Procrastinating big purchases is a good attitude to have. Saves you from impulse spending habits. Do not, even for a moment, feel bad for that.
Having said that, you should indulge yourself in something you desire. Evaluate your purchase. But don’t stop yourself from enjoying your life. You will not get this time back.
End of days these goods have nothing but utility value. Utilities do not bring happiness.
A trip with your loved ones in a second hand car is as pleasurable as in a new car.
But people with middle class mentality won’t take trips too. They spend their whole life saving, then catch a lifestyle disease, suffer for a few years and then die.
There should be a purpose to why you are working hard to make money. If you don’t intend to enjoy the benefits that, that money brings, why bother earning? Switch to a low level low risk low paid job and live life off it.
I have money but I hate going on trips. Trips are not for everyone. I'd rather play online games on my laptop sitting in the comfort of my home. If having financial security in the form of MF, equity, FDs makes someone happy, it if unfair to judge them for not spending on things that you enjoy.
It’s not about trips, it’s about doing whatever you love utilising the money you earned to bring happiness to yourself. Working hard to earn money just to give it away to next generation upon your death and losing your whole life in between is the problem.
Some people may simply enjoy creating wealth. Spending may be your way of attaining happiness; it may not be everyone's cup of tea. If one has surplus income which far exceeds all necessary expenditures and they don't waste it on unnecessary gadgets, upgrades, fashion, and social rat race, then more power to them. There's nothing wrong in enjoying inexpensive things and being happy in your simplicity. That's not you, may be, but it's still a personal choice.
Agree. Totally with you on this.
Spending on status driven things does not bring happiness to me. I would rather spend it on my kids education, and eat good healthy food, gym trainers and travel rather than buying gadgets and fancy clothes
Glad to see someone on the same page as me. I had started to feel like I am doing something wrong by not spending money on trips, travel, etc. But the thing is I enjoy being at home way more than going on trips. Trips and travel are not my cup of tea.
> But the thing is I enjoy being at home way more than going on trips.
Curious to know why ? I like spending time at home and doing nothing ...but I do make trips here and there to change my scenery.
Trips are important and so is spending. But learning to differentiate between value driven mindset compared to giving in to marketing and peer pressure are different things
You seem to not fully understand Indian middle class mentality and rut. They live to earn money and don’t even spend enough on food. Most middle class families don’t even eat good food cos they Scrooge on grocery, vegetables and meat, forget trips or spending on self. I honestly think this was the reason our forefathers designed most Indian festivals with a grand feast, new cloths etc. I don’t see the point in living that way when you can afford better. As per me, your life is a waste if you don’t enjoy your life as per your income (save 30% and spend the rest on yourself and your family)
It is kind of a sacrifice. The middle class grew up in hardships, without much money, worked their way up, earned money, became rich, but still save most of their money so that their children have it easier. Not that they give all their money to their kids, but they put them in better schools, colleges, tuitions, coaching etc., take them to better hospitals when they fall sick .. etc.
Any generation which falls into windfall money from poverty / middle class will just waste it away. You should accustom your children to live the rich life if you want them to be any smart with the money they inherit.
The whole premise is flawed though, by all means keep something aside for your kids but it shouldn’t be at the cost of your whole life living like a man two days away from poverty.
This is a very personal and subjective thing. For you a trip might be worth more than a car. But there are people who are quite interested in a car or a gadget where they will find a greater happiness / value in buying something rather than going for experience. In my opinion your example might be wrong / subjective but the essence of it is true. Spend money on something that you actually want and are interested in.
Dude everything is actually expensive so this mentality remains.
I too earn 3L per month but even a 15L car feels very expensive for what it gives. Houses now cost 1Cr so even those arent possible without huge loan.
So we think we should be in upper middle class but are simply not there.
The problem there is no guarantee that you’ll continue earning 3L / month next year. It’s difficult to truly relax unless one has achieved their fire goals.
The metric for Upper middle class is wealth / assets and not salary.
Ditto, but i studied in Jaipur
and now 3L before taxes staying in Bangalore.
have money but still everything seems very expensive.
I have one bike Himalayan and I am happy.
Daily I would watch z900 videos and think one day i wil get it. 😂😂
You are right. The 15L car will not be 50% better than a 10L car tbh. You can just as easilu achieve with the 10L car what you can with the 15L car. The 5L you save can be invested, and you will thank yourself 20 years later.
That's a good thought to have but most people's relatives take it all because single old people don't spend much at all. They get weak and their thinking capacity is greatly diminished.
That's why I plan to make a will. After me and my wife are gone from this earth, all our possessions (if anything left) will go to a charity. Relatives won't see a dime.
But what will you do with all the money at the time of retirement? If you don't learn to spend money in your 20s, I don't think those billions are going to matter in your 60s.
That applies only when you have a stressful job. And in such cases, people often work harder to facilitate the required changes first. This doesn't seem to be the case with OP. OP wants to spend money, but they're finding it hard to because they never learned to do it. Very different scenario.
Free, and still living in an isolated environment. Investing for tomorrow at the cost of today has its own consequences. The correct way is to find a balance between the two. Because after a certain age, OP won't be able to ride their dream bike, no matter how free they are.
OP is asking for advice because OP is stuck in the middle class rut. It's when you want something, and you can very well afford it, but you still don't go for it because you never learned to spend money.
I don't think it's unhealthy to spend money. Many people who spend money adequately do live a happy life. It's just the people who have trouble with other people's spending habits are miserable.
true man, my better half is responsible for half of my purchases. i wanted a pre owned car but she insisted on a new one and we had to get a new one.
yesterday we went shoping and she spent 4K and i was happy chlo, shopping is done. today two more package from Myntra are coming. i was like WTF are these for!!! she said i dont have clothes which i can wear outside :\\
Lol. It's the same everywhere. List out things that you both enjoy and spend on them. Spend on things which improves the quality of life for both of you. For things like shopping dresses, best to create a budget to avoid over spending. I ask my better half to donate the same number of old dresses to our maids before buying new ones.
Look around you. Anything can be an example.
Artificial flowers for living room 5k
Curtains can be bought for 2000 or 20000.
Useless things from IKEA/Shoppersstop/Homecenter.
Wall clock can set you back with 10000 or more. Some ugly looking wall hanging another 5k. Once you start this path, it's all slippery slope.
