There were some interesting questions about saving money in USA. Also, several good ways to save money in USA in yesterdays video. In this follow-up video I have answered some of your questions and gave more insights into the reality of savings money in America.
Saving Money in USA
Here is a set of questions I have answered in the video about saving money in USA and short version of the answers.
I am a guy having more than 8 yrs of experience in IT.After working for few years I wanted to work in USA and I thought of landing a job over there based on my experience.I never got an onsite opportunity and I think if you get one then you are lucky.I am earning a descent salary in India.This year I got through some universities but I had to defer the admission due to personal reason. Most of the guys dream of staying in USA for sometime and then returning back to India.I don’t know whether I should go for the MS program in future .
It’s never late to attend a college. With 8 years experience, it will be easy to prove your intention to study in USA for MBA than MS.
What is the salary package we can expect after completion of masters from a b graded university?
A grade university will give you more exposure. But, attending A grade university doesn’t mean your salary will be higher than graduates from B grade university. You can attend B grade and still get the high salary as someone from A Grade university.
So total saving is 20000 dollars ,with current exchange rate= 20k * 60=12 lakhs. In India after ms one gets average salary of 5 lakhs after expenditure in rent,daily needs,etc.. saves 2 lakhs per year. So by earning in US are earning 6 times more then India…save money by working in US for 10 years and invest in real estate in India in very first year. at the end of 10 years or so return to India and live a lavish life.
This theory looks good on paper, but in reality its not practical. I shared by experience here. If you get married and have kids, your expenses will go up considerably. For example, monthly health insurance payment will be close to $300 for a family. If your wife doesn’t work, then that’s additional $250 per month in expense, which is not included in this calculation. That’s when saving money in USA gets real tough.
Thanks for the thought provoking video. I think you have presented a fair estimate of day to day expenditure in the US. To answer your question; I don’t think you can save more than ~$20000 by cutting down your expenditure, given the fact that it is a conservative estimate. Only way would be to supplement your income by investing your savings. Stock markets can be ruled out, as they are volatile and risk prone. Risk free investment options such as certificate of deposits (CDs) can be considered. If one thinks the rate of interest (~1% per year) is not sufficient, he/she can invest their savings in India, in the form of fixed deposits which have ~10% growth rate (provided USD conversion rate remains steady). P.S. I have been thinking about these options lately. If you have better ideas, please share it with us. Thank you.
Investing in CD’s or Savings account in USA pays less than 1% in interest. But, savings account in India pays like 8%. But, you have to take the USD INR rate fluctuation into account. If the USD falls below 8%, you have lost your savings. But, to save money in USA, you have to take all possibilities into account.
Income, Expenses and Savings – Series
- Part 1 – How much money can you save in USA
- Part 2 – Why Saving Money in USA is Difficult with Q&A >> This Article
- Part 3 – Here’s Why you can’t Save Money in First 5 Years in USA
- Part 4 – 5 Tips to Save Ton of Money in USA
- Part 5 – 100 Money Saving Tips