5 habits holding millions of Indians back

Many Indian salary earners and small business owners work tirelessly, yet feel financially stuck despite steady earnings. You work hard, but bills, EMIs, and rising expenses swallow your income before you can save or invest. If this sounds like you, you’re not alone. Millions are trapped by habits that quietly drain wealth.

Why? Here are 5 habits holding millions of Indians back:

1. PayingYourself Last: 52% of Indians save less than 10% of their income, leaving them unprepared for emergencies or growth. Prioritize saving first—even a small amount helps.
2. Limited FinancialLiteracy: India’s financial literacy rate is just 35%, meaning many struggle to make smart money decisions. Learning basics like SIPs and mutual funds can change your future.

3. EMI Trap: Nearly 33% of monthly incomes go toward EMIs for many Indian families. Household debt is 42% of GDP, restricting savings and investments.

4. SocialPressure Spending: Overspending to match social expectations leads 60% of Indians to dip into credit or loans, increasing financialstress.

5. LifestyleInflation: Between 2019 and 2024, average Indian household expenses rose by over 25%, often matching income growth and blocking wealth accumulation.

The average monthly income for lower-middle-class Indians is ₹33,000–₹38,000, but high EMIs and living costs leave little for savings.

- Break free from these traps:
- Save first every month; automate if possible.
- Educate yourself on personal finance.
- Avoid unnecessary debts and keep EMIs manageable.
- Spend based on your goals, not peer pressure.
- Control lifestyle inflation; invest raises smartly.

Hard work alone isn’t enough to grow wealth. Changing your habits is the key to financial freedom.

Share your experiences in the comments—let’s support each other to rise above the middle-class trap.