I’m Middle Class, Earning ₹20,000 and ₹40Lakhs Debt: Look at my Plan

I Earn ₹20,000. My Family Has Around ₹40 Lakh of Debt. How Am I Planning for What Comes Next?

I am Sivarama Krishna, 24, and I work remotely for a private company.

I currently earn around ₹20,000 a month. I am single and live with my parents, who provide food and a place to stay. That support lowers my personal expenses, and I recognise it as a privilege rather than treating it as a situation everyone can copy.

Not paying rent or commuting does make my day-to-day budget look simpler. But those circumstances sit alongside a larger family balance sheet: household income is around ₹80,000 a month, including my salary, and the family has around ₹40 lakh of debt. Some of that borrowing carries very high interest, so my salary cannot be viewed as money available only for my own goals.

That changes the questions I ask about money. I am not only asking:

"How can I invest my ₹20,000?"

My question is much bigger:

"How can I increase my income, protect my parents, reduce our expensive debt and eventually give my family some financial breathing room?"

This is where my planning starts: with the numbers and responsibilities I have now, not with an assumption that a higher income or investment return will solve everything. I am sharing my situation as a personal snapshot, not as a template or financial recommendation.

At 24, I Realised I Have One Advantage — And I Don't Want to Waste It

My salary is modest, but I do have time to build skills, explore career opportunities, and improve my financial habits before taking on larger responsibilities. Time is useful only if I use it deliberately; it does not make future income or success certain.

Time.

I am 24.

That is why I am trying to improve my skills and career rather than waiting for a pay rise to arrive on its own. The practical next step is to identify which skills are relevant to the work I want to do, practise them consistently, and look for roles where they can lead to better opportunities.

The lesson I am learning

When income is limited, reducing small expenses can help, but savings alone may not change the household's long-term capacity. I also need to ask:

"What can I learn that could help me earn another ₹10,000 or ₹20,000 every month?"

That is the question I am asking myself now.

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I Don't Want to Become Rich First. I Want to Reach ₹40,000 First.

My next income milestone is specific:

₹20,000 → ₹40,000 per month

I am not assuming an investment will double my money or that a side project will quickly replace a salary. For now, I am focusing on career growth and treating ₹40,000 as a target to work toward, not income I already have.

Moving from ₹20,000 toward at least ₹40,000 would not make me wealthy, but it could create more room in the budget. If that increase happens, I want to direct part of it toward family commitments, an emergency reserve, insurance, and expensive debt rather than immediately expanding my lifestyle. The exact split will depend on the income and obligations at that time.

The lesson

If you're earning a modest salary, don't make investing your only financial strategy.

Your ability to earn more is also an asset.

That's why I consider learning new skills one of my biggest investments right now.

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Here's Where My ₹20,000 Actually Goes

The ₹20,000 is not an amount I can freely invest after all other needs are met. The table below shows several current financial commitments and why I have chosen them. These figures do not represent a universal budget, and some payments are quarterly rather than monthly.

The rest of my salary goes toward my home and family.

If I convert the quarterly insurance payments into monthly equivalents, my listed commitments come to roughly ₹8,891 per month, before the ₹1,500 household contribution.

That leaves the rest of my salary for my family.

And that brings me to an important point.

My money is not only about me

I am earning ₹20,000, but I don't live as though that entire ₹20,000 belongs only to me.

My parents have supported me.

Now that I am earning, I want to contribute back to the family.

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I Started Investing ₹625 a Month — But I Know ₹625 Won't Save Me

At present, I invest ₹625 every month across three mutual funds. Someone might look at that amount and ask:

"Only ₹625?"

Yes.

Only ₹625.

It is the amount I can comfortably manage right now. Beginning with a small contribution lets me learn how my chosen investments work, but I do not mistake it for a solution to a much larger debt and income challenge. The contribution is one part of a plan that also includes earning more, understanding debt costs, and protecting my family.

The lesson

Starting small is useful. Pretending that a small investment solves a large financial problem isn't.

My real wealth-building strategy right now is a combination of:

earning more + controlling debt + protecting my family + investing consistently.

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Then I Asked Myself a Harder Question: What Happens to My Parents If Something Goes Wrong?

Thinking about my parents changed the questions I ask about insurance. Instead of focusing only on:

"How much money can I make?"

