic-mode spending during unexpected bills.

SIPs after expenses – reverse it. Do SIPs on salary day. Live on the rest.

Rent > 25% of income – see if possible to renegotiate or move after lease. Huge impact.

Metro City Survival Requires Automation
Don’t try to track everything manually. Metro life is too fast.

Use automation for financial discipline:

SIP on salary day – in 2–3 different goals.

Auto-transfer to separate “spend” account – live only off that.

Digital wallets with caps – for food and lifestyle spends.

Use reminders – for insurance premiums, investment reviews, and monthly goals.

Are You Financially Behind?
No, you're right on time.

But now you need to graduate from spending unconsciously to saving consciously.

You can start with these habits:

Track your expenses just for 30 days. Use a notebook or app.

Identify top 5 leak points. Tackle only those.

Agree with your partner on shared money values. Spend mindfully.

Do a monthly sit-down. A 20-minute chat about how your money moved.

Shift 20% of your income towards automated wealth-building – before you spend.

Final Insights
You are not financially clueless.

You are just too busy earning to notice where money runs off.

But you’ve already done the hard part. You’ve asked the right question.

That means you care.

That means you are ready.

That means change will come fast.

Start with a basic bucket system.

Make small adjustments every month.

In 12 months, your same income will start building wealth.

And instead of scraps, you’ll start seeing surplus.

Not because you worked harder. But because your money worked smarter.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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