A Reddit user's plan to retire by 35 with a Rs 2 crore corpus has sparked a debate over how much money Indians need to achieve financial freedom. In a post titled ‘When Did Rs 1 Crore Become Pocket Change in India?', the user questioned claims that Rs 1 crore is no longer enough to live comfortably or retire early, and outlined plans to move to a tier-2 hometown, work remotely and eventually invest in a business.
“I keep seeing comments on this sub suggesting that Rs 1 crore isn't enough to live comfortably and that you need at least Rs 10 crore to retire early. It makes me wonder whether we've lost perspective on what financial freedom actually means….,” the user posted.
According to the post, the user plans to retire with a Rs 2 crore corpus by the age of 35, move to tier two hometown, get a work from home and eventually live a stress-free life. The user also wants to invest in a business after moving to their hometown.
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When Did ₹1 Crore Become Pocket Change in India?
by u/genreratorrex in personalfinanceindia
“I struggle to understand why I should spend Rs 2-3 crore on a cramped Bangalore apartment when I could live in a more affordable city, where my money goes further and I have greater flexibility. With Rs 2 crore, I feel I could potentially build a business generating Rs 1.5 lakh per month, alongside a sensible investment strategy,” the user said.
According to the user, they are aware about potential risks with the business, inflation, health and other aspects, but still questioned if the society has “normalised” Rs 10 crore corpus as the bare minimum for financial freedom.
The post has gained more than 267 upvotes and over 230 comments, as many people weighed in on the debate. For most, the main concern was inflation.
“You should not look at a value of Rs 1 or 2 crore as of today. Look at it 30 years from now. Inflation in India is high - especially education, healthcare and lifestyle. People looking at FIRE corpus are not planning for the India of today but India of 30 years from now…,” a user commented.
Another said: “I had posted on the sub about retiring early and living off FD income.
Everyone discouraged me. The main reason being, even if I'm getting Rs 1 lakh per month as FD interest, that Rs 1 lakh will not be enough after a number of years due to inflation.”
Some others added that personal financial planning is a very subjective discussion and that is why it varies from person to person.
“Pocket change? Go and ask people to give you even half that and you'll realise it's not that small an amount. Anyway, the key word in "personal finance" is "personal", so let people be. Plan out YOUR path well. If your number is 2 crore, plan accordingly. Let others plan for their own number…,” a comment read.
Others simply agreed with the user that people have made it seem like even Rs 5 crore is not enough.
“Bro, they will tell you, you need Rs 20 crore to retire in your 40s so that you can die in your 60s….,” a user posted.
Another comment highlighted that Rs 1 crore is truly not enough for a family of three people unless they have minimal expenses, noting that most people plan thinking of their family size and inflation concerns.
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