- Earning Rs 50 lakh yearly in Bengaluru may not ensure significant wealth accumulation
- After taxes, a Rs 50 lakh salary leaves about Rs 3 lakh per month for expenses
- Monthly costs include Rs 60,000 rent, Rs 1.2-1.3 lakh for lifestyle, plus Rs 50,000 car expenses
Bengaluru is known for its high salaries in the technology sector, but a Bengaluru techie has argued that even a Rs 50 lakh annual salary may not be enough to build significant wealth in the city. He said that high rent, daily expenses, car costs and expensive property prices can leave a large portion of a person's income spent each month.
Taking to Instagram, Anmol Agarwal shared a video explaining what he described as the financial reality of earning a high salary in Bengaluru.
Agarwal began by saying that earning Rs 50 lakh or Rs 70 lakh per year does not necessarily mean a person can become rich in Bengaluru. He said that even receiving the full Rs 50 lakh package as base salary is difficult, but he assumed such a situation for his calculation.
According to Agarwal, after deducting nearly Rs 15 lakh towards taxes and EPF, a person could be left with around Rs 35 lakh annually. This would translate to nearly Rs 3 lakh per month.
Watch Video Here:
He estimated that Rs 60,000 to Rs 70,000 could go towards rent for a 2BHK. He added that around Rs 10,000 each could be spent on a maid and cook, while groceries and gym memberships would add to the monthly expenses.
Agarwal said shopping and travel could take the total monthly expenditure to around Rs 1.2 lakh to Rs 1.3 lakh.
He further said that buying a car could add another Rs 50,000 per month to the expenses, which he said he was keeping on the lower side.
Agarwal argued that expenses could increase further for people with children. He said this could leave a person with only around Rs 1 lakh a month for investments and wealth creation.
The techie also pointed to Bengaluru's expensive housing market. He claimed that a property costing around Rs 3 crore today could eventually reach Rs 6 crore to Rs 7 crore.
Agarwal said that no matter how well a person invests, they may still struggle to buy a house until close to retirement. He added that his calculation assumes a person continues to remain employed without being affected by layoffs or AI-led disruption.
As an alternative, Agarwal suggested finding a remote job or building a business while living in a Tier-3 city where the cost of living is relatively lower.
He also pointed to the high cost of everyday items in Bengaluru, saying that even a cup of coffee can cost Rs 250, Rs 300 or Rs 350. According to him, when the cost of living is this high, becoming genuinely wealthy can be extremely difficult, no matter how much a person earns.
