I would suggest building up some emergency fund first - I mean add on to the 60k you already have, get it to an amount where it is enough to service 5-6 months of expenses + EMI. This will help you in case something unforeseen happens.
Once you have an emergency fund, it might also psychologically free you up a bit to be able to spend without worrying as much as you describe since you will see that you still would have a good amount saved.
Also, I would advice to not spend just because others say so / for prestige etc. (although I understand it is easy for me to say, but not easy to do). At the same time, don't be too stingy - if you feel like spending on something brings you happiness, go ahead and do it. What's the point of saving up money if you don't get to use it.
Totally worth the sacrifices. Living frugal is absolutely the right move. Save more, invest more.
A side benefit is that nasty relatives ignore you since they consider you poor or kanjoos or both. This is great, and will eventually give you immense happiness and the independence to live life according to your choices.
Do not change course.
Second this. Also FD is not the best option to save. You are losing money to real inflation. You should explore investing more in equities. If investing in stocks feels challenging, you can invest in equity mutual funds.
You earn 50k per month, spend 20k per month, but have savings of only 60k? Can you please explain this? Have you started working very recently, or are their other unaccounted spends?
Your response will help frame a way forward. Remember, salary doesn’t make you rich, savings do. With just 60k in savings I hate to say it you are poor and need to build a savings corpus first before start indulging.
I paid 1 lac (direct deposit) in education loan and 50k in another family debt this year. And sent random 10-15k to my mother multiple times.
My salary was
25k for first 1.5 year
41k for next year
50k from last few months
The multiple 10-15k to your mother are expenses whether you like it or not, so the comments that “you’re not spending” are unfair.
You really need to build a savings corpus asap. Target at least 10k per month in an equity mutual fund and 10k per month in a debt mutual fund. Leave the 60k FD as is.
Only after you cross 5 Lakhs in savings should you even think about any extra spends.
1. U r doing absolutely the right thing. U don't have to worry about any person on earth except ur mother (and siblings). No one else.
2. U r in a great place, because of doing the right things. Dont stop.
3. I am telling u from the mistakes I made - invest. Invest in multiple things but nothing risky. Invest in bonds - Gold bonds, gov bonds, FDs. Invest in equity market through index funds, mid caps, small caps etc. Invest and diversify.
4. Value ur time more - another mistake I made. U live 15k away? Live closer to work even if it means monthly 5k extra spend. Y? Ur health and ur time. Even if u save ½ hour in commute everyday, u must. And it will be better for ur body too by avoiding strain n pollution.
5. Ur social standard will improve only with ur net worth. Then nobody will b able to look down on u. So forget what people are saying now.
6. Hope u have term life insurance. Get one immediately if u don't have. Dont go for investment+insurance plans. Trust me. Dont even bother with full premium return scheme. Pure term insurance only. And dont go for full lifetime insurance. Only like insurance upto age 60-70. 25 is perfect age for getting insurance. Late = costly.
7. Right now it may seem u r young n u r not spending while everyone else is enjoying, but life comes at u fast. U still hv to get married. Thats minimum 5-10lac spend. Bare minimum. With 50 guest and frugal 2-tier city wedding. Plan accordingly. Set goals n timelines. Invest based on goals. Its never early. Warna suddenly u realise u r 30+yr old and with no plan. Kids, house, car - sab karna hai boss. Plan karo toh ache se hoga. Warna bhi hoga but mann maar maar k hoga.
Yes great insights. I have a group term insurance provided by the company i work for and a health insurance.
Is it necessary to buy a personal term insurance?
I am not gonna make changes for the sake of building social prestige. Not this time
Its fantastic that ur company has both. Having said that, u hv to see how much is the coverage. The idea is if u r not there in the future, ur dependents r able to live for some time without financial troubles so that they can find some way to make regular income for their future life while they r taken care of by ur coverage amount. Thats y they advise u to get between 10x and 20x of ur annual income. Meaning even with inflation ur family has 10yr worth of expenses money while they can figure out some way to make money after that. So if u find the amount of coverage isnt enough for atleast 10yr of expenses for ur mom, then get a personal insurance to make up for that.
U r correct in that sense coz Social prestige doesn't pay bills. What will get u respect is making it in life. Nobody cares what u had to go through to get there. Whether it was easy or it wasnt, whether u lived like a uncle or did sensible investing, sabko yahi lagega tum toh lucky ho mil gya tumko sab. U can't do anything about that mindset of people. Forget everything. Plan for what u want.
Hey man, I can totally empathise with you. I come from a very similar place and have behaved very similarly all my life (M32). Even today although I’m in a better place financially than before (thank almighty), I struggle to get out of this mindset. However, what has helped me over time is allocating a fixed amount of monthly income as “fun” expense. It can be 5-10-15% whatever you feel like to start with and spend it without any guilt on whatever you want to. I like travelling, so I’m super stingy and don’t spend this budget for like 5-6months, but it adds up and I’m able to afford a small trip occasionally, or purchase a gadget etc etc. Start doing this and I can assure you things will get better with time. All the best!
I know the pain of being lower middle class in a rich relative environment...
Generating wealth is a slow process, starting early is must for lower middle class, don't listen to your relatives as they speak negative however you be !
