I still remember my first “real” job in a big Bengaluru tech park. The salary slip felt like a typo. It was more money than I’d ever seen in my life. I thought, “This is it. I’ve made it. I’m going to be rich.”
Fast forward six months.
My bank account was hovering near zero just days before my next salary. I had a new, expensive flat in a ‘better’ area. I was Ubering everywhere. My weekends were a blur of expensive brunches and online shopping sprees. I was earning a lot. And I was broke. I felt like a fraud.
This isn’t just my story. It’s the story of millions of Indians.
We’re trapped in the Great Indian Rat Race. We’re told from childhood: study hard, get into a good college (IIT! IIM!), land a high-paying job, and your life will be “settled.” We pour our hearts into climbing the corporate ladder, chasing that next promotion, that 30% hike, that fat Diwali bonus.
And yet…
How many people do you know earning ₹1 lakh, ₹2 lakh, even ₹5 lakh a month who are still stressed? Who are one medical emergency away from a financial crisis? Who are chained to their desks by a mountain of EMIs?
They have a high income, but they don’t have wealth.
This is the hard truth I had to learn: Your salary will not make you rich. Earning more money will not solve your money problems.
In fact, for most people, earning more money just amplifies their bad money habits. It’s like pouring rocket fuel into a car with a broken engine. You’ll just crash faster and harder.
It’s not your paycheck that builds wealth. It’s your mindset.
In this article, we’re going to tear this idea apart. Why Earning More Won’t Make You Rich. We’re not going to talk about “get rich quick” schemes. We’re going to talk about the deep-seated mental traps we all fall into and how to, step-by-step, rewire our brains. We’re going to build the “Rich Mindset” that actually creates freedom and wealth, whether you’re earning ₹30,000 or ₹3,00,000 a month.
This isn’t just finance. This is freedom.
Part 1: The High-Earner’s Trap (Why Your Salary Is Failing You)
Before we can build a new mindset, we have to understand the prison we’re currently in. I call this the “High-Earner’s Trap.” It’s a gilded cage, but it’s still a cage. It’s built on a few powerful, invisible beliefs.
1. Lifestyle Creep: The Silent Wallet Killer
This one is the most dangerous because it feels so natural.
When I got that first big salary, what did I do? I didn’t save it. I upgraded.
The roadside cutting chai became a Starbucks cappuccino. The local bus became an Uber. The perfectly fine 1BHK I shared with a roommate? Ugh, no. I needed a 2BHK in a building with a gym. My ₹15,000 Android phone was suddenly “too slow” for my important VP-level (I was a junior engineer) work. I needed the new iPhone.
This is Lifestyle Creep. It’s the invisible force that makes sure your expenses always rise to meet your income.
In India, this is supercharged by social pressure. “Sharmaji’s son bought a new Creta.” “Your cousin just went to Switzerland for her honeymoon.” “How can you still be living in that area?”
We’re conditioned to show our success. And we show it by spending.
The problem? You get a 20% raise, but your lifestyle inflates by 25%. You’re actually moving backwards. You’re running faster and faster on the treadmill, but you’re not getting any closer to your destination. You’re just… a more tired, better-dressed hamster.
2. The EMI Trap: Modern-Day Debt Slavery
So, you’ve decided to buy that Creta to keep up with Sharmaji’s son. You don’t have ₹18 lakhs in cash. But the bank manager smiles at you. With your new salary, you’re “pre-approved” for a massive car loan.
And that 2BHK with the gym? You can’t buy it, but you can definitely afford the EMI on a ₹70 lakh home loan, right? It’s “only” ₹60,000 a month.
That new iPhone, the 75-inch TV, the fancy fridge… all it takes is one swipe of a “No Cost EMI” card.
Suddenly, your ₹1.5 lakh monthly salary looks like this:
- ₹60,000 – Home Loan EMI
- ₹25,000 – Car Loan EMI
- ₹10,000 – Consumer Loan EMIs (phone, TV, etc.)
Your ₹1.5 lakh salary is just a temporary holding account for HDFC, SBI, and Bajaj Finserv.
A high salary doesn’t make you free. It just makes you a more attractive customer for debt. It gives you access to bigger loans.
The psychological burden is crushing. You’re not working for your family’s future anymore. You’re working to pay for your past. You can’t quit that job you hate. You can’t take a risk on that business idea. You can’t even take a 3-month break.
Why? Because the EMIs are due on the 5th. This isn’t freedom. This is a high-paying prison.
