With the given inflation and FOMO-driven lifestyle choices, the first thing that comes to our mind is- Is it possible to live in a new city on a salary of 18-20k? The heart of Gujarat, Ahmedabad, is one of the fastest-growing business hubs in India. This city offers a combination of modern amenities, amazing food, and a great culture! However, the question of whether this salary range would suffice for a good life in Ahmedabad persists.
So, let’s answer this query for you. Living in a PG in Ahmedabad on a modest income is surely possible. You might also have to cut down on unnecessary expenses and the cost of living to survive well with a salary of 18-20k. Let us see what a student or a working professional can expect when living in PG in Ahmedabad on a tight budget.
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Understanding Ahmedabad’s Cost of Living
Offering a full range of activities and good working and education opportunities, Ahmedabad is full of fun! The following are the key factors that sum up the overall expenses of living in Ahmedabad:
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Housing Rent and Utilities:
The cost of living in Ahmedabad might vary significantly depending on the location and the type of accommodation. If you are looking for an affordable option, rental options for 1 BHK PG in the most famous areas like Satellite, Prahlad Nagar, Mani Nagar, etc, might range from 7k-10k per month. These PGs come with basic amenities like water supply, 24*7 electricity, security guard, etc., and are conveniently located near commercial areas and transportation hubs.
If you are looking for a bigger space, then areas like Vastrapur, Chandkheda and Nikol offer 2 BHK PG for rent in the range of 12k-24k. Considering the utility costs, the average electricity bill for 1 room PG might range between INR 500-800 per month, and average water bills might range between INR 200-500 per month.
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Cost of Food:
Ahmedabad is known for its delicious local food and eateries. The city is generally affordable, where a budget of 5000 monthly is sufficient for a single person to buy groceries or dine out. However, in the case of a small family, this expense might go upto INR 12000 per month.
Ahmedabad offers a lot of local markets and supermarkets for purchasing groceries at affordable prices.
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Cost of Commute:
Being a well-connected city, Ahmedabad has endless commute options, such as rickshaws, autos, local trains, and buses. To keep things within budget, using public transport will be relatively affordable. If you own a vehicle, which you would want to bring along, then petrol prices per litre range between INR 90 -INR 110. For those looking to reduce transportation costs, living closer to their workplace or educational institution can be a smart choice.
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Miscellaneous Spend:
You would also love to be a part of celebrations and events in this vibrant city. For those days, you must save some amount every month. There are different fares, exhibitions, fun standup shows, and best of all, the month of Navratri will make your life happy and full of excitement in Ahmedabad.
How to Plan Your Budget on an 18-20k Salary?
No matter whether your salary is 18,000 or 50,000 per month, the rule of thumb is to know the art of budgeting. To live comfortably in Ahmedabad, creating a monthly budget is crucial. Tracking expenses and controlling spending and savings should be done simultaneously. Let us tell you how to plan your budget easily and effectively with stanza living:
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Estimate total monthly income
To start, sum up your total earnings. Next, list down all regular monthly expenses, such as rent, utilities, groceries, and transportation and then subtract these expenses from the total income. The amount revealed should be saved diligently.
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Set up priority in expenses:
Living on a limited budget, it is important to prioritize expenses. The biggest expense is renting a PG in Ahmedabad, followed by the bills and grocery expenses. Later, you may invest the money or keep it aside for leisure. Housing expenses can be managed by deciding the right rent amount in a locality close to your workplace or educational institution. Similarly, food expenses can be reduced by allocating INR 5000-7000 for home-cooked meals from tiffin centres or messes. Transportation costs can be reduced by using bike-transportation services. Other necessary expenses like healthcare, entertainment, and other costs could total ₹3,000 to ₹5,000 monthly.
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Save:
Cost-cutting measures must be followed to ensure you save adequately every month. Sharing accomodation or choosing to live in a PG on rent is the first step towards saving big! This helps reduce rent (which is otherwise higher in non-sharing spaces), electricity bills, and other amenities. Exploring low-cost healthcare programmes and local clinics nearby can help save on medical costs. On the other hand, starting small by dedicating a portion of each paycheck to savings can provide financial safety. This helps in building an emergency fund.
Creating an emergency fund is essential for financial stability, especially when you are living on a limited income. It safeguards you from unforeseen circumstances such as job loss, medical emergencies, or unexpected expenses. Ideally, this fund should cover 3-6 months of living expenses.
To build an emergency fund, you should start by setting aside a fixed amount from your monthly income. For example, if the target is to save ₹60,000 in 12 months, one should aim to save ₹5000 every month. Opening a separate savings account dedicated to the emergency fund can help control the urge to spend extra money.
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Exploring Cheaper Alternatives:
If you are on a tight budget, then finding an affordable housing option is crucial. Likewise, choosing the cheaper options for transport and food is also advisable. The western part of Ahmedabad provides affordable rental homes suitable for both students and working professionals. Other affordable localities for PG on rent include Gota, which enjoys strategic connectivity to New SG Road, Thaltej, and Sardar Vallabhbhai Patel International Airport. Nava Naroda, in the northeast part of Ahmedabad, offers an affordable yet high-quality living experience, making it ideal for working professionals.
Living in Ahmedabad on a salary of 18-20k is challenging, but life in this city is worth it. It is possible to live in Ahmedabad with smart planning and careful choices. While this salary might limit some luxuries, it allows for a simple yet comfortable life in Ahmedabad. With its mix of modern amenities and traditional charm, the city offers opportunities to those willing to adapt and make thoughtful financial decisions. Ultimately, living within this budget requires discipline but can lead to a fulfilling life in this vibrant Gujarat city.
Read More: Veer Pahariya