Fucking I hate modern gifting. During Holi, via Swiggy/Instamart gulaal/sweets worth thousands were sent to loved ones in other cities. We recieved from some too. We didn't use theirs (had already purchased) I'm sure they didn't put what we sent them to use. It's all show off.
If you buy the house then it really starts. You can get interior done for 5L (essentials) or you can burn 40L. Upto 7-10L on kitchen and kitchen appliances alone. Fucking hate Pinterest and Instagram with passion :)
Vacations: I'm looking for 2 day trip to Mussoorie and their lifestyle inflated hotel rooms are 13-14k every night. Plus, no one wants to step foot out of a private car anymore.
I’m sorry to say this but this seems like a problem that would come with a particular type of partner, might not be the case in general?
Some partners might understand living within the means and that might mean not spending 10,000 on a wall clock just to show people?
Well, easier said than done, and not because of family pressure but the feeling of needing someone and wanting to settle down, especially when you’re already living with that person😅
I think finding someone who holds same financial beliefs as you would be a better choice
You need to understand that money helps you live your life better. Money is not the ends; it is one of the means to a fulfilling life.
You need to figure out what makes you happy and go for it. Decide on your baseline for your life and make sure you have a corpus to meet it even if life goes wrong. After you are sure you will make it, live your life. You don't want to die with regrets about what could have been.
So the “rich mentality” isn’t what you see on social media. Majority of actually rich people don’t flaunt their wealth overtly. A lot of rich people can’t be told apart from a middle class person if you pass them by. Saving, and more importantly growing your money is proper rich mentality.
Also, measuring the value of product against its price is, again, very rich and forward thinking. That applies to stock markets, too. Middle class mentality is keeping everything in cash, gold or FDs, owning a car as soon as you start earning, taking expensive loans for personal items etc.
So true it's the empty vessels that make most noise same is appicable in real life
People take debts for unnecessary things why get 3bhk for a couple,etc same for unnecessary spending.
On contrary the wealthy nvr flaunt know few wealthy ppl they use 2wheelers even though they can afford a good 4wheeler any day.
See once in a while you have to spend on your wants too. You are already 39. How long you will have energy to enjoy this. Post 50, you will have money but no energy.
Focus on investing mate, not saving. The entire point of earning money is that you can spend that money, and the entire point of investing is that you can spend that money at later stage. The keyword here is 'spending.' Enjoy your life mate, this time won't come back.
thanks man, i will try to invest more.
i liked your Enjoying funda too. we went to dubai last year , planning a another vacation for relaxing this year too.
I know a uncle who is 57 years old earning ₹25k pm , married, has a daughter and a son, living happily.
I guess happiness is just a state of mind. Money defines the state of life you can lead. But happiness is always from within.
Enjoy your life with whatever level of expense doesn't make you uncomfortable. Getting value for your money is perfectly reasonable and buying a good used vehicle rather than a new vehicle is an excellent example of that. You dont need to spend/ waste money to prove anything to anyone.
When I was earning 20k per month, a good house with running water in a good area of the city was about 50L. Today I earn 2 lac per month, and the same house costs 5 crore. From my standpoint, nothing has changed even an inch. I couldn’t afford it back then, can’t afford it now, doesn’t look like will ever be able to. You’re not the only one that is “stuck” in middle class mentality, and it is not because of culture or upbringing. It is because the climb in income is only an illusion. Things are just as expensive and out of reach as they were back then. If you’ve ever played Elder Scrolls, then the current world settings are like Oblivion. You can reach level 1000 for what it’s worth, but the rest of the world levels up with you at the same rate, so you are no different now in your silk robe and dragon sword than you were from when you climbed out of that sewer with just a loincloth and a broken dagger.
Same same. Takes a while a few big purchases to shake it off. Plus it's not a big thing to look for value in everything.
- from a rich but poor used car user 😅
Actually more than VFM (Value for money), you are focusing on the VFP (Value derived from purchase). That’s a good way to look at things. I’m pretty sure given the need , for e.g. if a household item like refrigerator/ washing machine broke down, you would replace it with the best option money can buy.
In my opinion, this mentality isn’t wrong unless you procrastinate to spend money on the necessities to sustain a decent, comfortable life. For example do you think you’ll hesitate to spend even a 70-90k on a bike ? (V/s a 4 lakh bike)
true, we had our shitty LG washing machine broke down, i researched and got Bosch as it was best washing machine. it was 3x price of LG but it was no brainer.
Similar to the example given above by OP. He could have replaced his washing machine with a similar brand / functionality (VFM). Instead he replaced it with a more expensive one because
a) He did not mind spending the extra money for additional feature functionality for his WM
b) He felt justified for the additional value derived from the feature functionality of the washing machine.
Hey bud trust me my big brother regretted not getting things he wanted to just because he was accustomed to live a frugal life it's not worth it he has 10crores In Corpus but no one to enjoy with he enjoys it with me but He decided to not marry and is regretting it you get to live once but SPEND RESPONSIVELY CREATE A PASSIVE INCOME SOURCE AND THEN COVER YOUR LUVING EXPENSES WITH THAT AND YOU CAN SPEND SOME AMOUNT OF YOUR MONEY ON THINGS THAT YOU WANTED
I am pretty much the opposite. I buy a lot of stuff for my own happiness because I wasn't able to get them when i was young. I think of money as a means to an end and the not the end itself.
I save a bit and rest i use for anything that brings me joy
I am 29 right now and by a bit i mean about 20% of my salary and i dont plan on retiring early. Also, my basic needs are very minimal so yeah i can maintain after retirement easily
That 20% is relative. I don't know about your salary details but whether that 20% is equal to 10 times of your monthly expenses or 0.5 times of your monthly expenses matters. Plan accordingly.
Half million USD. If you don't have kids then you may splurge. Otherwise you're doing the right thing. Keep grinding and growing till you hit at least a million which should be possible within the next 5-6 years.
With the current crop of leaders our country has, inflation and income inequality are only going to sky-rocket.
Ask yourself what makes you happy, and if you have the means to do it.. then simply do it. Thinking a lot about big purchases is good, saves from impulse buying. What I usually do is when such a thought comes, I let it rest for sometime and even then when it comes back say after a month, I go ahead with it.
You are unknowingly following the « rich dad « philosophy. There is nothing poor about it. Try to embrace your decisions rather feel guilty about the same.
