A recent Reddit post that went viral struck a nerve across India’s workforce. The essence was simple but unsettling: mid-level managers who get laid off are struggling to find another job. The post prompted thousands to reflect on why professionals with nearly two decades of experience suddenly find themselves stuck — financially strained, emotionally drained and unable to rebuild their careers quickly.
The situation is far more common than many assume, and when you start breaking down the numbers, the picture becomes clearer.
Professionals who get laid off in their late 30s or early 40s usually have around 18 years of experience. Someone starting work at 22 naturally reaches 40 with almost two decades behind them. Their salary also tends to reflect this climb — an annual income of around ₹70 lakh is typical in many Nifty 50 companies or tech firms such as HCL, Infosys or TCS.
After accounting for 30% tax, the take-home amount sits close to ₹49 lakh. On paper, this sounds comfortable. But all it takes is nine months without a job or salary to wipe out the savings accumulated over those 18 years — especially if lifestyle costs, EMIs and family responsibilities have grown alongside income.
In many cases, professionals would have purchased a house and may be renting it out to cover the EMI. But that EMI often isn’t included in day-to-day expense planning. The financial structure looks stable until the salary stops — then everything cracks.
The underlying issue is simple yet universal: financial planning is rarely taught to us, and many mistake high monthly income for long-term wealth.
A strong primary income certainly helps, but wealth is created through disciplined investing, not earnings alone. Time and consistency matter far more than short bursts of high income.
Take a 40-year-old earning ₹70 lakh annually. At 22, this person might have earned just ₹12 lakh. With a 10% salary increase each year, the numbers add up. But the real turning point appears when we introduce early investing.
If this individual had invested 20% of their income from age 22 and added 10% more each time their salary rose — assuming a 13% annual return through mutual funds — they could have created at least ₹3.18 crore over those 18 years.
This amount becomes life-changing during a job loss.
Imagine losing your job at 40 and being unable to secure another one. With ₹3.18 crore invested, the person can still live comfortably. If the annual withdrawal rate stays below the compounding rate, the corpus keeps growing.
Here’s what the projections look like when monthly withdrawals begin at ₹3 lakh and gradually increase over time:
40–50 years: withdrawal ₹3 lakh/month → fund grows to ₹4.19 crore
50–60 years: withdrawal ₹4 lakh/month → fund grows to ₹5.4 crore
60–70 years: withdrawal ₹4 lakh/month → fund grows to ₹7.34 crore
70–80 years: withdrawal ₹4 lakh/month → fund grows to ₹11.94 crore
By age 40, the person’s secondary income — ₹3 lakh per month — reaches around 50% of the primary salary they once earned. This income arrives without extra effort, without promotions, without appraisals. The money invested is now the one working hard.
When this happens, a job loss no longer feels life-threatening. With financial security in place, individuals can explore careers that bring fulfilment, take risks or even take breaks without fear.
Many people understandably ask: how can someone invest as soon as their career begins? Early salaries are small, and expenses take over.
Let’s look at a simpler example.
A 40-year-old earning ₹12 lakh today would have earned around ₹2.15 lakh eighteen years ago. If he had invested just 12% of that income — ₹3,600 per month — he would now have around ₹57.2 lakh.
From this, he could withdraw ₹50,000 every month. That is nearly half of his current monthly income — entirely from secondary income.
Lifestyle expectations differ drastically between someone earning ₹12 lakh annually and someone earning ₹70 lakh, but the principle remains identical: start early, stay disciplined and stay patient.
Income rises slowly. Lifestyle often rises instantly. Bigger houses, larger EMIs, expensive holidays and constant upgrades feel affordable when the salary grows. But these choices choke your ability to invest and build future stability.
Buying an oversized house during a real estate surge can be financially dangerous. If EMIs consume too much of your income, investing becomes impossible.
A practical rule is simple:
20% of income → investments
30% → taxes
50% → expenses and short-term savings
Housing EMIs should never exceed 10% of monthly income. If you earn ₹5.8 lakh per month, your housing loan repayment ideally stays around ₹57,000. Anything beyond that begins to strain the financial system you are trying to build.
Technology and AI are reshaping every industry. Even 100-year-old businesses are getting disrupted in months. No job, no matter how senior, is guaranteed.
The only defence is smart planning.
Invest wisely. Build secondary income. Keep adequate insurance. Protect your family. Everything that can make your future secure already lies within your present income — it only needs direction.
{Disclaimer: Mutual Fund returns are assumed to be 13% annually. Calculators are for illustrations only and do not represent actual returns.
Mutual Fund investments are subject to market risks; read all scheme-related documents carefully.}