Imagine earning what seems like a hefty amount, yet feeling broke by the month's end. That’s the story a lot of people in India live every single day, juggling between rent, groceries, school fees, and the never-ending family WhatsApp group demands. But what does "good income" really mean in India? It’s not just about the numbers—location, lifestyle, and what you want from life all play a big part. Living in Mumbai isn’t the same as living in Indore. Remember my son, Rohan, he once thought earning ₹1 lakh a month would make anyone rich. The truth? You could make that and still count pennies if you aren’t smart about spending and saving. Let’s strip back the myths, the internet noise, and look at what truly counts as a good income now, why it feels different for everyone, and how to make your rupee stretch further, whether you’re just starting out or eyeing that next big pay jump.
How Income Levels Really Work in India: Breaking Down the Numbers
India’s economy is massive, but the salary range is even bigger. If you search for average or "good" income, you’ll find every number from ₹15,000 a month to ₹5 lakh per month. It gets confusing, right? Let’s nail down the real numbers and see where you fit.
First, check out these actual numbers by Experience and City (2024 estimates):
| Experience | Tier 1 City Avg. Salary (₹/month) | Tier 2 City Avg. Salary (₹/month) | Tier 3 City Avg. Salary (₹/month) |
|---|---|---|---|
| Freshers (0-2 yrs) | ₹35,000 | ₹25,000 | ₹18,000 |
| 3-6 yrs | ₹55,000 | ₹38,000 | ₹28,000 |
| 7+ yrs | ₹90,000 | ₹58,000 | ₹40,000 |
| 10+ yrs (Managers) | ₹1.5 lakh+ | ₹75,000+ | ₹55,000+ |
Talk to anyone in Mumbai or Delhi. If you’re earning ₹1 lakh a month, it feels like a decent living—but your rent could be around ₹35,000 or even higher! Head over to smaller cities; even ₹50,000 monthly can put you near the top of the local little league. So, a “good income” really depends on where you live and your life stage.
Here’s another fun stat—according to the Income Tax Department’s latest data, only about 4% of Indians declare an annual income above ₹10 lakh (so roughly ₹83,000 a month). Sounds tiny, right? That means being in this salary bracket actually places you well above average.
Don’t just look at the pay-slip though. Cost of living—rent, transport, even how much your kid’s school charges for projects—all add up. For a family of three, living comfortably in urban India (without scrimping on birthdays, outings, and healthcare) usually means you want at least ₹1 lakh a month after taxes, especially in bigger cities. In smaller towns, you can drop this to around ₹50,000 and still be comfortable.
Now, break it down by job. IT professionals, managers, or folks in multinational companies regularly see ₹1 lakh+ a month. Government jobs, on the other hand, while ‘stable,’ don’t pay this much at entry, but they make up with other perks—housing, medical, and pension.
So, if you’re making above ₹50,000 in a tier 2 or 3 city, you’re doing great compared to most. In metros, shoot for ₹70,000–₹1.5 lakh, depending on what stage of life you’re at. Anything extra? Invest, don’t just spend—future you will thank you, seriously.
What Does a "Good Income" Actually Buy You?
Let’s translate salaries into real life stuff. What can you do with what you earn?
If your monthly household income is about ₹40,000, here’s the typical budget for a small family in a tier 2 town:
- Rent: ₹10,000
- Groceries: ₹7,000
- Utilities & internet: ₹2,500
- School fees: ₹4,500
- Transport/commute: ₹2,500
- Healthcare: ₹1,500
- Personal & entertainment: ₹3,000
- Savings: Barely ₹2,000-₹3,000, if any
Now, up that income to ₹65,000. Suddenly, you’re not stressing about the next medical bill. You eat out once in a while. Your kid gets a coding class. You save something each month. This is what people usually mean by "good"—not just covering basics but living a life where surprises don’t mess you up.
In metros, costs go off the charts. Private school in Mumbai? Easily ₹8,000–₹12,000 per month per kid. Eating out one night? That could be ₹2,000 for a family, painless for one, hard for another. That’s why ₹1 lakh a month feels "just okay" in some big cities.
Another twist—the "good" income isn’t just about spending, but what you can save or invest. With rising inflation (around 5.7% in 2024), incomes that felt fat two years ago now barely cover the basics for some families. Diwali gifts, family support to parents back home, vacations... these nudge up what “good” really means to each family.
Here’s a tip I share with my friends: The 50-30-20 rule. Use 50% of your income for needs (rent, bills, groceries), 30% for wants (dining out, treats, gadgets), and keep 20% untouched for savings and investments. No, you won’t nail this every time. But tracking spending makes you realize if your income actually supports your lifestyle (or if you’re faking it with credit card debt).
Also, watch for "hidden" costs. In big cities, owning a car or even using cabs regularly can eat up more than you expect. School trips, doctor visits, family events – these extras can bust any strict budget unless you plan them in.
And if you want to jump into the “above average” camp? Upskilling is the key. Tech certifications, digital marketing, language skills—these boost your salary big time, even for non-tech jobs. Rohan’s friend took a quick coding bootcamp and landed a job paying ₹65,000 a month within six months. Real stories like this aren’t rare now.
Smart Moves to Make Your Income Go Further
It’s one thing to make money, another to keep it. So, how do you punch above your weight, especially when everyone around you seems to be buying the latest iPhone?
First, get real about fixed and flexible spending. Fixed costs are those you just can’t change without a major lifestyle switch—rent, insurance, school. Flexible? That daily Swiggy order that turns into a chunk of your extra cash. If you cook at home more, share rides, and cut down on subscriptions you barely use, you might save thousands without feeling deprived.
Bargain hard and always check for deals. Indians are champions at this—never pay full price if you don’t have to. From online shopping festivals to payment wallet cashbacks, there’s always some way to knock down expenses.
Don’t skip health or life insurance. Medical emergencies are the fastest way good incomes turn into debt. A basic health plan for a young family starts around ₹6,000 a year, but it’s a lifesaver if something goes wrong.
Put money to work. Leave cash idling in savings? You lose out to inflation. Instead, set up automatic SIPs (Systematic Investment Plans) into mutual funds or start a PPF (Public Provident Fund) account. The beauty? Money grows without you stressing over it daily. Indians who followed this year after year now find themselves comfortable, even when jobs shift.
Also, don’t shy from talking money with your partner or family. Hiding expenses and running separate budgets? That usually spells financial drama. If you grew up seeing parents never discuss bills or investments, break that cycle. Bring kids into the basics too—Rohan now knows why I say no to every shiny new gadget. Turns out, saving is a family team sport.
Crowd wisdom isn’t always right. Everyone has an opinion on "enough salary." What fits your family might look modest to some and lavish to others. Think about what actually makes your life better. Is it more stuff, or is it more peace of mind?
Finally, don’t ignore new ways to earn. Freelance, gig jobs, or side hustles (think teaching, consulting, or even selling digital products) are no longer "shady"—some are earning as much from part-time gigs as their main 9-to-5. If your job barely covers the basics, use evenings or weekends for skill-building or side income; you’ll be surprised at how quickly things can change.
If you ask Rohan what’s a “good income” now, he’ll say: “Something that lets us eat well, learn new things, go to movies sometimes, and still have enough saved if something goes wrong.” Not a bad answer for a kid—and solid advice for all of us adults too.