- Higher salary does not always lead to higher savings due to living costs in cities like Bengaluru
- Sumit compared expenses for a Rs 1 lakh monthly salary across Bengaluru, Delhi, Noida, and Gurugram
- Rent, food, commuting, and travel costs significantly impact the financial benefit of a salary hike
A higher salary may seem like a clear career win, but a techie's cost-of-living breakdown suggests that higher pay does not always translate into higher savings. His comparison highlights how everyday expenses can significantly reduce the benefits of a bigger pay package.
In an Instagram video, Sumit compared what earning Rs 1 lakh a month could look like across Bengaluru, Delhi, Noida, and Gurugram. He urged professionals considering a move to look beyond the salary figure and also consider rent, food, commuting, and the cost of travelling home.
Addressing people living in Delhi, Noida, and other parts of the country who may be considering relocating for a better-paying job, Sumit said that if they think salaries in Bengaluru are very good, they should consider the expenses as well.
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According to him, the higher salary can quickly be affected by everyday costs. He said that while the salary is good in Bengaluru, the cost of living is very high, with rent and travel expenses also being very high.
He also highlighted the cost of travelling back home, which may not immediately be included in a relocation calculation. Sumit said that people living away from their families may have to return frequently, leaving them with the option of taking a flight. He added that a round trip could cost around Rs 20,000.
Putting these expenses together, Sumit estimated that rent, food, and travel in Bengaluru could cost around Rs 10 lakh a year.
His larger point was about the actual financial benefit of a salary hike. Sumit said that even if someone gets Rs 10 lakh more in their package in Bengaluru while they are living in Delhi with their family, they may not be able to save that much money.