I also ask:

"How much financial damage can my family survive?"

My father is 48, and I did not want to postpone reviewing protection indefinitely. A policy is not automatically right for every family, so my own decisions need to be judged against the policy wording, affordability, eligibility, and the needs they are meant to address.

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My Father Was Getting Older. I Didn't Want to Keep Saying “I'll Do It Later.”

I have taken a ₹50 lakh term life insurance policy for my father, who is currently 48. Under my current policy arrangement, I pay around ₹8,200 every quarter. I am sharing those details as my situation, not as a suggestion that another family should buy the same cover or accept the same premium. The decision came from considering our circumstances and what I could reasonably afford.

"If I keep postponing this, will it become harder or more expensive later?"

That question was enough for me to take action.

The lesson

Insurance decisions are personal and depend on eligibility, health, exclusions, and price. Rather than assuming that I can address everything later, I reviewed what was available to us now and what the policy actually covers. The lesson is to understand the terms before paying, not to rush into a product because of fear.

"I'll deal with it when I earn more."

I decided to look at what I could reasonably do now.

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I Also Took Health Insurance for Both My Parents

I have also taken health insurance for both my parents through Star Health, with ₹20 lakh of coverage, and currently pay ₹5,860 every quarter. The reason is our limited income and savings alongside existing debt: I want a layer of protection against medical costs, while recognising that insurance does not remove every financial risk.

I'm not saying ₹20 lakh automatically means my parents are fully protected from every possible medical expense.

It doesn't.

Insurance has exclusions, waiting periods, limits and policy conditions.

For my family, this is one layer of preparation rather than a guarantee that every hospital expense will be covered. We still need to understand the exclusions, waiting periods, limits, and renewal terms, and to plan for costs that a policy may not pay.

The lesson

A financial plan isn't only about making money.

Sometimes it's about protecting the money you already have.

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My Mother's 39 — And That Made Me Think About Her Retirement Too

My mother is currently 39.

That made me start thinking about retirement planning for her as well.

I've been looking at Pradhan Mantri Shram Yogi Maandhan (PM-SYM) because the scheme has an entry-age window of 18 to 40 for eligible workers and provides an assured pension of ₹3,000 a month after age 60, subject to the scheme's conditions. The subscriber and government make matching contributions under the scheme.

I was thinking about contributing around ₹200 a month for my mother.

But there is an important point here.

I'm not going to say:

"My mother is definitely eligible."

Eligibility depends on things such as her occupation, income and other scheme conditions.

So this is something I am checking rather than blindly assuming.

For me, the bigger lesson was:

Don't wait until retirement is around the corner before thinking about retirement.

Even a small amount of planning can be better than ignoring the subject completely.

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Then I Looked at Our Loans — And That's Where the Real Problem Was

The family's debt is around ₹40 lakh, and some loans carry interest rates as high as 36% a year. Looking at the balances and rates together changed the way I think about investing: the cost of expensive debt may be more urgent than optimising the return on a small monthly contribution.

Rather than debate whether my ₹625 investment might earn 10% or 12%, I need to understand how much each loan costs, which repayments are due, and what money is realistically available to address them. That led me to ask:

"Maybe financial freedom isn't about making more money first. Maybe it's also about stopping money from leaking out."

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₹40 Lakh of Debt Changed the Way I Look at Every ₹1 We Earn

With household income around ₹80,000 a month, every rupee committed to repayments affects the room left for emergencies and future goals. The size of the debt alone does not show the full picture; rates, terms, monthly payments, and who is responsible all matter. That is why I want to map the loans before making another large commitment or assuming that buying more assets is the next step.

The lesson

Before asking:

"Where can I get a better return?"

sometimes ask:

"Where am I losing money right now?"

The answer can completely change your financial priorities.

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I Was Thinking About Building Wealth While My Family Was Losing Money to Interest

I do not see investing and debt repayment as choices that can be evaluated in isolation. The right balance depends on the cost and terms of each loan, the need for accessible cash, and the household's ability to keep meeting obligations. My takeaway is not “stop investing” or “pay every debt before anything else.” It is:

Know the cost of your debt before deciding what your next rupee should do.

That's something I'm learning.

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So What Comes First for Me: Investment, Emergency Fund or Debt?

