TITLE OF THE PROJECT

STUDY ON SPENDING PATTERNS ON WORKING CLASS IN MUMBAI-

SUBURBAN REGION.

A Project Submitted to

University of Mumbai for partial completion of the

degree of Bachelor in Commerce

(Investment Management)

Under the Faculty of Commerce

By

SUJAL PAREEK

Under the Guidance of

Dr. MANOJ .K. MISHRA

THAKUR COLLEGE OF SCIENCE AND COMMERCE

Thakur Village, Kandivali (E), Mumbai 400101

March 2024
 Certificate

This is to certify that MR. SUJAL GHANSHYAM PAREEK has worked and
duly completed his Project Work for the degree of Bachelor in Commerce

(Banking & Insurance) under the Faculty of Commerce and his project is entitled,

“Study on spending patterns on working class in Mumbai-Suburban region”

Under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

NAME & NAME &

SIGNATURE OF GUIDE SIGNATURE OF EXTERNAL

Date of submission:
 Declaration by Learner

I the undersigned MR. SUJAL GHANSHYAM PAREEK hereby, declare that the work

embodied in this project work titled

“Study on spending patterns on working class in Mumbai-Suburban region”

Forms my own contribution to the research work carried out under the guidance of

DR. MANOJ .K. MISHRA, result of my own research work and has not been previously

submitted to any other University for any other Degree/ Diploma to this or any other

University.

Wherever reference has been made to previous works of others, it has been clearly indicated

as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and

presented in accordance with academic rules and ethical conduct.

Certified by Name and Signature of the learner

Name and signature of the Guiding Teacher SUJAL PAREEK

DR. MANOJ .K. MISHRA

Acknowledgment
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me the chance to do
this project.

I would like to thank my Principal, Dr. C.T. CHAKRABORTY for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator, MR. ABHIJIT RAY

For his moral support and guidance.

I would also like to express my sincere gratitude towards my project guide DR. MANOJ .K.
MISHRA whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.
 Abstract

A person has always been progressive ever since the day they start to dream. However, in this
era, every dream comes with a tag on it. These prices do not seem to decrease any time soon
too, whether it be a car of ₹6 lakh or a house of ₹15 lakh also considering the fact of a better
education for your children let alone will cost you several lakhs. These are not where costing or
prices stop, even your daily/simple amenities essentials are increasing their prices. For you to
live your dream lifestyle you can either earn a large income or come up with your perfect
strategic planning and wealth management. Having a large flow of income is not enough if one
does not know how to manage their funds or else, they might just end with an empty hand.
Managing your wealth is an important step in achieving the dream lifestyle you are willing to
live and enjoy

Keywords: Wealth management, strategic planning, etc.

 Chapter 1 :
Introduction
 INTRODUCTION

Wealth management is a comprehensive approach to managing one's financial resources with

the aim of enhancing wealth and achieving long-term financial goals. It involves a variety of
strategies and practices to optimize the growth and protection of assets, as well as to minimize
financial risks. This discipline encompasses a wide range of financial services, including
investment management, tax planning, retirement planning, estate planning, and risk
management.

One of the primary goals of wealth management is to help individuals and families maintain
their desired lifestyle both now and in the future. This involves creating a financial plan that
takes into account current income, expenses, assets, and liabilities, as well as future financial
goals such as buying a home, funding education, or retiring comfortably. By carefully
managing these factors, individuals can work towards building a solid financial foundation that
can support their lifestyle and aspirations over time.

Wealth management also involves managing risks and protecting assets against unforeseen
events. This may include purchasing insurance policies to protect against loss of income or
assets due to illness, disability, or other unexpected circumstances. Additionally, wealth
managers often advise clients on strategies to minimize taxes and maximize investment returns,
helping to further grow and protect their wealth over time.

Overall, wealth management is about taking a proactive approach to financial planning and
decision-making. By working with a qualified wealth manager or financial advisor, individuals
can gain the knowledge and tools they need to make informed decisions about their finances
and achieve their long-term financial goals.

. The importance of wealth management are as follows: -

1. Education and Future Planning: Wealth management involves planning for future
expenses such as education for children or grandchildren. By managing wealth
effectively, individuals can ensure that they have the financial resources to provide for
their family's educational needs.
 2. Retirement Planning: Wealth management includes planning for retirement, ensuring
that individuals have enough savings and investments to maintain their desired lifestyle
after they stop working.

3. Tax Planning: Wealth management involves strategic tax planning to minimize the
amount of taxes paid, thus maximizing the amount of wealth that can be preserved and
grown.

4. Asset Protection: Wealth management includes strategies to protect assets from

creditors, lawsuits, and other threats, ensuring that wealth is preserved for future
generations.

5. Charitable Giving: Wealth management can also involve planning for charitable giving,
helping individuals, support causes that are important to them while maximizing tax
benefits.

6. Investment Diversification: Wealth management includes diversifying investments to

reduce risk and maximize returns, ensuring that wealth is preserved and grown over
time.

7. Legacy Planning: Wealth management involves planning for the transfer of wealth to
future generations, ensuring that assets are passed on according to the individual's
wishes.

Overall, wealth management is a comprehensive approach to financial planning that takes into
account a wide range of factors to help individuals achieve their financial goals and secure their
financial future.

Now we know the concept of wealth management and how important it is to a person; we will
now learn why a working class (a person who is employed for a salary or paid job for the first
time) should save or their mentality towards understanding the concept of wealth management.
 Importance of Savings, Investments and expenditure

Financial Security:

Savings act as a safety net, providing a buffer against unforeseen expenses such as medical
emergencies, car repairs, or sudden job loss. Having savings ensures that individuals can meet
these expenses without resorting to high-interest loans or depleting their assets.

Goal Achievement:

Investments offer the potential for long-term growth, allowing individuals to build wealth and
achieve financial goals such as buying a home, funding a child's education, or retiring
comfortably. By investing wisely, individuals can harness the power of compounding to grow
their wealth over time.

Wealth Building:

Investments, particularly in assets like stocks, bonds, and real estate, can help individuals build
wealth over time. These investments have the potential to appreciate in value, providing a
source of passive income or a substantial nest egg for the future.

Risk Management:

Diversifying investments across different asset classes (e.g., stocks, bonds, real estate) helps
spread risk. If one asset class underperforms, others may offset the losses, reducing the overall
impact on an individual's financial health.

Economic Growth:
Expenditure drives economic activity by creating demand for goods and services. When
individuals spend money, businesses thrive, leading to job creation and economic growth. This
cycle of spending, production, and income generation is essential for a healthy economy.

Lifestyle Maintenance:

Balancing expenditure allows individuals to maintain their desired lifestyle without

overspending or accumulating debt. Proper budgeting and financial planning ensure that
individuals can enjoy their desired lifestyle while staying within their means.

Retirement Planning:

Savings and investments are critical for retirement planning. By saving consistently and
investing wisely, individuals can build a retirement fund that will support them in their golden
years, ensuring a comfortable lifestyle and financial security.

Education and Skill Development:

Expenditure on education and skill development is an investment in future earning potential.

By acquiring new skills or furthering their education, individuals can increase their earning
capacity, leading to better job opportunities and financial stability.

Healthcare and Well-being:

Savings and investments can be used to cover healthcare expenses, ensuring access to quality
healthcare and overall well-being. Having a financial cushion for medical emergencies can
alleviate stress and improve overall health outcomes.

Financial Independence:

Effective management of savings, investments, and expenditure leads to financial

independence, providing individuals with the freedom and control to make choices that align
with their values and goals. Financial independence allows individuals to pursue their passions,
travel, or retire early, without worrying about financial constraints.

Types of investments

There are several types of investments, each with its own characteristics, risk levels, and
potential returns. Some common types of investments include:

Stocks: Stocks represent ownership in a company and offer potential for capital appreciation
and dividends. They are considered higher risk but can provide higher returns over the long
term.

Bonds: Bonds are debt securities issued by governments or corporations. They offer a fixed
interest rate and return of principal at maturity, making them relatively lower risk compared to
stocks.

Mutual Funds: Mutual funds pool money from many investors to invest in a diversified
portfolio of stocks, bonds, or other securities. They offer diversification and professional
management but come with fees.

Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on stock
exchanges like a stock. They offer diversification and lower costs compared to mutual funds.

Real Estate: Investing in real estate involves buying properties or real estate investment trusts
(REITs) that generate rental income or capital appreciation.

Commodities: Investing in commodities such as gold, silver, oil, or agricultural products can
provide diversification and a hedge against inflation.
Cryptocurrencies: Cryptocurrencies like Bitcoin and Ethereum are digital currencies that can
be bought and sold on cryptocurrency exchanges. They are highly volatile and considered high-
risk investments.

Certificates of Deposit (CDs): CDs are low-risk investments offered by banks with fixed
interest rates and maturity dates.

Retirement Accounts: Retirement accounts like 401(k)s and IRAs offer tax advantages for
saving for retirement. They can invest in stocks, bonds, mutual funds, and other assets.

Savings Accounts: While not technically an investment, savings accounts offer a safe place to
store cash and earn interest. They are FDIC-insured up to certain limits.
 Chapter 2 :
Literature Review
 LITERATURE REVIEW

 Asiya Chaudhary ,Sabiha Khatoon (2022)

This paper examines the rise in annual income of the new middle class (NMC) in Delhi-NCR
and its impact on their investment, consumption habits, and lifestyle. It aims to understand the
transformation of the new middle class into the NMC in emerging economies and its potential
impact on companies and investors. The study draws insights from 558 new middle-class
consumers in Delhi-NCR and applies ANOVA, post hoc tests, and hierarchical multiple linear
 regression models to test the hypotheses. The findings reveal that the NMC in India's
megacities tends to emulate the lifestyle of their Western counterparts. Despite relatively low
incomes, they tend to spend extravagantly to maintain their status and differentiate themselves
from the middle or lower-middle-class categories. As they transition into the new middle class,
their consumption, saving, and lifestyle diversify positively. However, the study has
limitations, including the lack of application of behavioural theories or marketing models and
its focus on only one emerging economy and megacity. The research underscores the
importance of considering the buying habits and lifestyle of the Indian NMC for companies in
product decision-making and for financial institutions, investment planners, and marketers in
designing products to attract investment. Overall, the study contributes to understanding Indian
consumers, particularly the NMC, and predicts their implications on consumer goods-
producing industries, aiding producers and governments in formulating policies and strategies.

