Why do so many Indian couples struggle financially even after earning in lacs per month?

There can be several reasons why some Indian couples may struggle financially even with high monthly earnings. Here are a few common factors that can contribute to financial challenges:

Why Indian couples struggle financially?

  1. Lifestyle Inflation: As incomes increase, it’s common for individuals and couples to upgrade their lifestyles, which can lead to higher expenses. They may increase spending on housing, vehicles, travel, dining out, and other discretionary items. If expenses rise faster than income, it can result in financial strain and difficulty in building savings or managing debt.
  2. Lack of Financial Planning: Many couples may not have a clear financial plan or budget in place to manage their income and expenses effectively. Without a strategic approach to budgeting, saving, and investing, it becomes challenging to allocate funds properly and achieve financial goals. Lack of financial literacy and knowledge about investment options can also hinder financial progress.
  3. Debt Burden: Debt can significantly impact a couple’s financial well-being. High levels of consumer debt, such as credit card debt or personal loans, can lead to a significant portion of income being allocated towards debt repayment, leaving little room for savings or investments. If debt is not managed wisely, it can become a cycle that hampers financial stability.
  4. Inadequate Emergency Fund: Many couples may overlook the importance of building an emergency fund. An emergency fund is essential to handle unexpected expenses, job loss, medical emergencies, or other financial shocks. Without an adequate safety net, couples may find themselves relying on credit or facing financial hardships during unforeseen circumstances.
  5. Lack of Financial Discipline: Impulsive spending, poor saving habits, and improper money management can contribute to financial struggles. Couples who do not prioritize saving, investing, and controlling expenses may find it challenging to achieve long-term financial security.
  6. Family Obligations: In Indian culture, familial responsibilities often extend beyond the nuclear family. Couples may face financial pressures due to obligations towards supporting extended family members, funding educational expenses, or participating in social and religious events.

It’s important to note that individual circumstances can vary, and these factors may not apply to every couple. However, adopting good financial habits, creating a budget, managing debt wisely, saving for emergencies, and seeking professional financial advice can help couples improve their financial situation and work towards long-term financial stability.

What is the way out?

To improve financial situations and find a way out of financial struggles, couples can consider the following steps:

  1. Create a Budget: Develop a detailed budget that outlines income, expenses, and savings goals. Prioritize essential expenses and allocate a portion of income towards savings and debt repayment. A budget helps track spending, identify areas of overspending, and make necessary adjustments.
  2. Reduce Expenses: Review current expenses and identify areas where costs can be reduced. Cut back on discretionary spending, negotiate bills and contracts, find ways to save on utilities, and explore more cost-effective alternatives. Small adjustments in daily expenses can add up over time and contribute to savings.
  3. Manage Debt: Prioritize debt repayment to reduce interest payments and free up cash flow. Paying off high-interest debt first can save money in the long run. Explore options to consolidate debt or negotiate with creditors for better terms. Consider seeking professional guidance to develop a debt repayment strategy if needed.
  4. Build an Emergency Fund: Establish an emergency fund that covers at least three to six months’ worth of living expenses. Set aside a portion of income each month specifically for the emergency fund. Having a safety net helps mitigate financial shocks and reduces reliance on credit during unexpected situations.
  5. Increase Financial Literacy: Invest time in learning about personal finance, investing, and managing money effectively. Read books, attend financial literacy workshops or seminars, and seek guidance from financial advisors or professionals. Enhancing financial knowledge enables better decision-making and empowers couples to take control of their financial future.
  6. Set Realistic Financial Goals: Define short-term and long-term financial goals that align with your aspirations. Break down larger goals into smaller, actionable steps. Regularly review progress and make adjustments as needed. Having specific goals helps stay focused and motivated.
  7. Communicate and Collaborate: Financial management should involve open and honest communication between partners. Work together as a team to set financial goals, make financial decisions, and hold each other accountable. Regularly discuss financial matters, share responsibilities, and make joint financial decisions.
  8. Seek Professional Help: If needed, consult a financial advisor or planner who can provide personalized guidance based on your specific circumstances. They can help analyze your financial situation, provide strategies for debt management, investment planning, and overall financial improvement.


Remember, improving financial situations takes time, discipline, and patience. It’s essential to stay committed to your financial goals, track progress regularly, and make adjustments along the way. By taking proactive steps and working together, couples can gradually improve their financial well-being and achieve long-term financial stability.

2 thoughts on “Why do so many Indian couples struggle financially even after earning in lacs per month?”

  1. Vishal jhaveri is a genius blogger. Always helpful articles for the readers on the current topics of significance.


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