Is 2 Lac Per Month a Good Salary in India? Debunking the Myth of Financial Sufficiency

For those who ask if a salary of 2 lac (2 lakhs) per month in India is sufficient, the answer often depends on personal spending habits, lifestyle choices, and the specific city of residence. While this amount can be considered a decent salary for most Indians, the reality is more nuanced than a simple 'yes' or 'no.'

Personal Experiences in Delhi-NCR

I have resided in Delhi-NCR for five years, and from my experience, a bachelor living on 35,000 INR per month can comfortably cover rent, food, and other basic needs. Even so, it's important to understand that a salary of 2 lac per month is more than sufficient for most individuals who manage their finances wisely. However, if you're constantly spending beyond your means or simply keep up with trends, even 10 lakhs per month might not be enough to feel financially secure.

Is 2 Lakh a Month a Good Salary in India?

Yes, earning 2 lakh per month is indeed a good salary in India. This income places you in a higher income bracket compared to the majority of the population, providing a comfortable lifestyle, especially in cities with a lower cost of living. However, in metropolitan cities like Mumbai or Delhi, living expenses can be significantly higher.

Breaking Down the Monthly Expenses

To get a clearer picture, let's break down the monthly expenses for a family with a husband, wife, and a kid:

Rent/EMI: 75,000 to 80,000 INR for a comfortable house in a posh location, or 2 lakh INR EMI for a 2.2 cr loan. New apartments typically cost between 2.5 to 3 cr. Maid/Cook: 10,000 INR Electric Bill: 5,000 INR Internet and Mobile: 2,000 INR Eating Out: 10,000 to 20,000 INR for eating out on weekends Groceries: 30,000 INR Shopping: 10,000 to 20,000 INR School Fees: 50,000 INR Saving for a Trip: 50,000 INR Car EMI: 30,000 INR for a 15 lakh INR car Petrol and Maintenance: 10,000 INR SIP for Mutual Funds: 1 lakh INR

Overall, this adds up to an approximate 450,000 to 500,000 INR in hand. This means that for a decent living, a gross income of 75 lakhs to 1 crore per annum is necessary.

Conclusion

The sufficiency of a salary is highly dependent on personal spending habits and lifestyle choices. A salary of 2 lakh per month is indeed a good salary in India, providing a comfortable lifestyle under certain conditions. However, it's crucial to manage finances wisely and avoid unnecessary spending to truly enjoy the benefits of such an income. Ultimately, the key is to value what you have and make informed choices about your financial goals and aspirations.