Good Question
danp said:
How much do we need monthly and in the bank....so that I can earn some interest and live there
I am planning to switch jobs....too and earn some more......
How much money do we need to go back?
Well, no one knows "how much is enough"?
I am not CPA but I think that if we put our expenses (current and future) + some buffer (for emergancy), we should get some idea.
Let's start putting some numbers, please correct me if I am missing anything.
[Just now I talked with my mom and my father in law to get some actual numbers]
If you think of staying in any big city in India (e.g. Mumbai)
First Expense is Rent (or Co-op Tax if you own) - Rs.8000 (rent 2 room apartment) monthly
- Rs.4000 (taxes, co-op fees if you own flat)
Kid's Expense(School,Tution,Clothes,Pocket Money) - Rs.1500 (monthly per kid)
Grocessary and Home Expense - Rs.4500
(assumptions Rs100 Daily Vegetables,Milk * 30 = 3000, Rs.150 Gas Monthly, Rs.500 Electric Bill, Rs.500 Cell Phone, 150 New Paper,
Dish Washing Bai - Rs.300
Clothes Washing Bai- Rs.300 (washing machine can save this but check water availibility)
Transport (Train Pass 1st Class) Rs.1200
TOTAL MONTHLY (with one kid and renting famli): 8000 + 1500 + 4500 + 300 + 1200= Rs.16000 (approx.)
Annual Expenses:
Annual School Clothes, Diwali Shopping - Rs.15000
LIC Insurance - Rs.15000
Family Summer Vacation - Rs.10000
Medical Expense (parents,family) - Rs.10000
TOTAL ANNUAL EXPENSES: 50000 + 12 * 16000 = 242000
IF YOU TAKE FIXED DEPOSIT WITH 5% INTEREST RATE: Rs.4,840,000
IN USD (1$=44Rs) ==>
$110,000
That is your number.... PLEASE FEEL TO ADD OR REMOVE any of my assumptions. TO BE ON SAFE SIDE this number should be rounded on upper side to 125,000 but remember LIFESTYLE is going to be of Indian Medium Family life and also what you earn locally is all together different.
AVG. SOFTWARE DEVELOPER WITH 3-4 YEAR EXPERIENCE is Rs.40000