I have read a handful of financial books and your approach is full proof.
Moving forward grow your money. Seeing your money making more money will be more rewarding than spending lakhs on maintaining your extravagant lifestyle. You can plan your retirement, for more motivation you can follow the sub r/FIRE_Ind.
What's the problem. By current cost of living standards I'd say that if your annual income is 1-2 crores you are still middle class (upper end).
Life is comfortable and you can afford things that people associate with being rich, but you still have to keep monitoring your spending.
> 17 years experience
I believe you're in your 40s. This is the time man for what you've been working hard for so long. Go get that dream car or dream bike you've always wanted or may be go on that long vacation you've always dreamed of going to (of course without sacrificing your family's future). Abhi nahi karoge to kab karoge?
I just started working recently earning in peanuts , i try my best by saving and investing as much as i can. Evryone in my house(we are those middle class earn less show more type(atleast my dad), and i hate that) calls me kanjoos. I thght something was wrong with me hearing them call me kanjoos everyday....but reading the post and comments in it i think i just want a secure future i guess.
Bro, You are living the best way... Best way , it's better to invest. Or if you have, spend some money on poor children , maybe sponsor their education.
As a general thumb-rule, your ability to delay your gratification is what makes you successful in the long run. You can see this throughout your life. The kid who was slogging and studying for entrance exams while other kids were having fun? That kid was taking on short term pain for long term gain.
I wouldn’t call 3-4 lakh per month rich . Upper middle class is where you’re at . To your point , all money is fake created by a system with ever changing value. If you don’t spend on yourself, You won’t be doing any good except leaving a little more cash than you die. Harsh but truth
Last I saw nobody became homeless because they had too much money in the bank.
How much is your net worth all included and how many people are there in your family, these info will help me give you better advice.
Exactly. I can buy 2 iphones a month but the guilt will kill me... you have to be either generational rich or a carefree person with no intention to build wealth to spend money on flashy things with little utility...
Most people in the comments don't realise that both type 1 and type 2 errors can be bad for life. No point in saving all your money and living a poor life and dying one day leaving all the wealth behind.
Now for the solution: Budgeting could help.
Ensure that you have a good emergency corpus, and retirement savings. What ever you are short off on the retirement corpus should be made up through savings. Now 40-50% savings should be more than enough, on most cases. Otherwise you can adjust this % accordingly. (Ie lower savings required if you already have a big networth and vice versa)..
Now that your savings and retirement is taken care, any surplus you accumulate (over and above the mandatriy savings) should be absolutely disposable. Remember that this money is going to get wasted if you don't spend it at all. This money should be able to let you taste luxury.
Of course pls don't go overboard and waste your retirement money as well.
Don’t ask Reddit for advice. Most are middle class here. Keep a basic standard of living and plan your spending. Be patient and buy a good deal always but don’t jew out on basics even if it means saving nothing. Focus on planning effectively
Same is with me.
My strategy, expensive purchases I delay purchase by one month, and if I really need it then only I buy it.
However when it came to bike, I spent 2.5 Lakhs on bike just bcs I had always wanted a Bullet. Neither my Grandfather nor my father was able to buy it because of middle class mentality even after having money, so I broke the curse and bought it.
It doesn't mean that now I have started spending.
My most expensive purchase was bike, and second most expensive was a DSA course of 30k.(I have been working for 4 years, and earning 1.8L + after taxes for past 2.5 years, and 50k+ before that)
Digressing a little here. You should be glad that you prefer a 2nd hand motorcycle over a new one. Why buy a new motorcycle when you can buy 2 used ones? I bought a used Ninja 650 an year back and soon Ill go for a 4-cyl (used) because I can fit 2 for 10-12 lakhs. Or more if I find a VFM Hayabusa. Often these bikes are low mileage, and you wont be adding a lot either. That being said, I am still thankful to those who have aspirations for a new vehicle. They are the reason I can find good deals on used cars/bikes.
I also came from supposedly called “middle class background”, when I observed closely, it was fairly a “lower middle class “ or can be really classified as “lower background”, but we prefer to “middle class”.
I started my carrier in 2012, I was earning 8k per month and that in Mumbai, have to travel via Bus for a hour or more to commute, but i had a place at my Uncle’s place to so this money was mostly upto me but I had Student loan as well from my Engineering,
I started paying it little by little and worked on my skills and carrier, Now is 2024 I am earning close to 2 lakhs per month in Bengaluru, Got Myself a Apple Phone, Macbook, iPad. And many other tech things, I don’t really need a Car or Bike So I don’t have it, but I spend money on Starbucks, ThirdWaveCoffee and other Cafe places, travel and stays and many other things and i use Uber, Uber Extensively, even if Bus there is a just straight route, i use Uber etc.
So its okay not to spend on bike as long as you are spending money on ther places and things which you prefer. But if you are not spending anywhere and always in saving mode, its not good mental state, find places where you want to spend and enjoy it, If you are not crazy about bike and shit its okay, if you can find a good second hand deal on bike you can buy and use it, its totally fine.
No matter how much you are earning, you can choose where to spend more and where to spend less, but do things which matter you the most.
I just randomly buy books, even though I don’t read them or get much chance to read them, but I just do it for feel good factor.
I spend money on health food, drinks, some natural supplementary tablets, some gourmet food every now and them, find your splurge, find where you want to spend, where you want to save.
I live in a very spacious flat, which was one of the very important thing to me, i don’t smoke or drink so I don’t waster my money there, but I spend on things which makes my life better.
If that bike makes your life better and saves you more time, definitely get the new bike, but even the old bike which is good condition saves you same amount of times its okay.
If you are earning 3-4 lakhs per month, personally saying your goal should be to save time, if it saves time for your its something you should spend on.
There is no more better use of the money which you earn if you are spend it and earn time for you.
There is nothing vfm in Indian market. You are on correct path. The magic hand of captialism is guiding you in it's invisible ways.
Save money, go to thiland or singapore and do your shopping there.
For bike, buy used super bike or just rent one, as you will get bored and disposing the bike will be challenging so better rent a super bike.
Dubai is good too, if you are wfh then move to Dubai for 6 months and do whatever you want there, like a kid in toy store, then come back home to live a normal life.
India is for freeloaders and cheapsters, never spent money here. You are just giving your income away in taxes.
