Latest news with #AbhishekKumar
India Today
20 hours ago
- Business
- India Today
Is lifestyle inflation fuelling debt among India's middle class?
The paycheque is bigger, but the wallet feels thinner. Across urban India, many salaried professionals are earning more than they did five years ago, yet they're still anxious at the end of each month, juggling EMIs, credit card bills, and shrinking culprit isn't just stagnant salaries or rising costs. It's what personal finance experts call lifestyle inflation—the quiet, creeping habit of spending more as you earn it's starting to show up in debt IS LIFESTYLE INFLATION? Lifestyle inflation refers to the tendency to increase spending in line with income growth. A salary hike often triggers upgrades: a bigger house, a newer car, fancier gadgets, or more frequent eating out. But these expenses can quickly outpace actual earning power if not kept in check.'It's a major concern,' says Abhishek Kumar, SEBI-registered investment advisor and founder of SahajMoney. 'Even professionals earning substantial salaries are left with limited disposable income. As their income grows, so do their expenses, often faster than the income itself.'Over time, this pattern erodes financial flexibility. A higher salary that once promised upward mobility ends up funding short-term gratification and long-term liabilities.A SALARY HIKE, FOLLOWED BY AN EMIWith every job switch or annual raise, many professionals slide into bigger EMIs and costlier routines. But when those income jumps are modest, the math doesn't hold. 'High earners are increasingly falling into what I call the 'new middle class.' They earn well but feel stretched every month,' says Now, Pay Later (BNPL) schemes, no-cost EMIs, and credit card offers make it easier than ever to overspend. 'These products change behaviour. They make expensive purchases seem affordable by breaking them into smaller chunks, but the cumulative burden strains monthly budgets,' he often creeps in gradually until repayments consume a third or more of someone's WARNING SIGNSThe red flags of lifestyle overextension often go unnoticed. 'Living paycheck to paycheck despite a good salary, relying on credit for groceries or bills, dipping into savings for everyday needs—these are all warning signs,' Kumar use of short-term loans, missing credit card due dates, and falling credit scores are also markers that someone is living beyond their patterns are no longer rare. Personal loan growth among salaried urban professionals is at a record high, and delinquencies in BNPL accounts have been rising SOCIAL MEDIA TRENDSThe psychological triggers behind lifestyle inflation are just as strong as the financial ones. 'FOMO is real,' Kumar notes. 'Social media creates the impression that everyone else is doing better. That pressure pushes people to upgrade faster than they can afford.'A curated life on Instagram or an aspirational reel can influence everything from vacation plans to restaurant bills. But these comparisons often come at a financial SAVINGSadvertisementPerhaps the most damaging effect of lifestyle inflation is what it crowds out: long-term savings. 'When people spend more on lifestyle, they invest less for the future. And those early years are critical for building wealth,' Kumar out on compounding in your 20s or early 30s can delay financial goals by years. A few indulgences now might mean postponing retirement or taking on more risk restraint doesn't mean austerity, but balance is key. 'Start with the 50-30-20 rule. Allocate 50 percent to needs, 30 to wants, and 20 to savings and investments. It helps you stay grounded,' Kumar also recommends automating investments, limiting EMIs to essential purchases, and using a 24-hour pause before big-ticket buys. 'Clarity is crucial. It's not just about what you earn, but how you make that income work for your life goals.'Because income alone doesn't build wealth. Discipline does.
