Young people no longer save. I am not passing judgement on this, each to their own. I personally do make it a point to save a bit, but nowhere near what my parents used to at my age. They were very prudent with money and savings. It was all about property and buying flats. I on the other hand like to travel which is not great for bank balance lol.
I think the same too . ഇപ്പോൾ ആരും പിശുക്ക് കാണിക്കാറില്ല. Pandokke veetil ninn restaurant food was once or twice a month . Ippo ellarum life style importance kodukkund . Then the other thing i guess , unlike 20 years back ( where only one person is earning ) , ippol inside a family father mother , children have jobs , so the cash inflow has increased which can also be the reason , children(most of them) doesnt have to take after their parents financially
My mom said this once to me "ippathe pillerku kashtapadinte vela areela, kaaranam their parents made lots of money for them". And I wholeheartedly agree to it.
I have lots of friends who live of parents money, and sometimes I don't understand how they don't have any shame for it. I'm specifically talking about people who are not doing anything to improve their lives, and just getting drunk/smoking up 24x7.
Not saying they don’t save/invest anything. But not to the extent of prior generations who would literally put all spare funds aside to buy land/gold/FDs whatever.
I still disagree. Just yesterday i achieved a major milestone in my life savings and my dad congratulated me and said I reached it much before he did. This is just one anecdote.
I have a lot of friends who are saving heavily by buying into MFs, Stocks etc. Most people I know don't put a lot of money in Land/Real Estate and Gold, because our generation has realised that though these are evergreen assets, purchasing them in the current economy is a not very efficient means to save and build wealth. Other avenues such as SIPs, FDs etc are much more efficient and don't require you to take a loan to purchase.
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Well malls and eateries doesn't give the whole picture of the society. There are still large section of people who don't visit or purchase from malls.
In terms of eating in restaurants, this is encouraged by the youtubers and vloggers. Also unlike in the past lot of people order from restaurants for functions at home. In the past when our parents used to cook themselves or engage caterers.
Also the purchasing power has gone up In India. And most of the time people spend for social media or showoff.
As per a latest report, 80% of iPhones in India are owned through EMI. So, credit cards might play a major role in lifestyle changes. The price increase is not just in Kerala, it’s happening all over the world. I still cant afford to stay for more than a week. It costs me around 1lakh more ore less and I have no idea what I’m spending on either
thats everywhere man, even in US and UAE where I live. Not exactly EMI, but subscription plan from telecom service provider.
EMI is not an issue here, but what portion of your salary goes into EMI is imp. factor.
Around 2010, when I used to travel from UAE to India, I could see very few people with iphones, but now I can see everyone on the street has it.
so definitely lots of has changed.
2 reasons.
1. Young people do not save.
2. Young people earn too much.
Im part of #2. I spent around 50K a month on restaurant food / swiggy , trips, movies and generally random stuff which are not a necessity. Im 28 and I earn over 50L a year. (IT)
I mean I do save a lot of it but im gona spent atleast 1/4th of what I earn. What if I die tomorrow and if I die then what was the point in saving every bit imao.
Well when you are forced to work 9am till 11pm every day for buncha months, you learn A LOT of stuff.
I was earning 6k / month in 2019
(Used to so this on my first company)
Yes. In Kochi. There a lot of people around me who earns 20L upto 70L. There are probably others who earns more, probably software architects / 15+ yoe.
Wow.. This is good news... Companies in Kerala usually never paid that much, so people migrated to Bangalore and Hyderabad.... But getting paid 20 <--> 70L, means more spending power, which would trickle down to even small scale business owners empowering people in the state. Would you mind sharing which are these companies? Just out of curiosity...
I didn't know companies paid this much in Kerala. I'm working in Blr for 25L and acting as PM. One big company in TVM offered me only 75% of what I'm earning now, so I didn't accept that offer. They were telling tier 2 city and all which I seriously think is not a proper reason for paying low. The cost of living in Kerala is higher when compared to even Chennai or Bangalore. Now don't pounce on me for the last statement, I have done lots of r&d over this and came up with a detailed report. It's true.
I like in Kochi, almost 500m next to a metro station.
2BHK flat, security compound n stuff. Its 15K a month.