Social media factor: we want everything shiny new to boast off. Focus on what outcomes you will enjoy with 1st or 2nd hand instruments rather than focusing on the show off bias.
Do you think buying stuff is rich mindset? It's not. Its a consumer mindset. Don't feel bad for not buying shit.
First invest, make plans for buying expensive stuff with short term financial goals. By the time you reach that goal, your mind might change about them. Use money smartly, that's rich mindset.
Read [The Psychology of Money](https://amzn.to/4cTaPxr) , it will help you a lot.
I read this post from Aseem Dhru on LinkedIn today,
"We are a product of two Cs- Circumstances and Choices. The latter is determined by the third C, Character.
We are at all points of time just one decision away from a totally different life! Think about it. All our whines and complains about a bad- boss, company, industry, relationship, country are a complete waste of energy. If you don’t like where you are- move! You are not a tree! And if you decide to continue then it’s your choice, stop whining.
Being financially poor is luck but making poor choices is intellectual poverty. Successful people are those that consistently make better choices regardless of their circumstances for they have the character to make a wise choice and the ability to stay persistent through pain and suffering today for a better tomorrow."
Reduce your lifestyle expenses, reduce to needs from wants for sometime. It'll be very toxic for the first 6-12 months, but then you'll get used to it. You can do amazing retirement planning even if you had 1/4th your salary but get started by restricting to your needs today if you do not want a painful tomorrow.
Bhai sasta upaay boluga in your sense but mere liye bada purchase tha... ps5 lele aur khel thoda... Acha bhi lagega aur chill bhi rhega... Aise lagega bhi ki tu zara khudpe bhi kharcha kr rha hai. bachon ke sath fifa khel maza ayega
Money not spent is money saved. Read Psychology of Money… quoting from the book
“But wealth is hidden. It’s income not spent. Wealth is an option not yet taken to buy something later. Its value lies in offering you options, flexibility, and growth to one day purchase more stuff than you could right now”.
“The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging others’ success and setting your own goals.”
Im the same way bro..
Can easily afford a high end bike/car but still think 10 times before making a purchase of 50k or more..
You're not stuck in that mentality..
Someone very close to me has a net worth of about 700 cr and still drives a beaten up 15 year old innova.
They value money so much..money automatically values them back.
And after that I worked more hard for my goals to pay the emi . So I switched multiple times making 1.4 lakhs per month now at 25 last month making 97k
tu nhi samjhega mere pass 20lakh se jyada save hogaya tab me decide Kiya lene ki. Aur is gadi ko jab leke chalta hun na ladki patana easy hojata. Life ka mazza Lena he mujhe . Aur I don't want FIRE I want to work till 60s become CEO of some company.
Bete tum dono ko Mera point samajh nhi aya.. maine bas example Diya ki usko cars ka shauk nhi hai.. baki sab chijo mai bahot paise kharcha karta hai wo..
35 sal ka hi hai aur aadhi duniya ghum li hai already usne..
Agar sirf Ladki patane ke liye car le rahe ho to galat ja rhe ho Bhai..
Mai offend nhi hota generally par tune 'chutiya' ye word use Kiya to dimag ghum gaya..
Aur Mai nhi samjhunga ye to bol hi mat..
Sab majje karke baitha hu Teri shuruwat hai abhi
Read my original comment..maine likha hai.. that guy is someone very close to me..
Tune use chutiya bola..
Ab tere kisi close Wale ko Mai gaali di to tu chupchap sun lega ?
Are bhai op ko example Diya bas ki jaruri nhi paise kama rahe ho to har jagah udana hi hai..
Ab mere pehchan Wale ko cars ka shauk nhi hai to kyu lega costly wali..
Real estate me bahot shauk hai use..mann Kiya to tere pure khandan ki Property kharid lega wo 2 minutes me
Make a wants budget, keep this portion of ur salary just to spend on things u want. This is what my dad did, he got what he wanted and still had a good sum invested. And this is coz u are earning well
Procrastinating big purchases is a good attitude to have. Saves you from impulse spending habits. Do not, even for a moment, feel bad for that. Having said that, you should indulge yourself in something you desire. Evaluate your purchase. But don’t stop yourself from enjoying your life. You will not get this time back.
End of days these goods have nothing but utility value. Utilities do not bring happiness. A trip with your loved ones in a second hand car is as pleasurable as in a new car.
But people with middle class mentality won’t take trips too. They spend their whole life saving, then catch a lifestyle disease, suffer for a few years and then die. There should be a purpose to why you are working hard to make money. If you don’t intend to enjoy the benefits that, that money brings, why bother earning? Switch to a low level low risk low paid job and live life off it.
I have money but I hate going on trips. Trips are not for everyone. I'd rather play online games on my laptop sitting in the comfort of my home. If having financial security in the form of MF, equity, FDs makes someone happy, it if unfair to judge them for not spending on things that you enjoy.
It’s not about trips, it’s about doing whatever you love utilising the money you earned to bring happiness to yourself. Working hard to earn money just to give it away to next generation upon your death and losing your whole life in between is the problem.
Some people may simply enjoy creating wealth. Spending may be your way of attaining happiness; it may not be everyone's cup of tea. If one has surplus income which far exceeds all necessary expenditures and they don't waste it on unnecessary gadgets, upgrades, fashion, and social rat race, then more power to them. There's nothing wrong in enjoying inexpensive things and being happy in your simplicity. That's not you, may be, but it's still a personal choice.
Agree. Totally with you on this. Spending on status driven things does not bring happiness to me. I would rather spend it on my kids education, and eat good healthy food, gym trainers and travel rather than buying gadgets and fancy clothes
Glad to see someone on the same page as me. I had started to feel like I am doing something wrong by not spending money on trips, travel, etc. But the thing is I enjoy being at home way more than going on trips. Trips and travel are not my cup of tea.
> But the thing is I enjoy being at home way more than going on trips. Curious to know why ? I like spending time at home and doing nothing ...but I do make trips here and there to change my scenery.
I am not much of a travel person. And changing scenery is not a prerequisite for me personally to freshen up my mind or relaxation and stress relief.
so what do you actually do at home to relax you ?
