My take on Mumbai expenses and living in India in general

GoanCanuck

Yes that is adequate for an upper middle class person in India but someone coming from North America won't find that good enough.

Here in North America an average middle class family has on an average 3 computers at home with all computers having broadband access and children out here download huge amounts. The average download every month is between 50GB-100GB and there are plenty who download more than 100GB/month.

My personal data download is about 120GB/month.

puchoo

It might not be enough for a lot of Indian families as well , we are restricted by the download speed with respect to going all out , but we still average about 100 GB a month ourselves.. just cant do without the 1000 a month unlimited connection from Airtel..

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Sidharth

puchoo.wordpress.com

Aishah

Re internet - that's interesting puchoo and Goancanuck - I had no idea that amount necessary! I seem to stay within the allowable limit - no extra charges per month so far...

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puchoo

Its only necessary really if one is into downloading stuff a lot , like i am , if the usage in general is restricted to browsing , emails etc then a a higher or unlimited data connection is not required...

Nick-H

I have never spent 10,000 ruppes, or £100+ a month on clothes.

But then, that would have been obvious to anyone looking at me. I wore the obligatory business suit until it fell to bits, and then bought another one.

My motto may be life is a shopping trip --- but seeing a budget like this makes me realise that I'm nowhere near the consumer I think I am!

Hey... Shop! Enjoy!

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Just one member of the IndiaMike Mod Team

boredinmumbai

Just a clarification and then a question (of course!). First the clarification, I got the 32% by looking on my last paycheck on what I paid the babulog in this here desi guv'nent. I think what you gentlemen so keenly observed and I dumbly missed is that I'm confusing my marginal tax rate (32.8% since I went back and triple checked the math) with my effective tax rate. Hmmmm, this sucks..means I'll have to look up the various slabs in the Indian tax rate system ORRRRRRRRR if one of you gentlemen (or anyone else) has experience with what an effective tax rate would be when one has a very high marginal rate but not quite the max, I could just plug that in..?

Then on top of that, are you suggesting that there are some pre-tax investment vehicles that bring the tax burden down? In US, these are called 401Ks. Not sure if the expat community will qualify for these. I know no one on my work team is doing any such thing, else it would have been covered with me as well.

capt_mahajan

Not an expert.

On Indian income taxes some deductions are possible.

The bigger ones are
-Upto one lac for investments in PPF, medical insurance, tax saving mutual funds, long term bank fixed deposits etc...many have lock in periods of 3/5 years.
-Principle and interest on housing loans.

If one is a consultant or self employed, one can deduct expenses and capital expenditure (depreciated) on what is usable for consultancy, including a car, running costs, computers etc.

You will need to consult a chartered accountant/tax guy in case this applies to you.

puchoo

I dont consider that very fair , if you are expected to pay tax just like everyone else , i dont see why any of the tax saving instruments cant be used by you...

Yes, speak to a CA , if there is a chance of saving something then why not. Given your salary slab i dont know how much you can save eventually but the option is definetely worth exploring.

crashnburn_in

Enjoyed reading your post OP.

A lot of it I agree with.. but I am not sure if you made some observations.. here they are.

Yes, Bombay is just like NYC. There are single note weiners (vadapavs) and then there are a wide variety of $$$ food places, then going up to Olive's and Indigo's etc.

Just like you don't go out for the 100$ steak every night in NYC, not wants to go to Olive's and spend crazy every night.

Something you will not see in NYC.. rare.. is even the guy who goes and eats & clubs at the TOP place in Bombay, can be found eating at the Bade Miya's and Vada Pav wala's without an issue - And talk Ghetto Speak without an issue.

Actually, I had exactly the opposite experience in the United States.. when I first moved there. There was no lack of people... since I was a social being... I met tons of people, lots of acquaintances... VERY FEW REAL friends.

In fact MYSELF and a lot of FOBs would say the same (unfriendly etc) about the AB Kids (Avoiding ABCDs.. LOL).

What I have come to realize is, there are some barriers but they are more mental than anything. You've got learn how to tune into the system.

If a FOB guy can learn the ways of US of A (hehe.. kidding.. I grew up on Hollywood films & UK / US Bands) then so can you learn the Indian ropes.

If they cant come out with you to a 5000 /- restaurant then you are trapping yourself in the IVORY TOWER.

Maybe, try to blend more.. if not in appearance.. then in how you are with them. I'll tell you one thing -

NOT ONCE .. Do I remember that some FOREIGN kid / person (white or brown) who's come to India would have not felt the WARMTH of India.

Anyone and everyone I know.. Black, Brown & White who's visited / lived India...for short to long periods have said one thing in unison "Warmth".

People may not say "Howdy" to strangers, but if that person was stuck in Flooding waters, they'd keep them inside their homes for 48 hours.

PS: I'll be down in August for good. If you're still around let me know... I'll let you buy me 3500/- dinner and show you a good time and hook you up with some friends . So, you take MEMORIES you will not forget.

boredinmumbai

Hey Crashnburn, thanks and I'll take you up on it. Far as I know, I will be in India in August; however, whether that will continue to be in Mumbai has become an open question but I'll put odds that it stays Mumbai. I will PM you my direct email. Cheers!

crashnburn_in

I am back my friend. Let's exchange numbers so that you can take me out for one of those expensive italian pasta filled dinners at Olives.

PS: Actually, I'm burnt out on 'Caucasian' food. How about some spicy Indian ?

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ExpatUK

What utter nonsense bordering on idiocy. I suspect the original poster is just trying to show off about his salary.

If that is what you need in Mumbai perhaps you should move to London where you can live an upper middle class life on less than that (even gross).

Edit:
As a comparison, a British GP would earn approximately that figure (gross), and the massive recent pay increase for GPs is a big story over here.

puchoo

I dont want to comment on whether the poster is showing off or not...good for him if he is drawing what he is.

7 lacs would be close to 8500 Pounds....which i know is a lot given that i have friends staying in Central London

there is no doubt about being able to lead a very very elaborate lifestyle in Mumbai in that much cash....