A surprising LinkedIn post by Gurugram-based investment banker Sarthak Ahuja has triggered widespread discussion across social media platforms, calling into question what it means to be “middle class” in urban India today. According to Ahuja, a ₹70 lakh annual salary a figure many would consider upper-middle class or even affluent may now fall squarely within what he terms the "new middle class." His argument is based on a simple truth: high earnings are quickly devoured by unavoidable expenses in major cities, leaving professionals with little to no savings.
Ahuja begins by explaining that out of ₹70 lakh gross income, around ₹20 lakh goes towards taxes, slashing the actual disposable income to ₹50 lakh annually, or roughly ₹4.1 lakh per month. On paper, this monthly figure seems more than sufficient, but in reality, it is rapidly drained by necessary lifestyle commitments.
A typical metro-based household, he outlines, pays ₹1.7 lakh in EMI for a ₹2 crore home loan on a ₹3 crore apartment — standard pricing in many urban hotspots like Gurugram, Bengaluru or Mumbai. A car loan EMI of ₹65,000 follows, for a ₹20 lakh vehicle over three years. Add ₹50,000 for international school tuition for one child and ₹15,000 for domestic help. These core expenses total ₹3 lakh, excluding food, electricity, insurance, or leisure spending.
According to Ahuja’s breakdown, these obligations leave roughly ₹1 lakh per month to cover groceries, utilities, occasional dining out, minor indulgences, and any savings if at all. With such a narrow financial buffer, even a single medical emergency or an impulsive vacation can derail the monthly budget. "By the end of the month, there’s nothing left!" he exclaims, summarising the financial stagnation faced even by high earners.
He attributes this crisis to three major trends: rapid inflation, especially in housing and car prices; unrealistic social pressures amplified by social media; and a mismatch between income growth and the cost of lifestyle maintenance. In his post, Ahuja highlights that in cities like Mumbai, home prices are now 30 times a household’s annual income a gap that pushes families into overwhelming long-term debt.
For young professionals eager to attain aspirational milestones, Ahuja offers a word of caution be extremely careful before taking a home loan. He describes avoiding property purchases as the "lowest-hanging fruit" to ease financial pressure. Instead, he recommends holding off until one can genuinely afford the burden, allowing for better cash flow and healthier savings habits. In a time where high income is increasingly becoming synonymous with high financial stress, Ahuja’s post forces urban professionals to rethink what it means to be "well-off" and whether wealth is more about disposable income than big paychecks.
