Don’t Fall for the Illusion: 70 LPA Isn’t Enough to Thrive in a Metro City-Reconsider That Housing Loan!
In the fast-paced lives of residents in mega cities like Delhi, Gurgaon, Mumbai, and Bengaluru, financial strain is becoming increasingly evident. A recent viral LinkedIn post by Sarthak Ahuja, an investment banker and influencer, has sparked intense debate over the reality of urban living, specifically arguing that an annual salary of ₹70 lakh is no longer sufficient for the average middle-class individual.
Ahuja articulates that, after taxes-approximately ₹20 lakh-monthly take-home pay dwindles to around ₹4.1 lakh. However, according to him, the significant monthly fixed expenses, including home and car loans, school fees, and domestic help, leave many barely managing their finances. He reveals that after essential costs, individuals may be left with only ₹1 lakh for the month, which must cover all other expenses like groceries, utilities, dining out, healthcare, and even vacation savings. “By the end of the month, there’s nothing left!!!” he laments.
Pointing to the increasing pressures of urban life, Ahuja warns about the pitfalls of high housing loans. He notes that a ₹2 crore loan for a ₹3 crore apartment with a 20-year tenure at an 8.5% interest rate leads to an EMI of around ₹1.7 lakh-a substantial financial burden. This kind of expense, he argues, should be carefully reconsidered before committing to a housing loan.
The underlying factors creating a financial squeeze for city dwellers, according to Ahuja, include soaring inflation rates in metropolitan areas, skyrocketing real estate prices that often exceed 30 times a household’s annual income, and lifestyle aspirations heavily influenced by social media. He cites that many are unable to save for retirement as a direct consequence of these challenges, further deepening their economic vulnerability.
While Ahuja’s thoughts resonated with many, reactions from social media users have been mixed. Some commenters find his portrayal of a ₹70 lakh salary as insufficient misleading. One LinkedIn user stated, “You can always define and redefine what is middle class. But seriously, ₹70 lakh per annum is not good enough? Difficult pill to swallow.” Another chimed in with a nod to Warren Buffett’s wisdom about consumer spending, implying that overspending on luxury items is part of the problem.
Others labeled the post as attempting to fit every middle-class family into the same narrative, with one user suggesting that Ahuja should classify individuals earning ₹70 lakh as “higher middle class” for a more realistic perspective. Despite this, the core issues raised-namely rising inflation, the cost of living, and the impact of social media on lifestyle-remain relevant.
In this context, it’s critical for individuals to differentiate between needs and wants, especially when navigating an increasingly expensive urban landscape. As debates around salary adequacy continue, the plight of the “new middle class” in metropolitan India prompts deeper conversations about financial literacy and sustainable living in today’s world.
Original Source: https://www.livemint.com/news/trends/70-lpa-not-enough-to-live-in-metro-city-linkedin-post-says-think-twice-before-taking-a-housing-loan-11750307646630.html
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Publish Date: 2025-06-19 11:06:00
