Financial Freedom of Rs. 2 Lakhs per month is possible for NRI’s especially H1B in USA as they earn very high income.
Still why they are not achieving it?
Reasons
- They are not Financially Intelligent to calculate ROI, Cash Flow etc.
- They don’t know Appreciation, Depreciation & Property Tax Calculations in Investing
- USA tricked them to invest in US Real Estate so their money won’t go out of country
Calculation
Imagine an H1B Guy earning $140K salary – approx 1CR India
- 25% will be gone in tax = $100K remaining = $8K per month
- House Rent will be $2-3K depending on location = 30%
- Food, Utility, Health Other Expenditure will be another $3K = 30%
- Entertainment, Trips, Luxury & Credit Card will be another $2K =20%
Remaining 20% was their savings! This is the amount they send back to India!
Then What?
The Clever US People understood money going outside the country, so they allowed H1B people to invest in Real Estate. This forced them to liquidate their savings, also bring money from India for DOWN PAYMENT!
Then the monthly EMI was doubled as now Mortgage, Interest & Property Taxes they have to pay.
So the 50-60% of Income they are spending on Home!
This will also crunch their entertainment pockets – now few of them have to spend at home instead of trips.
Who all are Happy?
USA is happy – money is not going out 🙂
Real Estate Builders happy – as the H1B guy pumped property prices up
Brokers happy – as more sales more income for them
Bank is happy – as they get more interest income with a safe collateral
County is happy – as the H1B guy now pays more property taxes
H1B Guy – Locked himself with Financial Slavery!
Financial Freedom
H1B guys should read Rich Dad Poor Dad book before entering any home loans. Or, join our community to attend webinars on 5 Year Financial Freedom possible.