Latest news with #AnuragSingal
Time of India
4 days ago
- Business
- Time of India
Rs 1 crore salary's reality in Mumbai: Big deal or just average? IIM graduate busts the myth
In India, earning Rs 1 crore annually has long been seen as a significant financial milestone—a symbol of success and comfort. However, in Mumbai, the story is more complicated. An alumnus of IIM Ahmedabad, Anurag Singal, recently shared insights on LinkedIn explaining why a Rs 1 crore salary means very different things depending on where you live in the city and the lifestyle you lead. The Rs 1 Crore Dream vs. Reality in Mumbai Singal points out that Rs 1 crore a year does place you among the top 0.1% of income earners in India, well above the Rs 50 lakh mark defining the top 1%. On paper, this is impressive, especially when compared to the median household income in Mumbai, which is roughly Rs 6–8 lakh annually according to a 2024 IIM study. That means a Rs 1 crore salary is about 12 to 15 times the average income. But the challenge is Mumbai's high cost of living. In upscale neighborhoods such as Worli or Bandra West, monthly rent can range from Rs 1.5 lakh to Rs 3 lakh. Add to that hefty tax bills—under the new tax regime, one might pay upwards of Rs 38 lakh annually—and the income starts to shrink quickly. Singal emphasizes that these costs chip away at what might initially appear to be a large salary. What Really Consumes Your Income? Singal breaks down common expenses that eat into a Rs 1 crore salary: Rent in expensive areas: Rs 1.5–3 lakh per month International school fees for children: around Rs 5 lakh annually Dining out, which can cost Rs 10,000 or more per meal Family vacations, often exceeding Rs 5 lakh yearly Factoring these in, Singal suggests that after taxes and expenses, one might only save between Rs 10 lakh and Rs 20 lakh a year. His candid assessment is that while Rs 1 crore is 'solid,' it's definitely not enough to 'buy a yacht.' Location Matters: Thane vs. South Mumbai Where you live in Mumbai makes a huge difference. In suburbs like Borivali or Thane, earning Rs 1 crore annually makes you stand out and provides a comfortable lifestyle. You can afford a larger home, personal vehicle, and save money while enjoying a good quality of life. However, in South Mumbai's boardrooms, filled with finance and tech executives earning between Rs 1 crore and Rs 5 crore or more, Rs 1 crore is considered just 'par for the course.' With over 20,000 ultra-high-net-worth individuals residing in the city, Singal notes that 'wealth, not income, is the real flex' here. Changing Perceptions of Wealth The IIM alumnus' observations highlight how earning Rs 1 crore can feel very different depending on your environment. While it is undoubtedly a financial achievement, it is no longer the ultimate sign of prosperity in Mumbai's elite circles. The key takeaway from Singal's post is that Rs 1 crore is 'nice,' but it should be seen more as a milestone on the journey rather than the finish line. The value of a Rs 1 crore salary in Mumbai depends on lifestyle choices, location, and expenses. For many, especially outside the city's priciest areas, it remains a mark of success. For others, it's simply the starting point in a highly competitive and costly urban landscape.
India Today
4 days ago
- Business
- India Today
Is Rs 1 crore salary still a big deal? Depends on where you live and who you ask
A few years ago, earning 1 crore a year in India was something people proudly spoke about. It meant you'd arrived, financially and socially. But, Anurag Singal, an alumnus of IIM Ahmedabad, has raised questions about the real value of a 1 crore annual salary in Mumbai. Once considered a marker of financial success, this figure now barely registers in the city's elite wrote on LinkedIn, "Is a 1 crore annual salary in Mumbai something to shout from the rooftops, or is it just another number in the city's high-flying circles?"He added, "A Rs 1 crore salary puts you in the top 0.1% of earners in India—way above the Rs 50 lakh mark that defines the top 1%, according to a 2023 Economic Times report." Singal explained that in a city where the average household earns around Rs 6–8 lakh per year (as per a 2024 IIM study), Rs 1 crore sounds massive—it's about 12–15 times the city average. But here's the twist: in Mumbai, context matters a lot. Where you live and who you're surrounded by can change how rich you said that earning 1 crore annually places you in the top 0.1% of Indian income earners, far above the Rs 50 lakh mark that defines the top 1%. However, in a city like Mumbai, known for its soaring cost of living, this seemingly large income can vanish quickly. Renting a flat in an upscale neighbourhood can cost anywhere between Rs 1.5 lakh to Rs 3 lakh per further added that under the new income tax regime, your tax outgo alone could exceed Rs 38 lakh annually. Add to that international school fees of around Rs 5 lakh a year, regular dining bills that touch Rs 10,000 per outing, and family vacations costing Rs 5 lakh or more—and suddenly, that 1 crore doesn't stretch as far as it remarked, 'It's solid, but not 'buy a yacht' money.'He, however, pointed out that in areas like Borivali or Thane, a Rs 1 crore salary might still make one stand out, but in South Mumbai's boardrooms, where finance and tech executives frequently earn between Rs 1 crore and Rs 5 crore, this income is seen as average. The city is home to over 20,000 ultra-high-net-worth individuals, according to Knight Frank. Thus, mere income no longer dazzles, and Singal stated, "Wealth, not income, is the real flex there."advertisementIn other words, Singal's insights highlight the shifting perceptions of wealth. Whether Rs 1 crore feels huge or not really depends on your your lifestyle, your location, expenses and who you compare yourself with.
