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You get about 1.5 lakhs in total plus a house to stay in for your family.
- You need to pay for expensive private healthcare. No sane person would go to a government hospital for treatment!
- You need your own car in India and to burn expensive petrol everyday. Or Uber. Because you can't use public transport in India.
- You need to send your children to expensive private schools in India, because government schools are crap. After that, only 1% of government universities are any good. But getting admission is very tough and on top of that there are caste, EWS and domicile quotas. So then you have to look at places like Ashoka, ISB, Manipal and JGLS, which cost money.
- Then look at luxuries: it's very expensive to eat at nice restaurants and stay at good hotels, because of high GST.
- Finally, Mumbai house prices are like Manhattan house prices.
So yes, 50 lakhs pa and 30 crore FIRE target in Mumbai seems right.
1. Price of a decent 3BHK right now, if you want to buy: between 5 to 15 cr, depending on location and quality. To downgrade, you can go for a tiny 2BHK in a bad location and in a low-quality complex. You may get that for 2-3 cr perhaps.
2. Price for 1 child's education at a good IB school: 10-12 lakh pa, if I include spending other than fees. If that's too much, then a regular ICSE school for 2-3 lakhs pa. ICSE is a good board and miles ahead of CBSE, but still not IB.
3. Price for child's education: If you go for the Ashoka/JGLS + postgrad abroad option, then budget for 2 to 2.5 cr. Else the child can go to a local college for zilch.
4. Price of a decent car: 7 to 30 lakhs. Sure, you can cut corners and get a small car or second-hand for 3.
5. Living costs for 1 person and spouse: 2.5 to 3 lakhs pa: include maid, nanny, eating out, petrol etc. Again, you can save by eating out at McDonald's or street food, instead of a nice restaurant.
6 Vacation: A foreign holiday for a couple can be anywhere between 2 to 10 lakhs, depending on where one is going and the class of travel and airfare. You can downgrade to a vacation in Lonavala instead. But that is the difference between a good upper-middle class and struggling middle-class life.
3.5 x 3 = 10.5 - 3 Houses
5 cr for Education and wedding
1 cr Buffer
Total is 16.5 cr. Without even taking into account cost of interest income for buying 3 houses. And if somebody is starting out today, you can't expect house in Santa Cruz to stay at 3.5 cr by the time they acquire enough money to buy 3 of those!
And do you mean 1.5 L rent per each 3BHK?
- 3 flats x 3.5cr = 10.5 cr
- 5 cr for kids education
- 14 crores rest
- 1 crore emergency buffer
Total = 30.5 crores!
Not entirely sure why you are slating his numbers in that case.
if you have a good 3bhk in Santacruz, Mine costs 3.5 cr in a decent society.
Buy two more of those for the same, you get 1.5 lakh in rent.
have 5 cr for children's education and weddings, 14 cr and maybe 1 extra in an emergency.
15 is enough even if you take an extremely safe way of buying houses for rental Income, reasonably Equity investor can be comfortable with a total corpus of 3-4 crore + house and 5 crore for family expenses ( which includes Harvard education for 2 kids if they choose otherwise or you limit this to Indian your cost will reduce by 4 cr)
This is so scary!!! So it means you need to wait until you become an experienced Senior Associate in order to be middle class and then keep slaving away until you have 30 crores saved. So no possibility of FIRE?
Anyone have a contrary view?