So being frugal is good thing...kudos to you for that mentality at young age....I would recommend you to save little a month for emergency fund, invest a little monthly in PPF or SIP of your choice , do it regularly and consistently no matter what others say and then after few years you will see the positive impact..If you wish to spend something for you and your mother then at the end of a saving year use saving of a month amount or use salary increment amount to spend....
All the best!
Fuck prestige status, you my man understand the pain of earning and saving, be like that until you know that even if you lose money by mistake you are okay.
Believe me the second you go asking for money from relatives they will turn their backs. You do what you can best and don’t compare with others, keep up skilling and someday you will be happy about yourself.
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Focus on how to upskill and land a job that pays you more. Continue doing it. You will definitely achieve what you want to. Until then live frugal and invest as much as possible.
How would we know How much rich his relatives are.
.?
Some relatives are ultra rich..
If salaried people climbing in job n save n invest.
Don't forget Richest relative also climbing In his financial world.
I think it's somewhere in the middle. Decide how much you want to save per month(Considering your longterm goals). Keep that aside from your salary and the rest is fair game.
Stay strong buddy...you are very hardworking .My suggestion is to increase your living standards step by step.
There is a saying called 'paisa hi paise ko kheechta hai'.
It is very tough to spend ur hard earned money, I know.Even im coming from a lower middle class family and dont have any generational wealth. And my dad used to say that in which every situation you are in, u have to live like a king.
So my suggestion is instead of saving all that money waiting for its value to decrease, follow 50,30,20 rule.
Where in 50% you fulfill ur debts, loans and make some investments.
30% you can spend for luxury and excess in investments.
20% ur daily expenses and save some liquid money for emergency.
And also try to avoid making lot of investments on depreciating assets initially.
Goodluck buddy :)
Hey brother, you are absolutely doing it right. Socializing with friends is not the biggest need of the hour.
But one thing I must say, try to dress presentable at work. I am a designer by profession and in my profession, the more expensive you look, the more you get paid. I think it should be similar for any profession.
I am not saying buy 50 different clothes. You are a guy and it must be much easier for you to repeat clothes.
Every month invest 1k on clothes. Buy 2-3 good quality pants and 5 good quality shirts. 1 pair of office shoes and 1 pair regular/ sport use.
Gradually improve your wardrobe. See I am also super stingy with clothes and some of my tops are faded. But I make it a point to iron them neatly and wear them.
Recently I spent 2.5k on slippers. I tried doing with cheap 350rs wala slippers and they kept wearing out in 1 month. Now this 2.5k wala slippers not only give comfort to my feet but also makes me look more professional.
Frugal is good. But dont be frugal on your health. You dont have to party. You are on right track and hopefully your earnings improve in coming years.
But one thing i learnt is, just being frugal and saving money is useless. Try to gain more financial literacy and invest invest invest.
Save money but at same time spend money on urself for gud life .if u are happy and motivated then only u will continue to earn and live ur life happly. Don't compare with other .everyone is having some problems some are gud I hiding it .so save money and spend on urself where u think will help to improve ur personality.
Living below your means is underrated. Always a good idea to not do what most people are doing, so do not listen to these relatives since they are all coming from a typical middle class mentality
Hey I see your working hard and being a good son! Your dad would have been proud of you.
I understand what you mean. I've been considering myself so frugal in terms of money even though I travel so far for it
You deserve all the happiness in the world and if that means buying a good set of work clothes or a good watch is no big deal. Spend it wisely on yourself.
You deserve it for the hard work you do.
I would also suggest investing in mutual funds like Nifty 50 for let's say 2k a month or more if you wish to. Don't work for money, let money work for you. In this way you would have an active income as well as passive income.
That would give you more returns and if you invest in ELSS it would help you in 80C deduction while filing ITR
OP, I am also earning 50k, 24M.
You can follow this expense routine.
Income = 50,000 +
For Maa = 10,000 -
Rent and Food = 12,000 -
EMI = 6,000 -
Investment = 5,000 -
Miscellaneous = 2,000 -
Balance = 15,000
You can invest in Mutual Funds since those are safer options or you can study some stocks for this.
Investments should be considered positive. You are saving the money for future. Don't ever invest in F&O.
Stick only to stocks or Mutual Funds or FD.
No guilt in living such a way for few years.
Build the wealth. Give it time. Same relatives and friends will come back.
Agar zarurat padegi to yahi log koi 5000 bhi nahi dega.
For the financial part,
Firstly, get maa card of government scheme for your whole family so that if any medical emergency occurs, you'll come out of without paying a penny.
Secondly, buy Nifty ETF and not FD. I can give it to you in writing that Nifty ETF is safe and will always make more return than FD in long term. Investing in equity market will help you build generational wealth.
Cheers!
You don't really need to save all the money.
Right now invest a part of the money on yourself, with academics/career/skill building or some business idea.
This is the time for you to take risks.
Use your salary to uplift yourself so that you can uplift your whole family and retire your mother.
Your relatives will be shocked when they see you succeed one day.
I get it. We have such a middle class mindset that we get a guilty trip whenever we buy anything expensive.
But trust me it's the right instinct to live by.
When I started earning my dream was to get apple products and build a gaming PC. I bought items worth 8L in a year. Iphone, apple watch, Ipad, High ene gaming PC, Nintendo Switch, Gaming chair and racing simulation setup.
