In a time when many people earn well but still feel financially stressed, CA Abhishek Walia, co-founder, Zactor Money, emphasises a practical approach to personal finances. “. Build it on 70% of confirmed take-home,” he wrote on LinkedIn.
According to him, how you design your lifestyle matters more than how much you earn.
Walia believes that most people make a basic mistake: they .
Instead, he advises setting budgets based on a smaller, confirmed portion of earnings to avoid vulnerability. This helps people avoid overcommitting to expenses that may not be sustainable. By focusing on what is certain, individuals can better weather financial storms and avoid stress from living pay cheque to pay cheque.
He stresses that confirmed take-home means only the amount that actually reaches the bank account every month.
Many employees look at their CTC or expected annual income while planning expenses. Walia warns that this can create a false sense of comfort.
“Not CTC. Not bonuses. Not ESOPs. Not ‘expected’ increments.”
Bonuses can be delayed, ESOP values can change, and increments may not come on time. Depending on these uncertain elements to fund daily life can lead to stress when plans do not work out.
The 30% that is not spent on lifestyle is not meant to sit idle. Walia calls it a safety cushion for life’s surprises. “That remaining 30% isn’t optional savings. It’s shock absorption.”
This buffer can help manage medical emergencies, sudden expenses, career breaks, or months when income is lower than usual.
Walia points out that many people feel anxious even with decent salaries because they spend money before it becomes stable. “Most financial anxiety comes from spending money before it’s actually stable.”
When spending is tied to uncertain income, even small disruptions can throw monthly budgets off balance.
The core message is simple but powerful. Financial problems are often linked to behaviour, not pay packets.
“People don’t fail because they earn less. They fail because they spend as if income is guaranteed.”
By designing a lifestyle that runs comfortably on 70% of take-home income, individuals can build resilience, reduce stress, and stay prepared for life’s unexpected turns.