What looks like a comfortable lifestyle today can quietly turn into a financial nightmare tomorrow — all thanks to inflation. Chartered Accountant Nitin Kaushik recently broke down how even a wealthy business family’s spending can spiral out of control in the coming decades. His post is a reminder that inflation doesn’t just hurt the middle class; it chips away at everyone’s wealth if you don’t prepare for it.
Kaushik illustrated his point with the example of a 40-year-old business family in Surat. Right now, their monthly household expenses stand at about Rs 1.5 lakh, which adds up to Rs 18 lakh a year. On the surface, that seems manageable for a well-off family. But roll the clock forward 30 years, and the picture changes drastically. At just 6% annual inflation — which is on the modest side — those same expenses would balloon to nearly Rs 1.37 crore a year, or around Rs 11.4 lakh per month. That’s a 7.6x jump in expenses without any lifestyle upgrades, purely because of rising prices.
His takeaway was simple: it’s not about how much you earn today, it’s about how well you prepare for tomorrow. Wealth can be built, but real wealth lies in beating inflation and maintaining your lifestyle across decades.
CA explains how to be financially prepared for future
This is not the first time Kaushik has spoken about how to be financially prepared for the future. In a tweet, he previously explained that while people earning Rs 15–25 lakh a year may look financially secure, many still feel stuck. A big salary doesn’t automatically mean financial freedom, because taxes, deductions, and EMIs eat into most of it before it can even be put to work.
One major problem is the lack of additional income streams. Most families rely on a single paycheck, which means if that stops, life comes to a halt. On top of that, large loans for homes and cars may create the illusion of wealth, but once liabilities are subtracted, there’s little left as real assets.
Savings habits also play a role. Parking cash in a savings account that earns 2–3% interest is no match for inflation that silently chips away at value. Add to this a tendency to spend on lifestyle upgrades — phones, fashion, dining out — while neglecting investments, insurance, and long-term planning, and the middle class ends up feeling financially ambushed. His larger point is clear: true wealth isn’t about income, but about building assets, compounding growth, and diversifying income streams.
Kaushik illustrated his point with the example of a 40-year-old business family in Surat. Right now, their monthly household expenses stand at about Rs 1.5 lakh, which adds up to Rs 18 lakh a year. On the surface, that seems manageable for a well-off family. But roll the clock forward 30 years, and the picture changes drastically. At just 6% annual inflation — which is on the modest side — those same expenses would balloon to nearly Rs 1.37 crore a year, or around Rs 11.4 lakh per month. That’s a 7.6x jump in expenses without any lifestyle upgrades, purely because of rising prices.
His takeaway was simple: it’s not about how much you earn today, it’s about how well you prepare for tomorrow. Wealth can be built, but real wealth lies in beating inflation and maintaining your lifestyle across decades.
🚨 Inflation doesn’t spare even business families
— CA Nitin Kaushik (@Finance_Bareek) September 2, 2025
📍 Case: Business family, Surat
👤 Age: 40
💸 Current expenses: ₹1.5L/month (₹18L/year)
Fast forward to age 70 (30 yrs later) 👇
👉 ₹1.37 Cr/year (~₹11.4L/month) at just 6% inflation
That’s a 7.6x jump in expenses — without…
CA explains how to be financially prepared for future
This is not the first time Kaushik has spoken about how to be financially prepared for the future. In a tweet, he previously explained that while people earning Rs 15–25 lakh a year may look financially secure, many still feel stuck. A big salary doesn’t automatically mean financial freedom, because taxes, deductions, and EMIs eat into most of it before it can even be put to work.
One major problem is the lack of additional income streams. Most families rely on a single paycheck, which means if that stops, life comes to a halt. On top of that, large loans for homes and cars may create the illusion of wealth, but once liabilities are subtracted, there’s little left as real assets.
THE MIDDLE CLASS ISN’T BROKE — THEY’RE FINANCIALLY AMBUSHED 🧨
— CA Nitin Kaushik (@Finance_Bareek) July 30, 2025
They’re not poor.
They’re not foolish.
They’re just systematically trapped — by taxes, inflation, and borrowed dreams.
Here’s the brutal truth why most people earning ₹15–25L a year feel they’re just surviving:… pic.twitter.com/XwHhKCobXr
Savings habits also play a role. Parking cash in a savings account that earns 2–3% interest is no match for inflation that silently chips away at value. Add to this a tendency to spend on lifestyle upgrades — phones, fashion, dining out — while neglecting investments, insurance, and long-term planning, and the middle class ends up feeling financially ambushed. His larger point is clear: true wealth isn’t about income, but about building assets, compounding growth, and diversifying income streams.
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