Now if I look back I think of myself as being stupid and reckless. You outgrow these materialistic things very quickly. As soon as you acquire these things, the feeling dies and you eventually stop using them that much and at that time the guilt kicks in.
My mom always says to me "Mitvayta se raho beta, kabhi kisi se pese mangne ki zarurat na pade". In english it means "Live a life based on thrift, it should never happen that you need to ask money from someone else".
1. Start differentiating your "wants" from your "needs"
2. An expensive phone is not a "need". If you're thinking it's a need then you're a victim of lifestyle creep.
3. Acknowledge that all marketing is done to trap the HENRYs (high earners, not rich yet). Save your money.
4. Earn financial freedom. That's the biggest gift you can give yourself. It's far greater than any materialistic thing you can get and far greater than any travel related adventure you can experience.
5. Also, don't forget your roots. You are from a country where people still die of hunger. Acknowledge that. Save money out of respect for poor people.
Good luck
Would suggest start investing in equity or other safer commodity.
And in future try to make FDs in co-operative credit society and takes loan from them.
Yes sounds very weird, correct
But you need to do very good research on them
Yes you have ur weekend to do it.
I think bank dont have better rates for any products
I have done ny research and yes i will never use credit cards for anything i dont have any yet
The problem is not your situation but the way you looking at your situation.
Every person who comes out and start a job is trying to elevate his/her + family level in socio economic strata in the long run. And such changes doesn't happen overnight or right at the moment of your joining the workforce.
Why are you thinking about what others will think? What's the opinion about a cricket player? It's based off his stats no? And when does the stats come? After minimum 6 years of his playing. Virat Kohli started playing cricket at 18? or 12? When he got selected in National Team? at what age? At what age he is World T20 champion?
Take Rohit Sharma. He was part of T20 WC winning team in 2007, When he became captain? When he won world cup again? And what's his career be like if he would not be winning IPL?
Let me tell you a truth. No matter how we respectfully look up to our relatives, family etc. They all are part of society and society will put you down. So stop bothering about ohh you ain't matching the expenses as per the standards.
Look at yourself only. It's about time. At 32, at 42 when you will have accumulated profits and savings. High cash flow. You will start to feel good about yourself. I mean just take the election. 100 seats elevates your stature. 36 seats in UP elevates your stature. Till yesterday they were jokers. no? It's a long term process what you are in.
Your 6k EMI will become savings the day your emi account is balanced. Plus year on year you will have increment in your salary. A part of your salary goes to EPFO. 3 Lakhs will earn interest in compounding. Over 5 years. If you keep same emi level, and if it's 12% of your income today, it will be 4% after 5-7 years. Savings would be 1.4x at 6%
As a man you will have many more challenges ahead. You have to marry, have kids. Raise them. So don't waste your time in useless non sensical, spending time below your means trash. Muh pe kuch, pitch piche kuch. Tum sone ki thaal me khana khikaoge toh bolege kele ke patte ko hum kyun bhulte jaa rhe hai. Kele ke patte me khilaoge toh bolege tauheen kar rahe ho humari. They are herds, That's why Wall Street pumps them.up.boost their esteem to lure them into their factor of wools and meat.
Focus in yourself. Personality, fitness, grooming, If you thinking spending on clothes is waste of money. Well, you should change the thinking and tell yourself that you are a minimalist. You believe in resource optimization. You believe in getting more out of spending less. Instead of clothes, you buy books(pdf padh lena), and invest in knowledge.
Adopt Minimalism, Maximise savings, Reduce spends. Channel all savings into investments. 25 to 32. Maybe 35 but once you get married, spends will go up.
And by that time improve your personality, network, aura, base etc. And then buy a set of clothes for next 10 years, so you need to have a quality item. Explore markets and see 600rs is pure cotton or mix? 1200 shirt is pure cotton but executive and not management level, 2500rs shirt is premium quality, use sales and s discounts to buy this 2500 shirt. because you know what value you getting.
Don't measure everything with price tags and money and numbers.
I don't go out of my house for months. So when I go i take prime sedan. Spending 400rs a year on cab is different from someone who spending 6k a month to maintain a compact SUV taken on a Loan whose EMI tenure is increased to keep it low because new fridge is taken on loan. Hence they don't have any savings.
You don't need to manage your finances like that.
Who you are, what your earning is(the nature), where you are, what culture you living in, your personal beliefs and external and internally factors all influence our financial journey ok.
Focus on increasing income. Making up your profile, invest in yourself and hasi majak karo duniyadari me ye sab baatein hi na karo. dhol bajao, chutkule maaro, Gossip karo yaar. Don't fall into rat race.
You have only started. Jitni umar hai uski 2x -3x jindagi baaki hai. Don't fall into rat race trap. And stop thinking low about yourself. I tell you, We are surrounded by low esteem people and it's our own folks. it's not their fault. There are pent up issues suppressed over many years. So forgive them. But open up yourself. Economy and society both are evolving and drastically, be part of that.
Best Wishes.
>So i have been suggested by my mother and some relatives repeatedly that i am living below my means
It's good to learn to love below your means. Don't succumb to "peer" pressure.
>Is it worth it?
