'Rs 70 lakh is not middle class — it’s lifestyle inflation': Finfluencer reacts to viral post on new middle class standard
- High income of ₹70 lakh annually not considered middle class according to experts. - Lifestyle choices, not class or inflation, are causing financial strain. - Financial discipline and sustainable spending urged for high earners.
- Jun 27, 2025,
- Updated Jun 27, 2025 2:58 PM IST
A recent debate surrounding the notion that earning Rs 70 lakh annually qualifies someone as middle class in India has sparked significant attention. Parth Sanghvi, a notable financial influencer, argues against this narrative, stating, "There’s a growing narrative on social media claiming Rs 70 lakh a year is middle class, but that’s simply nonsense." He highlights that such an income falls within the top 1% in India, far from the middle-class bracket. Sanghvi underscores that calling Rs 70 lakh middle class distorts the economic challenges faced by genuine middle and lower-income families.
Sarthak Ahuja, an investment banker, recently went viral for explaining how even people in this income bracket can feel financially squeezed. He detailed how substantial taxes and costly urban lifestyles can leave high earners with surprisingly little disposable income.
Ahuja calculated that someone making Rs 70 lakh annually pays roughly Rs 20 lakh in taxes, reducing monthly take-home pay to approximately Rs 4.1 lakh. Of this, significant sums are spent on fixed commitments:
Around Rs 1.7 lakh on home loan EMIs for a Rs 3 crore apartment
Rs 65,000 on car loan payments
Rs 50,000 for children’s international school fees
Rs 15,000 for household staff salaries
That leaves roughly Rs 1 lakh to cover all other expenses — ranging from groceries and utilities to healthcare, fuel, leisure, and any potential savings.
Ahuja attributed this financial squeeze to several factors, including soaring living costs in urban centres like Mumbai and Gurugram, high prices for real estate and luxury vehicles, and lifestyle pressures fuelled by social media portrayals of affluence. “At month’s end, many are left with barely anything,” Ahuja observed, dubbing this group the “new sub-middle class”—people whose high salaries don’t translate into financial comfort.
Sanghvi's point of view
The financial squeeze is attributed to three primary factors: rising living costs, expensive loans for homes and cars, and lifestyle aspirations driven by social media. Sanghvi points out, "No one forced you into buying a massive house or a luxury car on EMI. It’s about choices and priorities." This statement shifts the focus from systemic economic challenges to individual financial decisions and priorities.
Sanghvi further criticises the notion that Rs 70 lakh represents a middle-class income, emphasising that it undermines the realities of those earning significantly less. He observes, "Calling Rs 70 lakh middle class undermines the economic realities faced by the true middle class and lower-income groups." This perspective encourages a broader understanding of the financial pressures various income groups face, especially those truly within the middle class.
Both Sanghvi and Ahuja agree that the lack of savings at this income level is more about lifestyle choices than unavoidable economic conditions. Sanghvi argues, "No savings at this level isn’t inflation—it’s a lifestyle choice." He urges individuals within this income bracket to re-evaluate their financial habits rather than attribute their financial stress solely to external economic factors.
To counter the narrative of financial helplessness among high earners, Sanghvi advises focusing on sustainable spending and improving financial discipline. "Stop calling it a middle-class problem. It’s misleading and unfair to those who genuinely belong to the middle-income segment," he asserts, calling for clarity in public discourse on income and lifestyle.
Ultimately, Sanghvi concludes, "The problem isn’t income—it’s how you manage it." This insight encourages those earning substantial salaries to consider their spending habits more critically and make informed decisions to improve their financial well-being. High earners are thus reminded that financial stability is within their grasp if they prioritise effective money management and resist lifestyle inflation's allure.
A recent debate surrounding the notion that earning Rs 70 lakh annually qualifies someone as middle class in India has sparked significant attention. Parth Sanghvi, a notable financial influencer, argues against this narrative, stating, "There’s a growing narrative on social media claiming Rs 70 lakh a year is middle class, but that’s simply nonsense." He highlights that such an income falls within the top 1% in India, far from the middle-class bracket. Sanghvi underscores that calling Rs 70 lakh middle class distorts the economic challenges faced by genuine middle and lower-income families.
Sarthak Ahuja, an investment banker, recently went viral for explaining how even people in this income bracket can feel financially squeezed. He detailed how substantial taxes and costly urban lifestyles can leave high earners with surprisingly little disposable income.
Ahuja calculated that someone making Rs 70 lakh annually pays roughly Rs 20 lakh in taxes, reducing monthly take-home pay to approximately Rs 4.1 lakh. Of this, significant sums are spent on fixed commitments:
Around Rs 1.7 lakh on home loan EMIs for a Rs 3 crore apartment
Rs 65,000 on car loan payments
Rs 50,000 for children’s international school fees
Rs 15,000 for household staff salaries
That leaves roughly Rs 1 lakh to cover all other expenses — ranging from groceries and utilities to healthcare, fuel, leisure, and any potential savings.
Ahuja attributed this financial squeeze to several factors, including soaring living costs in urban centres like Mumbai and Gurugram, high prices for real estate and luxury vehicles, and lifestyle pressures fuelled by social media portrayals of affluence. “At month’s end, many are left with barely anything,” Ahuja observed, dubbing this group the “new sub-middle class”—people whose high salaries don’t translate into financial comfort.
Sanghvi's point of view
The financial squeeze is attributed to three primary factors: rising living costs, expensive loans for homes and cars, and lifestyle aspirations driven by social media. Sanghvi points out, "No one forced you into buying a massive house or a luxury car on EMI. It’s about choices and priorities." This statement shifts the focus from systemic economic challenges to individual financial decisions and priorities.
Sanghvi further criticises the notion that Rs 70 lakh represents a middle-class income, emphasising that it undermines the realities of those earning significantly less. He observes, "Calling Rs 70 lakh middle class undermines the economic realities faced by the true middle class and lower-income groups." This perspective encourages a broader understanding of the financial pressures various income groups face, especially those truly within the middle class.
Both Sanghvi and Ahuja agree that the lack of savings at this income level is more about lifestyle choices than unavoidable economic conditions. Sanghvi argues, "No savings at this level isn’t inflation—it’s a lifestyle choice." He urges individuals within this income bracket to re-evaluate their financial habits rather than attribute their financial stress solely to external economic factors.
To counter the narrative of financial helplessness among high earners, Sanghvi advises focusing on sustainable spending and improving financial discipline. "Stop calling it a middle-class problem. It’s misleading and unfair to those who genuinely belong to the middle-income segment," he asserts, calling for clarity in public discourse on income and lifestyle.
Ultimately, Sanghvi concludes, "The problem isn’t income—it’s how you manage it." This insight encourages those earning substantial salaries to consider their spending habits more critically and make informed decisions to improve their financial well-being. High earners are thus reminded that financial stability is within their grasp if they prioritise effective money management and resist lifestyle inflation's allure.