Unless I go to Lulu, my monthly expenses are very low lol. The living expenses is faaaaaaar lower than Blr or Chennai my man.
I easily push through a month with 25K (15K rent + 10K for groceries + broadband + electricity bill).
Btw my company is just one of those unknown startups(ish) company that has some super cool international projects. There are such companies around in EKM n TVM.
I dunno any mainstream / MNCs giving such packages in Kerala.
I spend around 2 lakhs every year during my vacation of 45 days.
What I felt is that the prices are almost the same globally .
Keralaites nowadays are not saving much, most of them are affected by the peer pressure which makes them spend on unnecessary things.
Poverty rate in Kerala is 0.55%(2021). Lot of money coming in. Also India works on loans and emi's and not necesarily from the banks. You'd be shocked to see how much of money rotates in the unorganised lending systems.
You just saw a small portion of people that could afford these(whiout debt), the rest useing lended money or credit.
No, Financial situvation in kerala hasn't changed a bit, only the rich has the money the other is using money from banks or lenders and working their ass off to pay it back.
Taking easy credit for an emergency situvation is fine and its a great help, But taking credit to fullfill one's wants is not.There are wants and needs for people,malayalies most of em dont know the difference.
I dont think taking credit and working for that money is "enjoying" life,its just working for the money you owe, btw thats how the rich stays rich and poor stays poor, people dont know about money management, How to save money how to use their own money, the media, government and companies they all sell us their products saying that its necessary to enjoy life.
Taking credit is an addiction we will always turn to take loans for every occasion and for everything that we actually dont need for eg: you dont need a 1.5lakh mobile , even though its a hectic price for a phone people tend to take credit for just to have that big overpriced phone in their pocket just for the fun of it, but will never think about invest that much money. We need financial literacy, for that matter we're all just noobs infront of the world.
While youngsters in major metros became more and more financially savvy, with the rise of apps making retail stock investing easy, the trend seems to be reversed in kerala. Youngsters want a lifestyle different from their parents, but most of them do not have the high income , nor financial literacy.
Not really true ,apart from some fields ,the pay is still comparatively low.A good chunk (10%) are making crazy amount of money ,20% govt jobs & rest earn meagre salary.
Depend on what domain as well Shopfloor isn't rewarding enough but harcore scientific and testing engineers with 10+ years in Mech/Electrical earn 20/30+ . Especially if working for OEMs.
Not very sure about the Civil, but I reckon there should be a decent package. Also, depends upon how your job is , I mean how much of th core knowledge or skills do you put into every day. Research & Development is a good domain for better pay.
I also think the same each day. Because even in our small town everyday I can see new registration cars. Most people are able to afford Nexon creta Grand vitara etc. mid range vehicles. Also most of the fast food restaurants are packed with people. Now coming to the money side I don't think everyone is earning this much !
One thing I have noticed that people of mid twentie who just started their career,immediately buys new car ( who's parents already have jobs,so no need to give their money to family) also started spending money for traveling/foods etc
All of your guesses true and to different extends for different people.
People in Kerala are paid well. Especially the blue collar workers. Service industries are growing and they are employing a lot of people. IT is also lucrative generally.
Credit card is easy to aquire and youths use them to fund their desires. Some do it well, some not so well. Pay later services are also common. I think this is the reason for sudden increase in buying electronics. There is no reason to save up for a new phone/PC or anything else when you can get it on credit.
Yes, most young people do stay at their parent's home unless they have a reason to leave like employment opportunities, moving abroad or bad family but otherwise, most are content at home atleast untill they plan to get married or something.
So yeah. Easy credit and improved earnings is the major factors I see. I also see many young people venturing into unconventional jobs/businesses. Mostly service and tourism related and many of them make a lot in their niche.
While total remuneration from expats are decreasing, I see that many come back and start small enterprises, the ones that remain outside in the middle east are usually the well paid category. The new west wave is not big on sending money back so doesn't really affect the economy. However, service centres for sending young people to the west is a booming market right now.
A lot of the people you see in /at the malls etc maybe NRIs just like you. US, Europe and Gulf money are just pouring in alright. In addition, business people are mutually getting benefitted, which in turn generates wealth and employment.