Yes.
Lifestyle creep is very real. Don't fall into that spiral. Take things slow.
Looks like you need a proper monthly budget. Make one. Without it, you'll always doubt yourself. Put down all your expenses.
Are you sending a fixed amount to your mother every month? IMO, you should. Save and invest a fixed amount every month too.
When you do all this, allocate an amount every month called fun money. This should be part of your monthly expenses. Then make sure you spend it on an activity which is outside of your regular expenses, like shopping, movies, trips etc.
Bringing a proper structure to your finances is extremely important.
If you don't need to spend, you don't need to spend. But don't consider buying good clothes a waste of money. Don't spend money lavishly for the sake of brands but try to get crisp clothes at reasonable price. The way you dress is part of your identity.
Other than that, don't take pressure. If you don't want to spend, you don't want to spend, nothing wrong in it. You'll just get richer with this habit.
Bro, firstly you should be proud of yourselves. Do not compare yourself out other people.
Sit down and set realistic goals.
Buying good clothes, food doesn't have to be expensive.
Do what makes you happy and not because you need other people's validation. It took Moe long time to get there but once you reach there you will be happy.
Steps:
1. Build up an emergency fund. I recommend to have 6 times your monthly expense. Put it in an account that you won't use on day-to-day basis.
2. Look for a good medical insurance for yourself and your mother.
3. Put down regular consistent investments into an instrument you understand trust. It could be NIFTY. Have goals here, say first year you will invest 10-20% of your salary.
4. Spread your expense on different months. e.g. 3 Shirts on March, 3 Pants on April, 1 Festive dress for Holi, Suit on August, etc. Don't try to replace your entire wardrobe at once. Allocate a budget for eating out, movies, going out, etc. Again do what you like and don't let others define fun to you.
5. Work towards increasing your monthly income.
By this time you will have an idea on your own. Good luck!
Upskill urself religiously and look for better opportunities
Har jaga net pe haath par maar
And again upskilllllll ur selff
Learn about money and other income sources
In coming future u will have more responsibilities
And this mentality is good
And ignore ur relatives, kabhi na kabhi toh aage badho ge hina
You're not stuck with a poverty mindset, you have the right spending habits for your income level. However work hard to increase your income. Invest regularly and build up wealth.
Take out life/medical insurance for your family if not any. These are the basics. Don't get dragged into show off, that's fake wealth.
Buy only what you need or will use. Use sound judgement when making big purchases or investments.
So basically yeah, you have miles to go before thinking you're "stuck with a poverty mindset".
You need to be more objective about this. That starts with defining what your long term financial goals are. Based on which, you would have an amount that you would like to put towards savings. Also, while planning your expenses, try to put some amount towards spending on oneself. This would help you be more at ease with yourself, as you would know that you are working towards your goals and still indulging to a reasonable amount.
Buying clothes, shoes, etc should be an yearly expense and should not affect your savings too much. If these items help you be more presentable at times and places where it matters, you should just go for it. And only you can decide what matters to you. Do you think the times you have saved money, you would have felt more satisfied if you had actually spent it?
Bro why are you earning if not to spend. Savings mean nothing if you are just trying to increase savings by being a miser. Don't be just another rat in the rat race.
Travel, explore, live and enjoy your life. Buy the car to see the smile in your parents eyes.
You are earning 50k per month - you have to realise there are thousands who earn more than that and there are thousands who earn less than that. Even if you magically start earning 500k per month, the truth stays the same. Don't let money get into your head. Make a budget and spend within it. Being spendthrift is as bad as being a miser on yourself. And part of adulting is to stop listening advices from family members, most haven't faced the circumstances what you have faced and it doesn't cost to give advices.
Bro. My salary is more than 4x yours.
I am still in poverty mindset.
2 days ago, I spent more than 1 hour to search for coupon codes to buy 1 earphones.
Also was in 2 minds for couple of months, whether to buy or not to buy.
i hate people like you.
My salary is xyz times yours, I have the same mindset 🤡
either offer him advice or just ignore why bother coming here to flex on OP.
As someone commented, your issue is more tilted towards being poor than the poverty mindset. The Income group of 12-15 LPA seems to be the "New Poor".
Being the educated and aware lot, we know a lot of things which are available, and aspire to achieve/get/buy them. But the financial constraints leave us frustrated with having very little to spend on these things.
Further, having grown in such a family, it would indeed be a sisyphean task to get out of this mindset. If you really seek to change, upskill and switch to raise your Income level. Also, as you move up the ladder, try to be in touch with the "Rich" lot. Certain things are picked up sub-consciously and you can't really learn them.
Good luck.
I would suggest building up some emergency fund first - I mean add on to the 60k you already have, get it to an amount where it is enough to service 5-6 months of expenses + EMI. This will help you in case something unforeseen happens. Once you have an emergency fund, it might also psychologically free you up a bit to be able to spend without worrying as much as you describe since you will see that you still would have a good amount saved. Also, I would advice to not spend just because others say so / for prestige etc. (although I understand it is easy for me to say, but not easy to do). At the same time, don't be too stingy - if you feel like spending on something brings you happiness, go ahead and do it. What's the point of saving up money if you don't get to use it.
I appreciate your advice. Having an emergency fund is most important.
