Living on a 1.25 Crores Package in India | Fix your Finance Ep. 25 #Finance

can we switch sides I think you can help me fix my Finance better so what you said right now changes a lot of things so has the brands and everything changed for you

in these four five years hello and welcome to a new episode of fix your Finance powered by cred today we are at Whitefield to meet prashanth and shamli to Engineers who met in IIT Bombay and

they have been happily married ever since welcome welcome to the show when were you in IIT Bombay we studied in IIT Bombay from 2015 to 17. so where are you currently working I am working in an MNC what about you I’m working in a restaurant what do you do there I am a senior software engineer

what about you I am a software engineer so what are you earning right now we collectively uh earn a little over 1.2 crores can we switch sides I think you can help me fix my none;">Finance better so what was your first salary I’m very curious okay so currently what is your in hand Income we collectively make about 6.8 lakhs per month so when you jump from 4 lakhs to 6.8 lakhs what changed for you like was it the expense it did the

expenses increase did the Investments increase I need shopping what what do you like to shop clothes and accessories so has the brands and everything changed for you in these four five years yeah I’ve been spending more money on premium Brands premium Brands I can see that

you are wearing a designer watch as well okay what about you uh I think I’ve always been kind of spending more but things like buying a house buying a car these things I think bigger decisions bigger purchases okay so let’s start with the expenses firstly I can see that you have

beautifully decorated your house so is do you own this house or is it rented oh yeah this is okay so when did you buy this house around the near back and what was the cost of the house it was around 1.2 CR can you help me with the Emi amount the tenure and the interest rate we took

Loan of 80 lakhs for 12 years interest was around 6.7 at that time and now it’s around 9.1 do you guys have a car yes how much did you spend on the car 17 18 lakhs how much Loan did you take we didn’t take alone we have been saving up and in different

forms of instruments and that money we’ve always planned and we diverted it to buying the houses down payment as well as the car also one additional thing is like since we’re working with big mncs earlier uh we had a lot of Stock Options we worked there for three four

years and things like that so that wasted on time and that helped us even making this one okay because you were there for like three four years most of the stocks that you got you were able to sell them when the right time came stocks and all these Investments do not exist to buy

you your new TV that is a smaller dream the bigger game is when you buy a new house when you buy that expensive car your stock should be able to fund that so keep reinvesting stay in a company if it’s good for longer period and reap the benefits in the long run how do you guys travel so how

much do you spend on fuel maintenance and everything it’s a little on the expensive side because I take care of my parents vehicle maintenance also so everything together with Insurance we spend about 20 000 a month how do you guys manage your food groceries we get online and

we sometimes order we also have a cook who helps us out so how much do you spend on groceries around fifteen thousand what about the cook around ten thousand you said that you take care of your parents vehicle as well do you send them money apart from this so I don’t send the money but I we

end up spending around 10 000 a month so Monday to Friday how do you relax during the weekend we travel around we have done a few longer trips maybe even towards north India or abroad as well and we we end up spending about 25 000 a month on both of this maybe weekend outings as well as our travel

ah you said that you like shopping right so how much do you end up spending every month so around 20 000. what do you spend what time what do you guys spend every month no I think I think maybe it’s around 10ks on us our family members and 10K is for doing something else okay yeah because uh

when we bought the house we did minimal things and then we thought as and when we get money we add one one thing so how do you do your shopping using Credit card okay how many Credit cards do you have I have two Credit cards two

Credit cards what about you how many cards you have I have two cards yeah and how much do you spend I think we both together spend around sixty thousand because you guys are using your Credit cards for shopping exclusively you should definitely sign up on cred

because they have this feature wherein they will tell you rewards and offers you have on shopping with your existing cards shopping Credit card Credit card three man so if you are also use using Credit cards for shopping download the cred app right

now use the link which is given in description all in all including the home Loan how much are you spending every month about 2 lakhs so you guys spend 2 lakhs you earned almost 7 lakhs if I just look at your Income and your expenses you are sorted okay so

let’s start with the absolute Basics firstly do you guys have an emergency fund yeah what is the amount around 10 lakh second is do you guys have health Insurance so our companies provide us the health Insurance okay so we were thinking should we take our

Insurance out of like I personally feel you should take a health Insurance the reason being right now both of you are young but the probability of having some issues later in life is higher and once that happens then it will be very difficult to get a health