 PhonePe - An in-depth study on how Indians spend – (2021)

Do Indians like spending on grocery and online shopping? Is it true that investing continues to
be a first week of the month habit? How India spends is a strong indicator of income, the
changing demographics and aspirations of users across the country. PhonePe with over 47%
market share in UPI has data and deep insights into the spending habits of people in cities,
towns, and villages all over the country. As a result of the pandemic, Indians have started
shopping online and using PhonePe to make contactless payments at offline stores. The
lockdowns imposed during the second wave in May 2021, however, affected the way people
spend their money. The share of retail & shopping during the month dipped by 6-7% across the
country, while healthcare & essential categories saw an increase of 2-3% when compared to
April 2021. Soon after the lockdowns were lifted and Covid cases began to subside in the
months of June and July 2021, expenditure on retail & shopping gradually went up by 7-9%,
while spending on healthcare dropped by about 4-7%.
Digital payments have transformed payments across the country. It has democratised access,
allowing users irrespective of their location to spend on what they like, without having to make
any compromises. PhonePe has been at the forefront of this revolution, replacing traditional
cash-intensive practices with digital payment technologies for hassle-free payments.
 Jones Kirubakaran (2021):

In this research, the focus was on understanding the challenges faced by the working class in
finding jobs that match their profiles or desired roles. The study aimed to bridge this gap by
identifying the specific criteria that firms and employers look for in new employees and how
individuals can shape themselves to fit these requirements.

The research likely involved analysing job market trends, employer expectations, and the skills
and qualifications possessed by the working class. By matching these aspects, the study may
have provided insights into how individuals can enhance their skills, education, or experience
to better align with the needs of employers.

Overall, the research likely aimed to provide practical advice and strategies for the working
class to improve their employability and increase their chances of finding jobs that are both
suitable and desirable to them.

 Dr. G.Ramesh , Dr. K. Shoba - Income Based Spending Patterns– A Necessity Rather Than
Option Among The Middle Class Families In Chennai City During Covid -19 Caused
Economic Slowdown (2021)

Economic problems have accelerated after the government announced Covid- lockdown as early
as in march 2020.Unemployment among urban middle class families is on rise; more than 1.8
crore salaried jobs in the country were lost during the ongoing pandemic. Economic disruption
has resulted in a sharp decrease in job numbers this year; stolen a minimum of three to six
months salaries almost across all industries. Salaried jobs have been preferred due to better job
security and regular income. The middle class and lower middle class represent nearly 60 % of
the total number of households in India and contribute around 70% share in consumer spending.
In the present deeply troubled situation, Chennai’s middle-income families are devastated and
find themselves in a limbo. Nothing works for this group which can otherwise hike demand or
push spending. Trim the Foot to fit the Shoe. Out-of – home activities declined and the
consumption pattern changed. Any failure of expense -control efforts will weaken the relations
in the middle class families and affect the very family system in long run. After all, conviction is
always not a matter of convenience. The present study attempts to study conditions of Chennai’s
 middle class households and gauge the efforts to bridge the gap between income and expenditure
of the family during covid pandemic.

 Mini Sukumar - An Analysis of Income and Expenditure Pattern of Working Women in the
Context of Emerging Consumer Culture (2018)

The debate surrounding women's work and their contribution to household income is
multifaceted and often raises numerous questions. One of the key issues is how to define and
calculate women's work and their contribution to the family, which remains a subject of debate
within households and across policy tables. In recent decades, this topic has gained significant
importance, with governments, international financial agencies, and international forums like
the United Nations, researchers, and policymakers addressing it in a comprehensive manner.
However, certain notions regarding production, the divide between private and public spheres,
and gender roles and responsibilities continue to dominate the discourse. The traditional
understanding of work often excludes many of the tasks that women typically perform within
the household, such as caregiving, cooking, and cleaning, which are essential for the well-being
of the family but are not considered part of the formal economy. This has led to a devaluation
of women's work and their contributions to the household. Moreover, the private-public divide
has been a persistent issue, with women often withstanding the worst of domestic
responsibilities while men are expected to be the primary breadwinners. This division has
reinforced gender roles and stereotypes, limiting women's opportunities for economic
empowerment and advancement. Addressing these issues requires a comprehensive approach
that recognizes and values women's work both inside and outside the home. It also involves
challenging traditional notions of production and gender roles, promoting gender equality, and
creating policies that support women's economic empowerment and participation in the
workforce.

 Desiree Gonsalves – Demographics and Purchase Behaviour of Greater Suburban

Mumbai Millennials – (2017)

World over, marketers are recognizing the presence of young Indians, in control of their lives
and newfound financial independence who believe in themselves, work hard for the money and
do not shy away from spending it. This is the new Indian Millennial. Aged between 18 to 30
 years, flush with hard-earned money and ready to prove to himself and to others that he has
arrived. They are part of the emerging markets and part of BRIC nations that marketers are
focusing on as the new buyers of lifestyle and luxury. They are witnesses to a booming
economy, a new digital world and are tech savvy. The young Indian woman of today is
educated, earns her money and knows what she wants to splurge on. Gen Y, this new breed of
buyers, are the unfathomable changing demographics of Indian consumers that luxury
marketers are seeking to understand. They are aspirational buyers and feeling and looking good
is a great motivator for indulging in lifestyle shopping. With a focus on Greater Suburban
Mumbai and narrowing it down to the luxury apparel and accessory market, the study analyses
purchase behaviour of this target audience. Do these young buyers prefer shopping at malls,
stand-alone stores, shop overseas or being technology driven?

 Sandhya Krishnan and Neeraj Hatekar - Understanding the Burgeoning Indian Middle
Class through its Expenditure and Asset-Ownership Patterns (2012)

A more comprehensive understanding of the Indian middle class and its role as a consumer
force can be gained by examining its actual consumption patterns, a task that few studies have
undertaken thus far. This article delves into the spending patterns of the Indian middle class
and its ownership of various assets, analysing differences across classes to provide a nuanced
view of the rising Indian middle class's potential as a consumer force. Such analysis also
illuminates the implications of the class's expansion for manufacturing and services sectors, as
well as for private firms seeking to tap into India's growing consumer market. This study
contributes to existing literature on the consumption-based developmental role of the Indian
middle class.

Defining the middle class poses a complex challenge in every study. Definitions vary
depending on the study's purpose, with this study using a consumption-based definition. Even
within consumption-based approaches, there are differing definitions of the middle class. Some
define it as those with a minimum spending power of $2 a day, while others set the bar as high
as $10 a day. The latter definition, with its higher lower bound, is typically applicable to
Western countries or to studies equating the middle class in developing countries with that in
the developed world.
 Rajesh Shukla How India Earns, Spends and Saves Unmasking the Real India (2010)

This study maps the earning, spending and saving profiles of Indians in the post-liberalisation
era. It studies how socio-economic, religious, and individual characteristics lead to inequality
in the incomes of households. Among other aspects of the problematique, it reveals that while a
household's income is primarily dependent on socio-economic factors (occupation, education
and the age of its chief earner), its economic prosperity are affected by factors such as its
spending and saving levels, sectors of employment of members, state of residence, etc. The
book are based on the results of the National Survey of Household Income and Expenditure
(NSHIE) 2004-05, conducted under the aegis of the National Council for Applied Economics
Research (NCAER). It not only offers valuable insights for economic analysts, policy makers,
development professionals, and academics, but the primary data of the survey is also a driver
for further research.

 ICMR - A Note on Consumer Spending Patterns in India- (2007)

Spending habits are different for people belonging to different sections of society. For instance,
people belonging to the middle class consider necessities, education, and spending toward the
future of their children as their top priorities, followed by lifestyle goods. The rich class spends
more on luxury goods and international brands. The super-rich class spends on ultra-luxury goods.
It is observes that as disposable income increases, people prefer more of branded goods, shift to
processed foods, and the expenditure on food, beverages, tobacco, and transport and
communication increases. A comparison of consumer spending habits in 2002 with those in 2007
revealed that expenditure on food, clothing and personal care has remained more or less constant,
but expenditure on entertainment has increased.

Shopping habits of Indians are changing due to their growing disposable income, relative increase
in the younger population, and the change in attitudes towards shopping. The emphasis has
changed from price consideration to design, quality and trendiness. The desire to look and feel
good is also guiding factor for customers while making their purchase decisions. Growing
disposable income is also propelling demand for consumer durables and eating in restaurants
among Indians. Age is also a major factor that affects the spending decisions of an individual. For
instance, people in 20-24 years age group spend more on electronic / home appliances and
movies, while people in the 45-48 years age group spend more on vacations.

 Joop Hartog (2004):

The researchers utilized Dutch panel data, where students were initially asked to state their
expected annual starting salary. Four years later, these expectations were matched with the
actual starting salaries. The study found that both the level and structure of expectations and
realizations were very close. They were able to identify a minimal systematic under or
overestimation effect. This suggests that students were generally accurate in predicting their
future salaries, indicating a realistic understanding of the job market and salary expectations.
The study's findings provide valuable insights into the accuracy of individuals' expectations
regarding their future earnings.

 U.S. Department of Labor, Bureau of Labor StatisticsSpending Patterns of High-income

Households (1998)
High-income households exhibit distinct spending patterns that reflect their financial status
and priorities. These households often allocate a substantial portion of their income towards
lifestyle and luxury spending, opting for high-end products and experiences that convey status
and quality. This includes expenditures on luxury cars, designer goods, exclusive vacations,
and fine dining. Housing expenses also play a significant role, with high-income households
investing in upscale properties and allocating resources towards mortgage payments, property
taxes, and maintenance costs.