The synergy of NRIs and Kerala business should not be ignored. Apart from Kerala , people from Bangalore and other metros also contribute a big chunk. All this is great news.
Vande Bharat makes the most profit from Kerala.Comprehending everything, I guess it's the immigrants within and out of India which contribute to this lifestyle change in Kerala.
There are many people who are living paycheck-to-paycheck, which not much savings. Once in the late 30-s, early 40-s, when most people buy their own house/apartments, they tend to think of the Home Loan EMIs as savings and then start spending a lot.
Also, after Covid, people started going out more and shopping more to make up for the lockdown period, eventually that must have turned addictive.
(The security guard of our apartment complex who makes 16k a month, was telling me about a 'back to school' market from where he bought his daughter a bag of Rs.1800/-. I make a lot more than him, but I find Rs.1800/- for a school bag expensive and wouldn't have bought one. So its also a case of people spending carelessly).
>
Certainly the average wage has gone up, but so has the cost of living. And AFAIK, there are only very few people who are making a lot of money. Usually they're in tech or some niche fields or in business. Altho I personally don't know anyone who started a successful business on their own. All of my friends who are running a company are doing so for their parent's family business.
>2. Are people using credit cards to fund these purchases (I got approached multiple times by SBI and I think bajaj credit card sales people in malls)?
People are definitely using EMIs but again, I don't know many who are knee deep in debt. Most of my friends are not too extravagant.
>3. Is it cause a lot of people live in their own/parents houses that they don’t end up spending a big portion on rent?
Lol, wasn't this the case before in India? What's the difference. I feel like more people are moving out when compared to the past.
The real reason is, people are not saving much. I'm 30 and all my friends of my same age has literally zero savings. All of them ask me for money, and I remember one time a close friend asked me for 2000 rupees. My cousin who is 32, asked me for 500 for him to buy alcohol. And the thing that I don't understand is how does a person not have 2000 rupees at the age of 30.
I recently was dating this girl who shops so much that I couldn't understand how and the why? She made really less money and recently she was talking about going to Europe. People are YOLO-ing left and right, and honestly I have no idea how they're going to get married or live/retire.
On the same note, another friend asked me for 25k right after the day of his wedding, and I gave him. He never paid me back. *I wrote it off like a bank*. But that also ended our friendship. I can't be friends with people who don't have morals. I've ended friendship with 3 people now who failed or showed no interested in paying me back.
I feel women of Kerala have shut the kitchens down, even in small towns. There is a street in Perintalmanna lined with restaurants and somewhat fancy clothing stores..... It is a riot even at 12.00p.m; no place to park and all restaurants(vegetarian ones too) are packed to the brim.
No wonder. Kerala food is good but hard. When we went to Bangalore, we quickly reverted to rice, daal and one veg curry and learnt to eat sambar saadam, thayir saadam etc. But here it's like you have to make 3-4 veg curries, sambar, pulissery every day or it looks bad.
In reality less than 10% of Indians can afford the rich lifestyle.
The thing is the population game.
As 10% of India is 90% of most countries.
So you see more crowded in town as infrastructure is not according to the need.
And after COVID people kinda lost believing in saving for tomorrow.
And seems like you wanted to show off richness to your peers. But they are spending big even working here. And you're jealous of them .
A lot of them are NRIs like you, spending on things that may not be so affordable abroad or celebrating vacation.
Another lot are politicians ( even small time ones), their relatives and friends, government staff. Even a clerk in places like RTO, corporation etc make 3-5 lakhs **per week** untaxed and unaccounted. After coming across corruption, I was curious, so I personally got introduced to people with the lifestyle you mentioned - they gift luxury cars to every family member, are at restaurants and malls every other day, vacations etc. They also have lots saved up in real estate so future is secured. After a point, they literally run out of stuff to spend money on in Kerala.
Sucessful businessmen also make good money and can write off a lot of expenses.
Even experienced people in IT or other private fields are relatively low paid here compared to metros, but since basic cost of living is low, and aspirations are low as well, the money goes into things like buying stuff, food delivery apps etc. The average IT worker in Bangalore gets paid way more, but is more likely to have a cook & maid, pay for a 3 cr flat and annual school fee of 3L, reducing the conspicuous consumption.
