how much savings for r2i

Things have gotten expensive in india also esp if you want to maintain western lifestyle. Homes in metro atleast 30 Lac (apartment) and independent depends on locality. Kids education, hospitals are also expensive nowadays.

 

earn for a while and then come back

 

the amount depends on many factors. and this is one question that never can have one standard answer.

I remember a family friend telling me if i have 10 lakhs i will resign the job and go back to india, this was in 2000 and it is 2015 and they almost save around 20 lakhs a year between the husband and wife, have no committments other than one kid who needs to get into college..and they are scared.. they have properties and the works but the "this is enough..i am packing my bags is elusive"

this was a article i read few years back..
http://neoindian.org/2009/05/26/how-much-money-do-you-need-to-save-before-you-move-to-india/

come to think of it, how much is enough to retire also brings various answers..

and this article in general.. some thoughts to ponder over..
http://www.moneycontrol.com/news/mf-experts/financial-satisfaction-how-much-is-enough_545555.html

 

Hi gankita,

Think that you feel miserably lonely.We too are sailing in the same boat. I do not know how long you have been here. But we came only in July 2014. We consciously took the decision of relocating to the US for some financial relief. I am so sad that my son is missing his grand parents and vice versa.

Buying our own house has become so hard in India, especially in Chennai, that made us take this decision. If we want to buy a house , it has to be in decent locality, established community, easy for commuting and be near a reputed school for kids. This much criteria means LOTS of money . Which honestly we could not earn while employed in India. I chose to quit my job for personal reasons. So my husband is the sole bread winner.
Our goal of buying the Dream House has landed us in US.

For the first few days the thrill of a new country, new environment made us feel good about the decision. As my husband works out of a client's office ,not even colleagues are there for us to mingle. the loneliness we face here is terrible. Even if we try to be friendly with people here, they seem to have no mood or time to reciprocate. We can not force ourselves on any one.

As others have pointed, money is purely individualistic decision. How much is enough differs from person to person.
If we really want to go back to India, then it is wise to set a reasonable goal like buying a property and paying off some debt that will decrease the stress of loan repayment when we return to India. or saving some money for future (decision is collective between husband and wife) and strictly sticking to the goal and return immediately after achieving the same. Should not be tempted by money or the life style. If we do this only we will return. otherwise it is going to be a long stay. This is my point of view.
Should we postpone the idea of returning to India , money being the main reason, the decision will soon be out of our hands and only our kids will have the final say. That is what we fear. We should never force our thoughts on them, it is better to leave early than to regret living here for longer if we are very clear that our life is in India only. Home is where heart is.
As for as our family is concerned, we are very clear to leave early as soon as we reach our goal. No confusion. Money could be earned any where if we are equipped. The people who matter most , they would not be there forever. Better to be poor in our own land with people around than being a lonely king in a distant island.

Wish you all the best,
Pavithra.

 

We have plans to return before my child starts serious education. He is 3 years now. By June 2017 we will go back. I've never regretted any of my decisions so far. I hope I will not regret this as well.
My parents are no more. I've practically no reason to go back but I kind of feel independent in my own home ground. The feeling that we belong to this country (India) is so powerful and acts like a shield such that I feel exposed to the fact that am little out of place here in the US.

 

in india cost of property is very high...hence the rent too...so better before moving to indian one should have a loan free house/flat on one's name....it gives a great sense of security....

 

We returned to India end of Feb 2015 after 7 years living in USA (on hubby's L1A Visa)

When we were in USA, each time we visit India, we make it a point to buy an apartment (if not land if you have the time). we check for properties for investments before we go, and short-list the projects. After landing, go in person, initiate the formalities, and in-laws handle the rest of the paper-works and home-loans thru POAs (we were blessed with in-laws, who were happy to oblige, help us out among their busy schedule and in their old-age).

DH & I sat and talk about returning to India, weighed the pros and cons, and decided to move back to India after 5 yrs of living in USA. Sold 2 apartments, and booked a Villa. Our criteria were as below
1. Has to be an independent home close to DH's work area (as my work is optional)
2. amenities with pool, gym & kid's play area mandatory
3. Has to be in a community
4. security - as inlaws would be staying alone, once we leave for office.

Started calculating the cost factors and arrived at the budget for our villa. created an excel, and started jotting down what we need to go home. ie how much liquid cash to carry, and how much we "may" need every month for day-to-day expenses. We knew our return date almost 2 years back, so it was easier to calculate expenses, plan sale/give-aways of US household stuff, shipping etc.

When we came, we knew we would have to get interiors done & home furnished with appliances & furnitures. So had to do this ground work. It helped !

We also planned to keep couple of loans open, as we were not sure how much our monthly expenses will be at the start. (ie. rather than pre-paying say 3 lakhs towards a loan, we decided to keep them as buffer to pay "extra" if needed for our "unforeseen"/initial expenses.

As of now, am glad we kept that buffer. So far our monthly expenses have been in the range of 70-80K, while we budgeted for 40-50K. We closely monitor with an account note (just jote down expenses in a note and review at the end), and do realise that mostly the extra expenseis because we are new here. ie visiting 20+ odd relatives home in one month hiked the "snacks-buying charges" to 15K which is not happening every month. Also, purchases towards Indian-ethnic wear (as I was working in USA, and had just 5 decent salwars during my return) for me was close to 20K which is NOT happening again. You get the picture !

We are slowly learning to live in India. I have given ourselves atleast a year to get settled properly, and get to the normal mode of spending.

Net Net :
1. We planned for 30 lakhs for home interiors, 2 laks for house warming ceremony, 8 laks for car etc. Had this in liquid money in our accounts and DID NOT share this info with anyone else.
2. We kept an additional 3 laks as buffer
3. We chose to keep a our villa joint-loan at 40 lakh and another loan of 1 lakh open (for an apartment which is in progress. ) - Helps in Tax for both of us.
4. We have planned for loan pre-payment periodically from my salary, while DH's pay goes for house hold expenses & EMI.
5. Thanks to our in-laws, we get some rental income on top of DH's pay.

Hope this helps

End of Day, do some number crunching with your lifestyle in mind and plan well ahead !

Cheers,
JM