As inflation continues to affect every corner of life, discussions about money, salaries, and living expenses have become more heated than ever. One such debate that has caught the attention of social media is whether an annual salary of Rs. 25 lakh is enough for a nuclear family to live comfortably in India. A comment by investor Saurav Dutta sparked this conversation, with people weighing in from all sides.
The Social Media Post That Started It All
The post in question was shared by Saurav Dutta on X (formerly Twitter). He claimed that even with an annual salary of Rs. 25 lakh (roughly Rs. 1.5 lakh monthly), it is hard for a family of three to make ends meet. According to his breakdown, Rs. 1 lakh per month goes to essential expenses like rent or EMI, and the remaining Rs. 50,000 is divided between food, entertainment, and medical emergencies. He argued that after covering these costs, there’s nothing left for saving or investing.
This post ignited strong reactions, with some agreeing while others dismissed the claim as exaggerated.
The Breakdown: Why Rs. 25 Lakh May Seem Insufficient
Dutta’s analysis reflects a growing concern in Indian metros, where living expenses are significantly higher compared to smaller towns. According to his calculations:
- Rs. 1 lakh per month is set aside for essential expenses like EMI or rent. In cities like Mumbai, Delhi, and Bengaluru, rents for a decent-sized flat can easily cross Rs. 50,000-Rs. 80,000, with home loan EMIs costing even more.
- Rs. 25,000 is spent on dining out, entertainment, and travel. With inflation hitting everything from food to movie tickets, these ‘non-essential’ expenses can quickly add up.
- Another Rs. 25,000 is reserved for emergencies and medical costs, something no family can afford to neglect in today’s uncertain times.
While Dutta’s post was met with agreement from some, others criticized the idea that a family spending Rs. 25,000 a month on dining and entertainment should complain about lack of savings. One commenter noted, “If you’re spending that much on luxuries, then you’re not budgeting wisely.”
What Are People Saying? The Mixed Reactions
Many people voiced their opinions in response to Dutta’s post. Some felt he was right, noting that living in big cities is becoming more challenging as rents, utilities, and other costs continue to rise. However, many others disagreed, saying that Rs. 25 lakh is more than enough with proper financial planning and avoiding unnecessary expenses.
One user commented, “Rs. 25 lakh with no debt and smart spending can make a family comfortable and even rich over time.” Others said that spending Rs. 1 lakh on EMI or rent is excessive, pointing out that there are more affordable housing options available, especially for those who are willing to compromise on location or luxury.
Another user remarked, “If you’re spending Rs. 25,000 per month on dining out and OTT, then it’s hard to take complaints about savings seriously. Cut down on these expenses, and you’ll have plenty left for investments.”
Rising Costs in Big Cities: A Reality Check
It’s no secret that the cost of living varies significantly across India. Cities like Delhi, Mumbai, and Bengaluru have much higher expenses compared to smaller towns. Rent, school fees, medical emergencies, groceries, and utilities all add up, making it harder for families to save and invest.
For example, rent or EMI alone can take a significant chunk of income in these metro cities. Add to this children’s education, medical bills, and the rising cost of basic commodities, and it’s no wonder that many families struggle to save.
However, it’s also important to note that not everyone faces the same expenses. Many Indian families live comfortably on far less, especially in smaller cities or with more modest lifestyle choices. As some commenters pointed out, financial discipline and thoughtful planning can make all the difference.
Is Rs. 25 Lakh a High Salary in India?
While Rs. 25 lakh annually seems like a high salary to many, it’s important to understand the context. According to the Income Tax Department, approximately 1.4 crore taxpayers in India report annual incomes between Rs. 10 lakh and Rs. 20 lakh. That’s a small portion of the total population, highlighting how Rs. 25 lakh is still a relatively high income in the broader context.
However, the cost of living varies widely depending on the city, family size, lifestyle, and obligations like loans or medical needs. For some, Rs. 25 lakh might not feel like enough, especially in cities where rent and daily living expenses are high. For others, especially those without debt or with simpler living arrangements, it’s more than sufficient to cover costs and invest for the future.
Conclusion: Planning Is Key
The debate around whether Rs. 25 lakh is enough reflects larger concerns about inflation, rising living costs, and financial management. While some families may find it difficult to make ends meet, others believe that with proper planning, this salary is more than enough to ensure a comfortable lifestyle and secure financial future.
What’s clear from the discussion is that the perception of what constitutes a sufficient salary is deeply personal, shaped by factors like city, lifestyle, and financial habits.