This is the order I am currently considering for my family, not a universal formula. The steps may overlap, and I will need to revisit them as income, debt terms, and protection needs change:

This is my current approach.

It isn't a universal formula.

Your situation may require a completely different order.

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Why I Don't Have an Emergency Fund Yet

I know what many people will say:

"You should have an emergency fund first."

And I agree with the principle.

An emergency fund is important.

But my family is dealing with something I consider even more urgent: very expensive debt.

At the same time, I don't want to postpone insurance for my parents simply because I haven't built a large cash reserve yet.

So I've made a trade-off.

I'm putting more attention on protection and income growth while trying to deal with the expensive debt.

But I don't want this to be permanent.

As my income improves and our debt situation becomes healthier, one of my goals is to build a proper emergency fund.

I don't want to keep depending on PF withdrawals or other sources whenever an unexpected expense appears.

The lesson

Sometimes personal finance isn't about following a perfect checklist.

Sometimes you have to look at your actual circumstances and decide:

"What problem can hurt my family the most right now?"

Then deal with that problem.

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And Then Another Question Hit Me: What Happens If I Get Married?

I'm 24.

Of course I've thought about marriage.

And when I think about marriage, I don't just think about the wedding.

I think about everything that comes after it.

A separate household.

Rent or housing.

Groceries.

Electricity.

Healthcare.

Parents.

Children someday.

Education.

Savings.

Investments.

Unexpected expenses.

And suddenly the question becomes:

"Can ₹20,000 really support all of this?"

Honestly?

If I had to support an entire new household alone on ₹20,000, I would find it extremely difficult.

I'm not going to pretend otherwise.

But I'm also 24.

My current salary doesn't have to be my permanent salary.

That's why I'm working on increasing it now.

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I Don't Want to Take a Marriage Loan Just to Impress People

If I get married, I want the wedding to be simple and within our budget.

I don't want to borrow money for a wedding just to impress people who will not be paying the EMI afterward.

I would rather have a simple wedding and start married life with less financial pressure.

For me, money spent on a one-day celebration shouldn't become a multi-year debt problem.

I would rather use that money toward:

• reducing expensive debt
• building emergency savings
• helping parents
• investing
• setting up our future household

The lesson

A wedding is one day.

The financial consequences can last for years.

Don't start your married life with a debt you took on to impress other people.

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Why I Prefer a Working Partner

I've also thought about the kind of marriage I want.

Personally, I would prefer a partner who wants to work.

Not because I believe a woman must earn.

And not because I want my future wife to become responsible for my family's debt.

It's because I see marriage as a partnership.

If both people want to work, two incomes can provide more breathing room.

That could mean:

• more savings
• faster debt reduction
• stronger emergency reserves
• better preparation for children
• more financial independence
• less pressure on one person's salary

But this has to be something both partners genuinely want.

I don't want to enter marriage thinking:

"You have to earn because I need your salary."

I want it to be:

"Let's build our lives together, and let's both have the freedom to pursue our careers and goals."

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I Don't Want My Future Wife to Carry My Parents' Financial Burden

This is very important to me.

My parents are my responsibility.

I don't want to marry someone and suddenly expect her to solve the financial problems my family already has.

My goal is the opposite.

I want to work toward making my parents financially independent enough that they don't have to depend on me or my future wife for every expense.

If I can achieve that, I think it will also make my future marriage healthier.

My future wife should be my partner.

She shouldn't be expected to become the solution to my family's existing financial problems.

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But There Is One Thing I Want More Than a Bigger House or a Bigger Car

I want my parents to be able to say:

"We are okay. We can manage."

That would mean more to me than owning an expensive car.

I want them to have:

• proper health protection
• manageable expenses
• some retirement support
• fewer financial worries
• less dependence on others
• a safe place to live
• freedom from expensive debt

That is what financial success means to me.

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My Biggest Investment Right Now Isn't a Mutual Fund

It's my career.

That may sound boring.

But I think it's true.

I can increase my ₹625 investment later.

I can increase my SIP later.

I can buy more assets later.

But if I can develop skills that increase my earning capacity, that can change everything else.

That's why I'm spending time every day learning.

I want to become better at what I do.

I want to become more valuable in the job market.

