$50K....is it enough?

mpr732

I've been reading through these messages and I see most people have a lot of money saved up to R2I. Unfortunately, I took a hit in the market and we're only left with 50K. Would any of you consider this enough to r2i. My wife and I have a 4 year old daughter and we would like to return asap, but working in India is not an option. What would you suggest with such a small savings (besides the obvious of going back at a later time)

Moderator note... Added the dollar sign to the thread title. I assume you're talking USD?

Shaktipalooza

I'd say that's a pretty small margin. Do you already own a home? Where would you be settling down? Real estate is cheaper than many places but has risen considerably in India.

Working not an option? How will you make money? Are you attempting to retire? Need more info.

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crvlvr

Interest on $50K will provide you an income (Rs 10,000 to Rs12,000/mo)greater than most Indians. So you will be able to survive in India but your standard of living will be remarkably lower than in the US.

capt_mahajan

Indian bank interest on $50k will give you about 16500 monthly at today's rates. As you know, there are riskier options..

16k a month is not enough to live even a lower middle class existence in India, specially if housing is to be paid for.
In a city, it is next to impossible.
In a rural setting, you may be rich.

Nick-H

Especially with all the expenses of a young child ahead of you, no, sorry, it is not nearly enough.

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mpr732

What Bank are you referring to?

batistuta

The interest rates have increased across most banks ,so basically you can get that amount at any given Private bank.(Icici,Hdfc etc)

capt_mahajan

Interest rates for a 5 year deposit at present are around 9.5% / per annum after compounding. This is true for both private and public sector banks, including SBI.

Of course, it is very likely that the rates will be much lower over a longer term. That will have to be factored into calculations.

mpr732

Is it impossible ? In Goa or Ahmedabad?

capt_mahajan

a middle class standard of living is not possible in either.

for starters, check out the rentals in both cities at indiaproperties.com or 99acres.com

mpr732

So with this much amount of money and no plans to immediately start working, where would a good place to start off be? Just curious, in Ahmedabad or Goa, how much do middle class families earn per month?

capt_mahajan

I don't know where exactly the lower middle class starts in India . I do know an income of 50k a month pre tax would put you somewhere in the middle of the middle class, generally speaking.

It is hard to recommend a place, because at 16k (and remember, that is now, it will most probably reduce down the line with lower interest rates, even if you lock them in for 5 years now) the size of the town would not give your child a decent education; and, in fact, would probably make your living pretty uncomfortable.
It is also hard because nobody here will know your lifestyle... people do manage with less, but it is not a middle class life.

Offhand, consider this inexact and low] budget, without any capital goods expenses (refrigerator, fans, furniture etc etc) in a much smaller town/city

education 1k all told. difficult in any halfway decent school
utilities 2k (phone, electricity).. managaeable.
kitchen and household expenses 8k, inexact but low figures here
misc 2k, medical and entertainment etc. low.
contingencies and others: nil. !

thats 13k, leaving you 3k for rental.

very very difficult. Most people here will tell you impossible.

I would reconsider this option very carefully if I were you.

Nick-H

Notice that the Capt's budget there does not include any amounts for transport or eating out, for clothes or jewellery, for books, TV, internet connection and probably a good few other things that we take for granted that don't come to my mind now. Oh, trips home: now way!

Consider that inflation in India is around 6%

Consider that however much your daughter costs now, it is nothing to what she will be costing you in ten years time, and through those teenage years.

What does she think of all this? Is she prepared to go through the Indian education system? Is she prepared to forgo higher education because you won't have any money left in twelve years? What about life as an adult here for her?

I imagine the family must have given some thought to issues wider than that of just money... I'd be interested to hear.

Life at almost any budget level is possible in India --- but whether it would be much fun for you is another matter.

If you want very low rent then you must think rural or back-street. If you want to live like that then community acceptance becomes vital, because these people are living on top of each other. Without understanding their lives (language for starters) that just would not be possible.

GoanCanuck

Don't know about Ahmedabad but in Goa a 2 bedroom unfurnished apartment in the city is about Rs6000/month minimum. The utilities are not included in this amount. Once you add utlities and the cost of a car/scooter you will have less than Rs 7000 left to live on. This is too small a amount to even have a middle class life in Goa. In fact if you have a small amount to play with then Goa should be avoided. It is not a cheap place to live in.

mpr732

I am a US Born NRI. I have a 4 year Bachelors degree in Business from RUTGERS University, I speak perfect American English, and I have about 5 years of IT - Production Support -Application Support exp. I would like to get into Management or teaching English, but nothing too technical. So If I go back with this money and what I've said, can I maybe get a job out there and in addition to what I have, get a easy-going job for about Rs 35k to add to my Rs15k = 50k???? Please let me know your suggestions. I'm really tired of the rate race and office politics here.