New Delhi, Sept. 29 -- A Rs.30 lakh annual salary can make a Rs.50 lakh luxury car look affordable. The showroom may strengthen that feeling by offering a loan with a manageable EMI. But the EMI tells only part of the story.

Insurance, fuel, servicing and parking also come from the same salary. Together, these expenses can take away nearly half your monthly income after deductions.

Pawan Agarwal QPFP(R)️, founder of GoodMoneyMan Associates LLP, explains the problem simply. "The monthly bill is what actually changes how you live."

His point is about matching the purchase with your regular income. A luxury car should leave enough money for family needs, savings and unexpected expenses. A bank approving your loan does not mean your...