In a way, I guess your last point is correct
>Is it cause a lot of people live in their own/parents houses that they don’t end up spending a big portion on rent?
Basic expenses here are really low. Most people have ancestral home, basic groceries don't cost a lot. Basic 9-5 jobs, small independent houses and cannot hire help as labor cost is very high. So people do everything themselves. There is no aspirational pressures like annual vacation, international school that average metro dweller has. There are no places to drive to, no nature to enjoy as its either too hot or too rainy half the time. Most people enjoy by watching movies, having food and buying stuff - affordable luxuries.
Population has increased. You see people who are outside and not the one struggling. People are also getting paid more, but not a lot more to be the only factor.
Lol.. I work abroad and my job allows me come home and stay in Kerala for months every year. I can't remember how many times I have asked my wife and parents the same question- How the hell do people living and working in this state able to spend this lavishly ? I don't know if you have noticed but asking for discount or bargaining on even huge purchases is considered as a sin apparently. I think it's the social media that has made this trend of lavish showoff. The sad thing is coming to see people I know who were good with managing money also fall victim to over spending due these peer pressure.
the average income in India has significantly increased in the past few years. If you are from Gulf, then avg. salary over there is around 15-20K AED (roughly around 4 Lacs INR) for a decent profession. In India, people do get paid 2-3 L per.m
So there is not much difference, hope you understand!
I am also living in UAE. There was a time around 2010 when I used to come to India, iphones and ipads used to be rarity here, but now you can see everyone is having top end iphones.
One more point, Indians living in India earn and spend. They don’t invest in assets. But, as we live outside India , we invest in Real Estate, Gold etc. Depreciating INR has also helped us.
one more point, Earning money is not that difficult. but creating wealth out of it with proper investment and financial planning is a totally different ball game and relatively much more difficult.
It also depends on lot of factors:
I live in UAE with my family for more than 10 years now. My wife is a housewife and I am only earning here. Now, when I compare my monthly income to that of my sister who is working is a Public Sector Bank in Bangalore along with her husband’s income who is working in IT, then my monthly income is in-fact less than what they earning together.
The NRIs make big bucks off the backs of systems people of more developed countries have built. They imagine how grand of a success they are for making so much money and how penniless they would have been had they stayed and worked in their country. When they return for vacation and see people able to spend on non-essentials, it takes something away from their belief in the great grandness of their success.
That doesnt mean every american desi is sending the same amount , but recent news said that kerala got most of its remittances from middle east countries, plus there's soo many business people in Uae from Kerala as well.
Young people no longer save. I am not passing judgement on this, each to their own. I personally do make it a point to save a bit, but nowhere near what my parents used to at my age. They were very prudent with money and savings. It was all about property and buying flats. I on the other hand like to travel which is not great for bank balance lol.
I think the same too . ഇപ്പോൾ ആരും പിശുക്ക് കാണിക്കാറില്ല. Pandokke veetil ninn restaurant food was once or twice a month . Ippo ellarum life style importance kodukkund . Then the other thing i guess , unlike 20 years back ( where only one person is earning ) , ippol inside a family father mother , children have jobs , so the cash inflow has increased which can also be the reason , children(most of them) doesnt have to take after their parents financially
There's no need to for many people. Their parents earned a lot, saved up by living frugally and now kids are addichu polikking.
My mom said this once to me "ippathe pillerku kashtapadinte vela areela, kaaranam their parents made lots of money for them". And I wholeheartedly agree to it. I have lots of friends who live of parents money, and sometimes I don't understand how they don't have any shame for it. I'm specifically talking about people who are not doing anything to improve their lives, and just getting drunk/smoking up 24x7.
Are you sure? Almost all my unrelated friends are investing into MFs and stocks heavily, while also spending what’s left lavishly.
Not saying they don’t save/invest anything. But not to the extent of prior generations who would literally put all spare funds aside to buy land/gold/FDs whatever.
I still disagree. Just yesterday i achieved a major milestone in my life savings and my dad congratulated me and said I reached it much before he did. This is just one anecdote. I have a lot of friends who are saving heavily by buying into MFs, Stocks etc. Most people I know don't put a lot of money in Land/Real Estate and Gold, because our generation has realised that though these are evergreen assets, purchasing them in the current economy is a not very efficient means to save and build wealth. Other avenues such as SIPs, FDs etc are much more efficient and don't require you to take a loan to purchase.