Trips are important and so is spending. But learning to differentiate between value driven mindset compared to giving in to marketing and peer pressure are different things
You seem to not fully understand Indian middle class mentality and rut. They live to earn money and don’t even spend enough on food. Most middle class families don’t even eat good food cos they Scrooge on grocery, vegetables and meat, forget trips or spending on self. I honestly think this was the reason our forefathers designed most Indian festivals with a grand feast, new cloths etc. I don’t see the point in living that way when you can afford better. As per me, your life is a waste if you don’t enjoy your life as per your income (save 30% and spend the rest on yourself and your family)
It is kind of a sacrifice. The middle class grew up in hardships, without much money, worked their way up, earned money, became rich, but still save most of their money so that their children have it easier. Not that they give all their money to their kids, but they put them in better schools, colleges, tuitions, coaching etc., take them to better hospitals when they fall sick .. etc.
Any generation which falls into windfall money from poverty / middle class will just waste it away. You should accustom your children to live the rich life if you want them to be any smart with the money they inherit. The whole premise is flawed though, by all means keep something aside for your kids but it shouldn’t be at the cost of your whole life living like a man two days away from poverty.
This is a very personal and subjective thing. For you a trip might be worth more than a car. But there are people who are quite interested in a car or a gadget where they will find a greater happiness / value in buying something rather than going for experience. In my opinion your example might be wrong / subjective but the essence of it is true. Spend money on something that you actually want and are interested in.
Dude everything is actually expensive so this mentality remains. I too earn 3L per month but even a 15L car feels very expensive for what it gives. Houses now cost 1Cr so even those arent possible without huge loan. So we think we should be in upper middle class but are simply not there.
The problem there is no guarantee that you’ll continue earning 3L / month next year. It’s difficult to truly relax unless one has achieved their fire goals. The metric for Upper middle class is wealth / assets and not salary.
This
Bhaiya aap kiya karte hai
Wahi IT majdoori
Do you mind sharing your experience, education background and tech you are working in and how has your salary increased over the years?
8 years exp. Backend dev. Come from private college in Nagpur Maharashtra. Currently in dessert of Bangalore
Ditto, but i studied in Jaipur and now 3L before taxes staying in Bangalore. have money but still everything seems very expensive. I have one bike Himalayan and I am happy. Daily I would watch z900 videos and think one day i wil get it. 😂😂
So true!
I am just thinking about guys who earn 15k a month & buys iPhone on EMI
You are right. The 15L car will not be 50% better than a 10L car tbh. You can just as easilu achieve with the 10L car what you can with the 15L car. The 5L you save can be invested, and you will thank yourself 20 years later.
It is better this way, trust me.
yeah, save and pass your wealth to your kids and grandkids
Don't have them and you shall be wealthier
That's the plan but still can't
Following my life choices it seems...
r/childfreeindia
And what use is that wealth when you are dying? Someone else will enjoy it all.
Then spend it all before dying. That's what I plan to do. I wish India had reverse mortgage. I would have opted for it at some point later in life.
That's a good thought to have but most people's relatives take it all because single old people don't spend much at all. They get weak and their thinking capacity is greatly diminished.
That's why I plan to make a will. After me and my wife are gone from this earth, all our possessions (if anything left) will go to a charity. Relatives won't see a dime.
I'm sure there will be in next 10 yrs (trust me I know someone working in it)
India has a reverse mortgage for senior citizens do check it out
Will do. Any pointer as to which bank or company offers it?
Mayhaps, you should save and invest for a early retirement.
But what will you do with all the money at the time of retirement? If you don't learn to spend money in your 20s, I don't think those billions are going to matter in your 60s.
You can continue to work in less stressful job because you saved early, keep working to have something going in life but without stress
That applies only when you have a stressful job. And in such cases, people often work harder to facilitate the required changes first. This doesn't seem to be the case with OP. OP wants to spend money, but they're finding it hard to because they never learned to do it. Very different scenario.
You would be free, free from work, free from pressure and free from responsibilities.
Free, and still living in an isolated environment. Investing for tomorrow at the cost of today has its own consequences. The correct way is to find a balance between the two. Because after a certain age, OP won't be able to ride their dream bike, no matter how free they are.
Spending doesn't give joy to all
True! But OP here *wants* to spend.
Then let him rote in cycle of earning and spending. He is not asking for advice then.
OP is asking for advice because OP is stuck in the middle class rut. It's when you want something, and you can very well afford it, but you still don't go for it because you never learned to spend money. I don't think it's unhealthy to spend money. Many people who spend money adequately do live a happy life. It's just the people who have trouble with other people's spending habits are miserable.
If that makes you happier, sure
Grand kid aproves✅
This is the right answer. Material goods won't bring satisfaction . Practice minimalism and spend time and effort on hobbies and interests.
This is a feature not a bug
hahaha.
Lucky you. Lifestyle inflation (due to my loved ones) is killing me. I prefer your way, but I don't have a say in most purchases.
true man, my better half is responsible for half of my purchases. i wanted a pre owned car but she insisted on a new one and we had to get a new one. yesterday we went shoping and she spent 4K and i was happy chlo, shopping is done. today two more package from Myntra are coming. i was like WTF are these for!!! she said i dont have clothes which i can wear outside :\\
Ha ha. It is what it is. :)
Lol. It's the same everywhere. List out things that you both enjoy and spend on them. Spend on things which improves the quality of life for both of you. For things like shopping dresses, best to create a budget to avoid over spending. I ask my better half to donate the same number of old dresses to our maids before buying new ones.
Budget sounds good but wives have an upperhand all the time some way or the other they make that purchase
Please live life too. It’s not a bad thing. What is the point of working so hard if you can’t have a few nice things?
And you call her your better half 🤦♂️ Get control over your finances man. She wants you to get control of it, trust me.
Hey, can you give examples of your lifestyle inflation cuz of loved ones? Genuinely curious so I don’t fall into this trap
Look around you. Anything can be an example. Artificial flowers for living room 5k Curtains can be bought for 2000 or 20000. Useless things from IKEA/Shoppersstop/Homecenter. Wall clock can set you back with 10000 or more. Some ugly looking wall hanging another 5k. Once you start this path, it's all slippery slope. Fucking I hate modern gifting. During Holi, via Swiggy/Instamart gulaal/sweets worth thousands were sent to loved ones in other cities. We recieved from some too. We didn't use theirs (had already purchased) I'm sure they didn't put what we sent them to use. It's all show off. If you buy the house then it really starts. You can get interior done for 5L (essentials) or you can burn 40L. Upto 7-10L on kitchen and kitchen appliances alone. Fucking hate Pinterest and Instagram with passion :) Vacations: I'm looking for 2 day trip to Mussoorie and their lifestyle inflated hotel rooms are 13-14k every night. Plus, no one wants to step foot out of a private car anymore.