Additionally, high-income households prioritize investments and savings to secure their

financial future. They tend to diversify their investment portfolios, including stocks, bonds,
real estate, and other assets. Savings are not only for future financial security but also for
funding children's education, retirement, and other long-term goals. This focus on financial
planning and wealth accumulation distinguishes their spending behaviour from that of lower-
income households.

Furthermore, high-income households often exhibit a higher level of discretionary spending

on leisure activities, entertainment, and hobbies. This may include memberships to exclusive
 clubs, participation in high-end sports, or collecting art and antiques. Their spending choices
are driven by a desire for quality, luxury, and exclusivity, reflecting their affluent lifestyle.

Overall, a balance between lifestyle enhancement, financial security, and investment in assets
that preserve and grow wealth characterizes the spending patterns of high-income households.

 John Benson (1994)

In his research, the scholar explored the reasons behind the rise in consumerism in British
society during the 1880s to the 1990s, spanning a century of economic and social change. He
delved into the cultural shifts and generational changes that influenced how people spent their
income during each phase of this era. By examining the evolution of consumer behavior over
time, he aimed to uncover the underlying factors driving these changes, shedding light on the
broader societal trends and economic forces at play.

Chapter 3:
Overview of employment in
India
 Navigating the Global Employment Landscape: Trends and Challenges

The global employment landscape is a complex and multifaceted system influenced by a

variety of factors. One of the most significant factors is the global unemployment rate, which
varies widely across countries and regions. Economic growth, government policies, and the
impacts of events like the COVID-19 pandemic all play a role in shaping these rates.
Additionally, labor force participation rates are influenced by factors such as gender equality,
education levels, and cultural norms, leading to diverse employment patterns worldwide. The
types of employment also vary greatly, from formal, secure positions with benefits to informal
and gig economy roles that lack stability and protections.

One of the key challenges in the global labor market is the skills mismatch, where the skills
possessed by workers do not align with the skills required by employers. This can lead to high
levels of unemployment or underemployment, even in economies with job openings.
Technological advancements, including automation, are also reshaping the global labor market,
creating new jobs in some sectors while making others obsolete. This can lead to challenges in
retraining workers for new roles and industries.

Informal employment is prevalent in many developing countries, where a significant portion of

the workforce lacks job security, social protections, and decent working conditions. Youth
unemployment rates are often higher than the overall unemployment rates, driven by factors
such as lack of work experience and competition for entry-level jobs. Addressing these
challenges will be crucial for ensuring inclusive and sustainable employment growth in the
future, including closing skills gaps, adapting to technological changes, and improving work
conditions globally.

Jobs in India: A Look at Opportunities and Challenges

In India, the employment landscape is vast and varied, reflecting the country's diverse
population and economic structure. The workforce is predominantly engaged in the informal
sector, which includes activities such as agriculture, small-scale trade, and services. This
informal sector plays a crucial role in providing livelihoods for a significant portion of the
population, especially in rural areas.

However, India also faces challenges in terms of formal employment. Unemployment rates,
particularly among youth and women, remain high. The formal sector, which includes
industries such as manufacturing, IT, and finance, offers job opportunities but can be highly
competitive. Sectors like information technology and engineering are particularly sought after,
leading to intense competition for limited positions.
Underemployment is another challenge in India, with many workers being employed in jobs
that do not fully utilize their skills or education. This can lead to issues of job dissatisfaction
and economic inefficiency. Additionally, there is a significant skills gap in certain industries,
where the skills possessed by workers do not match the requirements of employers. This
highlights the need for improved vocational training and education systems to bridge this gap
and enhance employability.

To address these challenges, the Indian government has implemented various initiatives to
boost employment. These include skill development programs aimed at enhancing the
employability of the workforce, as well as schemes to promote entrepreneurship and create
new job opportunities. Despite these efforts, the Indian job market remains complex, requiring
a multifaceted approach to address its various challenges and opportunities.

Emergence of workforce study

The "Emerging Workforce Study" typically refers to a research initiative or report that
examines trends and changes in the workforce, particularly focusing on emerging or new
patterns of employment. This study often explores topics such as remote work, gig economy
participation, skills development, and the impact of technology on job roles. It aims to provide
insights into how the workforce is evolving and what it means for businesses, employees, and
policymakers.

Employment Business cycle

The employment business cycle refers to the fluctuations in employment levels that occur
over the course of an economic cycle. It is closely related to the broader business cycle,
which includes fluctuations in economic activity such as production, income, and
investment. The employment business cycle typically consists of four phases:

1. Expansion:
During an economic expansion, the overall economy is growing, marked by increases
in gross domestic product (GDP), consumer spending, and business investments. This
growth creates a positive business environment where companies are more confident
about future prospects and are willing to expand their operations. As businesses grow,
they require more workers to meet the rising demand for goods and services.

During this phase, businesses often increase their production capacity, launch new
products or services, and expand into new markets. This expansionary phase creates a
ripple effect across the economy, leading to job creation in various sectors. Industries
such as construction, manufacturing, retail, and services typically experience an uptick
in hiring as businesses seek to capitalize on the growing demand.

For workers, an economic expansion generally means more job opportunities and
potential for wage growth. With businesses competing for talent, employees may also
see improvements in benefits and working conditions as companies strive to attract and
retain workers. Overall, the expansion phase of the employment business cycle is
characterized by optimism, growth, and opportunities for both businesses and workers.

2. Peak:
The peak of the business cycle represents the pinnacle of economic expansion, where
economic activity reaches its highest level before starting to decline. During this phase,
businesses are operating at or near full capacity to meet the high demand for goods and
services. Employment levels tend to be high as companies hire additional workers to
keep up with production and service demands.

At the peak, consumer confidence is usually strong, leading to increased spending.

Businesses may also be investing heavily in new projects and expansions to capitalize
 on the favourable economic conditions. As a result, industries such as construction,
manufacturing, and retail often experience robust growth, contributing to the overall
prosperity of the economy.

However, the peak also marks the beginning of a transition to a contraction phase. As
the economy reaches its maximum capacity, inflationary pressures can start to build,
leading to higher prices for goods and services. This can eventually dampen consumer
spending and business investments, signalling the end of the expansionary phase and
the beginning of a downturn.

For workers, the peak of the business cycle can be a favourable time, as job
opportunities are abundant and wages may rise in response to strong demand for labour.
However, it is also a time of caution, as economic conditions can quickly change as the
economy moves into the contraction phase.

3. Contraction:
During a contraction phase, also known as a downturn or recession, the economy
experiences a slowdown in economic activity. This slowdown is characterized by a
decrease in the demand for goods and services, which can be caused by various factors
such as a decrease in consumer spending, a decline in business investments, or a
decrease in exports.

As the demand for goods and services decreases, businesses start to feel the impact on
their bottom line. To adjust to lower demand and reduce costs, businesses may
implement cost-cutting measures, including laying off workers, reducing work hours, or
freezing hiring? This leads to a decline in employment levels as companies strive to
align their workforce with the reduced demand.

The contraction phase can have a ripple effect throughout the economy. As people lose
their jobs or face reduced income, they tend to cut back on spending, further
exacerbating the decline in demand. This can create a cycle of declining economic
activity, leading to more layoffs and further reductions in consumer spending.
 During a contraction, industries that are sensitive to changes in the economy, such as
manufacturing, construction, and retail, are typically the hardest hit. These industries
may experience significant job losses and a slowdown in production as they adjust to
lower demand.

Overall, the contraction phase of the business cycle is a challenging time for businesses
and workers alike, as they navigate through economic uncertainty and strive to adapt to
changing market conditions.

4. Trough
The trough of the business cycle represents the lowest point of economic activity in a
recession or downturn. During this phase, the economy is in a state of contraction, with
reduced consumer spending, low business investments, and high levels of
unemployment.

Employment levels are typically low during the trough as businesses continue to cut
costs in response to weak demand. Companies may have already implemented layoffs
and other cost-cutting measures during the contraction phase, and they may continue to
reduce their workforce during the trough to align with the reduced demand for their
products or services.

The trough is often characterized by high levels of economic uncertainty and

pessimism. Businesses may be hesitant to invest in new projects or expand their
operations, further contributing to the sluggishness of the economy. Consumer
confidence is also typically low during this phase, as people are cautious about
spending money due to concerns about job security and the overall state of the
economy.

However, the trough also marks the end of the contraction phase and the beginning of a
recovery. As the economy reaches its lowest point, it begins to stabilize, setting the
stage for a gradual improvement in economic activity. Policymakers often implement
measures such as monetary policy easing or fiscal stimulus to support the economy
during this phase and help facilitate the transition to a period of growth and expansion.
The employment business cycle is a natural phenomenon in any economy,
characterized by recurring periods of expansion, peak, contraction, and trough. While
these fluctuations are inherent in the economic system, they can have profound impacts
on individuals and communities.

During periods of expansion and peak, when economic activity is high, there are more
job opportunities, higher wages, and overall prosperity. Individuals may find it easier to
secure employment and experience an improved quality of life. Communities benefit
from increased economic activity, with businesses thriving and public services often
improving due to higher tax revenues.

Conversely, during contraction and trough phases, the economy experiences downturns,
leading to lower job creation, stagnant wages, and increased unemployment.
Individuals may face layoffs, reduced work hours, or difficulty finding new job
opportunities. Communities may suffer from reduced economic activity, leading to
business closures, lower tax revenues, and strain on social services.

Understanding the dynamics of the employment business cycle is crucial for

policymakers, businesses, and individuals. Policymakers can use this knowledge to
implement appropriate measures to mitigate the negative impacts of economic
downturns, such as providing unemployment benefits, retraining programs, and
stimulus packages to boost economic activity.

Businesses can also benefit from understanding the employment business cycle by
anticipating changes in demand and adjusting their workforce accordingly. By planning
for economic fluctuations, businesses can better navigate through challenging times and
position themselves for growth during periods of expansion.
For individuals, understanding the employment business cycle can help in making
informed decisions about career choices, savings, and investments. By being aware of
the cyclical nature of the economy, individuals can better prepare for potential job
losses or financial hardships during economic downturns.
In conclusion, while the employment business cycle is a natural part of the economy, its
impacts can be significant. By understanding these dynamics, policymakers, businesses,
and individuals can better prepare for and respond to changes in the economy,
ultimately leading to a more resilient and prosperous society.
Exploring India's Diverse Salary Structures across Sectors

In India, the salary structure varies significantly across different sectors, influenced by
various factors such as industry, job role, location, and experience. Understanding these
variations can provide valuable insights into the country's economic landscape and
employment trends.

