Wealth Compass
You earn well. You are not flying to Paris or dining at the Ritz. You do not drive a Mercedes. And yet, month after month, you check your balance and wonder where it all went.
I have sat with hundreds of people who feel exactly this way. The problem is almost never income. It is awareness. This week, we stop guessing and start seeing.
Do You Know Where Your Money Really Goes?
The spending illusion is real. In the age of UPI, money no longer leaves your hands. It leaves silently, through apps, subscriptions, one-click purchases and auto-renewals. This week, we find out where it is really going.
Most people believe they understand their expenses. In reality, they are guessing. Modern spending is fast, digital, automatic and emotion-driven. Money no longer leaves your hands. It leaves silently, through apps, subscriptions, one-click purchases and auto-renewals. This creates what researchers call the spending illusion, the gap between what you think you spend and what you actually spend.
A survey found that 1 in 3 Indians often run out of money before the month ends. Out of these, 88% said the reason was not a low salary. It was poor money planning. And the surprising part? These were not jobless people. They had regular jobs and a steady income every month.
Before UPI, cash came with built-in accountability. You counted it. You watched it shrink. The pain of paying was real and it made you think twice. Today you scan, click and pay. The friction is gone. And with the friction goes the awareness.
| The Numbers | What It Means |
|---|---|
| India = 49% of global real-time transactions | We lead the world in digital payments |
| 81.1% use UPI daily | Money moves every single day without a second thought |
| 75% admit spending increased due to UPI | Convenience costs more than we realise |
Research consistently shows that consumers spend more when using cashless payment methods. The easier the payment, the higher the bill. Use UPI with intention, or it will use your money without yours.
There is a well-documented financial bias called the Ostrich Effect, the habit of ignoring negative or stressful financial information in the hope that it will resolve itself. In many Indian households, open discussions about money, debt or spending are avoided entirely. The discomfort of knowing is greater than the discomfort of not knowing. You cannot manage what you refuse to see.
These are not signs of failure. They are signs of missing systems. The fix is not guilt. It is awareness.
Stop thinking in terms of random transactions. Start thinking in categories. Here is where the real leaks come from:
Everyone talks about side hustles and investment returns. But budgeting, the least glamorous option, is the one you control most completely. You cannot invest money you do not have.
| 01. Be Born Into It. No advice here. You cannot choose your starting point. |
| 02. Make a Lot of Money. Career growth, side income. Limited by what the market values in your work. |
| 03. Invest Well. Returns depend on market cycles. Requires capital to begin. |
| 04. Save and Spend Wisely. The least glamorous. The most controllable. The one that makes all the others possible. Your earnings depend on others. Your returns depend on markets. But your choices to spend or save? Those belong to you alone. |
No one is watching. Read each slowly. If even one makes you pause, that pause matters.
| # | Question |
|---|---|
| 1 | Can I say, right now, exactly how much I spent last month, not roughly, but to the nearest ₹5,000? |
| 2 | How many active subscriptions am I paying for right now via UPI auto-debit? Do I know the exact number? |
| 3 | When my salary arrives, does investing happen first, or do I save whatever is left at the end? |
| 4 | In the last month, did I spend emotionally: stress-shopping, rewarding myself, or buying to feel better? |
| 5 | Is there a recurring charge I have never consciously decided to keep paying? |
| 6 | Do I have a clear number for how much I want saved or invested 5 years from today? |
| 7 | Five years from today, will my current money habits take me where I actually want to be? |
If these questions are making you uncomfortable, that discomfort is important. It means there is a gap between where you are and where you want to be. That gap does not close on its own. It closes with a plan.
The Efficient Market Hypothesis (EMH) suggests that market prices already reflect all available information, making it difficult to consistently outperform. However, real-world evidence shows that markets are not perfectly efficient. This leads to market anomalies, situations where prices or returns behave in ways that contradict theory.
Market anomalies arise due to investor behaviour, lack of transparency and structural inefficiencies. Common examples include the Weekend Effect, the January Effect and price movements around month-end or major events. While these patterns can offer opportunities, they are inconsistent. Long-term, disciplined investing remains more reliable than trying to exploit anomalies.
| Category | Allocation | What It Covers |
|---|---|---|
| Needs | 50% | Rent, EMIs, food, utilities, school fees |
| Wants | 20% | Dining out, entertainment, clothes, gadgets |
| Savings and Investments | 30% | SIPs, FDs, PPF, emergency fund |
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