India Today
20 hours ago
- Business
- India Today
Planning to retire at 40? Here's what it really takes
For many working professionals, retiring at 60 feels like a finish line etched in stone. But in recent years, a new goal has quietly gained popularity, retiring at idea sounds almost rebellious. Stop working just when most people are hitting their career peak, and live the rest of your life on your own terms. No bosses, no Monday blues, no waiting for the behind this new aspiration, lies a tough question: Can you really afford to stop earning at 40 and still live comfortably for the rest of your life?IS IT POSSIBLE TO RETIRE AT 40?Abhishek Kumar, a Sebi-registered investment adviser and founder of SahajMoney, says it is possible but highly challenging. 'It depends a lot on how much of your income you save and how your investments grow over time,' he to him, someone who is 28 years old and aiming to retire by 40 would need to save around 79 times their current annual expenses, after adjusting for inflation. At age 40, that number may be around 35 Mota, Co-Founder and CEO of Finnovate, agrees. 'Yes, it is possible — but only with high discipline and intentional planning. The focus should not just be on earning more, but on saving more,' he says. He believes even those earning a middle-class salary can do it if they consistently save over 50% of their income and invest MUCH DO YOU NEED TO SAVE EVERY MONTH?Let's take the example of someone earning Rs 1 lakh per month. Abhishek Kumar explains that a 40-year-old with Rs 50,000 in monthly expenses would need to save Rs 18,080 per month just to retire by 60. 'But if the goal is to retire at 40, the monthly savings will need to be 60–70% of income or even more,' he Mota offers a similar view. 'If someone earning Rs 83,000 a month wants to retire by 40, they should save Rs 40,000 to Rs 45,000 each month and invest through SIPs in mutual funds targeting 10–12% annual returns,' he says. Over time, this could help build a corpus of Rs 2–3 crore by 40, which may generate a passive income of Rs 1–2 lakh per month depending on how the money is invested after IS FIRE AND IS IT RELEVANT FOR INDIANS?FIRE, or Financial Independence Retire Early, is a lifestyle movement that encourages people to save and invest aggressively with the goal of retiring decades earlier than usual. While it originated in the West, it is slowly catching on in India too.'FIRE is growing among India's urban professionals,' says Nehal Mota. 'It gives people freedom to travel, take sabbaticals, or work on their own terms, without financial pressure.'Abhishek Kumar, however, warns that the popular 4% withdrawal rule used in FIRE planning may not work as well in India. 'That rule is based on returns in developed markets like the US. In India, we should follow a more cautious withdrawal rate of 3.5% or even less due to higher inflation and market volatility,' he MISTAKES AND RISKS OF EARLY RETIREMENTOne of the biggest mistakes people make is underestimating how much money they'll need. 'Many believe they can retire with a small corpus that gives them Rs 1 lakh per month. But their savings rate is just 1–5% of income — that's not going to work,' says Abhishek Mota highlights a few more risks: 'People ignore the rising cost of healthcare, overestimate how much passive income they can generate, and assume they won't need to work again — but many do. Lifestyle creep is also a real problem. As people earn more, they spend more, and this delays savings goals.'HOW TO DEAL WITH HEALTHCARE, INFLATION AND EMERGENCIESBoth experts agree that managing health and emergencies is critical.'Start early with health insurance, maintain a proper emergency fund, and save enough to handle inflation through the years,' says Abhishek Kumar. 'Early retirees face a longer retirement period, so the risk of market downturns is higher.'Nehal Mota adds, 'Keep a separate healthcare fund, buy a lifelong insurance policy, and make sure your investments offer inflation-adjusted returns. Post-retirement, choose a more balanced asset allocation that offers stability and growth.'advertisementRetiring by 40 is not easy but can be done with commitment, smart investing, and careful planning. The biggest challenge is not income but behaviour – saving enough, staying invested, and being realistic about expenses and risks.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Time of India
2 days ago
- Business
- Time of India
Dhanbad varsity goes virtual to tide over teachers' crunch
1 2 Dhanbad: The Binod Bihari Mahto Koylanchal University (BBMKY) is holding online classes in the educational institutions affiliated to it in Dhanbad and Bokaro districts to tide over acute shortage of faculty. A total of 13 constituent and 25 affiliated colleges, 21 colleges, two colleges, two medical colleges, two law colleges, and one minority college are affiliated to it. The university has 180 teachers against 599 a sanctioned posts. It recently recruited 150 contractual teachers on a need-basis. BBMKY registrar Dhananjay Singh, said, "The university embraced technology-driven solutions to cater to the total number of students. All the sanctioned 42 posts for associate professors and 21 professors are lying vacant. The last recruitment of assistant professors by the Jharkhand Public Service Commission took place in 2008." The university is working on a Learning Management System (LMS)-based mobile application to support virtual education. "It's the need of the hour to think beyond traditional teaching methods. By adopting tech-based learning, we can organise virtual classes effectively," he added, stating that most colleges are equipped with interactive digital panels to facilitate such a transition. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Calcula cuánto podrías ganar invirtiendo en CFD de AES ofertas especiales Registrarse Undo "If the varsity's plan to run virtual classes works out, it will benefit us, the sufferers," said Abhishek Kumar, an undergraduate student of PK Roy Memorial College. Student organisations have lauded the initiative but flagged concerns about infrastructure and technical readiness. "We experienced several issues with virtual classes during the Covid period. Smooth functioning of online classes requires robust connectivity and competent technical support," said Hargovind Pathak, the town secretary of Akhil Bharatiya Vidyarthi Parishad (ABVP). "If the university ensures proper facilities, students will undoubtedly gain," he added.
