Earning Rs 1.5 L In Bangalore But Still Broke! Why Living In Metro Cities Is Getting Difficult

For most young professionals, relocation to a metro city like Delhi, Bengaluru or Mumbai for their 'dream job' is a long-awaited reality. And why not, it is perceived as a place that offers an exciting city lifestyle supported by higher salaries. But for many such professionals, these dreams are crumbling. The culprit? Growing living expenses often exceed the paycheck.

For one Reddit user, the dream of big city life in reality turned out to be far from what he had imagined. A 26-year-old professional recently shared his struggles of earning Rs 1.5 lakh per month and still feeling financially fragile. Despite what seemed like a ‘comfortable salary’, he feels his financial security is hanging by a thread. From supporting his family back home, and managing EMIs to dealing with the rising cost of living, the user said he fears that he could be one unexpected event away from financial distress.

The Dream v/s Reality

“As a child, earning this amount was a dream. Living in Bengaluru was a dream. Having a girlfriend, and a glamorous routine was a dream,” the user posted.

However, with all of it in the palm of his hands, instead of feeling accomplished the user describes himself as a ‘fragile pot of flower that will crack one day’. His financial breakdown is a familiar one for many urban professionals:

• Sending money home every month to support parents who rely on you.

• Managing EMI payments for any reason - could be big gadget purchases, family loans, home loans, etc.

• The user saves around Rs 30,000 to Rs 40,000 a month - which is just enough to last 3 to 4 months if he were to lose his job

• Unable to keep up with the soaring rent prices for independent flats in cities like Bengaluru

• The cost of basic necessities, such as food, groceries, and services, is much higher than expected, making quality living expensive

“When did life become this hard for someone earning a decent wage of Rs 1.5 lakh?” he asks.

The Metro Trap: A Pattern Many Fall Into

Abhishek Kumar, a Sebi-registered investment advisor, also weighed in on this Reddit post. He highlights how metro cities can be a financial trap for many young earners.

According to Kumar, The cost structure in cities like Bengaluru often follows a 40-30-30 rule:

• 40 per cent of income goes toward housing (rent or EMIs)

• 30 per cent is spent on necessities like food, transport, and utilities

Only 30 per cent of the earnings remains for discretionary spending, savings and investments. In comparison, smaller cities allow for a flipped ratio, where rent is lower, expenses are manageable, and savings can be higher.

“I remember advising a tech couple earning Rs 2.4 lakh combined in Bangalore who couldn't figure out why they were always out of money. Their savings? Rs 15,000 monthly with zero investments,” Kumar shares.

Are there any particular financial challenges unique to India’s young professionals?

Many young earners today face additional financial burdens that their global counterparts might not such as;

Supporting parents: Unlike in most Western nations, where parents typically have retirement savings, Indian parents (particularly those living in rural areas) often end up spending their life’s earnings on their children’s education and marriage. In the long haul, many young professionals support their parents while they may or may not be living with them.

“70 per cent of my clients under 30 send money home as parents spend their life savings on their kids' education, unlike parents in other parts of the world. So it's the kid's turn to help out their parents. That's not changing. Budget for it instead of feeling guilty,” Kumar states.

Housing Crisis: The real estate market in top metro cities has been notoriously inflated in the last couple of years. A decent apartment could cost Rs 1 crore or more, while EMI payments can end up eating a huge portion of their salaries.

“That Rs 2 Cr apartment you're eyeing in Bangalore? It's appreciating at just 3-5 per cent annually most of the time (barring recent flare-up) while draining 50 per cent of your income in EMIs” Kumar notes.

Insufficient Emergency Savings: The high living expenses result in lower savings affecting the financial future in both the short and long-term.

The standard advice of keeping three months of expenses saved up is outdated. In a high-cost metro, Kumar suggests keeping at least 8-12 months’ worth of expenses in savings.

Lifestyle inflation: With each salary hike, there’s a tendency to increase spending proportionally, leaving little room for long-term financial growth. “Every Rs 10,000 salary increase typically leads to a Rs 7,000 increase in spending for metro professionals as lifestyle creep kicks in,” Kumar notes.

High Salaries Are Insufficient?

This Reddit post stuck a cord with many other young professionals who chime din with their own experiences of living paycheck to paycheck in metro cities.

A 24-year-old woman earning Rs 60,000 per month shared;

“I am single and have saved nothing despite not spending on anything extravagant. Net sum: null. Even basic things are overpriced and decent quality products cost 2-3x the price of cheaper alternatives, whether it is food, clothes, or even housing. Transport is sad, hospital bills are insane and I don't even want to think about raising a child.”

Another user pointed out that there is a stark difference between income and wealth;

“Income is not wealth. The only people who feel financially secure today are those with generational wealth. The rest of us have to fight for financial stability every day.”

But, Is There A Way Out?

For many earners, the only way to escape this tumbling cycle is to consider life outside of metros.

Says Kumar, “The most painful advice I give young clients? Sometimes the bravest financial decision (if you have an option) is leaving the metro instead of losing mental peace.”

If this trade-off of living in tier 2 or tier 3 cities does not sit right with you, here are some key financial habits that can help;

• You can budget for family support instead of treating it as an unplanned expense

• Build an emergency fund that covers at least 8-12 months of expenses

• Just because income increases, your expenses don’t have to, if you can try resisting the lifestyle inflation

• Reevaluate big purchases like a house or car and consider whether they truly fit into long-term financial goals

• Look for investment opportunities beyond just saving, to ensure money grows over time

The Bengaluru dream is alive for many young professionals, but it comes with a heavy price tag. While earning Rs 1.5 lakh a month may seem like a solid income, the rising cost of urban living, coupled with family responsibilities and societal pressures could easily make the financial security look fragile.

For many, the solution may not lie in earning more, but in rethinking where and how they live. After all, financial freedom isn’t just about income, it is also about how much you get to keep and grow in the long run.

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