Many people believe that financial stress comes from not saving enough or making the wrong investments. However, according to CA Abhishek Walia, co-founder of Zactor Money, the real issue is often behavioural rather than numerical. He explains that even individuals with high incomes tend to fall into the same trap — committing future earnings too early and treating uncertain money as if it were guaranteed.
Walia recalls an instance involving a client who decided to increase his SIP immediately after receiving a bonus. The client reasoned that he could always reduce the investment later if needed. While the logic sounded harmless at the time, the decision soon became a source of pressure. Within a few months, rent increased, an unexpected family expense arose, and the higher SIP began to feel burdensome rather than empowering. What initially seemed like a responsible financial move turned into a recurring source of anxiety.
What stood out to Walia was not the financial calculation itself, but the mindset behind it. He observed that people often fail in personal finance not because they earn too little or save too little, but because they lock themselves into future financial commitments too early. He compares this to how business founders operate. In business, expenses are increased only after revenue becomes stable and predictable. Founders rarely assume future earnings before they materialise. Yet in personal finance, people often do the exact opposite.
According to Walia, this habit of converting uncertain income into fixed expenses is where trouble begins. Bonuses, incentives, or one-time gains are frequently treated as permanent income, leading people to increase SIPs, EMIs, or lifestyle spending prematurely. Over time, this creates a situation where finances feel tight despite rising income, simply because flexibility has been lost.
He emphasises that variable income should be used to maintain financial flexibility, not to create long-term obligations. Stable, predictable income should be the only foundation for recurring commitments. “Variable income funds flexibility, while fixed income should fund fixed expenses,” Walia explains. He adds that this small shift in thinking can prevent a great deal of hidden financial stress and help people maintain long-term stability without constantly feeling stretched.