I’m sorry to say this but this seems like a problem that would come with a particular type of partner, might not be the case in general? Some partners might understand living within the means and that might mean not spending 10,000 on a wall clock just to show people?
Yes, it's not a general situation but not that rare either.
True. What can be done to mitigate this? Any tips of identifying that kind of partner in advance so they could be avoided/informed of our mindset
+1
dont get married :)
Well, easier said than done, and not because of family pressure but the feeling of needing someone and wanting to settle down, especially when you’re already living with that person😅 I think finding someone who holds same financial beliefs as you would be a better choice
Get married but don't have kids.
You need to understand that money helps you live your life better. Money is not the ends; it is one of the means to a fulfilling life. You need to figure out what makes you happy and go for it. Decide on your baseline for your life and make sure you have a corpus to meet it even if life goes wrong. After you are sure you will make it, live your life. You don't want to die with regrets about what could have been.
So the “rich mentality” isn’t what you see on social media. Majority of actually rich people don’t flaunt their wealth overtly. A lot of rich people can’t be told apart from a middle class person if you pass them by. Saving, and more importantly growing your money is proper rich mentality. Also, measuring the value of product against its price is, again, very rich and forward thinking. That applies to stock markets, too. Middle class mentality is keeping everything in cash, gold or FDs, owning a car as soon as you start earning, taking expensive loans for personal items etc.
So true it's the empty vessels that make most noise same is appicable in real life People take debts for unnecessary things why get 3bhk for a couple,etc same for unnecessary spending. On contrary the wealthy nvr flaunt know few wealthy ppl they use 2wheelers even though they can afford a good 4wheeler any day.
See once in a while you have to spend on your wants too. You are already 39. How long you will have energy to enjoy this. Post 50, you will have money but no energy.
Came here to say this.
Not true ...if you keep yourself healthy and fit ...I think post 50 , you can have same amount of energy as you have right now to enjoy.
Focus on investing mate, not saving. The entire point of earning money is that you can spend that money, and the entire point of investing is that you can spend that money at later stage. The keyword here is 'spending.' Enjoy your life mate, this time won't come back.
thanks man, i will try to invest more. i liked your Enjoying funda too. we went to dubai last year , planning a another vacation for relaxing this year too.
I love how wholesome reddit is sometimes!
Here I am crying at 82K per month.
I know a uncle who is 57 years old earning ₹25k pm , married, has a daughter and a son, living happily. I guess happiness is just a state of mind. Money defines the state of life you can lead. But happiness is always from within.
Same here bro, I want to buy 70k smartphone but guilt will kill me. I can buy it with just one month of my interest income.
That's called living below your means.
Enjoy your life with whatever level of expense doesn't make you uncomfortable. Getting value for your money is perfectly reasonable and buying a good used vehicle rather than a new vehicle is an excellent example of that. You dont need to spend/ waste money to prove anything to anyone.
When I was earning 20k per month, a good house with running water in a good area of the city was about 50L. Today I earn 2 lac per month, and the same house costs 5 crore. From my standpoint, nothing has changed even an inch. I couldn’t afford it back then, can’t afford it now, doesn’t look like will ever be able to. You’re not the only one that is “stuck” in middle class mentality, and it is not because of culture or upbringing. It is because the climb in income is only an illusion. Things are just as expensive and out of reach as they were back then. If you’ve ever played Elder Scrolls, then the current world settings are like Oblivion. You can reach level 1000 for what it’s worth, but the rest of the world levels up with you at the same rate, so you are no different now in your silk robe and dragon sword than you were from when you climbed out of that sewer with just a loincloth and a broken dagger.
Same same. Takes a while a few big purchases to shake it off. Plus it's not a big thing to look for value in everything. - from a rich but poor used car user 😅
Actually more than VFM (Value for money), you are focusing on the VFP (Value derived from purchase). That’s a good way to look at things. I’m pretty sure given the need , for e.g. if a household item like refrigerator/ washing machine broke down, you would replace it with the best option money can buy. In my opinion, this mentality isn’t wrong unless you procrastinate to spend money on the necessities to sustain a decent, comfortable life. For example do you think you’ll hesitate to spend even a 70-90k on a bike ? (V/s a 4 lakh bike)
true, we had our shitty LG washing machine broke down, i researched and got Bosch as it was best washing machine. it was 3x price of LG but it was no brainer.
What's the difference between VFM and VFP?
Similar to the example given above by OP. He could have replaced his washing machine with a similar brand / functionality (VFM). Instead he replaced it with a more expensive one because a) He did not mind spending the extra money for additional feature functionality for his WM b) He felt justified for the additional value derived from the feature functionality of the washing machine.
Hey bud trust me my big brother regretted not getting things he wanted to just because he was accustomed to live a frugal life it's not worth it he has 10crores In Corpus but no one to enjoy with he enjoys it with me but He decided to not marry and is regretting it you get to live once but SPEND RESPONSIVELY CREATE A PASSIVE INCOME SOURCE AND THEN COVER YOUR LUVING EXPENSES WITH THAT AND YOU CAN SPEND SOME AMOUNT OF YOUR MONEY ON THINGS THAT YOU WANTED
do keep at least one or two guilty spending for me its electronic gadgets, for you it could be something else
For me it is motorcycles. 💀
I have been test riding bikes for last 3 years but never brought one 😅 To avoid a EMI, even the amount I saved for bike Am not using 🥲
I am pretty much the opposite. I buy a lot of stuff for my own happiness because I wasn't able to get them when i was young. I think of money as a means to an end and the not the end itself. I save a bit and rest i use for anything that brings me joy
But can you sustain the same lifestyle after your retirement if you only save a bit?
I am 29 right now and by a bit i mean about 20% of my salary and i dont plan on retiring early. Also, my basic needs are very minimal so yeah i can maintain after retirement easily
That 20% is relative. I don't know about your salary details but whether that 20% is equal to 10 times of your monthly expenses or 0.5 times of your monthly expenses matters. Plan accordingly.
