Average Spending by Millionaires in India

Average Spending by Millionaires in India

India is a developing country having 1 Billion (100 Crore) of population. But well, India is a developing country that doesn’t mean that it doesn’t have rich people. India has 50 Billionaires and literally hundreds of thousands of rich people.

Now, the question is that how much the average millionaires spend in India? Well, You will be surprise by knowing that the average millionaires in India spend just 2-4% annually of their total net worth.

It means that the average millionaire having net worth of Rs.5 Crores ($ 1 Million) spends around Rs.10-20 lakhs of their net worth.

In fact, if some true rich has a net worth of Rs.1 Crore than he/she will spend just Rs.2-4 lakhs annually to maintain his/her lifestyle.

Now, this type of figures are really eye staggering. This is because what most of the upper middle class do is, they spend almost 80-100% of their annual income to maintain their lifestyle. Say for Example, I have seen many couples whose combined annual income is around Rs.10 lakhs but they spend almost all of that money to maintain their luxurious lifestyle. And almost nothing goes towards building some serious long term wealth.

If we see the financial statements of these high income individuals than they own little to no assets in their financial statement. This shows the lack of financial education.

These people just look cool and rich because they spend lots of money to buy luxurious cars, mobiles and status toys. But in reality, they are not the rich but they are just the high income individuals who earn a lot to maintain their lifestyle.

If you want to become rich and stay rich in your life than simply spend most of your hard earned money to acquire assets (Stocks, Bonds, Gold, Real Estate, Businesses, Mutual Funds…etc..). This is because the assets can make you rich and not the high income.

So start focusing on building more assets. The advantages of accumulating assets is that, over the time your assets will start generating passive income for you on which you can live even if you stop working.