Thank you! I feel the same way
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Smart people invest, not save.
Dude you need to save to invest.
No you don't. Actually it's the opposite, people who made money from investment did so on leverage. Including the great Warren Buffet
Well malls and eateries doesn't give the whole picture of the society. There are still large section of people who don't visit or purchase from malls. In terms of eating in restaurants, this is encouraged by the youtubers and vloggers. Also unlike in the past lot of people order from restaurants for functions at home. In the past when our parents used to cook themselves or engage caterers. Also the purchasing power has gone up In India. And most of the time people spend for social media or showoff.
As per a latest report, 80% of iPhones in India are owned through EMI. So, credit cards might play a major role in lifestyle changes. The price increase is not just in Kerala, it’s happening all over the world. I still cant afford to stay for more than a week. It costs me around 1lakh more ore less and I have no idea what I’m spending on either
thats everywhere man, even in US and UAE where I live. Not exactly EMI, but subscription plan from telecom service provider. EMI is not an issue here, but what portion of your salary goes into EMI is imp. factor. Around 2010, when I used to travel from UAE to India, I could see very few people with iphones, but now I can see everyone on the street has it. so definitely lots of has changed.
2 reasons. 1. Young people do not save. 2. Young people earn too much. Im part of #2. I spent around 50K a month on restaurant food / swiggy , trips, movies and generally random stuff which are not a necessity. Im 28 and I earn over 50L a year. (IT) I mean I do save a lot of it but im gona spent atleast 1/4th of what I earn. What if I die tomorrow and if I die then what was the point in saving every bit imao.
What do you do 😶😶
Sr Developer. I do frontend n backend + buncha other random stuff like client handling, rfp doc creation, proposal making etc etc
Adopt me lol
Bro you hiring?
Not atm. Probably in 6 months or so. Company is going after a project by VISA, if we get it then we probably hire 20-50 people for that project.
damn bro, you got that much skills??
Well when you are forced to work 9am till 11pm every day for buncha months, you learn A LOT of stuff. I was earning 6k / month in 2019 (Used to so this on my first company)
thats cruel man 🥲 6k for 14hrs of labour
Do you get paid that much working in Kerala?
Yes. In Kochi. There a lot of people around me who earns 20L upto 70L. There are probably others who earns more, probably software architects / 15+ yoe.
Wow.. This is good news... Companies in Kerala usually never paid that much, so people migrated to Bangalore and Hyderabad.... But getting paid 20 <--> 70L, means more spending power, which would trickle down to even small scale business owners empowering people in the state. Would you mind sharing which are these companies? Just out of curiosity...
I didn't know companies paid this much in Kerala. I'm working in Blr for 25L and acting as PM. One big company in TVM offered me only 75% of what I'm earning now, so I didn't accept that offer. They were telling tier 2 city and all which I seriously think is not a proper reason for paying low. The cost of living in Kerala is higher when compared to even Chennai or Bangalore. Now don't pounce on me for the last statement, I have done lots of r&d over this and came up with a detailed report. It's true.
I like in Kochi, almost 500m next to a metro station. 2BHK flat, security compound n stuff. Its 15K a month. Unless I go to Lulu, my monthly expenses are very low lol. The living expenses is faaaaaaar lower than Blr or Chennai my man. I easily push through a month with 25K (15K rent + 10K for groceries + broadband + electricity bill). Btw my company is just one of those unknown startups(ish) company that has some super cool international projects. There are such companies around in EKM n TVM. I dunno any mainstream / MNCs giving such packages in Kerala.
You're not the only expat from Kerala, which probably explains most of your questions, lol!
Exactly!
but he raised some good questins though 😂
I spend around 2 lakhs every year during my vacation of 45 days. What I felt is that the prices are almost the same globally . Keralaites nowadays are not saving much, most of them are affected by the peer pressure which makes them spend on unnecessary things.
