Bangalore

A year ago, I was returning from church along with my landlord’s family (Dual income, two kids, one in school, the other in college). We passed by a mall about 10 minutes walk from our building and they asked me if I had been there.

Of course I had been there. Many, many times. To the multiplex where each ticket is a minimum of Rs. 100, even on weekday mornings. Eaten at the food court where a small (and average tasting) icecream costs Rs. 70 and a small cup of steamed corn Rs. 40. Hanged out at the coffee shop where the simplest coffee retails for Rs. 45. Naturally, I could’nt tell them all this. So I just mentioned that I visit the grocery supermarket there and that I consistently find that fresh fruits and vegetables at prices lesser than the local vendors.

By Bangalore standards, I am not extravagant when I visit these multiplexes, food courts and coffee shops. Because that is what software engineers do on weekends and on weekdays after work in this city. That question was a rude awakening for me. A family of four lives, educates its children and saves for a rainy day, on a total income that will be less than the starting salary for a software engineer. And the same software engineers will then complain that they have hardly anything left over to save at the end of the month.

For those of you who did’nt know, Bangalore is India’s IT capital. Many young high earning professionals like me have made it their home. Once known as a pensioner’s paradise, today it is one of India’s most expensive cities to live in. Even a combined post tax income of Rs. 1 lakh per month will keep a dual income, no kids couple firmly in the middle class.

The original population of the city, who are not part of the booming job sectors, obviously have been left out of the glittering malls and shopping arcades that are mushrooming all over the place. The only ones who have benefited are the people who own houses as rental incomes have hit the roof.

I am sure that Bangalore is not the first city (even in India alone) to have experienced this demographic change. However, this highlights the need for all of us to manage our money better, so that we are protected not only from inflation, but also from the vagaries of the job market and urban develoment.

Spending, saving and investing our money optimally is something all of us need to do, irrespective of our ages, family situations or job robustness. Not just in Bangalore.