₹1 crore savings and life is set? It is high time to relook at your age old middle class dream
But in 2025, that one-crore dream does not hold much water? It's more of a mirage than a milestone.
Because by the time you say 'I've made it', inflation, EMIs, and real-life curveballs have already gatecrashed the party. Let's unmask the myth that ₹ 1 crore is enough and see why financial 'settling down' has become a moving goalpost.
1. Inflation is eating your money faster than you think: In the early 2000s, ₹ 1 crore could buy you a house, a car, and still leave enough for FD interest to run your household. But not today. In a city like Bangalore or Mumbai, this won't even get you a decent 2BHK house. Add to that 4-6% inflation, and your one crore will feel like ₹ 30–40 lakh in no time.
Reality: The same ₹ 30 dosa is now ₹ 120, and that's just breakfast.
2. One medical emergency can wipe out your savings: Middle-class families are just one health scare away from financial turmoil. A decent cancer treatment, bypass surgery, or organ transplant costs ₹ 15–30 lakh. If your health cover is the standard ₹ 5 lakh from years ago, your savings become collateral damage.
One ICU bill = Goodbye one crore.
3. Lifestyle inflation is real: Your lifestyle has levelled up, but have your savings kept pace? Kids in an international school: ₹ 3 lakh per year
3 lakh per year Dining out once a week : ₹ 3000
3000 Netflix + Hotstar + Amazon + Jio: ₹ 10,000/year
10,000/year Yearly vacation (even domestic): ₹ 80,000+
From iPhones to impulse Zomato orders, your crore can vanish without warning.
4. Job security is an illusion: And sadly, no private sector job is permanent anymore, not even in MNCs, IT, or startups. One recession, one restructuring, or one AI tool and boom – layoffs, pay cuts, or upskilling pressure.
Ask any techie in their 40s — they've seen the axe fall.
So if your plan was: 'Retire early, start a homestay in Goa' with that crore, it is better to rework the spreadsheet.
5. Children's education costs a fortune: Think ₹ 1 crore will help you chill post-retirement? Think again. A decent Indian private university will cost you ₹ 30–40 lakh. Foreign education? ₹ 1–1.5 crore easily. And this doesn't even include coaching fees, laptops, or hostel charges.
So basically: one child = one crore.
Why do we still worship this ₹ 1 crore figure?
Because it feels big. It's a round, shiny number. But feelings don't beat facts. And in today's India, facts are brutal. Financial stability is no longer a destination. It's a continuous journey and ₹ 1 crore is just the petrol pump, not the finish line.
Multiple income sources: Don't just rely on one job. Freelance, invest, rent out property — hustle smart, not just hard.
Large emergency reserve: It is recommended to keep 6 to 12 months of expenses ready. One job loss shouldn't lead to moving into your parents' house.
Health and life insurance: Get real coverage ₹ 25–50 lakh minimum for health. And no, your office insurance doesn't count when you're between the jobs.
Smart investing: FDs won't save you. SIPs in mutual funds, index funds, NPS — that's where your money should be working overtime.
Financial literacy: You don't need a full-fledged chartered accountancy qualification but you definitely must understand inflation, taxation, and compounding. Your financial future relies on it.
Most middle-class Indians aren't financially stable, they're just financially suspended. One layoff, one surgery, one market crash and the whole 'life set hai" illusion collapses like a pack of cards.
Ask yourself:If your income had stopped today, for how long would you live your current lifestyle?
If your answer is less than 10–12 years — you're not 'settled.' You're playing financial Jenga, hoping the next brick doesn't topple everything.
'Life is stable only when money works for you in your sleep and your survival doesn't depend on active income.' So, the ₹ one crore dream isn't dead, it just needs an upgrade – perhaps to a bigger number. Add hustle, protection, awareness, and growth to it and then you're getting close to 'settled.'
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