Income isn’t wealth: The silent trap of high-flying executives

Subscribe to enjoy similar stories.Shiladitya was at the top of his game. A star in sales and marketing at a leading FMCG company, he was known as a maverick. He launched products using unconventional strategies that others dismissed — but they worked.While his persona was legendary and he was earning quite well, his wealth creation did not reflect the swagger he brought to everything else!We see many “Shiladityas” in our practice.

The pattern repeats — often with devastating consequences.High performers are hyper-busy. Their careers demand constant travel, decision-making and firefighting. Add family responsibilities, and there is little mental bandwidth left for money.So investments happen by default.A friendly banker suggests a product.

A friend tips them about a “can’t-miss” plot in Jumritalaiya. Money gets deployed — without alignment.Such investments tend to fall in the no man’s land of not being suitable for them from a risk-reward, goal alignment, liquidity, tenure and taxation perspectives. This is how mish-mash portfolios are born.

Instead of creating wealth, they become millstones around the neck.During peak earning years, salary flows in steadily. Bonuses, incentives and ex gratia payments add to the comfort. Expenses get managed.

Vacations happen. EMIs are paid. This creates a false sense of financial security.Many assume life will continue on a smooth upward trajectory.

Higher earnings are simply projected forward until retirement. But careers rarely move in straight lines.When stress events hit — job loss, business slowdown, health shocks — the gaps show.Lifestyle is a silent wealth destroyer. Expenses mostly move in one direction — up.

Each salary hike upgrades lifestyle. Bigger home. Better car.