3. The “I Earn a Lot, I Deserve This” Fallacy
This is the lie we tell ourselves to justify the first two traps.
“I work 12-hour days in this glass building.” “My boss is a nightmare.” “This Bengaluru traffic is killing me.”
“…so I deserve this ₹15,000 dinner at a fancy restaurant.” “…so I deserve that ₹8,000 shirt.” “…so I deserve to order from Swiggy/Zomato for every single meal.”
We work hard. We’re stressed. So, we seek a quick hit of pleasure. And the easiest hit to get is spending money. That “Order Placed” screen gives us a tiny rush of dopamine.
The problem is, you’re trying to solve an internal problem (stress, dissatisfaction) with an external solution (spending).
It doesn’t work. The joy from that new shirt fades in a day. The pleasure of that expensive meal is gone in an hour. But the credit card bill? That lasts.
Building wealth is slow. It’s boring. It’s setting up an SIP and not looking at it for 10 years. It provides no instant dopamine.
The “I Deserve This” mindset prioritizes instant gratification (spending) over long-term freedom (investing). It’s the “broke” mindset, just with more expensive toys.
4. The Golden Handcuffs
This is the final stage of the trap.
You’re a VP at a big MNC in Mumbai. You earn ₹80 lakhs a year. You have a 3BHK in Bandra with a ₹3 crore home loan. Your kids go to a ₹5 lakh/year international school. You have two luxury cars.
You are also miserable. You hate your job. The corporate politics makes you sick. You haven’t had a real vacation in five years.
You are wearing Golden Handcuffs.
Your lifestyle is so expensive, so completely dependent on that massive salary, that you cannot leave. You are trapped.
This is the ultimate paradox. The very salary that was supposed to give you freedom has become your jailer.
This is the opposite of being rich.
Being rich is not about how much you spend. It’s about how much freedom you have.
Part 2: Shifting Gears: The Rich Mindset vs. The Poor Mindset
Okay, so the old model is broken. Earning more doesn’t work.
What does work? Shifting your entire mental operating system.
When I say “Rich Mindset,” I’m not talking about being “kanjoos” (miserly). I’m not asking you to give up your lattes or live in a cave.
I’m talking about a fundamental, revolutionary change in how you see money.
The poor and middle class (even the high-earning ones) have one mental model. The truly wealthy have another. Let’s break down the exact shifts.
Mindset Shift 1: Assets vs. Liabilities (The Big One)
This is the most important financial lesson you will ever learn. Robert Kiyosaki built an empire on this simple idea.
- A liability is anything that takes money out of your pocket.
- An asset is anything that puts money into your pocket.
Simple, right? Now, let’s test it.
The Poor/Middle-Class Mindset: “My house is my biggest asset!” “My new car is an asset.”
The Rich Mindset: “No. Your house is a liability. Your car is definitely a liability.”
I know, this is controversial. Let me explain.
That 3BHK flat you live in? It takes money out of your pocket every single month.
- Home Loan EMI
- Property Tax
- Society Maintenance
- Repairs, painting, plumbing
It is a shelter. It is a lifestyle choice. But financially? It’s a hole you pour money into.
That car? It’s a massively depreciating liability. It loses 20% of its value the second you drive it off the lot. On top of that, you pay:
- Car Loan EMI
- Insurance
- Fuel (so much fuel!)
- Maintenance
The “Poor Mindset” life path: Go to work, earn a salary, and use that salary to… buy liabilities. A bigger house, a fancier car, more gadgets. You look rich, but your entire life is funded by your next paycheck.
The “Rich Mindset” life path: Go to work, earn a salary, and use that salary to… buy assets.
What’s an asset?
- Stocks that pay dividends.
- Mutual Funds (that grow in value).
- A flat that you’ve rented out (where the rent covers the EMI and puts money in your pocket).
- A business you own.
- A blog (like this one!) that generates ad revenue.
The Rich Mindset goal is simple: Use your active income (salary) to buy assets. Keep doing this until your passive income (money from your assets) is greater than your expenses.
That is the definition of financial freedom. That is the only game worth playing.
Mindset Shift 2: The “Pay Yourself First” Principle
This one shift changed my life.
The Poor/Middle-Class Mindset: Income - Expenses = Savings “I’ll get my salary, pay my bills, buy my groceries, go out a few times… and whatever is left at the end of the month, I’ll save.”
What’s actually left at the end of the month? A few hundred rupees? Nothing?
The Rich Mindset: Income - Savings = Expenses This is a revolutionary change.
