How Indian techies in the US manage their finances

 

• For some, it’s about international exposure, while others see it as an opportunity to earn, save and excel in career.

Reshma Yellapu, a 26-year-old who recently moved to the US, was taken aback when she first learned that the monthly rent of a single-bedroom flat in Boston, Massachusetts state, is $2,500. That translated to ₹2 lakh (at the exchange rate of ₹80 per dollar), which is how she calculated the cost.

There is an inherent flaw in converting any income/expense directly with the exchange rate.

Like Yellapu, most Indians tend to convert foreign currency-denominated numbers to Indian rupees using the prevailing exchange rate. But there is an inherent flaw in converting any income/expense directly with the exchange rate as the cost of living in both countries could differ significantly.

For example, a $100,000 salary in the US may support a lifestyle akin to what India offers for just ₹23.14 lakh (as per the purchasing power parity (PPP conversion factor). This is because the cost of living in India is comparatively lower to that in the US. For the uninitiated, PPP allows for comparing standards of living between countries.

Mint spoke to four Indian IT professionals living in the US about how they manage their finances there

Source:  https://www.livemint.com/money/personal-finance/how-indian-it-professionals-in-the-us-manage-their-finances-11669051530794.html