'Rs 20 lakh per year for middle class family of four': IIT Kharagpur alum's annual expense calculation sparks debate

The rising cost of living in Indian metropolises has once again come under scrutiny, with a recent social media post by an IIT Kharagpur alumnus igniting a debate. Pritesh Kakani shared a detailed breakdown of annual expenses for a middle-class family of four in a metro city, claiming a minimum of Rs 20 lakh (US$25,000) is required for a "comfortable life," excluding luxuries.

''Middle-class family of 4 Expense in Metro city in India is 20 lakh per year for a comfortable life. No luxury expense added,'' he wrote while sharing a screenshot of the expense plan he made.

Kakani's expense breakdown highlights the significant financial burden faced by urban families. Rent accounts for the largest chunk, estimated at Rs 35,000 per month. Food costs come in second at Rs 14,000, with a further Rs 4,000 allocated for occasional dining out. Transportation, including fuel and local travel, is estimated at around Rs 7,350 monthly. Other expenses like utilities, medical care, and education contribute to the overall sum.

While Kakani emphasizes the absence of luxury items in his calculations, the hefty price tag has sparked debate. Some netizens agree with his assessment, acknowledging the high cost of housing, education, and healthcare in major cities. Others argue that the figure is inflated, pointing out that a more frugal lifestyle with adjustments like public transport use and home-cooked meals could significantly reduce expenses.

''You are bang on. It is the minimum, I guess,'' one user said.

"I never knew dogs and cars were necessities. If you don't own a home, you should not buy a car on EMI. Personal Finance 101," another commented. 

"My dog would laugh at that 6000 a year and then tag on a ‘0’ at the end with a smirk 😏," a third user wrote. A fourth commented, ''We live in a metro city i.e. Mumbai. Family of 4 on yearly money of seven lakh, including everything. I don't have a car. It depends on what you choose. I can say spending 20L per year covers a luxurious life, contradicting your tweet.''