How Much Did You Save By Living In A Small City?

A report by the Economist Intelligence Unit (EIU), four Indian cities — Bengaluru, Chennai, Mumbai and Delhi — are among the cheapest cities in the world in terms of cost of living. Not many of us may think about it in this way. Big cities cost us more, we know it for a fact. Many of us yearn for the comforts smaller cities provide, mostly in terms of cost benefits. What if we tell you that this might not be the case? 

Yes, small cities could burden you with miscellaneous costs you may be overlooking.

Here are some of them:

Transport is not cheap

Maybe your autowallah does not ask you for a high fare but transport infrastructure is not cheap either. Take for example flights from small cities. Although airlines have been expanding their routes, many small city residents have to pay a little extra because they might be going in for a direct flight which is not very frequent. If you are living in Patna, for example, and planning to travel to Abu Dhabi, rates on a popular airline booking portal shows that you would be paying Rs 17,444 per person as airfare and this is the lowest on the day.

However, if you were living in Delhi and planning to fly to Abu Dhabi, you would be saving considerably and reaching your destination in a fraction when compared to Patna.

Now, some small cities do not have an airport as it stands today. Then, there are those which have an airport only for a namesake.

For example, Mysoreans often have to travel to Bengaluru to catch a flight because despite having an airport, it is not operational and open to chartered flights only. While you enjoy the serenity of Mysuru, these are some costs and conveniences that usually get overlooked.

Second, car aggregators such as Uber may have revolutionised the way a working professional or an on-the-go person looks at transport within a city, Uber, for instance, covers just 29 cities in the country. There are 4,000 cities and towns in India out of which 300 have a population of more than a lakh.

Further, big cities which have an influx of population time and again usually get the first platter of services (read, Metro services, frequent bus services, tramways, etc.). Tier-II and Tier- III cities often lose out on this ground for a very long time unless new businesses promising a hefty turnover appear on the scene.

Perhaps you are interested in a small city despite the fact that most of them do not boast a robust transport infrastructure. Here's something else you and your family might be missing out on. For dependent parents with their children settled in other cities or abroad, unavailability or limited availability of quick transport infrastructure also leads to a lot of rush at times of emergencies.

Healthcare costs more

It is not a hidden fact that healthcare costs more in small cities. When shortlisting homes for an investment, most homebuyers prioritise healthcare and education, and want these to be close to their homes. There is no denying that big cities and metros often boast the best healthcare and can afford to bring in specialists at beck and call, too.

Education may be cheaper now, not later

Brought up in a small city and moved on to a big city for higher studies? You could relate to this. School admissions may have been easier and sometimes cheaper in comparison in the small city. However, as is popular these days, most students yearning for a higher degree move to a bigger city to pursue a course. In the process, track these expenses which you or your parents would have put in to help you stay put in a new city – travel costs, boarding/lodging/PG/hostel charges, entertainment costs etc. In short, even if you had an own home back in your city, you would be spending anywhere between Rs 5,000-30,000 per month as your lodging costs in a city such as Delhi.

HRA and dearness allowances

If you have been working, you would know that the salaries, HRAs (house rent allowance) and DA (dearness allowance) costs are different in cities. City Compensatory Allowance (CCA) is a type of allowance offered by companies to their employees to compensate for the high cost of living in metropolises and large cities. This is typically offered to employees staying in Tier-I cities and in some cases Tier-II cities at the discretion of the employer. Therefore, while you are staying in a small city thinking you are saving, your counterparts in metros are earning bigger and making use of better conveniences.

Conveniences are for those who are close

Most Tier-II and Tier-III cities are welcoming popular designer stores, food chains, etc., but bigger cities are in a better position to lend access to various international brands, emporiums, exhibitions, conferences, hangout and leisure zones and employment opportunities than small cities.

Also read: Lessons India Can Take From Mexico, World's Best Place To Retire