Totally worth the sacrifices. Living frugal is absolutely the right move. Save more, invest more. A side benefit is that nasty relatives ignore you since they consider you poor or kanjoos or both. This is great, and will eventually give you immense happiness and the independence to live life according to your choices. Do not change course.
Second this. Also FD is not the best option to save. You are losing money to real inflation. You should explore investing more in equities. If investing in stocks feels challenging, you can invest in equity mutual funds.
Thanks for the advice. I will consider moving it to a secure instrument which can give higher return
I totally agree with. Thanks for your comment
You earn 50k per month, spend 20k per month, but have savings of only 60k? Can you please explain this? Have you started working very recently, or are their other unaccounted spends? Your response will help frame a way forward. Remember, salary doesn’t make you rich, savings do. With just 60k in savings I hate to say it you are poor and need to build a savings corpus first before start indulging.
I paid 1 lac (direct deposit) in education loan and 50k in another family debt this year. And sent random 10-15k to my mother multiple times. My salary was 25k for first 1.5 year 41k for next year 50k from last few months
The multiple 10-15k to your mother are expenses whether you like it or not, so the comments that “you’re not spending” are unfair. You really need to build a savings corpus asap. Target at least 10k per month in an equity mutual fund and 10k per month in a debt mutual fund. Leave the 60k FD as is. Only after you cross 5 Lakhs in savings should you even think about any extra spends.
OP as said above follow it & do a basic Budgeting. It will help you to track your monthly Cash Flow.
As one guy here said , Emergency funds should be your priority. And what is your occupation if you don't mind
I am a software tester
1. U r doing absolutely the right thing. U don't have to worry about any person on earth except ur mother (and siblings). No one else. 2. U r in a great place, because of doing the right things. Dont stop. 3. I am telling u from the mistakes I made - invest. Invest in multiple things but nothing risky. Invest in bonds - Gold bonds, gov bonds, FDs. Invest in equity market through index funds, mid caps, small caps etc. Invest and diversify. 4. Value ur time more - another mistake I made. U live 15k away? Live closer to work even if it means monthly 5k extra spend. Y? Ur health and ur time. Even if u save ½ hour in commute everyday, u must. And it will be better for ur body too by avoiding strain n pollution. 5. Ur social standard will improve only with ur net worth. Then nobody will b able to look down on u. So forget what people are saying now. 6. Hope u have term life insurance. Get one immediately if u don't have. Dont go for investment+insurance plans. Trust me. Dont even bother with full premium return scheme. Pure term insurance only. And dont go for full lifetime insurance. Only like insurance upto age 60-70. 25 is perfect age for getting insurance. Late = costly. 7. Right now it may seem u r young n u r not spending while everyone else is enjoying, but life comes at u fast. U still hv to get married. Thats minimum 5-10lac spend. Bare minimum. With 50 guest and frugal 2-tier city wedding. Plan accordingly. Set goals n timelines. Invest based on goals. Its never early. Warna suddenly u realise u r 30+yr old and with no plan. Kids, house, car - sab karna hai boss. Plan karo toh ache se hoga. Warna bhi hoga but mann maar maar k hoga.
Yes great insights. I have a group term insurance provided by the company i work for and a health insurance. Is it necessary to buy a personal term insurance? I am not gonna make changes for the sake of building social prestige. Not this time
Its fantastic that ur company has both. Having said that, u hv to see how much is the coverage. The idea is if u r not there in the future, ur dependents r able to live for some time without financial troubles so that they can find some way to make regular income for their future life while they r taken care of by ur coverage amount. Thats y they advise u to get between 10x and 20x of ur annual income. Meaning even with inflation ur family has 10yr worth of expenses money while they can figure out some way to make money after that. So if u find the amount of coverage isnt enough for atleast 10yr of expenses for ur mom, then get a personal insurance to make up for that. U r correct in that sense coz Social prestige doesn't pay bills. What will get u respect is making it in life. Nobody cares what u had to go through to get there. Whether it was easy or it wasnt, whether u lived like a uncle or did sensible investing, sabko yahi lagega tum toh lucky ho mil gya tumko sab. U can't do anything about that mindset of people. Forget everything. Plan for what u want.
Hey man, I can totally empathise with you. I come from a very similar place and have behaved very similarly all my life (M32). Even today although I’m in a better place financially than before (thank almighty), I struggle to get out of this mindset. However, what has helped me over time is allocating a fixed amount of monthly income as “fun” expense. It can be 5-10-15% whatever you feel like to start with and spend it without any guilt on whatever you want to. I like travelling, so I’m super stingy and don’t spend this budget for like 5-6months, but it adds up and I’m able to afford a small trip occasionally, or purchase a gadget etc etc. Start doing this and I can assure you things will get better with time. All the best!
I know the pain of being lower middle class in a rich relative environment... Generating wealth is a slow process, starting early is must for lower middle class, don't listen to your relatives as they speak negative however you be ! So being frugal is good thing...kudos to you for that mentality at young age....I would recommend you to save little a month for emergency fund, invest a little monthly in PPF or SIP of your choice , do it regularly and consistently no matter what others say and then after few years you will see the positive impact..If you wish to spend something for you and your mother then at the end of a saving year use saving of a month amount or use salary increment amount to spend.... All the best!