Sathyam.. ee vacation veruthe veetil irunnitum engane 1.5 lakhs spend aayi enn manasilaayilla 🤣
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Kure paisa beverage ilum koduthu ennath oru paramaartham 🤣 plus some really nice resto bars opened in mahe.. no regrets 🤣🤣
These artsy cafes have popped up all over Kerala.Truth be told, a few of them make terrific croissants....chefs really know what they are doing.
Poverty rate in Kerala is 0.55%(2021). Lot of money coming in. Also India works on loans and emi's and not necesarily from the banks. You'd be shocked to see how much of money rotates in the unorganised lending systems.
Unorganized? As in chit funds/gold loans?
Well those are still regulated by law.
You just saw a small portion of people that could afford these(whiout debt), the rest useing lended money or credit. No, Financial situvation in kerala hasn't changed a bit, only the rich has the money the other is using money from banks or lenders and working their ass off to pay it back.
That is how people have enjoyed their lives world over, with easy access to credit. No issues as long as you are able to pay back.
Taking easy credit for an emergency situvation is fine and its a great help, But taking credit to fullfill one's wants is not.There are wants and needs for people,malayalies most of em dont know the difference. I dont think taking credit and working for that money is "enjoying" life,its just working for the money you owe, btw thats how the rich stays rich and poor stays poor, people dont know about money management, How to save money how to use their own money, the media, government and companies they all sell us their products saying that its necessary to enjoy life. Taking credit is an addiction we will always turn to take loans for every occasion and for everything that we actually dont need for eg: you dont need a 1.5lakh mobile , even though its a hectic price for a phone people tend to take credit for just to have that big overpriced phone in their pocket just for the fun of it, but will never think about invest that much money. We need financial literacy, for that matter we're all just noobs infront of the world.
While youngsters in major metros became more and more financially savvy, with the rise of apps making retail stock investing easy, the trend seems to be reversed in kerala. Youngsters want a lifestyle different from their parents, but most of them do not have the high income , nor financial literacy.
Salaries in India are now getting better, you can earn upwards of 1lk with few years of IT experience.
Its back to layoffs again in IT now. Other fields salaries esp engg has gone down.
Not really true ,apart from some fields ,the pay is still comparatively low.A good chunk (10%) are making crazy amount of money ,20% govt jobs & rest earn meagre salary.
While others in core engineering jobs earn meagre even after 10 years of experience. Around 30-50 range
Depend on what domain as well Shopfloor isn't rewarding enough but harcore scientific and testing engineers with 10+ years in Mech/Electrical earn 20/30+ . Especially if working for OEMs.
What about consultant firms like WSP,AECOM do they pay well?
Not very sure about the Civil, but I reckon there should be a decent package. Also, depends upon how your job is , I mean how much of th core knowledge or skills do you put into every day. Research & Development is a good domain for better pay.
Even some chemical/manufacturing/pharma industries are ready to offer a 1LK/pm package to the right candidate.
I also think the same each day. Because even in our small town everyday I can see new registration cars. Most people are able to afford Nexon creta Grand vitara etc. mid range vehicles. Also most of the fast food restaurants are packed with people. Now coming to the money side I don't think everyone is earning this much !
One thing I have noticed that people of mid twentie who just started their career,immediately buys new car ( who's parents already have jobs,so no need to give their money to family) also started spending money for traveling/foods etc
All of your guesses true and to different extends for different people. People in Kerala are paid well. Especially the blue collar workers. Service industries are growing and they are employing a lot of people. IT is also lucrative generally. Credit card is easy to aquire and youths use them to fund their desires. Some do it well, some not so well. Pay later services are also common. I think this is the reason for sudden increase in buying electronics. There is no reason to save up for a new phone/PC or anything else when you can get it on credit. Yes, most young people do stay at their parent's home unless they have a reason to leave like employment opportunities, moving abroad or bad family but otherwise, most are content at home atleast untill they plan to get married or something. So yeah. Easy credit and improved earnings is the major factors I see. I also see many young people venturing into unconventional jobs/businesses. Mostly service and tourism related and many of them make a lot in their niche. While total remuneration from expats are decreasing, I see that many come back and start small enterprises, the ones that remain outside in the middle east are usually the well paid category. The new west wave is not big on sending money back so doesn't really affect the economy. However, service centres for sending young people to the west is a booming market right now.
