what is the FIRE number for India?

Amazon XSXh46
Oct 17 63 Comments

i feel $500K should be enough....am I wrong? whats a good practical number?

310K TC. 34 years of age.

own family home in Kolkata (low cost of living).

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TOP 63 Comments
  • Apple ablc
    Dada kolkata sosta holeo etotao sosta noe. 3.5 crore toh khub i kom ajkal. At least 10 crore toh lagbei thik thak life er jonne.
    Oct 17 6
    • Amazon XSXh46
      OP
      But honestly do you need more than 1.5lakhs -2 lakhs a month(inflations adjusted)? For regular expenses?
      Oct 17
    • Apple ablc
      Depends on your lifestyle again. I feel 1.5-2.0 lakhs would be less for me since I love traveling and traveling luxuriously per se. So it depends. But yes, Kolkata is much cheaper than other places. What would you do after retiring? Kolkata has 0 opportunity.
      Oct 17
    • Amazon XSXh46
      OP
      Try entrepreneurship to help poor kids at the risk of dropping out from schools.
      Oct 17
    • Amazon god
      Dada ee kee korchi?
      Oct 17
    • Amazon god
      Ekla chalu re dada
      Oct 17
  • Amazon ैू
    House in a good city/area: $200k
    Other initial expenses (car etc): $50k
    Monthly returns from remaining $$, it good investment (10% return): ~$2k per month.
    That seems like a reasonable amount for FIRE.
    Oct 17 5
    • Riverbed Technology tgfdttfddg
      You will get a bathroom for $200K in Mumbai
      Oct 17
    • Amazon ैू
      Its totally doable in Kolkata and its good suburbs.
      Oct 17
    • Riverbed Technology tgfdttfddg
      But you said "good city"
      Oct 17
    • Amazon ैू
      Right, Mumbai does not qualify for that.
      Oct 18
    • Riverbed Technology tgfdttfddg
      Ok and KK does, right on.
      Oct 18
  • Infosys BRY47
    Ok so assuming the meal cost in India is about 180 Inr, I’m using McDonalds as a reference here: https://www.mcdelivery.co.in/order/mcsaver-meals/3674/5300, 180*3*365 = 197,100 Inr/ year for your food needs. With 500,000 USD is 35,716,250 Inr, according to Google. Lets say you live to 100, your costs in food alone would be 13,008,600. Well now you’re left with 23M Inr to live for 66 years (I rounded the numbers for easy math). This will have to cover your housing expenses, travels, healthcare and general leisure for 66 years. You’d have an average of 348,484 Inr to spend/ yr. You can likely improve this number by just not having McDonalds delivery 3x a day for 66 years or living less than 66 years but this is all just a rough estimate. Also, I’m not assuming any additional income. Passive income improves your outlook by a lot.
    Oct 17 5
    • Microsoft waca
      WTF I just read. So your entire retire calc revolves around MacDonals?
      Oct 17
    • Infosys BRY47
      Yea, had to form a base cost for food somewhere and I don’t know enough about Kolkata to give an accurate estimate on that. I do say that you can improve the amount / yr after food costs by just not having McDonalds delivery 3x a day. Passive income/ inflation also throws this calculation off but w/e it’s just a rough estimate.
      Oct 17
    • Amazon gfdho
      Have you heard any of - investing, compound interest, indexing etc? Might not be familiar terms but hey, you should read em all!
      Oct 17
    • Infosys BRY47
      Yea, passive income is a combination of all of those and maybe some other things like real estate. I didn’t feel like putting that much work into this estimate. Honestly, OP should probably just retire based on the other replies I read here.
      Oct 17
    • Cisco hopeee
      Its is easy to make 7-10% with absolute minimun risk(e.g cash deposit). So $500k is big amount and can generate you about $50k (250 to 3ook inr) if you can plan well theb you can beat inflation(like use 65% of cash flow for living and rest invested back)
      Oct 20
  • Amazon / Product
    beaver

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    beavermore
    500k won't get you far in India. At least a mill
    Oct 17 11
    • Capital One / Eng qxrK88
      Inflation is typically 2% a year. I still think 500k is not quite enough to retire though. The safe withdrawal rate is 4% of principle. That's 20k USD every year to live off of
      Oct 17
    • Infosys BRY47
      Putting it that way qxrK88, that’s a monthly income of 1.18L which puts op in the higher end of upper class according to this guy: https://www.quora.com/What-are-the-salary-levels-of-upper-middle-and-lower-level-classes-in-India-along-with-the-poor-and-affluent . Not too bad if he can get any form of passive income.
      Oct 17
    • Amazon / Product
      beaver

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      beavermore
      Inflation is more than 2% in India. But fair point.
      Oct 17
    • Amazon / Eng WeWorked!
      Taxes, cough cough
      Oct 18
    • Amazon / Product
      beaver