1. Information Technology (IT):

The IT sector in India is renowned for offering some of the most lucrative salary
packages, particularly for skilled professionals. Entry-level positions, such as software
engineers, typically start with salaries ranging from ₹3 lakh to ₹6 lakh per annum.
These roles often require a strong educational background in computer science or
related fields, along with proficiency in programming languages and software
development tools.

As professionals gain experience and expertise in their roles, their salaries can increase
substantially. Senior software engineers, with several years of experience and
specialized skills, can earn upwards of ₹10 lakh to ₹20 lakh per annum or more. These
professionals are often responsible for leading complex software development projects,
managing teams, and ensuring the successful delivery of projects within budget and
timeline constraints.

Project managers in the IT sector are among the highest-paid professionals,

commanding salaries that can exceed ₹20 lakh per annum. These professionals are
responsible for overseeing entire projects, from conception to completion, and are
tasked with ensuring that projects meet business objectives, quality standards, and
client requirements.
 In addition to competitive salaries, the IT sector in India also offers a range of perks
and benefits, including health insurance, retirement plans, and opportunities for
professional development and advancement. Overall, the IT sector continues to be a
sought-after industry for professionals looking for rewarding career opportunities and
competitive compensation packages.

2. Banking and Finance:

The banking and finance sector in India is known for offering highly competitive salary
packages, especially for professionals in key roles such as bankers, financial analysts, and
chartered accountants.

Entry-level salaries in this sector generally range from ₹3 lakh to ₹6 lakh per annum. These
positions often require a strong educational background in finance, accounting, or related
fields, along with relevant certifications.

As professionals gain experience and expertise in their roles, their salaries can increase
significantly. Senior professionals in the banking and finance sector, such as senior bankers,
financial analysts, and chartered accountants, can earn salaries exceeding ₹15 lakh to ₹30 lakh
per annum or more. These individuals are typically responsible for managing large portfolios,
analyzing complex financial data, and making strategic financial decisions for their
organizations.

In addition to competitive salaries, the banking and finance sector in India also offers a range
of benefits, including health insurance, retirement plans, and performance-based bonuses.
Professionals in this sector also have opportunities for career advancement and professional
development, making it a popular choice for those seeking rewarding career opportunities and
competitive compensation packages.

3. Healthcare:
The healthcare sector in India is renowned for offering competitive salaries, particularly for
doctors and specialists who play crucial roles in providing medical care and improving public
health.

Entry-level doctors, such as medical officers or junior residents, can expect salaries ranging
from ₹6 lakh to ₹12 lakh per annum. These professionals typically hold a Bachelor of
Medicine, Bachelor of Surgery (MBBS) degree and may be pursuing further specialization or
training.

Experienced doctors and specialists, including surgeons, physicians, and consultants, can earn
significantly higher salaries. Salaries for experienced professionals in the healthcare sector can
range from ₹15 lakh to ₹50 lakh per annum or more, depending on their specialization,
experience, and the location and type of healthcare facility they work in.

Specialists in high-demand fields such as cardiology, neurology, and oncology tend to

command higher salaries due to their expertise and the critical nature of their work.
Additionally, doctors who work in urban areas or in private hospitals or clinics often earn
higher salaries compared to those working in rural or government-run healthcare facilities.

In addition to competitive salaries, professionals in the healthcare sector in India may also
receive benefits such as health insurance, retirement plans, and opportunities for professional
development and continuing medical education. Overall, the healthcare sector in India offers
rewarding career opportunities for doctors and specialists, with the potential for significant
salary growth based on expertise and experience.

Salaries in the manufacturing and engineering sectors in India can vary significantly based on
several factors, including the industry, job role, experience, and location.

Entry-level engineers, such as graduate trainees or junior engineers, can expect salaries ranging
from ₹3 lakh to ₹6 lakh per annum. These professionals typically hold a Bachelor's degree in
engineering and are in the initial stages of their careers.

As engineers gain experience and expertise in their field, their salaries can increase
substantially. Senior engineers, with several years of experience and specialized skills, can earn
upwards of ₹10 lakh to ₹20 lakh per annum or more. Engineers in managerial positions, such
 as project managers or engineering managers, may earn even higher salaries, depending on
their level of responsibility and the size and nature of the projects they oversee.

Salaries in the manufacturing and engineering sectors can also vary based on the industry. For
example, engineers working in industries such as automotive, aerospace, or pharmaceuticals
may earn higher salaries compared to those working in industries with lower demand for
engineering talent.

Overall, the manufacturing and engineering sectors in India offer competitive salaries and
rewarding career opportunities for professionals with the right skills and expertise. Continued
professional development and specialization can further enhance earning potential in these
sectors.

4. Retail:
The retail sector in India provides diverse salary packages, which can vary based on factors
such as job role, company size, and level of responsibility.

Entry-level positions in retail, such as sales associates or store assistants, typically offer salaries
ranging from ₹2 lakh to ₹5 lakh per annum. These roles may require minimal prior experience
and primarily focus on customer service and sales support.

As individuals progress in their retail careers and take on more senior roles, such as store
managers or regional managers, their salaries can increase significantly. Senior management
positions in the retail sector can earn upwards of ₹10 lakh to ₹20 lakh per annum or more,
depending on the size and profitability of the organization, as well as the scope of their
responsibilities.

In addition to base salaries, professionals in the retail sector may also receive performance-
based incentives, bonuses, and other benefits such as health insurance, retirement plans, and
employee discounts.

Overall, the retail sector in India offers a range of salary packages to suit different levels of
experience and expertise, making it an attractive industry for individuals looking for diverse
career opportunities.
5. Telecommunications:

The telecommunications sector in India is known for offering competitive salaries, especially
for professionals in technical and managerial roles.

Entry-level positions in the telecommunications sector, such as network engineers or customer

service representatives, typically offer salaries ranging from ₹3 lakh to ₹6 lakh per annum.
These roles may require a strong educational background in telecommunications, information
technology, or related fields, along with relevant certifications.

As professionals gain experience and expertise in their roles, their salaries can increase
significantly. Senior professionals in the telecommunications sector, such as senior network
architects, project managers, or senior executives, can earn salaries upwards of ₹10 lakh to ₹20
lakh per annum or more. These professionals are often responsible for overseeing large-scale
projects, managing teams, and making strategic decisions for their organizations.

Salaries in the telecommunications sector can also vary based on the company size and
reputation. Professionals working for leading telecommunications companies or multinational
corporations may earn higher salaries compared to those working for smaller or regional
players.

In addition to competitive salaries, the telecommunications sector in India also offers a range of
benefits, including health insurance, retirement plans, and opportunities for professional
development and advancement. Overall, the telecommunications sector continues to be a
lucrative industry for professionals seeking challenging roles and competitive compensation
packages.

Overall, the salary structures in different sectors in India reflect the country's diverse
economy and employment landscape. While these figures provide a general overview, actual
salaries can vary based on factors such as location, company size, and economic conditions.
 SPENDING HABITS OF THE WORKING CLASS

Spending habits of the working class in the Mumbai-Suburban region can vary significantly
across different sectors, including food, housing, transportation, healthcare, and leisure
activities. Understanding these spending patterns can provide valuable insights into the
lifestyle and financial priorities of this demographic.
Food: The working class in Mumbai-Suburban region typically spends a significant portion
of their income on food. This includes expenses related to groceries, dining out, and
ordering food delivery. Factors such as family size, dietary preferences, and cultural
influences can impact food spending habits.

Housing: Housing costs are a major expenditure for the working class in Mumbai-
Suburban region. Rent or mortgage payments, maintenance costs, and utility bills can
account for a large portion of their income. The choice of housing, such as living in a
rented apartment versus owning a home, can also impact spending patterns.

Transportation: Transportation expenses are another significant component of the

working class's spending habits. This includes costs related to commuting to work, such as
fuel, public

Transportation fares and vehicle maintenance. Factors such as the distance traveled, mode

of transportation, and travel frequency can influence transportation spending.

Healthcare: Healthcare expenses are an essential part of the working class's spending

patterns. This includes costs related to health insurance premiums, doctor visits,

medications, and medical procedures. Access to healthcare facilities and the prevalence of

health issues can affect healthcare spending habits.

Leisure Activities: The working class in Mumbai-Suburban region also allocates a portion

of their income to leisure activities and entertainment. This can include expenses related to

dining out, movies, shopping, and travel. The availability of leisure options and personal

preferences can influence spending in this area.

Savings and Investments: While meeting daily expenses is important, the working class

also focuses on saving and investing for the future. This includes contributions to savings
 accounts, retirement funds, and other investment vehicles. The level of financial literacy

and awareness of investment options can affect saving and investment habits.

Understanding the spending habits of the working class in the Mumbai-Suburban region

across these sectors can provide valuable insights for policymakers, businesses, and

financial institutions. It can help in developing targeted interventions and products to meet

the needs of this demographic and improve their financial well-being.

Impact of Economic Factors

Economic factors play a significant role in shaping the spending patterns of the working class
in the Mumbai-Suburban region. These factors can impact the overall purchasing power,
affordability, and financial decision-making of individuals and families in this demographic.

Inflation:
Inflation, the persistent increase in the general price level of goods and services, affects the
spending patterns of the working class in the Mumbai-Suburban region in various ways.
When inflation is high, the cost of living rises, impacting the purchasing power of
individuals and families. This can lead to several changes in spending behavior. Firstly,
high inflation can significantly increase the cost of essential items such as food, housing,
and healthcare. The working class may have to allocate a larger portion of their income to
meet these basic needs, leaving less room for discretionary spending.

To cope with higher expenses for essential items, individuals and families may cut back on
discretionary spending, such as dining out, entertainment, or luxury goods. This shift in
spending priorities reflects a need to prioritize essential needs over wants. Moreover, high
inflation may also lead individuals to seek more affordable alternatives for goods and
services. For example, they may switch to cheaper food options, downgrade their housing
arrangements, or opt for generic medications instead of brand-name drugs.

High inflation can erode the value of savings and investments. As the purchasing power of
money decreases, individuals may be less inclined to save or invest, preferring to spend
now rather than risk losing value in the future. Additionally, the working class may need to
adapt to changing prices by shopping more selectively, comparing prices, and looking for
discounts or sales. This behavior reflects a desire to make the most of their limited
resources in the face of rising prices.

Overall, high inflation can significantly impact the spending patterns of the working class
in the Mumbai-Suburban region, forcing them to make adjustments to their budgets and
lifestyle choices. Understanding these impacts is crucial for policymakers and businesses
to address the needs of the working class and mitigate the effects of inflation on their
financial well-being

Income
In the context of the study on spending patterns of the working class in the Mumbai-
Suburban region, the level of income earned by individuals is a crucial factor that
influences their spending behavior. Higher incomes provide individuals with greater
financial resources, allowing them to afford a wider range of discretionary items such as
leisure activities, travel, and luxury goods. Individuals with higher incomes are more likely
to allocate a portion of their earnings towards non-essential expenses, enhancing their
overall quality of life and enjoyment.

Conversely, lower incomes constrain individuals in the working class, limiting their
capacity for discretionary spending. Individuals with lower incomes tend to focus more on
essential spending, such as food, housing, and healthcare, which are necessary for their
basic needs. This leaves limited room for spending on non-essential items and may result in
a more frugal lifestyle. Additionally, lower incomes may also lead to a limited capacity for
saving or investment, as individuals prioritize meeting their immediate needs over long-
term financial planning.

Overall, the level of income earned by individuals in the working class plays a significant
role in determining their spending patterns. Higher incomes enable greater flexibility and
choice in spending, while lower incomes necessitate a focus on essential expenses and may
limit capacity for discretionary spending and saving. Understanding these dynamics is
important for policymakers and businesses to address the needs and preferences of the
working class effectively.

Employment Opportunities

In the context of the study on spending patterns of the working class in the Mumbai-
Suburban region, the availability of employment opportunities and job stability plays a
crucial role in shaping their spending behavior. During periods of economic growth and
high employment rates, individuals in the working class are more likely to feel secure in
their jobs and confident about their financial future. This confidence can lead to an increase
in discretionary spending, as individuals may be more willing to spend on non-essential
items such as dining out, entertainment, or luxury goods.

Conversely, during periods of economic downturn or job insecurity, individuals in the

working class may prioritize saving and reduce discretionary spending. This is because
they are more concerned about their financial stability and may want to build up their
savings as a buffer against potential job loss or other financial challenges. During such
times, individuals are more likely to focus on essential spending, such as food, housing, and
healthcare, and cut back on non-essential expenses.
Overall, the availability of employment opportunities and job stability can have a
significant impact on the spending patterns of the working class in the Mumbai-Suburban
region. Understanding these dynamics is important for policymakers and businesses to
develop strategies that support job creation and economic stability, which in turn can
positively influence the spending behavior of the working class.Interest Rates: Interest
rates, particularly on loans and credit cards, can influence the borrowing behavior of the
working class. When interest rates are low, individuals may be more inclined to borrow
money for purchases, leading to increased spending. Conversely, high interest rates may
discourage borrowing and result in reduced spending.

Government Policies

In the context of the study on spending patterns of the working class in the Mumbai-
Suburban region, government policies play a significant role in influencing their spending
behavior. Policies related to tax rates, subsidies, and welfare programs can impact the
disposable income of individuals in the working class, thereby affecting their spending
patterns.

Tax rates directly affect the amount of income that individuals take home after taxes.
Lower tax rates or tax cuts can increase disposable income, giving individuals more money
to spend on both essential and discretionary items. This can lead to an increase in overall
spending, as individuals have more financial resources at their disposal.

Subsidies are another government policy that can impact spending patterns. Subsidies on
essential goods such as food, fuel, or housing can reduce the cost of living for the working
class, allowing them to allocate more of their income towards discretionary spending.
Conversely, cuts to subsidies may increase the cost of living, limiting spending on non-
essential items.
Welfare programs are designed to provide financial assistance to those in need, including
the working class. These programs can impact spending patterns by supplementing income
and increasing disposable income. This can lead to higher spending, particularly on
essential items.

Conversely, austerity measures or cuts to social programs can reduce disposable income
and limit spending. Reductions in welfare benefits or public services may force individuals
in the working class to prioritize essential spending and cut back on discretionary expenses.

Overall, government policies related to tax rates, subsidies, and welfare programs can have
a significant impact on the spending patterns of the working class in the Mumbai-Suburban
region. Understanding these impacts is important for policymakers to design effective
policies that support the financial well-being of the working class.

Market Conditions

Economic conditions and market trends can significantly affect the spending patterns of the
working class in the Mumbai-Suburban region. These factors influence the availability and
pricing of goods and services, which in turn affect how individuals and families allocate
their income.

During periods of high demand or supply shortages, prices of goods and services may
increase, leading to higher spending for the working class. This can be particularly
challenging for individuals with limited disposable income, as they may need to allocate
more of their budget to essential items such as food, housing, and healthcare. In such
situations, individuals may also cut back on discretionary spending or seek more affordable
alternatives to manage their budget effectively.

Conversely, during times of oversupply or low demand, prices may decrease, resulting in
lower spending for the working class. This can provide some relief to individuals, as they
may be able to purchase goods and services at lower prices. However, it may also indicate
broader economic challenges, such as reduced consumer confidence or economic
downturn, which can impact job security and income levels.

Overall, economic factors play a crucial role in shaping the spending patterns of the
working class in the Mumbai-Suburban region. Understanding these factors is important for
businesses, policymakers, and individuals to make informed decisions and adapt to
changing economic conditions. By monitoring economic trends and responding effectively,
stakeholders can better support the financial well-being of the working class and ensure a
more stable and sustainable economy.

Income and expenditure disparities

Income and expenditure disparities are significant factors that influence the spending
patterns of the working class in the Mumbai-Suburban region. These disparities can be seen
in various aspects of their financial lives:

Income Disparities:

Income disparities among the working class in the Mumbai-Suburban region are influenced
by various factors, including job roles, industries, and levels of education. Individuals
working in sectors such as IT or finance often command higher salaries compared to those
in sectors like retail or hospitality. These income disparities can significantly impact how
individuals prioritize their spending and manage their finances.
Those earning higher incomes in sectors like IT or finance may have more disposable
income for discretionary spending. They may allocate a larger portion of their budget
towards luxury items, leisure activities, and dining out. On the other hand, individuals
earning lower wages in sectors like retail or hospitality may focus more on essential
spending, such as housing, food, and healthcare, with limited capacity for discretionary
expenses.

Moreover, income disparities can also impact savings and investment behavior. Higher-
income individuals may have more capacity to save and invest, leading to greater wealth
accumulation over time. They may also have access to better financial products and
services, enabling them to make more informed investment decisions. In contrast, lower-
income individuals may struggle to save and invest, limiting their ability to build financial
security for the future.

Income disparities among the working class in the Mumbai-Suburban region can
significantly influence spending patterns, savings behavior, and overall financial well-
being. Understanding these disparities is essential for policymakers and businesses to
develop targeted strategies that address the diverse needs and challenges faced by
individuals in different income brackets.

Expenditure Disparities:

On the expenditure side, the working class in the Mumbai-Suburban region experiences
disparities based on income levels. Higher-income individuals tend to spend more on
luxury items, leisure activities, and dining out, reflecting their higher disposable income
and ability to afford non-essential goods and services. These individuals may also prioritize
experiences and lifestyle enhancements, leading to a higher standard of living.

In contrast, lower-income individuals in the working class often focus more on essential
spending such as housing, food, and healthcare. They may allocate a larger portion of their
income towards these basic needs, leaving less room for discretionary spending. As a
result, lower-income individuals may have a more limited lifestyle and fewer opportunities
for leisure activities and luxury purchases.

These expenditure disparities can result in varying levels of financial stability and lifestyle
choices among the working class in the Mumbai-Suburban region. Higher-income
individuals may have greater financial security and flexibility, allowing them to save and
invest for the future. They may also have access to better healthcare and education, leading
to improved overall well-being. In contrast, lower-income individuals may struggle to
make ends meet and may face challenges in achieving financial goals and improving their
quality of life.

Understanding these expenditure disparities is important for policymakers and businesses

to address the diverse needs and challenges faced by the working class in the Mumbai-
Suburban region. By recognizing the differences in spending patterns based on income
levels, stakeholders can develop targeted interventions and policies to support financial
inclusion and improve overall economic well-being.

Savings and Investments:

Savings and investments are critical aspects of financial planning for individuals in the
working class, but income and expenditure disparities can significantly influence their
approach to saving and investing. Higher-income individuals generally have more
disposable income, allowing them to save and invest more easily. They may have access to
a wider range of financial products and services, such as savings accounts, mutual funds,
and retirement plans, which can help them accumulate wealth over time.

In contrast, lower-income individuals often face challenges in saving and investing due to
limited disposable income. They may prioritize meeting their immediate needs, such as
housing and food, over saving for the future. This can result in a lack of financial security
and make it difficult for them to build wealth over time.

Moreover, income disparities can also impact the ability of individuals to invest in assets
such as stocks, bonds, or real estate. Higher-income individuals may have the financial
means to invest in these assets, which can provide higher returns over the long term. In
contrast, lower-income individuals may be unable to invest in such assets, missing out on
opportunities for wealth accumulation.
Overall, income and expenditure disparities play a significant role in shaping the savings
and investment behavior of the working class in the Mumbai-Suburban region.
Understanding these disparities is crucial for policymakers and financial institutions to
develop strategies that promote financial inclusion and help individuals build financial
security for the future.

Quality of life:

Income and expenditure disparities among the working class in the Mumbai-Suburban
region can have a significant impact on their overall quality of life. Higher-income
individuals generally have access to better housing, healthcare, and education, which can
contribute to a higher quality of life. They may be able to afford larger, more comfortable
homes in better neighborhoods, with access to amenities such as parks, schools, and
healthcare facilities.

Higher-income individuals may also have access to better healthcare services, including
preventive care, specialist consultations, and advanced treatments. This can lead to better
health outcomes and a higher quality of life overall. Additionally, higher-income
individuals may be able to afford quality education for themselves and their children,
providing them with better career opportunities and a higher standard of living in the long
run.

Conversely, lower-income individuals in the working class may have to make do with
fewer resources and opportunities, impacting their quality of life. They may live in
substandard housing conditions with limited access to basic amenities. Lower-income
individuals may also face barriers to accessing quality healthcare and education, which can
impact their overall well-being and future prospects.

Overall, income and expenditure disparities can create significant disparities in the quality
of life experienced by the working class in the Mumbai-Suburban region. Addressing these
disparities requires a holistic approach that focuses on improving access to essential
services such as housing, healthcare, and education for all individuals, regardless of their
income level. By addressing these disparities, policymakers and stakeholders can work
towards ensuring a higher quality of life for all members of the working class in the region.
 Future Outlook

The future spending patterns of the working class in the Mumbai-Suburban region will
likely be influenced by several factors, including economic forecasts, policy changes, and
technological advancements.

Economic Forecasts:

Economic forecasts for the Mumbai-Suburban region indicate a positive outlook, with
growth expected to be driven by key sectors such as IT, finance, and real estate. As these
sectors continue to expand, there is likely to be an increase in job opportunities and
incomes for some individuals in the working class. This rise in income levels could lead to
a corresponding increase in spending on discretionary items such as leisure activities,
travel, and luxury goods.
However, it is important to note that income and expenditure disparities are expected to
persist within the working class. While higher-income individuals may have more
disposable income to spend on non-essential items, lower-income individuals are likely to
continue prioritizing essential spending such as housing, food, and healthcare. This
disparity in spending patterns highlights the ongoing challenge of income inequality in the
region.

Furthermore, the impact of economic growth on spending patterns may also be influenced
by external factors such as inflation rates and interest rates. Higher inflation rates could
erode the purchasing power of individuals, limiting their ability to spend on discretionary
items. Similarly, changes in interest rates could affect borrowing costs and savings rates,
impacting overall consumer spending.

In conclusion, while economic growth in the Mumbai-Suburban region is expected to lead

to higher incomes and increased spending on discretionary items for some individuals in
the working class, income and expenditure disparities are likely to persist. Understanding
these trends is essential for businesses and policymakers to develop strategies that promote
more inclusive growth and address the needs of all segments of the working class.

Policy Changes:

Policy changes, including tax reforms and social welfare programs, can have a significant
impact on the spending patterns of the working class in the Mumbai-Suburban region. Tax
cuts or incentives, for example, can increase disposable income for individuals, leading to
higher spending on goods and services. This can stimulate economic growth and drive
consumer spending.

Conversely, changes to welfare programs or austerity measures can reduce disposable

income for the working class, limiting their ability to spend. Reductions in welfare benefits
or social programs can lead to lower spending on non-essential items and a focus on
essential spending such as food, housing, and healthcare. This can have a negative impact
on overall consumer spending and economic growth.

Understanding these policy changes and their implications is crucial for predicting future
spending patterns. For example, policymakers need to consider how changes in tax policy
or social welfare programs will impact the disposable income of the working class and
adjust policies accordingly. By doing so, policymakers can support economic growth and
ensure that the working class has the resources they need to maintain their quality of life.

Technological Advancements

Technological advancements, particularly in the realm of e-commerce and digital

payments, are poised to significantly impact the spending patterns of the working class in
the Mumbai-Suburban region. The rise of e-commerce platforms has revolutionized the
retail landscape, offering consumers a convenient and efficient way to shop for a wide
range of products and services online. This increased access to online shopping is likely to
lead to changes in how individuals shop and spend their money.

One of the key ways in which e-commerce is expected to influence spending patterns is
through increased convenience. With the ability to shop online from the comfort of their
homes or workplaces, individuals in the working class may find it easier to make
purchases, leading to more frequent and potentially larger transactions. This shift towards
online shopping may also result in changes in consumer behavior, with individuals
becoming more accustomed to the convenience and variety offered by e-commerce
platforms.

Furthermore, the rise of digital payment methods such as mobile wallets and online
banking has made it easier for individuals to make transactions without the need for cash.
This shift towards digital transactions may lead to changes in how individuals manage their
finances and make purchasing decisions. For example, individuals may be more inclined to
make impulse purchases or spend more freely when using digital payment methods, as they
are less aware of the physical act of handing over cash.

Overall, technological advancements such as e-commerce and digital payments are likely to
shape the future spending patterns of the working class in the Mumbai-Suburban region.
Increased access to online shopping and digital transactions may lead to changes in
consumer behavior and preferences, ultimately influencing how individuals shop and spend
their money in the future. Understanding these trends is crucial for businesses and
policymakers to adapt to the changing landscape of consumer spending.
Changing Lifestyle Preferences:

As the working class in the Mumbai-Suburban region experiences growth in income and
standard of living, their lifestyle preferences are likely to evolve, which will impact their
spending patterns. One notable change is the expected increase in spending on experiences,
such as travel and dining out. With higher disposable incomes, individuals may prioritize
leisure activities and seek out new experiences, leading to increased spending in these
areas.

Additionally, there may be a greater emphasis on health and wellness among the affluent
working class. As individuals become more health-conscious, they may spend more on
fitness activities, wellness retreats, and organic or healthier food options. This trend is
likely to result in increased spending in the health and wellness sector, including gyms,
spas, and health food stores.

Furthermore, as the working class becomes more affluent, there may be a shift towards
sustainable and ethical consumption. Individuals may prefer to spend on products and
services that align with their values, such as environmentally friendly products or ethically
sourced goods. This trend could lead to changes in consumer behavior and preferences,
influencing future spending patterns.

Understanding these changing lifestyle preferences is essential for businesses and

policymakers to anticipate future spending patterns and tailor their offerings accordingly.
By recognizing the evolving needs and preferences of the working class in the Mumbai-
Suburban region, businesses can develop products and services that cater to these
preferences, ultimately driving growth and competitiveness in the market.

In conclusion, the future spending patterns of the working class in the Mumbai-Suburban
region will be influenced by a combination of economic forecasts, policy changes,
technological advancements, and changing lifestyle preferences. By taking these factors
into account, businesses and policymakers can better understand and respond to the
evolving needs and preferences of the working class in the region.
 Chapter 4 -
RESEARCH
METHODOLY
 RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

 To study the mind-set of a fresher.

 To understand the needs and expenses of a fresher.
 To be aware of freshers / employees who are or are not aware with the concept of
wealth management.
 To analyse the expectations of a fresher regarding their earnings / salary.
 To understand how deep their knowledge is regarding risks present with every bad
financial decision.
 SCOPE OF THE STUDY
 Research can be a foundational resource for future studies on the spending habits of
first-time working professionals.
 It offers a current perspective on how this demographic views saving and investing,
serving as a benchmark for future comparisons.
 Acknowledging potential future deviations suggests an awareness of the dynamic nature
of financial management practices.
 The focus on respondents aged 24-45 indicates a potential expansion in understanding
financial behaviours among professionals.
 There is a wide scope for further research to delve into factors influencing spending
decisions, attitudes towards saving and investing, and financial goal prioritization
among first-time working professionals.

HYPOTHESIS OF THE STUDY

Income and Spending Patterns:

 Null Hypothesis (H0): There is no significant relationship between income levels and
spending patterns among first-time working professionals.
 Alternative Hypothesis (H1): Higher income levels are associated with different
spending patterns, including higher savings rates or increased spending on luxury items.

Financial Literacy and Spending Habits:

 Null Hypothesis (H0): There is no significant relationship between financial literacy

levels and spending habits among first-time working professionals.
 Alternative Hypothesis (H1): Higher levels of financial literacy are associated with
more prudent spending habits, such as increased savings and reduced debt.

Peer Influence and Spending Behaviour

 Null Hypothesis (H0): Peer influence has no significant impact on the spending
behaviour of first-time working professionals.
 Alternative Hypothesis (H1): Peer influence plays a significant role in shaping spending
habits, leading to increased spending on certain goods or experiences.

Budgeting and Spending Control:

  Null Hypothesis (H0): The use of budgeting techniques has no effect on the spending
control of first-time working professionals.
 Alternative Hypothesis (H1): Effective budgeting leads to better spending control,
resulting in more conscious spending decisions and increased savings.

Financial Goals and Spending Priorities:

 Null Hypothesis (H0): There is no difference in spending habits between first-time

working professionals with clear financial goals and those without.
 Alternative Hypothesis (H1): Having clear financial goals influences spending
priorities, leading to strategic spending and saving behaviours.

Limitations
In my research work, I encountered several limitations that are important to acknowledge.
Firstly, while I was able to gather 69 responses for my survey on free will, I recognize that this
sample size may be considered relatively small. Consequently, the findings may not be fully
generalizable to the broader population. Additionally, there may be a potential for sampling
bias as the participants who chose to respond may not fully represent the diversity of
perspectives on the topic.

Furthermore, although I collected data on age and gender, I acknowledge that other
demographic factors, such as education level, occupation, and socio-economic status, could
also play a significant role in shaping individuals' views on free will. Incorporating a wider
range of demographic variables could provide a more comprehensive understanding of the
topic.

Moreover, the data collected in my survey relied on self-reported responses, which could
introduce biases such as social desirability or memory recall. This means that the accuracy of
the findings may be influenced by participants' perceptions and interpretations.

In terms of scope, my survey may have been limited in its exploration of contextual factors that
could impact participants' views on free will, such as cultural background, religious beliefs, or
personal experiences. By incorporating these factors, I could have provided a richer analysis of
the topic.
Additionally, the response rate of my survey may have been a limitation, as a low response rate
could raise questions about the representativeness of the sample. Providing information on the
response rate would have helped to contextualize the findings and assess the reliability of the
results.

Lastly, discussing the steps taken to ensure the validity and reliability of the survey instrument
would have added transparency to the research process. Overall, while the survey provided
valuable insights, it is important to acknowledge these limitations to ensure a nuanced
interpretation of the findings.

TYPES OF RESEARCH

The research is primarily both exploratory as well as descriptive in

nature. The sources of information are both primary and secondary
data

A well –structured questionnaire was prepared to collect the perception of the

respondent, through this questionnaire

RESEARCH METHOD
Research can be defined as systematized efforts of gain new knowledge. A
research is carried out by different methodology, which has their own pros and
cons.
Research methodology is a way to solve research problem along with the logic
behind them. Thus when we talk of the research methodology we not only take of
research method but also context of our research study and explain why we are using
a particular method or techniques and why we are not using other so that research
result are capable of being evaluated either by the researchers himself or by others

TYPES OF DATA

The data is collected from the following sources:

 Primary Data
Primary data is the first hand data, which is collected from the number of
respondents. Here structured questionnaire was used to collect primary data
through surveys.

 Secondary Data
Secondary data has been collected for other useful resources and information
essential required in order to successfully complete the project report and frauds
figures from the internet, books, magazines as well as notes.

Sample Size

Sample size of 80+ consumer has been selected as a sample size for research.

Sample Method

 Sample Method

Random sampling is used as research process.

  Data Representation technique and tools

Columns Charts and Pie-Charts has used for the

representation

Data Collection method

 Survey method.

 Survey Instrument: Questionnaire.

 Method of Surveys: Through the online interaction and collection of

data with the help of questionnaire.

CHAPTER 5.
 DATA ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION OF DATA

1) Age Group
 age group
40

35 37
35
30

25

20

15
15
13
10

0
2 1 -2 5 2 6 -3 5 3 6 -4 5 46 +

Age Responses
21-25 37
26-35 35
36-45 13
46 + 15

Interpretation:

The survey data reveals a diverse distribution of respondents across different age groups. The
largest segment comprises individuals aged 21-25, with 37 responses, indicating a substantial
representation of young adults entering the workforce or early in their careers. Various
financial milestones, such as starting to earn a regular income, managing expenses
independently, and possibly beginning to save or invest for the future, often characterize this
age group.

Following closely behind is the 26-35 age group, with 35 responses, representing individuals
in their late twenties to mid-thirties. This group likely includes individuals who have been
working for some years and may be more established in their careers. They may be facing
different financial challenges and goals compared to younger respondents, such as saving for
major life events (e.g., buying a home, starting a family) or planning for long-term financial
security.

The 36-45 age group is less represented, with only 13 responses, suggesting a smaller
proportion of individuals in this age bracket in the surveyed population. This group typically
consists of individuals in their late thirties to mid-forties, who may be in the midst of their
careers or transitioning to more senior roles. They may be focused on balancing immediate
financial needs with long-term financial planning, such as saving for retirement or children's
education.

Respondents aged 46 and above make up 15 responses, indicating a relatively consistent

participation across older age groups. This segment likely includes individuals who are in the
later stages of their careers or approaching retirement. Their financial priorities may center
around retirement planning, managing investments, and ensuring financial stability in their
later years.

Overall, the distribution of responses across different age groups provides a comprehensive
view of the age demographics of the surveyed population. It highlights the varying financial
circumstances, goals, and challenges faced by individuals at different stages of their careers
and lives, offering valuable insights into the financial behavior and attitudes of first-time
working professionals across different age groups.

2) Are you aware about the concept of wealth management?

Percentage Answers No.of responses

51% Yes 50
 14% No 14

35% Little 35

Percentage

35

51

14

51.00% Yes 14.00% No 35.00% Little

Interpretation:

1. Familiar with Wealth Management (Yes): 51 people (51%) are well versed in wealth
management, signifying a strong understanding of managing financial assets.

2. Not Familiar with Wealth Management (No): Only 14 people (14%) lack knowledge
about wealth management, representing a small minority.

3. Limited Knowledge of Wealth Management (Knows little): 35 people (35%) have

some basic knowledge of wealth management but may not be experts, indicating an
intermediate-sized group exploring the concept.

This breakdown offers insights into the group's familiarity with wealth management.

3)how well would you say you can manage your money?
answer No. of responses
1 15
2 12
3 32
4 25
5 16

how well would you say you can manage your

money?
5 16

4 25

3 32

2 12

1 15

0 5 10 15 20 25 30 35

Interpretation:
In a survey where individuals were asked to rate their ability to manage money on a scale from
1 to 5, the results revealed varying levels of self-assessment. The data shows that 32
respondents rated themselves as a 3, indicating a moderate level of confidence in their money
management skills. Additionally, 25 respondents rated themselves as a 4, suggesting a
relatively high degree of self-assurance in their financial management abilities. Another 16
respondents rated themselves as a 5, indicating the highest level of confidence in their ability to
manage money. However, there were also respondents who expressed lower levels of
confidence, with 12 individuals rating themselves as a 2 and 15 person rating themselves as a 1
in terms of money management proficiency. These responses provide insights into the diverse
self-perceived skill levels related to financial management among the survey participants.

4) Amongst these what will be your ideal choices while spending your salary?
 A m ongs t thes e what will be your
ideal choices while s pending your
s alar y
45 42
40
40 37
35 33
30
25 21
20
15 11
10
5
0
Rent Food ordered Shopping for Grocery products OTT services Others
clothes

Options Responses
Rent 42
Food ordered 33
Shopping for clothes 37
Grocery products 40
OTT services 21
Others 11

(Note: respondent were allowed to select multiple options in this question.)

Interpretation:
 Rent: 42 respondents reported that they spend a significant portion of their income on
rent.

 Food Ordered: 33 respondents indicated that they allocate a considerable portion of

their budget to ordering food.

 Shopping for Clothes: 37 respondents mentioned that shopping for clothing is a

substantial part of their spending.

 Grocery Products: 40 respondents reported that they spend a significant amount on

grocery products.

 OTT Services: 21 respondents mentioned that they allocate a portion of their budget
to over-the-top (OTT) streaming services.

 Others: 11 respondents mentioned that their spending includes various other

expenses beyond the categories listed.

5)If there Are any excess of amount left after spending on your ideal choices, will
you:

If there Are any excess of amount left aft er

spending on your ideal choices, will you:
Deposit the 70% and invest the remaining 30%

Fully invest and spend from profit

the rest1:3 I will put 1 part in the bank account and 3 part I will
invest out of 4 parts
Deposit half of the amount and Invest

Deposit the rest in a bank

invest the rest amount.

0% 2000% 4000% 6000%

If there Are any excess of amount left after spending on your ideal choices, will you: Percentage
If there Are any excess of amount left after spending on your ideal choices, will you: No. of responses
 Responses Percentage No. of responses

30% 30
Invest the rest amount.

Deposit the rest in a bank 13% 13

Deposit half of the amount 54% 54

and Invest

the rest1:3 I will put 1 part in 1% 1

the bank account and 3 part I
will invest out of 4 parts

Fully invest and spend from 1% 1

profit

Deposit the 70% and invest 1% 1

the remaining 30%

Interpretation:

1. Balanced Approach: 54% (54 individuals) split their money evenly between bank
deposits and investments, aiming for both security and growth.

2. Full Investment: 30% (30 individuals) invest all their money, indicating a higher
risk tolerance and profit-focused approach.

3. Conservative Choice: 13% (13 individuals) deposit their entire amount in a bank
for safety and liquidity.

4. Unique Strategies: A small 1% (1 individual each) use distinctive methods, such

as a 1:3 bank-to-investment ratio, full reliance on investments, or a 70% bank
deposit with 30% in investments. These choices highlight diverse financial
preferences and risk appetites.

6) Do you require guidance for managing your funds?

 Percentage

Yes
maybe

No

Yes No maybe

Responses Percentage No. of responses

Yes 37% 37

No 19% 19

maybe 44% 44

Interpretation:
In the survey, participants were asked whether they believe guidance is necessary when
managing their funds. The responses indicate a range of opinions on this matter. A substantial
portion, accounting for 44% of the respondents (44 individuals), expressed uncertainty by
selecting "maybe." This suggests that a considerable number of individuals are open to the
idea of guidance but are not entirely sure if it is essential.

Meanwhile, 37% of respondents (37 individuals) emphasized the importance of guidance by

selecting "Yes." These individuals recognize the value of seeking advice or assistance when
managing their finances, indicating a proactive approach to financial management.
On the other hand, 19% of respondents (19 individuals) chose "No," indicating that they
believe they can manage their funds effectively without external guidance. These respondents
may have a high level of confidence in their own financial decision-making abilities.

The diverse responses illustrate varying perspectives on the need for guidance when it comes
to managing personal finances, reflecting the individual preferences and attitudes of the
survey participants.

7) Are you aware about the risks carried if your funds are not properly managed?

6) Are you aware about the risks carried if

your funds are not properly managed?
maybe
7%

No Yes
39% 54%

Yes No maybe

Responses Percentage No. of responses

Yes 54% 54

No 39% 39

maybe 7% 7
Interpretation:
When it comes to the risks associated with improper fund management, the data clearly

underscores the significance of this issue. A whopping 54% of respondents answered "Yes"

when asked about the potential risks. This overwhelming majority highlights the widespread

concern among individuals regarding the consequences of inadequate fund management.

However, it is worth noting that 7% of respondents opted for a more cautious stance,

answering "Maybe." This suggests that while they may not be entirely convinced of the risks,

they are not ruling them out either, indicating a level of uncertainty or awareness of the

complexity of financial management.

On the other hand, a small but noteworthy 39% of respondents answered "No," indicating a

belief that there may not be significant risks associated with improper fund management.

These respondents might have a different perspective on the matter or perhaps have a high

degree of confidence in their financial strategies.

In conclusion, the data underscores the importance of proper fund management, with the

majority of respondents expressing concerns about the risks associated with inadequate

financial planning and execution. Nonetheless, there remains a diversity of opinions,

emphasizing the need for informed decision-making in the realm of financial management to

mitigate these potential risks effectively.

8) What do you think how much should an Ideal monthly salary for a working class
should be?

Percentage

16% 16%
10-20k
20-30k
30-40k
40k & above
33% 35%

Responses Percentage No. of responses

10-20k 16% 16

20-30k 35% 35

30-40k 33% 33

40k & above 16% 15

Interpretation:

When it comes to the working class, there is no definitive answer regarding the ideal salary.
Of respondents, 35% think the ideal salary is between 20,000 and 30,000 Indian Rupees.
Those who belong to this group believe striking a balance between financial security and
comfort requires this income bracket.

Just behind, 33% of respondents think an income between 30,000 to 40,000 Indian Rupees is
ideal for the working class. To achieve desired levels of financial stability and well-being,
many respondents hold that a greater income is needed.

About 16% of respondents think that an income between 10,000 and 20,000 Indian Rupees is
enough, while almost the same number (16%) consider a salary of at least 40,000 Indian
Rupees to be ideal for the working class. Opinions diverge, with some valuing thriftiness
while others strive for a more luxurious way of life.

Evidence suggests that there is no clear agreement on a suitable salary for the working class.
The complexity of individual financial needs and circumstances is underlined by the varied
financial goals and expectations of the respondents.
 SWOT ANALYSIS

Strengths:

 Rich Data Availability: Mumbai's status as a major economic center provides access

to a diverse working-class population, offering a wealth of data for analysis.

 It includes data on income levels, expenditure patterns, and socio-economic factors

that can provide valuable insights into spending habits.

 Scope for In-Depth Analysis: The study has the potential to delve deeply into various

aspects of spending behavior among the working class.

 This includes analyzing the impact of cultural influences, household dynamics, and

individual preferences on spending patterns, providing a comprehensive

understanding of consumer behavior in the region.

 Potential for Practical Implications: The findings of the study can have practical

implications for policy-makers, financial institutions, and businesses.

 Understanding the spending patterns of the working class can help in designing

targeted policies and products to better serve this demographic, leading to improved

financial planning and management.

Weaknesses:

 Limited Sample Representation: One of the challenges of studying the working class

in Mumbai is obtaining a representative sample.

 The transient nature of the population, with people moving in and out of the city

frequently for work, can make it difficult to capture a comprehensive picture of

spending habits.

 Data Accuracy: The study relies on self-reported data, which may be subject to

inaccuracies or biases. Individuals may under-report or over-report their spending,

leading to potential discrepancies in the data.

 Time and Resource Constraints: Conducting a comprehensive study on spending

patterns in Mumbai can be time-consuming and resource-intensive.

 Gathering and analysing data from a large and diverse population requires substantial

effort and resources.

Opportunities:

 Comparative Analysis: The study presents an opportunity to conduct comparative

analysis across different segments of the working class. This includes comparing
spending patterns among different income groups, age brackets, and industries, which
can provide valuable insights into variations in consumer behavior.
 Longitudinal Studies: There is an opportunity to conduct longitudinal studies to track
spending behavior over time. This can help in understanding how spending habits
evolve in response to economic trends, policy changes, and life events.
 Collaboration with Financial Institutions: Collaboration with banks or financial
institutions can provide access to transaction data, which can offer more accurate
 insights into spending patterns. This can help in validating self-reported data and
enhancing the robustness of the study.

Threats:

 Economic Volatility: Economic volatility can pose a threat to the study, as

fluctuations in the economy can impact spending patterns. This can make it
challenging to draw long-term conclusions about spending habits.
 Cultural Factors: Deep-rooted cultural norms and values in Mumbai may influence
spending habits in ways that are not immediately apparent. This can pose challenges
in interpreting data and drawing meaningful conclusions.
 Competition and Privacy Concerns: There may be competition from other researchers
studying similar topics, which can limit access to data or resources. Additionally,
there may be ethical concerns regarding data privacy and confidentiality, especially
when dealing with sensitive financial information.
 Findings

Based on our research and analysis, we have gained valuable insights into the mindset of the
working class or employees when it comes to managing their first salary. Here are the key
findings:

Awareness about Wealth Management

 Approximately 51% of respondents were aware of the concept of wealth management,

while others were either not aware or unsure.

Skills in Managing Funds

 32% of respondents rated their skills in managing funds as moderate.

Essential Spending Choices

 A majority of respondents felt that rent was one of the most essential expenses when
spending their salary.

Financial Management Strategy

 Approximately 54% of respondents believed in depositing half of their salary into a

bank and investing the other half into different investment options.

Need for Guidance

 Almost 43% of respondents expressed a desire for guidance regarding the

management of their funds.

Awareness of Risks

 81.2% of respondents were sure about the risks associated with poor management of
finances.

Salary Expectations

 34.8% of respondents believed their ideal salary should be between ₹20,000-₹30,000,

while close to 33% believed it should be between ₹30,000-₹40,000.
 37% of respondents were confident that their salary was sufficient most of the time.

Respondents indicated that unexpected or unforeseen circumstances requiring the use of

emergency funds were often related to their family.
Almost 47% of respondents reported that their salary ran out by the end of the month.

These findings provide valuable insights into the financial behavior and attitudes of the
working class or employees towards managing their finances. Understanding these insights
can help individuals, businesses, and policymakers develop strategies to improve financial
literacy and management among the working class.

Suggestion
Suggestions for income households to optimize their spending patterns and financial well-
being include:

Budgeting and Planning:

Develop a comprehensive budget that accounts for all income and expenses, including
savings and investments.
Set financial goals and create a plan to achieve them, such as saving for retirement,
education, or a major purchase.

Invest Wisely:
Diversify investments to reduce risk and maximize returns.
Consider consulting with a financial advisor to develop a personalized investment strategy
based on financial goals and risk tolerance.

Manage Debt Effectively:

Pay off high-interest debt first to reduce interest payments.
Use credit cards responsibly and avoid carrying a balance whenever possible.
Save for the Future:

Maintain an emergency fund to cover unexpected expenses.

Save for retirement through employer-sponsored plans such as 401(k) or individual
retirement accounts (IRAs).
Prioritize Spending:
Focus on spending that aligns with personal values and long-term goals.
Avoid unnecessary or impulsive purchases that do not contribute to overall well-being or
financial goals.

Review and Adjust:

Regularly review spending and investment strategies to ensure they align with current
financial goals and market conditions.
Be flexible and willing to adjust plans as needed to stay on track towards financial objectives.

Conclusion

In conclusion, our research has highlighted the awareness among the working class and new
employees regarding the risks associated with poor financial management and the importance
of understanding concepts such as wealth management. Many respondents demonstrated an
ability to allocate their money effectively, prioritizing essentials and recognizing the value of
saving and investment.

It is evident from our findings that while there is a level of awareness about wealth
management, there is also a clear need for education and guidance on the subject. Despite the
inclination towards saving, there is a recognition that further knowledge and understanding
can enhance one's financial management skills and decision-making abilities.

Our research aimed to uncover the attitudes and behaviors of the working class towards
managing their finances after receiving their salary. It is encouraging to note that most
respondents showed a propensity towards saving rather than spending impulsively. However,
it is essential to emphasize the importance of continually increasing financial knowledge and
understanding.

One of the key takeaways from this study is the importance of being able to differentiate
between necessary and non-essential expenses. It is crucial for individuals to have the ability
to classify their needs effectively, ensuring that their financial decisions align with their long-
term goals and priorities.
In conclusion, while there is a baseline level of awareness about financial management
among the working class, there is still room for improvement. By providing education and
guidance on wealth management, individuals can make more informed decisions about their
finances, ultimately leading to a more secure financial future.

Further Scope of Research

This research, conducted in 2024, provides valuable insights into the spending habits of first-

time working professionals, with a focus on those aged 21-25. The data offers a current

understanding of how this demographic perceives saving and investing their money. The

findings suggest that there is scope for future research to explore changes in financial

management practices and identify more effective ways to grow wealth and reduce

unnecessary expenses. The large number of respondents in the 21-25 age group indicates a

significant interest in financial management among young adults, highlighting the importance

of understanding their behaviour while spending their salary. Overall, this research lays the

groundwork for future studies to further explore and expand our knowledge of financial

management among the working class, particularly among young professionals transitioning

into the workforce.

 Appendix

Questionnaire

Name of participant: - Occupation:-

Address:-

Contact no: - E-Mail-

1) Are you aware about the concept of wealth management?

Yes

No
Little

2) How well would you say you could manage your money?

1 (poor)

5 (great)

3) Amongst these what will be your ideal choices while spending your salary?

Rent

Food ordered

Shopping for clothes

Grocery products

OTT subscription

4) If there Are any excess of amount left after spending on your ideal choices, will you: -
Invest the rest amount

Deposit the rest in bank

Deposit half of the amount and invest rest

5) Do you require guidance for managing funds?

Yes

No

Maybe

6) Are you aware about the risks carried if your funds are not properly managed?

Yes

No

Maybe

7) What do you think how much should an Ideal monthly salary for a fresher should be

10k-20k

20k-30k

30k-40k

40k & above

 REFERENCE

Websites:

https://masonwealth.ie/the-importance-of-wealth-management/#:~:text=A%20wealth
%20management%20provider%20helps,order%20to%20achieve%20your%20goals.

https://economictimes.indiatimes.com/wealth/personal-finance-news/81-people-exhaust-
salary-before-month-end-survey/articleshow/87815659.cms

https://www.cambridge.org/core/journals/albion/article/abs/john-benson-the-rise-of-
consumer-society-in-britain-18801980-themes-in-british-social-history-new-york-longman-
1994-pp-viii-245-np-isbn-0582872883/10109C7BE5B3214A2BBCFE4BCE8F2CF0

https://www.researchgate.net/profile/Joop-Hartog-2

https://www.google.co.in/books/edition/Spending_Patterns_of_High_income_Househo/
suYDYWB94RAC?hl=en&gbpv=0

E-books:
Michele Cagan 2023 – “Budgeting 101”

Spending Patterns by Age 2000 - U.S. Department of Labor, Bureau of Labor Statistics