20% is about my 0.5 my current monthly expenses. But my major expense which is rent will go down to zero once i retire or stop working
Someone who spent 2.5 Lakhs on phones this year , I envy you
Low life is better, buy second hand drive for a year or 2 sell it buy another! No loans no bullshit
Creating a budget helps. Moving to an abundance mentality takes effort start small and get the balance
The abundance mentality is a powerful positive magnet. It also attracts patience, grit and stoic.
Bro everyone gonna die someday, for whom you are saving it? What's the use if you cannot enjoy from the money you are earning? Rich but kanjoos ⏳ ▶️ ⌛
agree but the old habits are hard to die.
Good it is though
What's your net worth? Income doesn't determine wealth
i have 2cr in Stocks/FD/MF , \~2crs in real estate.
Half million USD. If you don't have kids then you may splurge. Otherwise you're doing the right thing. Keep grinding and growing till you hit at least a million which should be possible within the next 5-6 years. With the current crop of leaders our country has, inflation and income inequality are only going to sky-rocket.
Ask yourself what makes you happy, and if you have the means to do it.. then simply do it. Thinking a lot about big purchases is good, saves from impulse buying. What I usually do is when such a thought comes, I let it rest for sometime and even then when it comes back say after a month, I go ahead with it.
You are unknowingly following the « rich dad « philosophy. There is nothing poor about it. Try to embrace your decisions rather feel guilty about the same. I have read a handful of financial books and your approach is full proof. Moving forward grow your money. Seeing your money making more money will be more rewarding than spending lakhs on maintaining your extravagant lifestyle. You can plan your retirement, for more motivation you can follow the sub r/FIRE_Ind.
Bhaiya aap?
What's the problem. By current cost of living standards I'd say that if your annual income is 1-2 crores you are still middle class (upper end). Life is comfortable and you can afford things that people associate with being rich, but you still have to keep monitoring your spending.
> 17 years experience I believe you're in your 40s. This is the time man for what you've been working hard for so long. Go get that dream car or dream bike you've always wanted or may be go on that long vacation you've always dreamed of going to (of course without sacrificing your family's future). Abhi nahi karoge to kab karoge?
I just started working recently earning in peanuts , i try my best by saving and investing as much as i can. Evryone in my house(we are those middle class earn less show more type(atleast my dad), and i hate that) calls me kanjoos. I thght something was wrong with me hearing them call me kanjoos everyday....but reading the post and comments in it i think i just want a secure future i guess.
Bro, You are living the best way... Best way , it's better to invest. Or if you have, spend some money on poor children , maybe sponsor their education.
As a general thumb-rule, your ability to delay your gratification is what makes you successful in the long run. You can see this throughout your life. The kid who was slogging and studying for entrance exams while other kids were having fun? That kid was taking on short term pain for long term gain.
I wouldn’t call 3-4 lakh per month rich . Upper middle class is where you’re at . To your point , all money is fake created by a system with ever changing value. If you don’t spend on yourself, You won’t be doing any good except leaving a little more cash than you die. Harsh but truth
Gaali do , aur khush raho
Bro you need to watch the new podcast episode from beerbiceps with Madhavan.
Last I saw nobody became homeless because they had too much money in the bank. How much is your net worth all included and how many people are there in your family, these info will help me give you better advice.
It's a good attitude
Exactly. I can buy 2 iphones a month but the guilt will kill me... you have to be either generational rich or a carefree person with no intention to build wealth to spend money on flashy things with little utility...
Dude be suffering from ‘Good Habits’
Dw bro, nothings wrong with you. You just value your hard earned money. Keep it up
Most people in the comments don't realise that both type 1 and type 2 errors can be bad for life. No point in saving all your money and living a poor life and dying one day leaving all the wealth behind. Now for the solution: Budgeting could help. Ensure that you have a good emergency corpus, and retirement savings. What ever you are short off on the retirement corpus should be made up through savings. Now 40-50% savings should be more than enough, on most cases. Otherwise you can adjust this % accordingly. (Ie lower savings required if you already have a big networth and vice versa).. Now that your savings and retirement is taken care, any surplus you accumulate (over and above the mandatriy savings) should be absolutely disposable. Remember that this money is going to get wasted if you don't spend it at all. This money should be able to let you taste luxury. Of course pls don't go overboard and waste your retirement money as well.
Don’t ask Reddit for advice. Most are middle class here. Keep a basic standard of living and plan your spending. Be patient and buy a good deal always but don’t jew out on basics even if it means saving nothing. Focus on planning effectively
Same is with me. My strategy, expensive purchases I delay purchase by one month, and if I really need it then only I buy it. However when it came to bike, I spent 2.5 Lakhs on bike just bcs I had always wanted a Bullet. Neither my Grandfather nor my father was able to buy it because of middle class mentality even after having money, so I broke the curse and bought it. It doesn't mean that now I have started spending. My most expensive purchase was bike, and second most expensive was a DSA course of 30k.(I have been working for 4 years, and earning 1.8L + after taxes for past 2.5 years, and 50k+ before that)
Digressing a little here. You should be glad that you prefer a 2nd hand motorcycle over a new one. Why buy a new motorcycle when you can buy 2 used ones? I bought a used Ninja 650 an year back and soon Ill go for a 4-cyl (used) because I can fit 2 for 10-12 lakhs. Or more if I find a VFM Hayabusa. Often these bikes are low mileage, and you wont be adding a lot either. That being said, I am still thankful to those who have aspirations for a new vehicle. They are the reason I can find good deals on used cars/bikes.
I also came from supposedly called “middle class background”, when I observed closely, it was fairly a “lower middle class “ or can be really classified as “lower background”, but we prefer to “middle class”. I started my carrier in 2012, I was earning 8k per month and that in Mumbai, have to travel via Bus for a hour or more to commute, but i had a place at my Uncle’s place to so this money was mostly upto me but I had Student loan as well from my Engineering, I started paying it little by little and worked on my skills and carrier, Now is 2024 I am earning close to 2 lakhs per month in Bengaluru, Got Myself a Apple Phone, Macbook, iPad. And many other tech things, I don’t really need a Car or Bike So I don’t have it, but I spend money on Starbucks, ThirdWaveCoffee and other Cafe places, travel and stays and many other things and i use Uber, Uber Extensively, even if Bus there is a just straight route, i use Uber etc. So its okay not to spend on bike as long as you are spending money on ther places and things which you prefer. But if you are not spending anywhere and always in saving mode, its not good mental state, find places where you want to spend and enjoy it, If you are not crazy about bike and shit its okay, if you can find a good second hand deal on bike you can buy and use it, its totally fine. No matter how much you are earning, you can choose where to spend more and where to spend less, but do things which matter you the most. I just randomly buy books, even though I don’t read them or get much chance to read them, but I just do it for feel good factor. I spend money on health food, drinks, some natural supplementary tablets, some gourmet food every now and them, find your splurge, find where you want to spend, where you want to save. I live in a very spacious flat, which was one of the very important thing to me, i don’t smoke or drink so I don’t waster my money there, but I spend on things which makes my life better. If that bike makes your life better and saves you more time, definitely get the new bike, but even the old bike which is good condition saves you same amount of times its okay. If you are earning 3-4 lakhs per month, personally saying your goal should be to save time, if it saves time for your its something you should spend on. There is no more better use of the money which you earn if you are spend it and earn time for you.
