Why India’s middle class stays broke and how to break the cycle: CA’s survival guide to tackle financial struggles

In India, the middle class faces a tough financial reality. Rising living standards, education and healthcare, making outgoing wage, making stability. Limited access to quality public services later tightens household budgets, leaving many families in eternal financial communication.

In these challenges, statutory accountant Nitin Causik has been shot x (formerly Twitter) to outline why the middle class Indians are stuck and more important, how can they be released?

“Being a middle class is not only about earning decent, we are talking about the fight against the financial struggle at each stage,” he wrote before the areas and solutions to the main problems.

“1️⃣ pension. Many people are unprepared
While EPF and PPF seem to be good options, inflation destroys savings. ₹ 1 CR will not be worthy of 30 years.
✅ Fix. Start SIPS SIGS in mutual reciprocities. Aim for 20-30x annual expenses for a safe retirement.

2️⃣ Education costs are silent killer
School and college fees grow faster than salaries. At one time, the child reached a college, the cost could double.
✅ Fix. Build an early education fund premature PPF, Sukanya Samriddhi (for daughters) or share investments can help stay ahead.

3️⃣ One medical emergency help can ruin you
Employers’ health insurance can be enough when medical bills hit ₹ 10 l.
✅ Fix. Buy ₹ 10-20 l Health Insurance Plan and add critical disease for financial protection, “warned weight.

“¡Truth bomb. Most middle class families work hard, but it remains trapped in this cycle, “he concluded.

Systemic problems outside individual finance struggles, such as bureaucratic inefficiency and weak infrastructure, later limit the top mobility. Medium-class families often appear on daily expenditure management and securing their future, creating a financial stress cycle that is difficult to escape.