In today’s fast-paced world, many assume job loss is the biggest threat to financial stability. But for one man earning Rs 40,000 a month, it wasn’t unemployment that wrecked his life; it was a single overlooked decision – poor financial planning. His story, shared by CA Nitin Kaushik, a practicing chartered accountant on social media, has now become a cautionary tale for thousands living paycheck to paycheck.
The man, already walking a tightrope financially, had his life turned upside down because he never built an emergency fund. With six ongoing EMIs amounting to Rs 36,000 every month, he was left with just Rs 4,000 to manage all his remaining expenses. At the time, he had no savings and was living a lifestyle that stretched far beyond his actual financial means. While it seemed manageable on the surface, the situation was far more dangerous than he realized.
When Crisis Hit, Debt Took Over
Eventually, he did lose his job. But what followed exposed a deeper problem — the absence of a financial cushion. With no emergency fund to rely on, the man was forced to take out another loan just to survive. Months of unemployment followed. And when he finally got a job offer — at half his previous salary — he had no option but to accept it. Debt repayments continued as before, but now his income was significantly reduced.
As CA Kaushik explained in his thread on X (formerly Twitter), this wasn’t a case of misfortune. It was a clear example of bad financial planning. He emphasized that an emergency fund isn’t a luxury, but a necessity. Without it, any unexpected event — like job loss, a medical emergency, or family crisis — can derail one’s life for years.
The Emergency Fund Rule Everyone Should Follow
Offering practical advice, Kaushik recommended that anyone with monthly expenses of Rs 30,000 should set aside Rs 1.5 to Rs 2 lakh in a fixed deposit or a separate savings account. This fund should remain untouched unless there’s a genuine emergency. “This fund will buy you dignity, not just survival,” he stated in his tweet.
Kaushik also urged people to reassess their spending habits. Until one has at least three times their monthly expenses saved, lifestyle upgrades should be avoided. The illusion of ‘missing out’ is nothing compared to the peace of mind a financial safety net brings.
Climbing Back from Negative Is a Long Road
According to Kaushik, once someone falls into negative territory, it can take years just to return to zero. And during that recovery period, people often lose valuable time, opportunity, and mental peace.
Kaushik’s message was clear: this isn’t just about financial growth — it’s about damage control. Jobs aren’t guaranteed. But EMIs don’t stop. And the only shield against this unpredictability is planning ahead.
In the end, the man’s mistake was not losing his job. It was failing to prepare for the day it might happen.