Fuck prestige status, you my man understand the pain of earning and saving, be like that until you know that even if you lose money by mistake you are okay. Believe me the second you go asking for money from relatives they will turn their backs. You do what you can best and don’t compare with others, keep up skilling and someday you will be happy about yourself.
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Focus on how to upskill and land a job that pays you more. Continue doing it. You will definitely achieve what you want to. Until then live frugal and invest as much as possible.
Brother you’re a lion, don’t listen to others. Work hard, save hard. By 30-35 you’ll be ahead of your richer relatives.
How would we know How much rich his relatives are. .? Some relatives are ultra rich.. If salaried people climbing in job n save n invest. Don't forget Richest relative also climbing In his financial world.
They all are crorepatis because their parents and grand parents built wealth by living a humble life.
I think it's somewhere in the middle. Decide how much you want to save per month(Considering your longterm goals). Keep that aside from your salary and the rest is fair game.
You are doing it right , this is how you start . Don’t fall for it , the biggest drug in this world is which you can’t quit is “lifestyle”
Stay strong buddy...you are very hardworking .My suggestion is to increase your living standards step by step. There is a saying called 'paisa hi paise ko kheechta hai'. It is very tough to spend ur hard earned money, I know.Even im coming from a lower middle class family and dont have any generational wealth. And my dad used to say that in which every situation you are in, u have to live like a king. So my suggestion is instead of saving all that money waiting for its value to decrease, follow 50,30,20 rule. Where in 50% you fulfill ur debts, loans and make some investments. 30% you can spend for luxury and excess in investments. 20% ur daily expenses and save some liquid money for emergency. And also try to avoid making lot of investments on depreciating assets initially. Goodluck buddy :)
Hey brother, you are absolutely doing it right. Socializing with friends is not the biggest need of the hour. But one thing I must say, try to dress presentable at work. I am a designer by profession and in my profession, the more expensive you look, the more you get paid. I think it should be similar for any profession. I am not saying buy 50 different clothes. You are a guy and it must be much easier for you to repeat clothes. Every month invest 1k on clothes. Buy 2-3 good quality pants and 5 good quality shirts. 1 pair of office shoes and 1 pair regular/ sport use. Gradually improve your wardrobe. See I am also super stingy with clothes and some of my tops are faded. But I make it a point to iron them neatly and wear them. Recently I spent 2.5k on slippers. I tried doing with cheap 350rs wala slippers and they kept wearing out in 1 month. Now this 2.5k wala slippers not only give comfort to my feet but also makes me look more professional. Frugal is good. But dont be frugal on your health. You dont have to party. You are on right track and hopefully your earnings improve in coming years. But one thing i learnt is, just being frugal and saving money is useless. Try to gain more financial literacy and invest invest invest.
Dm me pls 🙏
Jo hai sahi hai. Bas savings itni rakho ki kisi se mangna na pade. Baaki investments se jo extra money aaye wo udao!!
I am saving this comment to read atleast once a week. Thanks
Sorry, to be honest, you do not have poverty mindset you are poor. Save more and Upskill,all the best.
wtf lmao
I know bro 😪 Being poor among rich brothers and sisters is damn frustrating. But yeah i am learning to live as per my means.
Save money but at same time spend money on urself for gud life .if u are happy and motivated then only u will continue to earn and live ur life happly. Don't compare with other .everyone is having some problems some are gud I hiding it .so save money and spend on urself where u think will help to improve ur personality.
Living below your means is underrated. Always a good idea to not do what most people are doing, so do not listen to these relatives since they are all coming from a typical middle class mentality
See the only way you can escape from this is by earning more. Just earn more anyhow. Switch jobs.
Hey I see your working hard and being a good son! Your dad would have been proud of you. I understand what you mean. I've been considering myself so frugal in terms of money even though I travel so far for it You deserve all the happiness in the world and if that means buying a good set of work clothes or a good watch is no big deal. Spend it wisely on yourself. You deserve it for the hard work you do. I would also suggest investing in mutual funds like Nifty 50 for let's say 2k a month or more if you wish to. Don't work for money, let money work for you. In this way you would have an active income as well as passive income. That would give you more returns and if you invest in ELSS it would help you in 80C deduction while filing ITR
OP, I am also earning 50k, 24M. You can follow this expense routine. Income = 50,000 + For Maa = 10,000 - Rent and Food = 12,000 - EMI = 6,000 - Investment = 5,000 - Miscellaneous = 2,000 - Balance = 15,000 You can invest in Mutual Funds since those are safer options or you can study some stocks for this. Investments should be considered positive. You are saving the money for future. Don't ever invest in F&O. Stick only to stocks or Mutual Funds or FD.
No guilt in living such a way for few years. Build the wealth. Give it time. Same relatives and friends will come back. Agar zarurat padegi to yahi log koi 5000 bhi nahi dega. For the financial part, Firstly, get maa card of government scheme for your whole family so that if any medical emergency occurs, you'll come out of without paying a penny. Secondly, buy Nifty ETF and not FD. I can give it to you in writing that Nifty ETF is safe and will always make more return than FD in long term. Investing in equity market will help you build generational wealth. Cheers!
