₹70 Lakh Nightmare: Shocking Truth Behind High Income, Zero Savings – 5 Brutal Money Lessons
The debate around labelling ₹70 lakh annually as “middle class” misses the real issue: high income doesn’t guarantee financial comfort. While correctly noting this income places earners in India’s top 1%, the viral breakdown reveals how massive fixed costs (like EMIs on luxury homes/cars and premium education) can consume earnings, leaving little savings. Critics argue this squeeze stems primarily from lifestyle choices driven by social pressures and inflated aspirations, not unavoidable inflation. The key takeaway is that financial well-being hinges less on income level and more on conscious spending, resisting debt-fuelled status symbols, and prioritizing savings over unsustainable consumption. True security comes from aligning expenses with personal values, not external benchmarks.

₹70 Lakh Nightmare: Shocking Truth Behind High Income, Zero Savings – 5 Brutal Money Lessons
The claim that an annual income of ₹70 lakh ($84,000) qualifies as “middle class” in India recently exploded across social media, sparking outrage, confusion, and weary nods of recognition. While financial influencer Parth Sanghvi swiftly labelled the notion “nonsense” (correctly pointing out it places earners firmly in India’s top 1%), the viral post by investment banker Sarthak Ahuja tapped into a raw nerve: Why do even high earners feel financially suffocated?
Ahuja’s Viral Reality Check: The ₹70 Lakh Squeeze
Ahuja meticulously broke down a typical monthly budget for a ₹70 lakh earner in a major metro like Mumbai or Gurugram:
- ₹20 lakh/year vanishes in taxes. Monthly take-home: ~₹4.1 lakh.
- Fixed Commitments Bite Deep:
- Home Loan EMI (for a ₹3 Cr flat): ₹1.7 lakh
- Car Loan EMI (Luxury Sedan/SUV): ₹65,000
- Kids’ International School Fees: ₹50,000
- Household Help: ₹15,000
- The Shocking Remainder: Roughly ₹1 lakh left for everything else – groceries, utilities, fuel, healthcare, leisure, vacations, and crucially, savings.
Ahuja dubbed this group the “new sub-middle class” – high income, high stress, minimal financial breathing room. He blamed soaring urban costs, expensive debt, and relentless lifestyle pressure amplified by social media.
Sanghvi’s Counterpoint: It’s Not Class, It’s Choice
Parth Sanghvi agreed on the financial strain but vehemently rejected the “middle class” label. His core argument shifted the focus:
- Top 1%, Not Middle: “Calling ₹70 lakh middle class undermines the real struggles of India’s vast true middle class, often earning a fraction of this.”
- The Lifestyle Inflation Elephant: “No one forced you into buying a massive house or a luxury car on EMI. It’s about choices and priorities.” Sanghvi sees the problem not as insufficient income, but unsustainable spending fuelled by aspiration.
- Own Your Financial Reality: “No savings at this level isn’t inflation—it’s a lifestyle choice.” He argues attributing this squeeze solely to external factors ignores personal agency in financial decisions.
The Uncomfortable Truth in the Middle
This debate reveals less about income brackets and more about powerful, often unexamined, forces shaping modern financial lives:
- The Social Media Mirage: Constant exposure to curated luxury lifestyles (real or perceived) rewires our sense of “normal.” That ₹3 crore apartment or luxury SUV isn’t just shelter or transport; it becomes a perceived requirement for social status, fuelling expensive debt.
- Urban Cost Traps: Mega-cities offer opportunity but at a staggering premium. Real estate bubbles, premium education arms races, and the high cost of convenience (help, premium groceries, services) create a unique pressure cooker.
- The Debt-Fuelled Illusion of Wealth: Easy access to credit masks true affordability. High EMIs create the appearance of wealth (big house, fancy car) while simultaneously eroding the ability to build actual, liquid wealth through savings and investments.
- Redefining “Enough”: The true middle-class aspiration was stability and gradual improvement. For some high earners, the goalpost has invisibly shifted towards matching an elite, often debt-fuelled, consumption standard, creating perpetual dissatisfaction.
Beyond the Label: The Path Forward
Labelling ₹70 lakh as “middle class” is statistically inaccurate and socially tone-deaf. However, dismissing the financial stress of high earners ignores the powerful psychological and social pressures at play. The solution lies not in redefining class, but in conscious choices:
- Radical Budget Honesty: Distinguish needs from aspirational wants. Scrutinize every major EMI. Does the size of the house truly align with needs, or ego? Is the luxury car essential, or a status symbol?
- Define Your Wealth: Resist letting social media or peers set your financial benchmarks. What does financial security and freedom mean to you? Is it the car, or the ability to retire early, fund passions, or weather emergencies?
- Prioritize Liquidity & Savings: High income is meaningless without savings. Building a substantial emergency fund and investment portfolio before maxing out on lifestyle debt is crucial for genuine security.
- Challenge the Upgrade Cycle: Question the relentless pressure to upgrade – house, car, gadgets, vacations. Sustainable wealth is often built by finding contentment below one’s means.
The Real Takeaway: It’s About Agency, Not Income
The ₹70 lakh debate isn’t really about whether someone is middle class or rich. It’s a stark reminder that income alone doesn’t guarantee financial well-being. As Sanghvi concluded: “The problem isn’t income—it’s how you manage it.” True financial comfort comes not from chasing the highest possible standard of living defined by others, but from consciously designing a life where spending aligns with personal values and long-term security, leaving room to breathe, save, and truly live. The power to escape the “sub-middle class” squeeze, even on a high income, ultimately lies in the choices made far more than the digits on the payslip.
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