So how can you achieve a higher income without falling victim to lifestyle inflation? Both Manotto and Kothari offer practical advice. “First, save and invest every month,” Kothari stresses. She suggests setting aside funds for savings and investments now to build a strong financial foundation. “Investing is very much emotion and behavior driven,” she says. Manotto stresses the importance of aligning spending with long-term goals. “Having a budget that reflects your financial goals helps you see the bigger picture,” she says.
Vishal Dhawan, CEO, PlanAhead Wealth Advisors, suggests further strategies. “If your current SIP is Rs 10,000, increase it by 5% with every salary increase and remember to account for inflation in your expenses. Strike a balance between having fun and maintaining financial discipline,” he advises. Dhawan also suggests using any excess income towards debt repayment first, followed by increasing savings and investing in areas that support self-care. Prioritise repaying high-interest loans and avoid accumulating unnecessary debt.
The next time you get a pay raise, try to balance enjoying the extra cash with implementing smart financial planning. After all, a little fun combined with a lot of foresight will make you a happier financial you.
