How Wealthy Would You have Been In America?
April 25, 2012 4 Comments
In India,as in other parts of the world, many people believe that migrating to the US is a sure shot way to wealth.Ofcourse,given the exchange rates, earning in USDs, or for that matter in GBPs,Euros,CHFs,CADs,AUDs,SGDs might make a person very rich in rupee terms.But expenses to maintain the living standards a person might take for granted in India,such as house help will use up a large part of one’s dollar earnings.Then the investment options available are entirely different and steeper taxes eat into one’s wealth.
Here are a couple of calculators to help you see what you might be potentially worth in the US. http://cgi.money.cnn.com/tools/networth_ageincome/index.html .If you are worth more than the median figures the calculator throws out, pat yourself on the back for doing a good job.Moreover given a purchasing power parity of 16 know that your rupee equivalent will just stretch so much more in India.Add in the new opportunities opening up in a rapidly changing India,and perhaps by staying home you don’t have such a bad deal after all!
Of course it’s great if you can earn in USD et, al and spend in INR,and enjoy the best of all worlds!
About Keerthika Singaravel
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I completely disagree with your article. I have been living in US for the last four years and its more easy to earn and save in US instead of India. The only bothering thing in US is the health care.
If you are little smart enough, you can buy a house for 100K and rent it out for USD 800 for a month and and have a positive cash flow after paying mortgage and taxes.
Clothes are so much cheaper in US when compared to India. Look for deals and buy when sales are going on.
Quality of life – No need to highlight.
Middle class people cannot even dream of buying a decent house in India anymore.
List goes on and on.
So, No wonder people want to migrate to US.
Ekveer where do you live in in the US?
What proportion of your income do you save now vis a vis before?How many months of living expenses would these savings support in the respective countries?
You mention health care? What about child care and education,care for the elderly and stuff like that?The services like professional cooking,chauffeuring,laundry etc.? Club memberships? Cultural pursuits like theatre,concerts etc? Art and artisanal works? Doesn’t this constitute atleast some part of a person’s quality of life?For me it does.
I agree that in the US a person can get easier loans for purchasing properties and so can build his assets that way.Something the Patels have done so successfully in the US.But what about the expense on one’s own home?Plumbers,gardneners,electricians and carpenters cost more in the US.Ofcourse a person can rent his house or upgrade to bigger houses as required.But isn’t there something to be said for raising children in the same house you grew up in surrounded by the things your parents and grandparents held dear as little children? And why do you think people can’t afford homes in India anymore?Prices have risen but that doesn’t mean the buying has stopped.Salaries are rising and people can service bigger mortgages and that’s why the average home prices are rising.And if you have in mind the 5/10cr plus houses,obviously they are being snapped up by the newly minted millionaires.
As for clothes,you are not very likely to find any made in USA clothes any longer in the US.Cheaper?In what sense?Absolute price?The number of washes you would get from them?For the cut and style?For the brand? Americans have a very use and throw culture with respect to clothes.And this is something Indian companies are now trying to create in India too.It’s plain business.India produces fabric for some of the big fashion houses.By buying these in India you are likely to get good value.The bigger challenge is to find good dressmakers.And if you are not against traditional clothing you can always go for good handwoven clothes.Of course,if you alre looking for luxury, Paris,Milan and perhaps London is the place.Dubai or Bangkok for the cheap use and throw stuff.In any case how important are clothes?They are hardly assets.And a person can spend as much or as little on them as required.
And as a matter of curiosity?How many hours do you work?Americans have a very different work ethic from Indians.Few people have the freedom to come to work at 11 in the morning.I love to keep my own schedule and this to me is a big part of ‘quality of life’.
Ekveer the US might be the best thing that happened to you.And I am so glad migration has worked for you.People are different and different things work for different people.Just as there are people migrating to the US there are people migrating out.My point was that the grass always seems a bit greener especially if you have very little experience of the other side.So why not bloom where we are planted and if we can arrange it, why not enjoy the best of all worlds?