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      beavermore
      There are a lot of ways to avoid taxes in India
      Oct 18
  • Microsoft daddy123
    I have 1.1 mil net worth at 34. Thinking abt pulling the trigger and going to India but it’s never enough.
    Aiming for 2 mil now.
    Oct 17 2
    • Netflix
      386

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      386more
      How did you make this much with Microsoft salary?
      Oct 17
    • Microsoft fgajkie
      Changed my user id. Don’t get confused lol.
      This is with me and my wife saving. Also, I am at Amazon now. Combined tc 450k
      Oct 18
  • Apple pixwine
    Bhai, if you are open to moving to a tier 2 city and keep costs reasonable , it should be enough. Otherwise not.
    Oct 17 0
  • Goldman Sachs / Eng ok!:
    1 Million, put it in a long term FD at any private bank. Earn 5 lakhs in interest every month, use 2.5 for your family needs, 2.5 to invest in mutual funds or passive investing.

    You will use interest from your capital to sustain yourself while growing your capital by investing in MFs etc.

    You will never run out of money this way.
    Oct 17 1
    • Adobe qTOO42
      Bhai Nirmalatai ka hafta (30%) bhi factor in karo
      Oct 18
  • Microsoft waca
    Kids schooling
    Healthcare
    Oct 17 0
  • Amazon nEkK27
    3.5 cr that's enough even with risk free investing. Enjoy FIRE my friend.
    Oct 17 8
  • Amazon fcu
    FIRE number is indeterminate for any third world country because the standard of living may rise quickly and the cost of living with it.

    You may find in 30 years the cost of living in India rises to be on 75% of the US cost of living, which is what happened in China.

    If that happens you're going to be piss pot poor with what's left of your 500k.

    Best thing is to save enough to FIRE in the US and then simply live better in whatever third world country you want to check out.
    Oct 18 4
    • Amazon nEkK27
      Yeah that's why you don't save the money under the bed or something. Invest it in low risk ventures like an FD. If the cost of living is going to jump like that then so will the FD rates.
      Oct 18
    • Amazon fcu
      But that's NOT what happened in China. Your investments in the Chinese market would not have kept pace with the rising cost of living. You would have been made poor by the expansion of the Chinese standard of living over the past 35 years.
      Oct 18
    • Amazon nEkK27
      There are always risks associated with investments. Whatever happened in China is an exception.
      Oct 18
    • Amazon fcu
      Actually it seems to be the rule, that when developing nations convert to wealthy nations investments do not keep pace with wages. That is ESPECIALLY true if the investments are globally diversified.

      The reason is because developing countries don't have robust stock markets and so insiders capture the wealth and investors get much less of the actual profit, while wages do keep pace.

      I think it's PARTICULARLY relevant to India because it's the goal of the Indian government to accomplish the same kind of economic growth story in India.

      Therefore it's irresponsible to retire in India with just enough to get by at current cost of living. Instead you should have enough to be able to retire in the US, and then move to India to enjoy an even more luxurious lifestyle, knowing that if the economy develops like China did you will still have enough for a dignified if not particularly luxurious life.

      What you want to avoid is after ten years of retirement when your skills are obsolete that you can only afford dogfood for dinner and a cardboard box for shelter.
      Oct 18
  • Amazon trailblzer
    Net worth?
    Oct 17 3
    • Amazon XSXh46
      OP
      550K
      Oct 17
    • Riverbed Technology tgfdttfddg
      Congrats OP, you've done well.
      Oct 17
    • HP / IT SphF25
      With 310k TC, 550K net worth is low. Again it depends on how long you have been working and how much you have saved. But you are in the right direction.
      Oct 17
  • Intuit maga-eff-u
    Should be enough if your expenses are contained. Average salaries in India are still under 10 lakhs per annum. Seems like you are done with corporate BS and are looking at a more fulfilling life. Just invest and spend wisely and you’re good to fulfill your dream!!
    Oct 18 0
  • Barracuda rpmfb
    That's impressive saving at 34!
    At 32 I thought I was just getting on track with a 200k TC and maybe 100k in savings. Seems like I have a lottt to catchup!

    Good luck bud on FIRE!
    Oct 17 0
  • Netflix
    tester1mkr

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    tester1mkrmore
    Should atleast be 1 million.
    Oct 17 0
  • Microsoft Lazines
    0.5M for 2nd tier city, 1M for 1st tier and 2-5M for FIRE in US
    Oct 20 0
  • Wells Fargo qUyB01
    Depends on your lifestyle. With your own house you don’t need much for other things provided it’s a basic lifestyle. Food will cost about 20k a month, household help another 10k, Uber/Ola another 10k let’s say. That’s barely 5 lakhs a year. 3.5 crores will easily generate 15-20 lakhs per year post-tax in FD investments so you should be ok.
    Oct 17 0
  • Neurocrine Neurocrine
    I think so too but everyone on here keeps saying you need 1M+. India is getting expensive everyday and salaries have risen. But it you have a passive income, this should be good imo.
    Oct 17 0
  • Amazon krs9
    500k should be enough if invested wisely.
    Oct 17 0

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