Coronavirus pandemic has been a life changing event for many. It is a singular event in the history of mankind which has impacted each and every human being on this planet.
Second wave was devastating especially in India and we are hopeful that with increased vaccination in coming months we should put this all behind.
It has also brought a lot of opportunities to adapt. It was never thought that work can be done from home without a loss of productivity. But the past has proven this is far from what was thought.
Not only has there been no impact on employees productivity in a lot of cases there has been a significant improvement.
Working from home has kept employees and the family safe. It also has added to the bottom line of Companies. They have benefited by significant savings in real estate and admin costs.
It also brought a culture of work from anywhere which could be truly revolutionary. Working from anywhere enables an employee to work from any location.
This can have a significant impact on the path to financial independence. Today for the first time it is possible to get salaries of bigger cities and stay in small towns. This can significantly accelerate the journey towards Finzaadi.
Below are advantages to living in smaller cities in India
Real estate cost
A small apartment of 800 square feet can cost a part of 1 crore in Mumbai. Buying a house in big cities like Mumbai and Delhi is very expensive.
House is an asset but it is not a productive one. Money invested is blocked and even though your property appreciates it does not meaningful benefit you.
Real Estate cost in Tier 2 two Indian cities will reduce your real estate cost. You can buy a very decent 2 BHK apartment for as low as 3,00,0000 rupees. Over time this will put a lot less strain on your finances.
Use of bigger space for other ventures
You also have an advantage of buying a bigger place because it will cost less. You can have a separate room created as an office. This will give you the privacy that you need while working from home.
You can also use additional space for other business ventures if your company allows it. For example you can use additional space to stock items if you have an eCommerce business. You can also rent out additional rooms to earn extra income.
Domestic help
Domestic help is much cheaper than in the bigger cities. If you have help for cleaning and cooking it could easily cost you more than 6000 rupees in Mumbai. Same cost would be less than 3000 in smaller cities.
Kids education
Education for kids is becoming expensive day by day. even primary education these days costs as much as an MBA.
It is not uncommon for fees to touch 3 to 4 lakh rupees per annum in good schools in Mumbai.
You can get good schools in Tier 2 cities with much better facilities. Fees wouldn’t cross 1 lakh rupees per annum even when you apply for good schools.
Less commute
Working from home can get rid of any commute. Travelling is expensive if you look at it through a multi-year lens.
I use public transport for travelling and even then my per month travel cost is around 3000 rupees. Costs would be high if I would have travelled using my personal vehicle.
If I compound this over multiple years my commute would cost me lakhs of rupees. I will save all of it when I am working from home.
Better work life balance
Considering you are able to log off reasonably on time working from home can significantly improve your work life balance. It would give flexibility to give time to your family and attend to family needs as required.
lower commute time will also give you additional time to spend with your family
You can also stay close to your parents and relatives which will definitely enhance quality of life
Health benefits
Living in bigger cities also has disadvantages when it comes to your health. Pollution levels in cities like Delhi are reaching toxic levels. It would create a negative impact on your health in a few years.
Smaller cities have much lower pollution levels which is better for your health. You can also spend more time focusing on your health considering you will have space in time for it.