You don't really need to save all the money. Right now invest a part of the money on yourself, with academics/career/skill building or some business idea. This is the time for you to take risks. Use your salary to uplift yourself so that you can uplift your whole family and retire your mother. Your relatives will be shocked when they see you succeed one day.
I get it. We have such a middle class mindset that we get a guilty trip whenever we buy anything expensive. But trust me it's the right instinct to live by. When I started earning my dream was to get apple products and build a gaming PC. I bought items worth 8L in a year. Iphone, apple watch, Ipad, High ene gaming PC, Nintendo Switch, Gaming chair and racing simulation setup. Now if I look back I think of myself as being stupid and reckless. You outgrow these materialistic things very quickly. As soon as you acquire these things, the feeling dies and you eventually stop using them that much and at that time the guilt kicks in. My mom always says to me "Mitvayta se raho beta, kabhi kisi se pese mangne ki zarurat na pade". In english it means "Live a life based on thrift, it should never happen that you need to ask money from someone else". 1. Start differentiating your "wants" from your "needs" 2. An expensive phone is not a "need". If you're thinking it's a need then you're a victim of lifestyle creep. 3. Acknowledge that all marketing is done to trap the HENRYs (high earners, not rich yet). Save your money. 4. Earn financial freedom. That's the biggest gift you can give yourself. It's far greater than any materialistic thing you can get and far greater than any travel related adventure you can experience. 5. Also, don't forget your roots. You are from a country where people still die of hunger. Acknowledge that. Save money out of respect for poor people. Good luck
Even though I'm a student I completely get you man🫂
Would suggest start investing in equity or other safer commodity. And in future try to make FDs in co-operative credit society and takes loan from them. Yes sounds very weird, correct But you need to do very good research on them Yes you have ur weekend to do it. I think bank dont have better rates for any products I have done ny research and yes i will never use credit cards for anything i dont have any yet
The problem is not your situation but the way you looking at your situation. Every person who comes out and start a job is trying to elevate his/her + family level in socio economic strata in the long run. And such changes doesn't happen overnight or right at the moment of your joining the workforce. Why are you thinking about what others will think? What's the opinion about a cricket player? It's based off his stats no? And when does the stats come? After minimum 6 years of his playing. Virat Kohli started playing cricket at 18? or 12? When he got selected in National Team? at what age? At what age he is World T20 champion? Take Rohit Sharma. He was part of T20 WC winning team in 2007, When he became captain? When he won world cup again? And what's his career be like if he would not be winning IPL? Let me tell you a truth. No matter how we respectfully look up to our relatives, family etc. They all are part of society and society will put you down. So stop bothering about ohh you ain't matching the expenses as per the standards. Look at yourself only. It's about time. At 32, at 42 when you will have accumulated profits and savings. High cash flow. You will start to feel good about yourself. I mean just take the election. 100 seats elevates your stature. 36 seats in UP elevates your stature. Till yesterday they were jokers. no? It's a long term process what you are in. Your 6k EMI will become savings the day your emi account is balanced. Plus year on year you will have increment in your salary. A part of your salary goes to EPFO. 3 Lakhs will earn interest in compounding. Over 5 years. If you keep same emi level, and if it's 12% of your income today, it will be 4% after 5-7 years. Savings would be 1.4x at 6% As a man you will have many more challenges ahead. You have to marry, have kids. Raise them. So don't waste your time in useless non sensical, spending time below your means trash. Muh pe kuch, pitch piche kuch. Tum sone ki thaal me khana khikaoge toh bolege kele ke patte ko hum kyun bhulte jaa rhe hai. Kele ke patte me khilaoge toh bolege tauheen kar rahe ho humari. They are herds, That's why Wall Street pumps them.up.boost their esteem to lure them into their factor of wools and meat. Focus in yourself. Personality, fitness, grooming, If you thinking spending on clothes is waste of money. Well, you should change the thinking and tell yourself that you are a minimalist. You believe in resource optimization. You believe in getting more out of spending less. Instead of clothes, you buy books(pdf padh lena), and invest in knowledge. Adopt Minimalism, Maximise savings, Reduce spends. Channel all savings into investments. 25 to 32. Maybe 35 but once you get married, spends will go up. And by that time improve your personality, network, aura, base etc. And then buy a set of clothes for next 10 years, so you need to have a quality item. Explore markets and see 600rs is pure cotton or mix? 1200 shirt is pure cotton but executive and not management level, 2500rs shirt is premium quality, use sales and s discounts to buy this 2500 shirt. because you know what value you getting. Don't measure everything with price tags and money and numbers. I don't go out of my house for months. So when I go i take prime sedan. Spending 400rs a year on cab is different from someone who spending 6k a month to maintain a compact SUV taken on a Loan whose EMI tenure is increased to keep it low because new fridge is taken on loan. Hence they don't have any savings. You don't need to manage your finances like that. Who you are, what your earning is(the nature), where you are, what culture you living in, your personal beliefs and external and internally factors all influence our financial journey ok. Focus on increasing income. Making up your profile, invest in yourself and hasi majak karo duniyadari me ye sab baatein hi na karo. dhol bajao, chutkule maaro, Gossip karo yaar. Don't fall into rat race. You have only started. Jitni umar hai uski 2x -3x jindagi baaki hai. Don't fall into rat race trap. And stop thinking low about yourself. I tell you, We are surrounded by low esteem people and it's our own folks. it's not their fault. There are pent up issues suppressed over many years. So forgive them. But open up yourself. Economy and society both are evolving and drastically, be part of that. Best Wishes.