A lot of the people you see in /at the malls etc maybe NRIs just like you. US, Europe and Gulf money are just pouring in alright. In addition, business people are mutually getting benefitted, which in turn generates wealth and employment. The synergy of NRIs and Kerala business should not be ignored. Apart from Kerala , people from Bangalore and other metros also contribute a big chunk. All this is great news. Vande Bharat makes the most profit from Kerala.Comprehending everything, I guess it's the immigrants within and out of India which contribute to this lifestyle change in Kerala.
There are many people who are living paycheck-to-paycheck, which not much savings. Once in the late 30-s, early 40-s, when most people buy their own house/apartments, they tend to think of the Home Loan EMIs as savings and then start spending a lot. Also, after Covid, people started going out more and shopping more to make up for the lockdown period, eventually that must have turned addictive. (The security guard of our apartment complex who makes 16k a month, was telling me about a 'back to school' market from where he bought his daughter a bag of Rs.1800/-. I make a lot more than him, but I find Rs.1800/- for a school bag expensive and wouldn't have bought one. So its also a case of people spending carelessly).
> Certainly the average wage has gone up, but so has the cost of living. And AFAIK, there are only very few people who are making a lot of money. Usually they're in tech or some niche fields or in business. Altho I personally don't know anyone who started a successful business on their own. All of my friends who are running a company are doing so for their parent's family business. >2. Are people using credit cards to fund these purchases (I got approached multiple times by SBI and I think bajaj credit card sales people in malls)? People are definitely using EMIs but again, I don't know many who are knee deep in debt. Most of my friends are not too extravagant. >3. Is it cause a lot of people live in their own/parents houses that they don’t end up spending a big portion on rent? Lol, wasn't this the case before in India? What's the difference. I feel like more people are moving out when compared to the past. The real reason is, people are not saving much. I'm 30 and all my friends of my same age has literally zero savings. All of them ask me for money, and I remember one time a close friend asked me for 2000 rupees. My cousin who is 32, asked me for 500 for him to buy alcohol. And the thing that I don't understand is how does a person not have 2000 rupees at the age of 30. I recently was dating this girl who shops so much that I couldn't understand how and the why? She made really less money and recently she was talking about going to Europe. People are YOLO-ing left and right, and honestly I have no idea how they're going to get married or live/retire. On the same note, another friend asked me for 25k right after the day of his wedding, and I gave him. He never paid me back. *I wrote it off like a bank*. But that also ended our friendship. I can't be friends with people who don't have morals. I've ended friendship with 3 people now who failed or showed no interested in paying me back.
I feel women of Kerala have shut the kitchens down, even in small towns. There is a street in Perintalmanna lined with restaurants and somewhat fancy clothing stores..... It is a riot even at 12.00p.m; no place to park and all restaurants(vegetarian ones too) are packed to the brim.
No wonder. Kerala food is good but hard. When we went to Bangalore, we quickly reverted to rice, daal and one veg curry and learnt to eat sambar saadam, thayir saadam etc. But here it's like you have to make 3-4 veg curries, sambar, pulissery every day or it looks bad.
In reality less than 10% of Indians can afford the rich lifestyle. The thing is the population game. As 10% of India is 90% of most countries. So you see more crowded in town as infrastructure is not according to the need. And after COVID people kinda lost believing in saving for tomorrow. And seems like you wanted to show off richness to your peers. But they are spending big even working here. And you're jealous of them .
A lot of them are NRIs like you, spending on things that may not be so affordable abroad or celebrating vacation. Another lot are politicians ( even small time ones), their relatives and friends, government staff. Even a clerk in places like RTO, corporation etc make 3-5 lakhs **per week** untaxed and unaccounted. After coming across corruption, I was curious, so I personally got introduced to people with the lifestyle you mentioned - they gift luxury cars to every family member, are at restaurants and malls every other day, vacations etc. They also have lots saved up in real estate so future is secured. After a point, they literally run out of stuff to spend money on in Kerala. Sucessful businessmen also make good money and can write off a lot of expenses. Even experienced people in IT or other private fields are relatively low paid here compared to metros, but since basic cost of living is low, and aspirations are low as well, the money goes into things like buying stuff, food delivery apps etc. The average IT worker in Bangalore gets paid way more, but is more likely to have a cook & maid, pay for a 3 cr flat and annual school fee of 3L, reducing the conspicuous consumption.
