A recent financial breakdown went viral as an investment banker calculated something very unusual.
CA Sarthak Ahuja presented the breakdown on Instagram and LinkedIn, where he captured user attention by stating, “70 Lakh Package is Middle Class.”
Ahuja starts by referring to your salary as Rs 70 Lakhs, from which Rs 20 Lakhs is directly subtracted as taxes, leaving Rs 50 Lakhs as your disposable income.
Which means your monthly income is about Rs 4 Lakhs.
Now, on the expense side, your Home Loan EMI, which is about Rs 1.7 Lakhs (On a Rs 3 crore flat), and Car Loan EMI is nearly Rs 0.65 Lakhs (Rs 20 Lakh per car), and School fee for Children usually is about half a lakh and if you need a domestic help then subtract another Rs 15,000.
Now you are left with just Rs 1 Lakh and everything.
This leaves you with just Rs 1 Lakh for all other expenses, including
grocery expenses, fuel and electricity, shopping, eating out, medical expenses, and a foreign vacation.
He figured out three main reasons behind this sudden shift :
- The explosion in the cost of living over the last three years in major metros like Mumbai, Gurgaon, and Bangalore.
- Doubling in the prices of cars as well as real estate in last few years.
- Heavy Exposure to social media raises our aspirations to the next level.
His Advice to Earners
At last, he urges such high earners to think twice before signing up for a home loan.
