Is even a salary of ₹50 lakh per annum not fulfilling your dreams? Are you miles away from a luxurious life? If so, the fault lies not with your ₹50 lakh salary, but with three factors that are no less villains for your salary.
Wealth advisor Chandralekha MR has shared her views on this matter.
In a post on LinkedIn, Chandralekha explained the factors that make even a ₹50 lakh per annum salary seem low. She wrote that a man recently expressed his lack of confidence shopping at luxury stores like Dior, SWAROVSKI, and The White Crow Store at the airport, even though he earns ₹50 lakh per annum. To be honest, for most Indians, a job earning ₹50 lakh per annum is a dream. It’s the number that changes everything. It’s the milestone that draws the line between struggle and comfort.
Three Reasons Explained
In her post, Chandralekha identified three reasons that keep a high salary from leading a luxurious life. These three reasons include high taxes, rising inflation, and a system that favors businessmen over salaried individuals.
Explained the Math
In her post, Chandralekha explained the math, which often surprises high-paid individuals. She wrote that a CTC of ₹50 lakh means that after taxes, one earns approximately ₹37 lakh. For professionals living in large cities like Mumbai, Delhi, or Bengaluru, ₹9 to ₹10 lakh is spent annually on daily expenses alone. The remaining ₹27 lakh is then used for savings, investments, and lifestyle spending.
A Long Time to Accumulate ₹1 Crore
She wrote that if you are employed, it takes 4 to 5 years to accumulate ₹1 crore. At the same time, a businessman earning ₹1 crore may pay less tax than a salaried person earning ₹50 lakh due to India’s tax system. This system favors businessmen but doesn’t provide many exemptions for salaried individuals.
Is ₹50 lakh enough?
Chandralekha also emphasized that even a salary of ₹50 lakh can be a comfortable life in India, provided you manage your money wisely. The most important thing is to understand tax planning, avoid unnecessary lifestyle increases, and invest wisely.
She wrote that true wealth has nothing to do with simply walking into premium airport stores without paying attention to prices. True wealth means designing your life in a way that you control your money, not just chasing more money.
Disclaimer: This content has been sourced and edited from Navbharat Times. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.