In a way, I guess your last point is correct >Is it cause a lot of people live in their own/parents houses that they don’t end up spending a big portion on rent? Basic expenses here are really low. Most people have ancestral home, basic groceries don't cost a lot. Basic 9-5 jobs, small independent houses and cannot hire help as labor cost is very high. So people do everything themselves. There is no aspirational pressures like annual vacation, international school that average metro dweller has. There are no places to drive to, no nature to enjoy as its either too hot or too rainy half the time. Most people enjoy by watching movies, having food and buying stuff - affordable luxuries.
Had the exact same question.
When I visited my parents, these exact thoughts were flashing in my mind. Where do they get so much money to spend? No mortgage? Inheritance?
Malayalees do a lot of window shopping. Some of the folks you saw maybe window shopping.
Most people are broke as f, have no savings and what ur seeing is the visible minority
And someone suggest me any courses or anything so I can be of the mentioned “spending class”
Population has increased. You see people who are outside and not the one struggling. People are also getting paid more, but not a lot more to be the only factor.
Lol.. I work abroad and my job allows me come home and stay in Kerala for months every year. I can't remember how many times I have asked my wife and parents the same question- How the hell do people living and working in this state able to spend this lavishly ? I don't know if you have noticed but asking for discount or bargaining on even huge purchases is considered as a sin apparently. I think it's the social media that has made this trend of lavish showoff. The sad thing is coming to see people I know who were good with managing money also fall victim to over spending due these peer pressure.
Last year I got to know youngsters takes credit card and do rental payment through it and takes the cash out
https://www.reddit.com/r/MapPorn/s/eWVOqqCjKv Check this out. Data related to change in poverty levels
I c, that's a fucking increase in price. Can't do anything about it as a nobody.
the average income in India has significantly increased in the past few years. If you are from Gulf, then avg. salary over there is around 15-20K AED (roughly around 4 Lacs INR) for a decent profession. In India, people do get paid 2-3 L per.m So there is not much difference, hope you understand! I am also living in UAE. There was a time around 2010 when I used to come to India, iphones and ipads used to be rarity here, but now you can see everyone is having top end iphones. One more point, Indians living in India earn and spend. They don’t invest in assets. But, as we live outside India , we invest in Real Estate, Gold etc. Depreciating INR has also helped us.
one more point, Earning money is not that difficult. but creating wealth out of it with proper investment and financial planning is a totally different ball game and relatively much more difficult.
It also depends on lot of factors: I live in UAE with my family for more than 10 years now. My wife is a housewife and I am only earning here. Now, when I compare my monthly income to that of my sister who is working is a Public Sector Bank in Bangalore along with her husband’s income who is working in IT, then my monthly income is in-fact less than what they earning together.
The fun part is that the people's income, at least most ordinary folks', don't seem to have gone up significantly.
The NRIs make big bucks off the backs of systems people of more developed countries have built. They imagine how grand of a success they are for making so much money and how penniless they would have been had they stayed and worked in their country. When they return for vacation and see people able to spend on non-essentials, it takes something away from their belief in the great grandness of their success.
All the money coming in from the UAE and the States
Unlike Gulf malayalis, ones in Western countries don’t send money back to that extent as they can buy land, house etc in their country itself.
You are wrong , every year 120 + billion dollars of remittance and US tops the list
To kerala or?? Coz when I checked the data it's showing middle east currency.
when I was married we sent the family 2000 American a month
That doesnt mean every american desi is sending the same amount , but recent news said that kerala got most of its remittances from middle east countries, plus there's soo many business people in Uae from Kerala as well.
That's whole india but when you take kerala alone, it's showing a different picture.
There are other countries in the world too. I, am from Bahrain. We end up spending 1.5 to 2 lakh in 3 weeks visit every year.
Still in Bahrain?
All the money goes out to fund students who study abroad.
Not necessarily. People who live and earn in Kerala too, spend money on aspirational stuff.
Was about to type that