It means the day your salary hits your bank account, the very first transaction you make is not to Zomato. It’s not to your landlord. It’s not to the mall.
It is to YOURSELF.
You “pay yourself first” by moving money into your investments. Your SIP, your PPF, your index fund. This “payment” is non-negotiable. It’s the most important EMI you have.
You automate this. You set up a standing instruction or an SIP mandate for the 1st or 2nd of the month.
The money is gone from your main account before you can even think about spending it.
What’s left? That’s what you have to live on.
This forces you to adjust your expenses to fit your remaining money, not the other way around. It makes saving automatic and investing effortless. This single habit is the engine of wealth creation.
Mindset Shift 3: Understanding “Good Debt” vs. “Bad Debt”
The Poor/Middle-Class Mindset: Either “All debt is bad, stay away!” (an old-school view) or “Wow, ‘No Cost EMI’ is amazing! Let’s buy everything!”
The Rich Mindset: Differentiates. Understands that debt is a tool. Like a hammer, it can build a house or it can smash your thumb.
- Bad Debt: This is debt used to buy liabilities. Especially depreciating liabilities.
- Credit Card Debt: The worst of the worst. Using it for lifestyle purchases you can’t afford.
- Car Loan: You’re borrowing money at 10% to buy something that loses 20% of its value instantly. It’s a guaranteed loss.
- Personal Loan for a Vacation: You’ll be paying for that Goa trip for the next 3 years.
- Consumer Durable “No Cost” EMIs: These just encourage you to buy things you don’t need with money you don’t have.
- Good Debt: This is debt used to buy assets. Debt that, ideally, makes you money.
- Home Loan (for an investment property): You buy a flat and rent it out. The tenant’s rent pays your EMI. You are using the bank’s money (leverage) to have someone else buy an asset for you.
- Education Loan: This is an investment in your greatest asset – yourself. A loan for an MBA or a coding bootcamp that can double or triple your future earning potential is good debt.
- Business Loan: Taking a loan to buy a new machine for your factory that will increase your production and profits.
The Rich Mindset avoids Bad Debt like the plague. It strategically uses Good Debt to accelerate wealth.
Mindset Shift 4: Valuing Time > Valuing Money
This is the final boss of mindset shifts.
The Poor/Middle-Class Mindset:
- “I’ll drive 45 minutes across town to a different petrol pump to save ₹2/litre.” (Saving ₹100 but spending 1.5 hours of their life).
- “I’ll spend my entire Sunday trying to fix a leaking tap myself to save ₹300 on a plumber.”
- They trade their Time for Money.
The Rich Mindset:
- They know their time has a value. Let’s say, ₹2,000/hour.
- “Will I drive 1.5 hours to save ₹100? Hell no. My time is worth ₹3,000. I’ll pay for the convenience.”
- “I’ll pay a plumber ₹300 in a heartbeat. I’ll use that 1 hour I saved to read a book, play with my kids, or work on my side business, which earns me money.”
- They use their Money to buy back their Time.
This is the ultimate goal.
You build assets so your money is working for you, 24/7. Your SIPs are working while you sleep. Your rental property is working while you’re on vacation.
You reach a point where you no longer have to trade your precious, finite time for money.
That is the definition of rich.
Part 3: Stop Dreaming, Start Building: Your 5-Step Plan to a Wealth Mindset
Okay, that’s a lot of theory. It’s inspiring, but what do we do? How do we start this transformation today?
Here is your actionable, 5-step plan. Don’t just read it. Do it.
Step 1: The ‘Aina’ (Mirror) Test – Ruthless Awareness
You cannot fix a problem you don’t understand. You need to look in the financial mirror.
- Your Task: For the next 30 days, track every single rupee you spend.
- How: Use an app like Wallet by BudgetBakers, Money Manager, or even a simple Excel sheet.
- The Rule: Be honest. No judgment. Just data. That ₹10 cutting chai? Write it down. That ₹120 Zomato delivery fee? Write it down. That ₹500 Uber ride? Write it down.
- The ‘Aina’ Moment: At the end of 30 days, look at the totals.
- “Wow, I spent ₹9,000 on Swiggy/Zomato.”
- “My subscriptions (Netflix, Hotstar, Spotify, Amazon) are costing me ₹2,000 a month.”
- “I spent ₹12,000 on ‘miscellaneous’ shopping.”
This isn’t about making you feel guilty. It’s about awareness. This is your starting line. This is the “broke mindset” in black and white. Now you know what to attack.