And I want to eventually look back at my ₹20,000 salary and say:

"That was where I started."

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What I Plan to Do When I Reach ₹40,000

I don't want my lifestyle to immediately jump from ₹20,000 to ₹40,000.

If my salary doubles, I want my financial strength to grow faster than my lifestyle.

My priorities would be something like:

That is the kind of salary increase I want.

Not just more money coming in.

More money staying useful.

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I'm Also Rethinking How I Use My PF

I have also considered using my PF for some insurance payments because my salary is currently small. The first version of my thinking was:

"PF earns around 8%, while I have immediate financial commitments that need to be paid."

The current EPFO recommendation for FY 2025–26 was an 8.25% annual interest rate, subject to the applicable government approval process.

I now see that comparing PF only with an “8% return” leaves out its intended retirement role and the effect of withdrawals on long-term savings. As income improves, I want to rely less on PF withdrawals and preserve more of it for retirement. I have not resolved the balance between immediate family needs and long-term security; I need to review the rules and consequences before making a withdrawal.

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I Don't Want to Buy More Assets While the Expensive Debt Is Still Following Me

My view of investing has changed. I used to focus on acquiring more assets; now I want to understand the cost of the liabilities we already have:

"We should buy more assets."

Now I'm thinking:

"First, let's stop the leakage."

If we invest every available rupee while high-cost debt continues to accrue, our overall position may not improve as quickly as expected. I want to compare the interest cost and repayment terms of each loan with the role of cash reserves and investments. My current sequence is:

Reduce expensive debt first.

Then:

Build cash reserves.

Then:

Invest more.

Then:

Build assets from a stronger position.

I am willing to consider whether selling an existing asset could reduce very expensive debt, but I have not made that decision. The value, sale costs, alternatives, and effect on our future plans would all need to be examined. This is not a blanket recommendation to sell assets:

"Sell everything."

I'm saying:

"Don't become emotionally attached to an asset while ignoring an expensive liability."

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I'm Not Trying to Become Rich Quickly

I don't want to build my financial life around:

"Turn ₹5,000 into ₹5 crore."

I don't want to chase every new investment trend.

I don't want to borrow money to look rich.

I don't want a huge wedding just to impress people.

I don't want my lifestyle to grow every time my salary grows.

The outcomes I am working toward are more ordinary and more meaningful to me:

Higher income.

Lower debt.

Protected parents.

A financially sensible marriage.

Growing investments.

A family that doesn't constantly worry about money.

That is enough for me.

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I'm Not Financially Free Yet. I'm Just Trying to Get There

I am not a financial expert or financially independent; I am 24 and currently earn ₹20,000 a month. The choices described here are decisions I am considering or following, and they may change as I learn more or my circumstances shift. Sharing them is not evidence that they will work for someone else. I would rather be clear about what I know, what remains uncertain, and what I still need to figure out.

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If You're Also Earning ₹20,000, Please Don't Copy My Life

This article is not asking you to copy my choices:

"Do exactly what I did."

Your situation may be completely different. Rent, dependants, income, debt terms, health needs, and family responsibilities all affect what is practical. Use the figures here as context for my story, not as a budget or a product recommendation for your household.

You might pay rent.

You might have children.

You might have no debt.

You might have much more debt.

You might be supporting your parents.

You might have a spouse.

You might be self-employed.

You might live in a different city with completely different expenses.

So don't copy my numbers.

Instead, copy the questions I'm asking myself.

Where is my money actually going?

Track it.

What debt is costing me the most?

Find it.

What happens to my family if something happens to me?

Think about protection.

Do my parents have enough financial and health protection?

Look at their situation.

What can I learn to increase my income?

Invest in your skills.

If my salary increases, will my lifestyle increase at the same speed?

Think before upgrading everything.

What does financial freedom mean to me?

Don't automatically use someone else's definition.

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My Financial Freedom Plan Is Simple — But It Won't Be Easy

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The Real Goal Isn't ₹40,000. It's What ₹40,000 Can Help Me Build

My ₹40,000 salary target is only a milestone.

The real goal is what comes after it.

I want to reach a point where my parents can live independently.

I want our expensive debt to be under control.

I want to have emergency savings.

I want to invest more.

I want to be able to get married without taking unnecessary debt.

I want my future wife and me to build our financial life together.

