Financial Analysis Report

Overview

A recent social media post by Abhishek Singh highlights the financial benefits of pursuing a master's degree in the United States. Singh shared his friend's experience, demonstrating the potential for significant financial growth through studying abroad.

Initial Income and Expenses

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His friend, a resident of Bengaluru, India, earned approximately Rs 18 lakh per year while working in the city. After accounting for rent, family expenses, and flights home, the friend was left with Rs 3-4 lakh in savings per year.

Education Loan and MS Program

To pursue a master's degree in the United States, Singh's friend incurred a total cost of approximately $75,000 (Rs 68 lakh), consisting of $55,000 (Rs 49.9 lakh) in tuition fees and $20,000 (Rs 18.1 lakh) in living expenses. The majority of the costs were financed through an education loan.

Post-Graduation Income and Savings

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Upon securing his first job, Singh's friend earned a base salary of $145,000 (Rs 1.32 crore) and a bonus of approximately $15,000 (Rs 13.6 lakh) in a mid-cost city. After taxes, his take-home pay was around $74.5 lakh (Rs 6.2 lakh per month) per year.

Debt Repayment and Savings

To pay off his loan faster, Singh's friend lived frugally for 18 months, sharing an apartment with roommates and keeping expenses low. He managed to clear his loan in 20 months by paying approximately Rs 3.63 lakh monthly. Currently, he saves almost Rs 90.7 lakh a year, investing in retirement and index funds, while spending Rs 40.8 lakh a year on living costs.

Conclusion

Singh's friend's experience demonstrates the potential financial benefits of pursuing a master's degree in the United States. However, it is essential to consider individual circumstances and conduct thorough financial analysis before making such a decision.