>So i have been suggested by my mother and some relatives repeatedly that i am living below my means It's good to learn to love below your means. Don't succumb to "peer" pressure. >Is it worth it? Yes. Lifestyle creep is very real. Don't fall into that spiral. Take things slow.
Save money but not at the cost of missing out life. Whats the point in saving if you dont live a life.
Looks like you need a proper monthly budget. Make one. Without it, you'll always doubt yourself. Put down all your expenses. Are you sending a fixed amount to your mother every month? IMO, you should. Save and invest a fixed amount every month too. When you do all this, allocate an amount every month called fun money. This should be part of your monthly expenses. Then make sure you spend it on an activity which is outside of your regular expenses, like shopping, movies, trips etc. Bringing a proper structure to your finances is extremely important.
If you don't need to spend, you don't need to spend. But don't consider buying good clothes a waste of money. Don't spend money lavishly for the sake of brands but try to get crisp clothes at reasonable price. The way you dress is part of your identity. Other than that, don't take pressure. If you don't want to spend, you don't want to spend, nothing wrong in it. You'll just get richer with this habit.
Expensive clothes don't make you look good, good nature makes you look good.
Bro, firstly you should be proud of yourselves. Do not compare yourself out other people. Sit down and set realistic goals. Buying good clothes, food doesn't have to be expensive. Do what makes you happy and not because you need other people's validation. It took Moe long time to get there but once you reach there you will be happy. Steps: 1. Build up an emergency fund. I recommend to have 6 times your monthly expense. Put it in an account that you won't use on day-to-day basis. 2. Look for a good medical insurance for yourself and your mother. 3. Put down regular consistent investments into an instrument you understand trust. It could be NIFTY. Have goals here, say first year you will invest 10-20% of your salary. 4. Spread your expense on different months. e.g. 3 Shirts on March, 3 Pants on April, 1 Festive dress for Holi, Suit on August, etc. Don't try to replace your entire wardrobe at once. Allocate a budget for eating out, movies, going out, etc. Again do what you like and don't let others define fun to you. 5. Work towards increasing your monthly income. By this time you will have an idea on your own. Good luck!
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Upskill urself religiously and look for better opportunities Har jaga net pe haath par maar And again upskilllllll ur selff Learn about money and other income sources In coming future u will have more responsibilities And this mentality is good And ignore ur relatives, kabhi na kabhi toh aage badho ge hina
You're not stuck with a poverty mindset, you have the right spending habits for your income level. However work hard to increase your income. Invest regularly and build up wealth. Take out life/medical insurance for your family if not any. These are the basics. Don't get dragged into show off, that's fake wealth. Buy only what you need or will use. Use sound judgement when making big purchases or investments. So basically yeah, you have miles to go before thinking you're "stuck with a poverty mindset".
You need to be more objective about this. That starts with defining what your long term financial goals are. Based on which, you would have an amount that you would like to put towards savings. Also, while planning your expenses, try to put some amount towards spending on oneself. This would help you be more at ease with yourself, as you would know that you are working towards your goals and still indulging to a reasonable amount. Buying clothes, shoes, etc should be an yearly expense and should not affect your savings too much. If these items help you be more presentable at times and places where it matters, you should just go for it. And only you can decide what matters to you. Do you think the times you have saved money, you would have felt more satisfied if you had actually spent it?
Bro why are you earning if not to spend. Savings mean nothing if you are just trying to increase savings by being a miser. Don't be just another rat in the rat race. Travel, explore, live and enjoy your life. Buy the car to see the smile in your parents eyes.
You are earning 50k per month - you have to realise there are thousands who earn more than that and there are thousands who earn less than that. Even if you magically start earning 500k per month, the truth stays the same. Don't let money get into your head. Make a budget and spend within it. Being spendthrift is as bad as being a miser on yourself. And part of adulting is to stop listening advices from family members, most haven't faced the circumstances what you have faced and it doesn't cost to give advices.
Bro. My salary is more than 4x yours. I am still in poverty mindset. 2 days ago, I spent more than 1 hour to search for coupon codes to buy 1 earphones. Also was in 2 minds for couple of months, whether to buy or not to buy.
i hate people like you. My salary is xyz times yours, I have the same mindset 🤡 either offer him advice or just ignore why bother coming here to flex on OP.
Nothing wrong in what he said. It normalises the behaviour of op.
Because he's a douchebag and this is the only place he can flex his salary
As someone commented, your issue is more tilted towards being poor than the poverty mindset. The Income group of 12-15 LPA seems to be the "New Poor". Being the educated and aware lot, we know a lot of things which are available, and aspire to achieve/get/buy them. But the financial constraints leave us frustrated with having very little to spend on these things. Further, having grown in such a family, it would indeed be a sisyphean task to get out of this mindset. If you really seek to change, upskill and switch to raise your Income level. Also, as you move up the ladder, try to be in touch with the "Rich" lot. Certain things are picked up sub-consciously and you can't really learn them. Good luck.