- 26-year-old professional earns $95,000 annually in a very high cost city
- Take-home pay is $3,900 monthly, yet lifestyle expenses keep budget tight
- Major costs include $1,668 rent, $800 student loans, and $150 groceries
More than Rs 80 lakh per year sounds like the kind of pay package most people only dream of. However, for one 26-year-old professional, it is still not enough to cover a luxurious lifestyle. In a Reddit post titled 'Struggling to budget for the big little things', the user shared a breakdown of their monthly budget, revealing that they earn a gross annual salary of $95,000 (around Rs 89.5 lakh) in a VHCOL (Very High Cost of Living) city, and take-home pay is $3,900 (around Rs 3,68,000). Despite the high income, the user noted that they are living on a "tight budget".
The professional revealed that they pay $1,668 as rent. Other expenses include $800 for student loans, $80 for utilities, $120 for expenses for the pet cat, $60 for gifting, $70 for online subscriptions, $80 for travel, $75 for clothing, $130 for restaurants, $180 for short-term consumption, $150 for groceries, $50 for healthcare, $200 for moving costs, and $250 for charity.
"I'm 26, make $95K gross in a VHCOL city, and take home about $3900 a month (maxing out 401K+HSA, health insurance)," they wrote.
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What remains after EMIs and savings leaves very little room for "luxuries". The professional explained that they track the expenses and skip non-essential purchases.
But the reason doesn't appear to be reckless spending; it's more about the cost of living in big cities and saving for the future, along with the struggle to balance daily comfort with long-term financial goals.
"While I know that I'm in a good spot financially, I feel like I'm on an uncomfortably tight budget in one respect: I feel like I don't know how to afford the 'big little things' (concert/theater tickets, an extra special night out, a nice piece of clothing). These take up my entire monthly budget in a category, or several months' budget, depending, and just feel impossible to save or prepare for," the user wrote.
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Social media reaction
The post resonated with many high earners facing similar financial tightropes: "You just need to be saving up for these big events and purchases. If a concert is $300, then you should be saving up for a few months for that. You could try setting aside a flat amount (like $50) from every paycheck," one user suggested.
"Budgeting is good in general to give you a rough idea, but being frugal is where it is at. Budgeting doesn't take into account everything that happens, which is why frugality is better. Simply question every financial purchase quickly and intuitively, and make sure the value is worth it," another added.
"I mean, some of these categories are really low, so it's no surprise you're overspending. You have to decide the balance between savings and life. We can't tell you what that is because everyone is different," a third user commented.
