The possibility of buying a house and a car with a monthly salary of Rs 25,000 in India is a complex question with varied expert opinions. While it may seem like a distant dream, financial discipline, patience, and strategic planning can make it achievable.
Affordability Through Discipline and Planning
According to business coach Deepak Wadhwa, owning a car and a house with a modest income requires careful planning and consistent savings. He suggests starting with a systematic investment plan (SIP) of Rs 5,000 per month and increasing it by 20% every year. Over 15 years, this could potentially build a portfolio of Rs 1.5 crore, which can then be used to generate a monthly income through a systematic withdrawal plan (SWP). This strategy relies on the power of compounding, where returns are earned on both the initial investment and the accumulated interest.
Several sources recommend following the 50/30/20 rule, where 50% of the income is allocated to needs, 30% to wants, and 20% to savings and investments. In this case, with a Rs 25,000 salary, Rs 5,000 should be channeled towards investments.
Challenges and Considerations
Accumulating substantial wealth with a modest income requires time and dedication. It's crucial to avoid debt with high-interest rates and to build an emergency fund to cover expenses for six to twelve months. Choosing the right investments, such as SIPs and equity mutual funds, is also essential for long-term wealth creation.
Experts recommend focusing on upskilling to increase income and improve financial opportunities. They also emphasize the importance of having realistic expectations and staying consistent with financial habits. The key is to start early and maintain a disciplined approach to saving and investing.
Housing Options and Government Schemes
Finding affordable housing is a significant challenge in India, especially in major metropolitan cities. However, several cities offer viable options for budget-conscious homebuyers. Some of the most affordable cities include Ahmedabad, Coimbatore, Nagpur and Jaipur. These cities offer a lower cost of living and more affordable rental and property prices compared to larger metropolises.
The Indian government has launched various housing schemes to make homeownership more accessible. The Pradhan Mantri Awas Yojana (PMAY) offers subsidies for low and middle-income groups, providing interest subsidies on home loans for first-time buyers. In 2025, the Credit-Linked Subsidy Scheme (CLSS) under PMAY offers interest subsidies of up to ₹2.67 lakh on home loans for those with incomes below ₹18 lakh per year.
Emerging suburbs and tier-2 cities often have more affordable housing projects. Developers are launching budget-friendly apartments in areas like Thane, Greater Noida and Whitefield, offering modern amenities at lower costs than city centers.
Used Car Market
While a brand new car might be out of reach, the used car market in India offers a wide range of options at various price points. Websites like CarDekho, CarWale, and OLX list thousands of used cars across India, with prices starting as low as ₹10,000. Popular models like Maruti Suzuki Swift, Honda City, and Hyundai i20 are available in the used car market.
Conclusion
While buying a house and a car on a Rs 25,000 salary is undoubtedly challenging, it is not impossible. Success hinges on meticulous financial planning, consistent savings, strategic investments, and realistic expectations. By taking advantage of government housing schemes, exploring affordable cities and suburbs, and considering the used car market, individuals with modest incomes can work towards achieving their dreams of homeownership and transportation. It's a journey that demands patience and discipline, but the rewards of financial security and asset ownership are well worth the effort.
