Here is how your earnings will be split across your budget according to the 30-30-30-10 rule.
i) The first Rs 15,000 will be spent on housing costs such as rent or home loan EMI.
ii) Next Rs 15,000 will be used for essential expenses such as groceries, paying multiple utility bills, transportation costs, etc.
iii) You have to allocate Rs 15,000 to meet your short-term and long-term goals.
iv) The remaining Rs 5,000 will be used for your wants or discretionary costs such as dining out or watching movies.
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A rising trend among Indian parents involves sending their children to study abroad, potentially jeopardising their financial futures to support international education, according to HSBC’s Quality of Life Report 2024.The report, which surveyed over 11,000 respondents across 11 global markets, highlights growing concerns about financial pressures linked to rising living costs. Key issues include 68 percent of participants expressing worry over escalating living expenses and 61 percent concerned about inflation diminishing their savings. These financial strains are particularly evident in the context of funding overseas education, with many facing challenges related to managing costs and navigating the pre-departure process.
Risking future
The survey reveals that 90 percent of respondents plan to finance their child’s education abroad, despite the fact that such expenses could consume up to 64 percent of their retirement savings. Currently, 78 percent of Indian respondents either aspire to send their child overseas or already have a child studying internationally.
Popular study destinations for Indian students include the US, UK, Canada, Australia, and Singapore, driven by increased regional mobility. By 2025, over two million Indian students are projected to study abroad, but the rising costs present a significant concern. In countries like the US and UK, educational expenses can deplete up to 64 percent of parents’ retirement savings.
Only 53 percent of Indian parents have an education savings plan. To cover the costs, 40 percent expect their children to take out loans, 51 percent are hopeful for scholarships, and 27 percent are considering selling assets. Additionally, parents face stress from managing various tasks, including choosing appropriate courses and ensuring admission criteria are met.
