Want a life without financial stress in Bengaluru? CA decodes what is a comfortable salary in India's Silicon Valley

Time of India

a day ago

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Bengaluru's cost of living
How to tide over the cost of living in cities like Bengaluru
Living comfortably in Bengaluru or for that matter in any metro city today 2025 demands a much higher paycheck than many imagine. Financial expert CA Nitin Kaushik notes that for a single person in Bengaluru, a cost-to-company (CTC) package of Rs 20–30 lakh per annum offers the breathing room to live well, enjoy leisure, and still save meaningfully. For a family with a spouse and child, that comfort threshold rises sharply to ₹40–50 lakh per annum, allowing for a good gated community, quality schooling, weekend outings, and savings of at least 10–15% of income, he said in a series of tweets.Anything below this, particularly means struggling to meet basic expenses in a city where living costs have escalated dramatically.The surge in Bengaluru's cost of living is driven primarily by rent. Housing expenses in prime areas have risen by 70–100% since early 2022, with even modest one-bedroom apartments now costing ₹30,000 or more, he said. This rental inflation is fueled by post-COVID job relocations, the return-to-office trend, and heightened demand from NRIs and property investors. As a result, many households spend 40–60% of their monthly income just on accommodation. When you add in transport, utilities, groceries, and other essentials, the scope for savings becomes almost non-existent, especially for those on lower or stagnant salaries, CA Nitin Kaushik said.This cost spiral is not solely about inflation on paper. Lifestyle inflation — the silent pressure to maintain 'urban standards' in dining, leisure, and consumer choices — is an equally potent drain. In a city like Bengaluru, where social and professional circles often set high expectations, even families earning ₹1 lakh per month can find themselves living paycheck-to-paycheck, he said. The problem is compounded when incomes fail to keep pace with the city's aggressive price growth.Post-pandemic, the shift to better-paying jobs and the migration to metros for career growth created a surge in demand for quality housing, but supply has lagged, the CA said. Core inflation in essentials like food, energy, and transport has stayed stubbornly high, he added. This combination, the CA said, has made metro living nearly twice as expensive as it was just a few years ago.To navigate this environment, Kaushik advises professionals to focus on upskilling so their earnings grow faster than expenses, optimise living arrangements by balancing rent and commute, and start investing early to beat inflation over the long term. He also stresses the importance of assessing salary packages holistically, factoring in take-home pay, benefits, and cost-of-living adjustments rather than just headline CTC figures.Since the COVID-19 pandemic, the cost of living in India's metro cities has risen sharply, putting immense financial strain on residents, he said. In urban hubs like Bengaluru, Mumbai, and Pune, those earning less than ₹50,000 a month are finding it increasingly difficult to make ends meet. A significant portion of their income—often between 40% and 60%—is consumed by rent alone, leaving limited funds for other essential expenses such as transportation, food, and utilities