Insurance because a lot of companies will just reject it next is term Insurance do you guys have any term Insurance no so yeah that’s something we wanted to ask you so the question is do we need a term Insurance considering

there are no dependents honestly like our parents are not dependent on us financially at least and you guys are personally also earning a lot so that’s the right question to have and this is the same question which I had with myself in 2022 okay I am single my parents do not rely on me

financially why should I take a term Insurance the first answer to this question was you are young right now I am 25 right now if I lock a term Insurance at this age the premium will be the same for my entire life so I’ll get a term Insurance

at a cheaper rate number one second important thing is even if you don’t have responsibilities today you might have responsibilities after five or ten years but if you end up taking a term Insurance at the age of 40 it will be a way more expensive Affair as compared to when

you take one at the age of 29. I think you are left with four four and a half lakhs even after all your expenses so how do you invest every month we put about uh one lakh in mutual funds okay Equity mutual funds Debt Mutual Equity

Insurance okay I have a lot of stocks you don’t want to ask how many how many do you have 100 100 but most of it is concentrated into maybe 15 or 20 stocks others are just two five thousand I’ve just put to just see if it was something there is no point investing in 100

stocks because it’s never gonna make you any money even if one of your Investments does 10x it should ideally change your life but here because the value in each stock is so low it’s not gonna make any difference for you if you want to pick 100 stocks you are better off

just investing in mutual funds you’re not playing a safer Diversified game so these are a few metrics that you should look at and if you want to understand these metrics I have made a detailed CashNews.co any other Investments that you are doing in ppf and NPS both I invest

so it’s around 2 lakh per annum each no no just me just why aren’t you investing I am trying to put that money in the market but yeah I thought let her understand okay so how do you save your Taxes are you in the old tax regime on new tax regime no I’m in the old

tax regime but ATC I get it from the principal yeah of the home Loan and uh interest part I get uh two lakhs okay so 3.5 lakhs is what I get uh and whatever remains we try to put it in some form of FD or some difference we want to buy a house for our parents what do you suggest how

should we invest it so that we can achieve this goal do you know what the amount is uh it’s about one CR currently at the rate that you are prepaying your Loan when will you be able to finish the Loan around three four years is it possible for you to buy the

parents house after five six years or do you want to buy it right away no we can buy it afterwards okay so in that case you can assume this one karodka house will become around 1.4 or 1.5 crores so out of this 1.5 CR if you are able to save up around 60 to 70 lakhs then it’s good enough if

you are able to allocate around 1 lack for this goal every month so then you are investing 12 lakhs a year 60 lakhs you will be able to have a corpus of around 70 to 80 lakhs and whatever is the remainder you can take up a Loan because your mod gates for this house will be over one

more question I had is we wanted to kind of be financially independent early so you know maybe in five or ten years I want to take up something lighter so how do I save up for that or do I need any additional planning for that so what you said right now changes a lot of things okay because earlier

I assume that you guys will continue working and that’s why having a second home Loan shouldn’t be a very big issue but if you are planning to you know retire early or something then you have to be light on the liability side so in that case I am not sure if you will be

able to take another Loan to buy that house for your parents but if we’ll just look at it independently without you know the house and everything house and every other factors then there is a fire number the fire number is the amount that once you have that in your bank

account you are ready to retire the amount is basically 30 to 35 times your annual expenses so let’s say you are spending around 25 lakhs overall every year so in your case the amount will be anywhere between 7.5 crores to 9 crores once you have that amount in your Portfolio

then you can redeem four to five percent every year to fund your expenses and at the same time because it is invested in the Equity Market the remainder will keep growing and that amount will be enough to supplement your lifestyle but I have one question I’m not planning to

retire at least for 10 to 15 years so basically you like what you are doing and you are fine with it which means that X stable Income yeah your Income will keep growing as you your experience increases right and your current Income is enough to

supplement your expenses she will be able to cover even after 10 years so that’s the best part of having both the members in a family working because then the risk appetite increases I personally feel that the day when India’s female participation rate goes up our economy will do

wonders because the risk appetite of every family will go up so this is our fatafat Finance Round you have to answer all the questions number one if you had to change one financial behavior

of your partner what would it be spend less money uh I had to ask her to invest more in the market than fds if you had an unlimited budget what would you give to your spouse I’d get her a house okay and the last question is do you enjoy what you are doing right now yes I enjoy okay I think I

do to some extent but I think I can enjoy other things by doing something which means no okay on that note we are towards the end of the CashNews.co that’s it guys if you’re liking these CashNews.cos then please hit the like button and if you are new here then please subscribe the

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