India Today
2 days ago
- Business
- India Today
Insured, but at what cost?
Remember the old life insurance ad tagline 'Sar utha ke jiyo' (live with your head held high)? It promised dignity and peace of mind, that no matter what life throws at you, your insurance policy had your today, as medical costs soar and risks multiply, insurance is no longer optional. The question is, are people truly getting the protection they're paying for?Hospitals are turning into battlegrounds over pending claims, with policyholders watching their premiums shoot up faster than their salaries. Growing delays in claims, rising premiums, high taxes, and a lack of trust are forcing people to rethink their insurance fact, nearly 50% of policyholders who filed a health insurance claim in the last three years faced major issues, such as rejections, partial approvals, or long discharge delays, according to a LocalCircles survey that covered over 100,000 respondents across 327 by these experiences, some have started trimming their coverage. Others are stepping away from health insurance altogetherPEOPLE ARE PULLING BACK Abhishek Kumar, Sebi-registered investment advisor and founder of SahajMoney, says there has been a clear shift.'Many clients have come back to us asking for advice, especially about health insurance, as premiums are going up exponentially,' he said. 'Despite our advice, many have shown intent to reduce the cover or stop it altogether because of affordability issues.'His observation lines up with broader trends. FY24 data from IRDAI (Insurance Regulatory and Development Authority of India) shows that the total amount of health insurance claim rejections rose to Rs 26,000 crore, up 19% from the previous year. The proportion of health insurance claims denied stood at 11%, with another 6% and healthy individuals are the first to de-prioritise insurance. 'They don't prioritise the immediate need for insurance and believe they can purchase it later,' said TURNING INTO A BATTLEThe LocalCircles report reveals that 60% of patients had to wait 6–48 hours for cashless discharge even though IRDAI has asked hospitals and insurers to settle claims within one hour. Only 8% of people said they got prompt, real-time settlement at the time of adds, 'Many clients have shared experiences of delays in claims processing or, in some cases, outright rejection. The main reasons are errors in paperwork, non-disclosure of pre-existing conditions, missed premium payments, or inadequate medical documentation. This adds to policyholder frustration.'TAXES ADD TO THE BURDENOne often overlooked reason people are quitting insurance is the 18% GST on premiums, especially in health and term life Mani, Partner – Indirect Tax at BDO India, said, 'This GST rate leads to a significant increase in cost. Since the full premium plus tax becomes a sunk cost if the claim isn't triggered, people are questioning the value.'When it comes to health insurance for senior citizens, the pain is worse. Premiums are already higher, and the added 18% GST makes them even more end up paying almost 20% of their premium as GST, which they could have used to increase their cover or spend elsewhere,' said Kumar. 'In the absence of a strong public healthcare system, GST on insurance becomes a big deterrent, especially for the middle class.'SHOULD BASIC POLICIES BE TAX-FREE?There's a growing demand to exempt health and term insurance from GST, at least for essential or low-value coverage.'Several developed countries like Canada and those in the EU have exempted insurance from GST or VAT. We have neither that relief, nor a strong public system, so we are caught between a rock and a hard place,' Kumar however, suggests a middle ground. 