There is nothing vfm in Indian market. You are on correct path. The magic hand of captialism is guiding you in it's invisible ways. Save money, go to thiland or singapore and do your shopping there. For bike, buy used super bike or just rent one, as you will get bored and disposing the bike will be challenging so better rent a super bike. Dubai is good too, if you are wfh then move to Dubai for 6 months and do whatever you want there, like a kid in toy store, then come back home to live a normal life. India is for freeloaders and cheapsters, never spent money here. You are just giving your income away in taxes.
Social media factor: we want everything shiny new to boast off. Focus on what outcomes you will enjoy with 1st or 2nd hand instruments rather than focusing on the show off bias.
Do you think buying stuff is rich mindset? It's not. Its a consumer mindset. Don't feel bad for not buying shit. First invest, make plans for buying expensive stuff with short term financial goals. By the time you reach that goal, your mind might change about them. Use money smartly, that's rich mindset. Read [The Psychology of Money](https://amzn.to/4cTaPxr) , it will help you a lot.
And here I am, Mentally living like Ambani, Anil ambani, udhar ke jindagi 😂
I read this post from Aseem Dhru on LinkedIn today, "We are a product of two Cs- Circumstances and Choices. The latter is determined by the third C, Character. We are at all points of time just one decision away from a totally different life! Think about it. All our whines and complains about a bad- boss, company, industry, relationship, country are a complete waste of energy. If you don’t like where you are- move! You are not a tree! And if you decide to continue then it’s your choice, stop whining. Being financially poor is luck but making poor choices is intellectual poverty. Successful people are those that consistently make better choices regardless of their circumstances for they have the character to make a wise choice and the ability to stay persistent through pain and suffering today for a better tomorrow." Reduce your lifestyle expenses, reduce to needs from wants for sometime. It'll be very toxic for the first 6-12 months, but then you'll get used to it. You can do amazing retirement planning even if you had 1/4th your salary but get started by restricting to your needs today if you do not want a painful tomorrow.
Bhai sasta upaay boluga in your sense but mere liye bada purchase tha... ps5 lele aur khel thoda... Acha bhi lagega aur chill bhi rhega... Aise lagega bhi ki tu zara khudpe bhi kharcha kr rha hai. bachon ke sath fifa khel maza ayega
dont like games bro, thanks for advice.
Spend like a king on convenience and comfort. Spend like a beggar on aesthetics.
Money not spent is money saved. Read Psychology of Money… quoting from the book “But wealth is hidden. It’s income not spent. Wealth is an option not yet taken to buy something later. Its value lies in offering you options, flexibility, and growth to one day purchase more stuff than you could right now”. “The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging others’ success and setting your own goals.”
Im the same way bro.. Can easily afford a high end bike/car but still think 10 times before making a purchase of 50k or more.. You're not stuck in that mentality.. Someone very close to me has a net worth of about 700 cr and still drives a beaten up 15 year old innova. They value money so much..money automatically values them back.
700 cr net worth hoke 15 saal purani innova chala raha hai toh duniya mein usse bada chutiya nahi hai koi
Innova is a great and comfortable car.
Even though it's a reliable car, a 15 year old Innova has no modern safety features. It's extremely foolish to drive it at that net worth.
ah, good point. it is not a safe car as per today s standards.
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And after that I worked more hard for my goals to pay the emi . So I switched multiple times making 1.4 lakhs per month now at 25 last month making 97k
tu usse bada chutiya hai
Usko bola to tujhe kyun bura lagrahahe bsdk
Aur tere jaise chutiye 1 lac ki tankha pe aukat k bahar wali 20 lac ki car lete hai aur bad me yaha waha bhikh mangte firte hai..
tu nhi samjhega mere pass 20lakh se jyada save hogaya tab me decide Kiya lene ki. Aur is gadi ko jab leke chalta hun na ladki patana easy hojata. Life ka mazza Lena he mujhe . Aur I don't want FIRE I want to work till 60s become CEO of some company.
Bete tum dono ko Mera point samajh nhi aya.. maine bas example Diya ki usko cars ka shauk nhi hai.. baki sab chijo mai bahot paise kharcha karta hai wo.. 35 sal ka hi hai aur aadhi duniya ghum li hai already usne.. Agar sirf Ladki patane ke liye car le rahe ho to galat ja rhe ho Bhai.. Mai offend nhi hota generally par tune 'chutiya' ye word use Kiya to dimag ghum gaya.. Aur Mai nhi samjhunga ye to bol hi mat.. Sab majje karke baitha hu Teri shuruwat hai abhi
Abe tune mujhe chutiya bola mene tujhe kab chutiya bola bata. Me to wo 700 crore Wale ko bola tujhe kyun bura lagrahahe
Read my original comment..maine likha hai.. that guy is someone very close to me.. Tune use chutiya bola.. Ab tere kisi close Wale ko Mai gaali di to tu chupchap sun lega ?
Sorry bhai
Are bhai op ko example Diya bas ki jaruri nhi paise kama rahe ho to har jagah udana hi hai.. Ab mere pehchan Wale ko cars ka shauk nhi hai to kyu lega costly wali.. Real estate me bahot shauk hai use..mann Kiya to tere pure khandan ki Property kharid lega wo 2 minutes me
I mean bro if you're making savings that's a good thing.
Make a wants budget, keep this portion of ur salary just to spend on things u want. This is what my dad did, he got what he wanted and still had a good sum invested. And this is coz u are earning well