It has become common for young people today to work in large metropolitan areas such as Delhi, Mumbai, Bangalore, Hyderabad, and Pune. Young people strive for better jobs, career growth, and a high quality of life, so they are moving to these cities in large numbers. However, upon arrival, the main question arises: what should the salary be to easily cover monthly expenses, have funds for leisure, and simultaneously save money for the future.
It is especially important for young people starting their careers at the age of 25 to understand that a good salary alone is not enough. The point is how much money remains after paying for rent, food, transportation costs, and other necessary bills.
The cost of living in any city depends on whether you live alone or share a room with friends. Furthermore, the size of the housing, the distance to the office, and your lifestyle can either increase or decrease expenses. For example, if you work in Delhi-NCR and rent a room, the monthly rent can be approximately between 8,000 and 15,000 rupees. Food and groceries might cost from 4,000 to 7,000 rupees, transport from 1,500 to 3,000 rupees, and electricity, internet, and mobile communication around 1,000 to 2,000 rupees. Additionally, dining out, entertainment, shopping, and other needs may require another 4,000 to 9,000 rupees.
Based on these calculations, the monthly expenses of a young person living in a shared room can range from 18,500 to 36,000 rupees. It is important to note that this is only an approximate estimate; actual expenses depend on your city, neighborhood, and lifestyle. If you rent an apartment alone, rent and other costs can increase significantly. On the other hand, living in a PG or sharing a room with friends allows for savings.
Each person's financial situation at age 25 differs. Some have family responsibilities, while others support themselves completely. Some young people also send money home. Therefore, when setting salary goals, one must consider their own needs and obligations.
If your monthly salary is 30,000 rupees, you can live in a major city by renting a shared room or staying in a PG. Nevertheless, if the rent is high or there is an obligation to help the family, saving will be difficult. If your salary reaches 50,000 rupees per month, with proper expense management, you can afford savings, as well as visiting friends and traveling occasionally.
With a monthly salary of 70,000 rupees or more, opportunities open up for living in more comfortable accommodation, frequent trips, and significant savings for the future. However, this does not mean that one can live without worries in any city with such a salary. Living in expensive areas, repaying loans, or providing financial assistance to the family can increase your expenses.
After starting work, many young people spend all their income. Money is spent on eating out, online shopping, and entertainment with friends at the beginning of the month, and nothing is left for savings by the end of the month. To avoid this, one way is to set aside a portion of the funds for savings immediately after receiving the salary.
For example, if your net monthly salary is 50,000 rupees, you can allocate the budget as follows: 15,000 rupees for rent and related housing costs, 6,000 rupees for food and groceries, 2,500 rupees for transport, and 1,500 rupees for electricity, internet, and mobile communication. Additionally, 5,000 rupees can be allocated for entertainment and shopping, and another 5,000 rupees for other necessary expenses. Thus, about 15,000 rupees can be saved.
However, this is just an example. If your rent is high or you are helping your family, the savings amount may decrease. The main thing is to keep track of your income and expenses and try to regularly save funds according to your situation.
When starting a career at age 25, future uncertainties cannot be ignored. Job loss, the sudden need to return home, or the emergence of a large urgent expense can happen to anyone. Therefore, it is advisable to gradually accumulate an amount sufficient to cover essential living expenses for several months, even if income stops. This fund is called an emergency fund.
The size of this fund depends on your monthly expenses and obligations. If you have debts, their payments must also be included in your budget. It is wrong to increase expenses just because you are earning a higher salary. Having savings and an emergency fund can reduce financial pressure in difficult times.
The cost of living is not the same in all major cities. In the same city, a big difference in rent and transport costs can arise depending on whether you choose housing near the office or far from it. Rent in some areas of Mumbai can take up a large part of the budget. In Bangalore and Hyderabad, there may also be increased living costs near workplaces. In Delhi-NCR, you can save on transport by living near public transport, although the rent still varies depending on the area.