I want our household income to create assets instead of disappearing into interest.

And eventually, I want to reach a point where money isn't the thing controlling every decision in our lives.

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My Definition of Financial Freedom Has Changed

I used to think financial freedom meant having a lot of money.

Now I think it means something else.

For me, financial freedom means:

My parents can take care of themselves.

My family isn't trapped by expensive debt.

I can handle an unexpected expense without panicking.

My future wife and I can build our life without unnecessary financial pressure.

I can invest because I have room in my budget, not because I'm desperately trying to catch up.

I can change jobs or take a career opportunity without being terrified about how my family will survive next month.

And most importantly:

I want my family's money to start building our future instead of constantly repairing our past.

That's my definition of financial freedom.

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I'm Starting From ₹20,000 — Not From the Finish Line

Today, I'm 24.

I earn ₹20,000.

My family earns around ₹80,000 a month.

We have around ₹40 lakh of debt.

I'm still learning.

I'm still working on my career.

I'm still figuring out the right balance between investing, insurance, debt repayment, emergency savings and family responsibilities.

But I have one thing going for me.

I'm aware of the problem.

And I'm trying to do something about it.

My first target is ₹40,000.

Then I want to help reduce our expensive debt.

I want my parents to become financially independent.

I want to build proper savings.

I want to increase my investments.

And when I eventually get married, I want to start that chapter of my life without pretending to be richer than I am.

I want a simple wedding.

I want a partner who wants to build a life together.

I want both of us to grow.

And I want our future income to build something instead of constantly leaking away.

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Maybe This Article Will Look Very Different Five Years From Now

I don't know where I'll be five years from now.

Maybe I'll be earning ₹40,000.

Maybe I'll be earning much more.

Maybe our family debt will be significantly lower.

Maybe I'll have built an emergency fund.

Maybe some of the financial decisions I'm making today will have changed.

Maybe I'll read this article and think:

"I can't believe this was how I used to think about money."

I actually hope that happens.

Because if I come back to this article five years from now and everything is exactly the same, then I haven't moved forward enough.

I want this article to become a record of where I started.

Not with a ₹1 crore portfolio.

Not with a huge salary.

Not with a perfect financial plan.

Just with:

₹20,000 a month.

₹40 lakh of family debt.

A lot of responsibility.

A lot of learning.

Parents I want to protect.

And a decision to keep moving forward.

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If You're Reading This and You're in a Similar Situation, Start With Your Numbers

Before choosing an investment or financial product, establish your own baseline. Write down household take-home income, essential costs, each loan's balance and interest rate, and what you can safely set aside. Include protection needs and any obligations that may not appear in your personal account. That gives you a starting point based on your reality rather than a trend or someone else's portfolio.

Write down:

• How much comes into your account every month?
• How much does your family earn?
• How much debt do you have?
• What interest rate are you paying?
• Where does your money actually go?
• Do your parents have health protection?
• What happens financially if something happens to you?
• How much can you realistically save?
• What skill could increase your income?
• What financial goal matters most to you right now?

Once those numbers are visible, you can identify which problem is most urgent for you—debt, income, spending, protection, or a lack of a clear budget—and choose a first action that is possible to sustain. Review the figures regularly; a plan should respond to changed circumstances rather than become another rule you feel guilty about breaking.

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And If You Think I'm Doing Something Wrong, Tell Me

I am sharing this while I am still learning, not because I have a finished answer. Readers may reasonably see another priority order—for example, building more accessible savings before making extra debt payments, or handling PF differently. Anyone in a similar income range may also have very different family obligations and loan terms.

Tell me in the comments.

I'm genuinely interested in hearing different perspectives.

I am documenting the questions and trade-offs I face so that readers can compare them with their own circumstances. If something here helps someone start a more informed conversation about money, that is valuable—but my choices should still be checked against the reader's own facts.

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A Note From Me

This article describes my personal financial situation and the decisions I am currently considering or following. It is not a recommendation for anyone else to copy my investments, insurance policies, debt strategy or retirement decisions.

Financial products, insurance policies, government schemes, loans and tax rules have eligibility requirements, costs, exclusions and conditions that can vary from person to person. Always check the actual terms that apply to your situation before making a financial decision.

I will update this article as my income, debt, investments and family situation change.