HOW DOES YOUR SALARY MEASURE UP?

 

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

 

For many, especially from middle-income backgrounds, salary is the primary source of income. It’s natural to ask: Is my salary enough? Will it keep up with rising living costs, responsibilities, and inflation?

 

The Common Question: “Is My Salary Good Enough?”

People often wonder:

  • “How much will my salary increase next year?”
  • “Will a 10–15% annual increment cover rising expenses, taxes, or lifestyle needs?”

In many private-sector jobs, annual hikes hover around 10–15%. While helpful, this may not always keep pace with inflation, rent, school fees, healthcare, or lifestyle upgrades.

 

Where Do You Stand?

To assess your financial position, benchmark your salary against meaningful data:

  • Compare with people in similar roles or industries.
  • Consider the cost of living in your city.
  • Look at average salary brackets by education, experience, or age.

This isn’t about competition—it’s about context. Are you earning below average, on par, or above?

 

Perception vs. Reality

Many wealthy people feel less affluent than they are, while some with limited means think they’re better off than reality. This stems from a cognitive bias called the “illusion of median”, where everyone assumes they’re closer to the average than they actually are.

 

Why it matters:

  • Helps set realistic financial expectations.
  • Fosters empathy for those earning less.
  • Reduces stress caused by comparing yourself to the wealthiest in your circle.

 

Can You Afford the City You Live In?

Your relative income—how you earn compared to the average in your city—reveals whether you can comfortably:

  • Afford housing
  • Raise a family
  • Save for the future
  • Enjoy leisure without financial stress

Interestingly, about 85% of working people ask whether their salary is enough, and 80% manage fine—often with less income than they wish for. Adaptability and budgeting matter as much as salary.

 

Gaining Perspective: More Than Numbers

Being aware of your financial standing opens doors to broader benefits:

  • Greater compassion for people struggling financially
  • Grounded decisions based on reality rather than comparison
  • Emotional resilience by focusing on progress, not perfection

Understanding your financial reality helps you avoid chasing status or comparing your life to highlight reels. Instead, you can build financial confidence and contentment.

 

Final Thought

Asking “How does my salary stack up?” isn’t just about numbers. It’s about:

  • Understanding your place in the economic landscape
  • Acknowledging your financial reality
  • Planning for the future with clarity, not comparison

A higher salary may bring comfort, but true financial well-being comes from smart planning, reasonable expectations, and a growth mindset.

 

How Much Does Raising a Child Really Cost?

Raising children is both an emotional and financial responsibility. Costs vary depending on:

  • Number of children and age gaps
  • Location (city vs. town)
  • Household income and lifestyle

 

Key expenses include:

  • Food and nutrition (daily diet, special needs, infant formula)
  • Education (school fees, tuition, books, uniforms, extracurriculars)
  • Healthcare (vaccinations, checkups, emergencies)
  • Clothing and personal items
  • Housing (larger home, utilities, child-proofing)
  • Childcare or babysitting services
  • Entertainment and recreation (toys, games, vacations)

 

Example:
Raising one child may cost Rs. 15,000–25,000/month in an urban setting. Over 18 years, that totals roughly Rs. 32–54 lakhs, excluding college education.

 

Planning tip:
Compare your projected family plan with your income. Would adding another child stretch resources? Early budgeting, savings, and investments help families avoid strain and make informed choices about education, lifestyle, and long-term financial goals.