Earning ₹2 lakh a month, but still feel broke? Run this 20-minute money audit, suggests investment adviser

Many high earners feel financially stretched despite healthy salaries. Abhijit Kumar, a SEBI-registered investment adviser, has shared a practical solution on LinkedIn. He outlined a five-step financial audit that takes just 20 minutes.

Kumar illustrated the problem with a real client. The client earned ₹ 2.1 lakh per month but could not save ₹ 40,000 for an emergency fund . The audit revealed why.

Pull out the last three bank statements and total every EMI . Include so-called no-cost ones. Kumar's client believed his EMIs totalled ₹ 35,000. The actual figure was ₹ 68,000, which was 32% of his take-home pay.

The rule of thumb is clear. All EMIs combined should stay below 40% of take-home income. A home loan alone should not exceed 30%.

Identify every subscription, app renewal, delivery fee and unused gym membership. Most people discover ₹ 4,000 to ₹ 9,000 in forgotten charges. Kumar's advice is direct: cancel unnecessary ones that same day, not at some vague future point.

Investing after spending means investing whatever remains, which could be nothing. Kumar recommends setting up an auto-debit the moment salary arrives. He describes this as the single highest-impact change a person can make for their savings.

This buffer should sit in a liquid fund or fixed deposit, not in stocks or a standard savings account. Kumar advises prioritising this fund before beginning any goal-based SIP investments.

Divide monthly savings by take-home income. Saving under 10% signals a spending leak rather than a salary problem. Between 10% and 20% is adequate. An above-25 % figure indicates genuine wealth creation.

Kumar concluded with a pointed observation: “Do those five steps and you'll know more about your money than 90% of people earning what you earn,” he concluded.

“The savings-rate calculation is a much better starting point than simply asking how much someone earns. Two people on the same salary can have completely different financial positions depending on their commitments, liquidity and savings discipline,” wrote one of them.

“I completely agree on SIP date...one more thing to add is: Hold only one Credit Card and that, too, for emergency purposes. Start relying on cash payment instead of taking credit,” suggested another user.

One user pointed out, “This is a good reminder that earning more and managing money well are two different skills. A higher salary can improve your lifestyle, but without cash-flow discipline, it can disappear just as quickly.”

Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications.