Rs 18 lakh cost today, Rs 1.37 crore tomorrow: CA issues warning against hidden enemy of personal finance

The value of money steadily declines with time, and inflation ensures that what feels sufficient today may fall short tomorrow. Families often focus on earnings, savings, and investments, but many underestimate how significantly rising costs can affect their future lifestyle. Even without lifestyle upgrades, inflation alone has the power to multiply household expenses to levels that may seem unimaginable today.

Case study reveals sharp jump in expenses

Chartered Accountant Nitin Kaushik highlighted this reality in a recent post on X, using the example of a business family from Surat. The head of the family, aged 40, currently manages household expenses of about Rs 1.5 lakh each month, or Rs 18 lakh a year. However, with inflation at a modest 6 percent annually, these costs could rise to nearly Rs 11.4 lakh per month—or Rs 1.37 crore annually—by the time the individual turns 70.


This projection shows a 7.6-fold jump in expenses over three decades, even without factoring in lifestyle changes. The example underscores how inflation gradually but consistently eats into financial security.

Inflation’s quiet but powerful impact

Kaushik cautioned that no family is immune to the effects of inflation, regardless of business or income strength. He noted that building wealth is only part of the solution. True financial resilience depends on ensuring that one’s income and investments can keep pace with rising expenses.

The analysis serves as a reminder that what feels comfortable today may turn into an overwhelming burden in the future if inflation is ignored in financial planning.

Importance of financial preparedness

For families, the key lies in proactive planning. Retirement funds, children’s education costs, and medical expenses must all be calculated with inflation-adjusted projections in mind. Kaushik stressed that the goal is not only to accumulate wealth but also to ensure that wealth can sustain the same lifestyle decades later.

The Surat case is just one example, but the implications apply to households across the country. Inflation remains the hidden threat within every financial plan, and addressing it early is the only way to preserve long-term financial security.