In today’s time, we have observed a significant decline in people’s purchasing power due to inflation and high living costs, especially in metro cities where residents face a substantial financial burden from exorbitant residential property costs, school fees, and high prices of goods and services. Recently, an Indian Institute of Technology (IIT) Kharagpur alum outlined a detailed estimate of expenses for a 4-member family living in a metropolitan city in India on X, sparking a discussion on social media.
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Pritesh Kakani calculated that a family’s total yearly expenses amount to ₹ 20 lakh. In his post, he itemized the expenses from highest to lowest, covering categories such as house rent, travel, healthcare, education, electronics, grooming, etc. This breakdown included ₹ 35,000 monthly rent, ₹ 10,000 for food expenses, ₹ 5350 for petrol, ₹ 8000 for medical expenses, and ₹ 1000 for electricity and gas, among others.
The Alumni shared a screenshot of the expense plan he created, stating. “A middle-class family of 4 incurs expenses of 20 lakh per year for a comfortable life. No luxury expenses added.”
Family of 4 Expense in Metro city in India is 20 lakh per year. No luxury expense added. Details are as follows: pic.twitter.com/eAXmVS0j2O
— Pritesh Kakani (@pritesh_kakani) April 14, 2024
Several reactions followed the post by the IIT alum
While many agreed with his view and considered it a realistic estimate, some argued that ₹20 lakh a year represents a luxurious lifestyle.
“One user supported the estimate, stating, ‘You are bang on. It is the minimum, I guess.’
Another user commented, ‘I never knew dogs and cars were necessities. If you are not a homeowner, it is advisable not to purchase a car through EMI. Personal Finance 101.’
A third user highlighted that many of the expenses listed can be considered luxurious, including taking an Asia Trip, owning a dog, and managing a car EMI of 2L.
A fourth user shared their personal experience, saying, ‘We live in Mumbai, a metro city, and our family of 4 manages yearly expenses on seven lakh, including everything. I don’t own a car. It depends on what you choose. Disagreeing with your tweet, I believe that an annual expenditure of 20 lakh rupees signifies a luxurious lifestyle.
Previously, an X user raised the question of what ₹1 crore can afford in today’s economy. Akshat Shrivastava noted that ₹ 1 crore is insufficient to buy a house in cities like Mumbai, Delhi, or Gurugram. He also mentioned that this amount is inadequate for parents to send their kids abroad for a good MBA program. He further shared the expense to enroll them in international schools in cities like New Delhi.
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