'Full GST exemption would remove insurers' ability to claim input tax credit, and they may hike premiums to compensate. A better option is to lower the GST rate, say to 5%, so that the benefit is passed directly to policyholders.'IRDAI's grievance data shows that two-thirds of all complaints in the non-life segment relate to claims, mostly due to delays, denials, or settlement disputes. Over 200,000 complaints were logged through IRDAI's Integrated Grievance Management System (IGMS) in FY23 the life insurance segment, 15,088 claims were outright rejected in FY22, amounting to over 1,026 crore. Many were rejected due to simple documentation issues, such as outdated nominee details or address data paints a clear picture. People are unhappy with rising costs and they're losing faith in the insurance process. Whether it's a denied hospital claim or tax-loaded premiums, consumers are asking: is insurance still worth it?'We always advise clients to maintain an emergency fund. Because when claims don't come through, your only real safety net is your own savings," said premiums become affordable, claim settlements more transparent, and tax policy more realistic, India's insurance sector may continue to see people stepping back from a product designed to protect them.(This is Part 1 of our in-depth series on the unravelling of India's insurance safety net, exploring how rising premiums, mounting tax burdens, and frequent claim disputes are pushing people away from the very protection they once relied on. Part 2 will spotlight real stories of policyholders caught in the web of delayed or rejected claims. Stay tuned.)
News18
3 days ago
- Entertainment
- News18
Abhishek Kumar Aka Pumme's Latest Pictures Will Make You Scream ‘Tu Aashiiki Hai'
Last Updated: Abhishek Kumar offered a glimpse of his latest on-screen character in Dreamiyata Drama's Tu Aashiqui Hai. Abhishek Kumar, known for his work in TV series and music videos, is part of the recently launched show, Tu Aashiiki Hai. The actor, who has won many hearts with his acting chops in shows like Bekaboo and Udaariyaan, portrays the role of 'Pumme' in Dreamiyata Drama's serial. The actor dropped dashing photos alongside a quirky caption, offering a glimpse of his latest on-screen role. On Instagram, Abhishek Kumar posted a series of photos, featuring him striking stylish poses while riding his two-wheeler. The actor looked handsome while being decked in a cool ensemble. It included a neon yellow T-shirt layered with a funky jacket. He teamed it with multi-pocket relaxed-fit pants and beige sneakers, radiating street-boy fashion inspiration. Sharing the photos, he asked his fans, 'Pumme jaise Pyaar karne wala chahiye ?" giving a subtle hint about his character in Dreamiyata Drama's serial Tu Aashiqui Hai. The actor's post also featured two cute snaps with his co-star, Amandeep Singh Sidhu and the other crew members of the show. The gorgeous actress, wearing a peach-hued suit set, was seen happily posing for the lens while leaning on Abhishek's shoulders. The post has been constantly garnering praise and appreciation from his fans ever since it surfaced on social media. One user said, 'Abhi you look damnn cute." Another viewer of his serial mentioned, 'Pumma tu aashiiki mai chaa gayeee." Someone added, 'Pumma ka main lead role acha lag raha hai." 'Aache lag rahe the is attire me," read a comment, while an ardent fan of his on-screen character stated, 'Who is PUMMA?? Respectful, Caring, Loving, True friend, One sided lover, Best son, Innocent, Helping." Featuring Abhishek Kumar as Pumma and Amandeep Sidhu as Noor in the lead, Tu Aashiiki Haii is a heartfelt tale of destined love. While the trailer promised a soulful romance between the two lead duo, deep emotions and fate play a central role in bringing them together despite the challenges that threaten their bond at every step. Produced by Dreamiyata Dramaa, the house led by Sargun Mehta and Ravie Dubey, the show also stars Sheezan Khan and Mahir Pandhi. After a change in the previous schedules, Tu Aashiiki Haii will premiere every Friday and Sunday at 5 pm. Earlier, talking about his role, Abhishek revealed his emotional ride while filming for the show. 'This show is more than just a love story—it's an emotional ride, and I'm thrilled to be a part of a project that dives so deep into human connection. Working with Dreamiyata Dramaa feels like home already," he stated. First Published:
