A tale of two cities

Feb 25 2013, 08:34 IST
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SummaryHaving houses in two cities may not be a good idea, even if you are a CEO

is spread between two cities. I see examples of people working in India and having families in Singapore. Even a split between Mumbai and Delhi for that matter can involve significant costs each month. Do you see what a huge airfare bill you are running up each month? Some weekends you will need to be in your work city and sometime family will come to your work city. Having life in two cities is not prudent from a financial planning point of view. Somehow the expenses you are incurring may not seem double but will eventually turn out to be double of what you need to run just one home in one city. How will you save and invest after this? This is the reason why such corporate executives who appear to live a rich life are in reality quite poor when you see their personal balance sheet.

For some CEOs and very senior executives, the dual life might just be okay because you are perhaps 50+ and so is your spouse and spouse is perhaps busy as well. Your children are in late teens or over 20 and pretty much have a life of their own. You could make some quick bucks and good investments during this time provided you do not buy new EMIs. But please note that a company has just one CEO and few in its top management.

By design of Indian corporate life, if you become unfortunate on the emotional front then by the time you are CEO or someone really senior in the organisation, you will have only your corporate career with all the riches but no family, no life, no one to care for and no one who cares for you. What are you going to do with money if you did not have a family or anyone else to share it with? Worst of all, you do not even have enough money as you have just not saved anything. For some wiser people, at least they may have one or two properties.

The point is, emotionally you are compromising and financially you are already comprised. The latter, however, is a natural fallout of your own doings or shall we say, not doing anything because you just never had the time to get your financial house in order.

How to manage this? Well you are certainly intelligent to figure this out yourself.

The author is

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