Step 2: Automate Your Wealth (The ‘Pay Yourself First’ Action)
Do this right now. While you’re reading this.
- Log into your net banking or your favourite mutual fund app (Zerodha Coin, Groww, etc.).
- Set up an SIP (Systematic Investment Plan).
- What to buy? Don’t overthink it. Just start. Pick a simple Nifty 50 Index Fund. This just buys you a tiny piece of India’s top 50 companies.
- How much? Start small. Even ₹1,000. The amount doesn’t matter. The habit does. You can increase it later.
- When? Set the SIP date for the 1st or 2nd of the month. The day after your salary comes in.
Congratulations. You just paid your “Future Self” EMI. You just took the first, most important step of the Rich Mindset. You have officially started paying yourself first.
Step 3: Create the “Buffer” – Your Freedom Fund
This is not your Emergency Fund (which is for 6-12 months of expenses for hospital bills, job loss, etc. — that’s important too!).
This is your Freedom Fund. I call it my “Fk You” Fund**.
- What it is: 3-6 months of your essential monthly expenses (rent, food, EMIs, bills).
- Where to keep it: In a separate, high-yield savings account or a Liquid Mutual Fund. Somewhere easy to access, but not too easy.
- Why it’s called that: This is the money that gives you power. It’s the buffer that allows you to say “F**k You” to a toxic boss. To a client who treats you like dirt. To a job that is destroying your mental health.
This money breaks the golden handcuffs. It’s the first bit of real freedom you will buy. It stops you from making decisions out of desperation. Build this fund aggressively.
Step 4: Skill Up, Don’t Just Spend Up (Invest in YOU)
When you get your next raise, you will feel that itch. The itch to upgrade your phone, your car, your flat.
Resist.
- The Rich Mindset: “My greatest asset is my own ability to earn.”
- Your Task: Take 50% of your next raise. Instead of increasing your lifestyle (lifestyle creep), use it to invest in yourself.
- Instead of a ₹50,000 phone, buy a ₹50,000 course.
- Learn Digital Marketing.
- Take a course on AI and Machine Learning.
- Get a certification in Data Analytics.
- Learn about stock analysis.
Upgrading your skills gives you a return for life. It leads to bigger raises, side-hustle opportunities, and the ability to earn more. Upgrading your phone gives you… a slightly better camera. Invest in the asset that can’t be taken away: You.
Step 5: Change Your Inputs (The ‘Mindset’ Diet)
You are what you consume. This is true for food, and it’s 100x true for information.
Your current “broke mindset” is a result of your “broke information diet.”
- The Audit: Look at your Instagram feed. Is it full of “influencers” showing off their sponsored vacations, designer bags, and luxury cars? People who are paid to make you feel poor and envious?
- Your Task: Curate Your Mind.
- Unfollow: Mercilessly unfollow every account that makes you want to spend.
- Follow: Find and follow people who make you want to build, save, and invest. Follow thinkers, entrepreneurs, and investors. (Find good Indian finance educators who talk about balance sheets, not just “hot stock tips”).
- Read: Your education must continue. Read these three books, immediately:
- The Psychology of Money by Morgan Housel
- Rich Dad Poor Dad by Robert Kiyosaki
- Let’s Talk Money by Monika Halan
Your mind will not change in a vacuum. You have to feed it a new set of ideas. Change your inputs, and your thoughts will change. Change your thoughts, and your actions will change.
Conclusion: Wealth Isn’t a Number. It’s Freedom.
A high salary is a tool. It’s a fantastic, powerful tool. But a tool in the hands of someone with the wrong mindset will just create a bigger mess, faster. It will build a more expensive prison.
The journey to wealth isn’t a sprint. It’s not about finding the next “multi-bagger” stock.
It’s a slow, “boring” process of rewiring your brain.
It’s the discipline to spend less than you earn. It’s the foresight to invest the difference into assets. It’s the patience to let compounding work its magic over years and decades.
“Rich” is not a 1 Crore package. “Rich” is not a Mercedes.
“Rich” is waking up in the morning and knowing you have options. “Rich” is the peace of mind that comes from knowing your assets are working for you. “Rich” is the freedom to choose how you spend your one, precious life.
It all starts with that first, simple shift in your mind. From “How much can I spend?” to “How much can I own?”
So, my question to you is:
What is the one thing you will do today to start building your Rich Mindset?
Is it tracking your expenses? Is it setting up that first ₹1,000 SIP? Is it unfollowing that one influencer?
Let me know in the comments below. Let’s start this journey together.