‘ ₹70 lakh is the new middle class’: Gurgaon man breaks down cost of living crisis
An investment banker highlights that a ₹70 lakh annual salary leaves little financial comfort due to high taxes and living costs.
A LinkedIn post by investment banker has gone viral for highlighting how even a seemingly high salary of ₹70 lakh per annum barely offers financial comfort in India’s metro cities.
In his detailed post, Sarthak Ahuja breaks down the math to show how rising living costs, lifestyle aspirations, and expensive real estate are squeezing urban professionals.
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Check out his post here:
According to Ahuja, a person earning ₹70 lakh a year pays nearly ₹20 lakh in taxes, leaving around ₹4.1 lakh as monthly income. Of this, major fixed expenses quickly eat up the bulk, ₹1.7 lakh goes towards a home loan EMI (for a ₹3 crore flat), ₹65,000 for a car loan EMI, ₹50,000 for international school fees, and ₹15,000 for domestic help.
This leaves just about ₹1 lakh for everything else, including groceries, fuel, electricity, medical expenses, eating out, shopping, and even savings for an annual vacation.
Ahuja points to three key reasons why even high earners feel financially stretched in metro India: the sharp rise in inflation in cities like Mumbai, Gurugram, and Bengaluru over the past three years; the disproportionate cost of housing and vehicles relative to income; and aspirational lifestyles driven by social media exposure.
“By the end of the month, there's nothing left,” he wrote, describing how this situation has essentially turned high earners into what he calls the new "sub-middle class."
His ‘practical’ advice
He ends the post with practical advice: reconsider taking a housing loan unless absolutely necessary. His post, which also links to his website offering insights into more viable real estate options, has resonated with professionals across sectors, many of whom echoed similar frustrations in the comments.
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