Summary of this article
Pune family's budget sparks online debate.
Lifestyle inflation reshaping urban spending habits.
Necessity and luxury lines increasingly blur.
A woman based out of Pune recently went viral and sparked a widespread discussion on the social media platform Instagram. She shared how her monthly expenses, combined with her partner's, come up to around Rs 2.2 lakh per month. This video raised questions about how lifestyle inflation has taken over people’s lives and how a few expenditures are in the grey area of being a necessity or a want.
Expense Breakdown
The family is of two working parents and their infant. As per the expense breakdown shared in the video by the couple, they spend on the following,
EMI of a property: Rs 1.1 lakh per month
Rent of the current residence: Rs 28,000
Daycare for their kid: Rs 30,000
Groceries: Rs 20,000
Dining out + Ordering in: Rs 18,000
Shopping: Rs 10,000
Househelp: Rs 1,800
Electricity + WiFi: Rs 6,500
“The couple is paying EMI of around Rs 1.1 Lacs, which we assume towards building assets like a house, so it's not an expenditure but a saving. With regard to the rest of the spend, if the couple finds it difficult to balance the budget, then they can try cutting down on eating out and food delivery, as on these items, they are spending around Rs 18,000 every month,” says Abhishek Kumar, SEBI RIA and Founder at SahajMoney.
What caught the attention of people was not just the size of the monthly budget but the fact that the duo does not consider themselves extravagant, as many viewers debated that their ‘necessities' are a luxury to them. The woman did clarify that they do save, but nonetheless, their expenses reach up to Rs 2.2 lakh. The question is simple: Is this amount the new normal for a monthly budget?
“Rs 2.2 lakh sounds like a lot, but half of that is EMI. At current home loan rates of 8.5–9 per cent over 20–25 years, an Rs 1.1 lakh EMI means the property is likely worth Rs 1.5–1.7 Cr. Since it's under construction, they could be on partial disbursement, meaning the actual property value might be closer to Rs 1.8–2 crore. Now strictly speaking, a house you live in doesn't generate cash flow, so it doesn't satisfy the textbook definition of an asset. But owning a home has a life fulfilment and emotional security dimension that you can't reduce to financial metrics alone. The real consumption spend is about INR 1.1 lakh, and for a dual-income family of three in Pune, that's not outrageous. The Rs 30,000 daycare is the number everyone's questioning, but both parents work. Remove daycare, and you're not saving Rs 30,000; you're losing Rs 1.5–2 lakh in income. That's enabling infrastructure, not a luxury,” says Nayan Goswami, CA.
This video became a topic of discussion as it reflected the growing reality in many Indian cities. As the income rises, the spending patterns often change alongside it. What once was a standard expectation or luxury, even, is now a necessity. Better housing, premium neighbourhoods paired with aspirational living, are increasingly becoming a part of everyday living. This is commonly called lifestyle inflation. When earnings increase, expenses tend to expand as well. Decisions that cater to lifestyle inflation may seem reasonable, but together and in the long run, they can drain your finances.
“These expenses are justified if both incomes are healthy. The real question isn't whether we are overspending, it's what our savings rate is. If the combined take-home is Rs 3.5–4 lakh, they're saving 30–35 per cent post-EMI, which is solid. If it's closer to Rs 2.5 lakh, there's zero buffer, and that's the real risk. And yes, this is the new normal. Urban India's cost of living has gone up 20–40 per cent in the last 3–4 years. The answer isn't guilt, it's structure and tracking,” adds Goswami.
The discussion reveals the broader shift in urban India. There’s a prominent shift in appropriations of people, changing consumption habits, and the desire for convenience are reshaping how household budgets are viewed and planned. Dining out, shopping, ordering in, services like daycare and spas are just as important as paying rent and buying groceries.
Whether the Pune family’s budget is justified or not depends entirely on their approach, whether they are simply overspending or if these are just additional expenses apart from savings. What is clear is that the video shared has started an important conversation about how much expenditure is enough or whether an income gap still persists in the urban cores.
