Summary of this article
Reddit user shared how his Rs 40,000 a month salary does not end up being saved.
The conversation escalated to a debate between users.
Traditional advice about saving and investing is rendered useless for people earning less.
A Reddit user recently shared how his Rs 40,000 a month salary does not end up being saved even a rupee, which sparked a debate between indulgent materialists and financially conscious users. The user explained how, after paying off the rent, equated monthly instalments (EMIs), and other essential expenses, he isn't left with much to save.
The conversation escalated to a debate on how emergency funds and savings are essential for everyone, while others said that spending on lifestyle and other indulgences shouldn't be made such a crime.
This is a real-life problem that most people face nowadays. As living costs increase across most metro and tier-I cities, little is left for people to be conscious of where to save and when to save.
For people earning Rs 30,000-40,000, traditional advice about saving and investing is rendered useless. The reality of rent, food, healthcare, and everyday expenses eats away at the salary.
To Be An Investor Or Not
This Reddit post captured the growing stress that individuals face; it is not that they don't wish for a safety net or an emergency fund for themselves, but it is just that they can't.
However, the user stated that he was satisfied – he spends well on groceries, medical bills, skincare, supplements, rent, and occasional social outings. He feels that by spending here, he is investing in improving his quality of life.
This user also said how this relief – not having emergency funds or financial stability, doesn't hurt him so much – could be due to generational differences. He reflected on how his father's ability to support a family with a much lower salary compared to his was totally spent on himself.
This Habit Might Bite Later
Every financially conscious person is aware that this is not a good habit in the long run. Even if he starts earning more, the indulgent part of him is always going to spend on temporary things over stability, and he admits this himself in a statement.
Other users also told him how this approach is not suitable, as life is very unpredictable and throws a curveball at the most uncertain times. Be it job loss, medical emergencies, family emergencies, or even relocation, one should consider saving to have the ability to take on these problems head-on.
Spending And Saving Ratio
Redditors argued that saving isn't about denying and staying away from comfort, it is about making sure you have financial stability and security. Lifestyle inflation is bad because it entraps people, and it can't be controlled either. Hence, it becomes a priority to save even when you are not earning much, so you can build a habit and discipline.
