Living on 60,000 per month in Bangalore | Fix your Finance Ep 20 #Finance

So basically, in Rs. 7,500, your housing, food and travel gets covered. Don’t trouble your mom, dad or the country. Should I increase my Portfolio in this since the market is down? -In stocks or #1a73e8; text-decoration: none;">Crypto? -Crypto. Hello and welcome to another episode of Fix Your text-decoration: none;">Finance, powered by CRED. Today, we have with us 25-year-old Kumar, who is a civil engineer. He recently moved to Bangalore to work in a new company. He is in the technical support team. -How are you, Kumar? Welcome to the show. -Really good. Before this, were you

working in Lucknow, or was it work from home? I was working in Dell previously, so it was in Gurgaon, but it was work from home. Why did you come to Bangalore? I got a good jump in my CTC. -It was around a 50% hike. -Wow. When you were working as a civil engineer, what was your

Income? I started off from Rs. 9,000 per month. -Okay. -It was in 2018. But it was increased to around Rs. 17,000 later on. And what’s your Income now? -Now, I am earning Rs. 60,000. -Rs. 60,000. So, you are as old as me. -You must have started working at the

age of 21 or 22. -21. 21. It has been 4 years now. In 4 years, your Income has gone from Rs. 9,000 to Rs. 67,000, which is a 7X jump. To be very honest, it is not very difficult. If you migrate for opportunities, and move to cities like Bangalore, you can get a big jump, even if

you have started from a lower baseline. I can see that you live in a PG. This is a co-living situation. -Yes. -How much do you pay for this. I pay Rs. 7,000 per month. Initially when I came here, I had to pay a security deposit. It was Rs. 2,000, but Rs. 1,000 was refundable if I leave the PG and

give a notice for 30 days. What all is covered in this? Most of the things are covered in this. Whatever I need when I take my own place. -Food is covered. -Food is covered? -For how many meals. -They cover 2 meals a day. So over the weekend, you probably spend on food? I try to keep that expense

below Rs. 1,000. Even if it stretches, it goes to Rs. 1,500. But you’ve been in Bangalore for 25 days. -You know that food here is expensive, right? -Yes. Okay, so he is saying Rs. 1,000, but food is actually quite expensive. Next is travelling. Your office is in the Tech Park here. So

basically, in Rs. 7,500, your housing, food and travel is covered. On top of that, let’s add Rs. 2,000 for food from outside, your basic needs will be covered in Rs. 10,000. My first salary will come in December, -so I will send Rs. 13,000 home. -Very nice. Apart from this, what are your big

expenses? The biggest expense is the amount I am paying for my skilling. -Okay. Upskilling. -For the Masters that I’m doing via a tech platform. It is in Computer Science. The total amount is Rs. 4 lakhs. -I pay Rs. 10,500. -And do you use Credit cards? Yes, I do use

Credit cards. I have three Credit cards actually. Wow. How much do you spend on online shopping in a month? -Generally around Rs. 5,000-6,000. -Rs. 5,000-6,000. So you have three Credit cards. One simple thing is, every Credit card

has different hidden fees. The more Credit cards you have, the more difficult it gets to track them all. But now we have CRED. When you add all your cards on CRED, it identifies all the hidden fees, and if you feel that it is incorrect, you can flag it to customer care. If you too

have multiple Credit cards, and if you want to avoid any hidden fees, sign up on CRED, and pay all your Credit cards bills from CRED. You will not only save money, but you will also get many rewards. Use the link in the description, and you will get a referral

bonus. Any big expense that you are planning? I don’t have any big expense as such, but I am fond of gadgets, -so I am thinking of getting an Apple Watch Ultra. -Ultra? -But don’t you already have an Apple Watch? -This is series 3, but I’m planning to get that one. Whenever you

are buy-in something that is not an investment, Apple Watch is not an investment. iPhone is not an investment. Unless you make CashNews.cos, okay? Then you must always think of the amount of time you are giving it. In your case, to buy a Rs. 90,000 watch, you will have to spend 45 days of your

salary on it. Then it will hit home harder. So, yeah, that’s the thing. Guys, do whatever you want to do, man. Don’t trouble your mom, dad and your country. Now, coming to Investments. Do you have any regular ongoing Investments? Yes, I am investing in

an SIP, which is a mutual fund. It is Rs. 20,000 per month. -Wow, how long have you been doing it? -More than a year. Generally, whenever your Income increases, the first instinct is to upgrade your lifestyle. But if you can stay frugal, and if you make it a habit to invest a small

portion every single month, you will be able to Finance a car easily. In his case, he already has. In the next five years, the food for his wedding will also be sorted. Just

by constantly investing. Do you have an emergency fund? -I had an emergency fund of Rs. 90,000. -Okay. But I had to give Rs. 60,000 for some expense in my home. It was required at that point. This emergency fund of Rs. 90,000, which in your case can easily cover expenses of 3-3.5 months, where did

you keep this money? I used to use a P2P lending platform and it used to give me way higher returns than FD at least. Taking out the money was also very easy. I could get it in very less time. I had a question regarding this. I use P2P lending. And that too for my emergency fund. Is it safe? And if

it is safe, is it safer than Stock Market or not? For an emergency fund, you must put your money in such a place which is very liquid, and where the risk of losing the initial Capital is very low. Now, whenever you lend money, the asset class is

Debt. If you give Debt to the government, it becomes a government bond. That is the safest, with a lower interest rate. P2P lending comes lowest in the Debt class, because it is not as safe. It is an unsecured Loan. Despite that, I

too have used P2P lending platforms for a long time. I have not faced any problems till date. But there are a lot of risks. First risk, it is not backed by collateral. If any borrowers end up defaulting at the same time, you might end up losing your money. Second, you might face a platform risk. If

the platform shuts down for some reason, which we have seen happening a lot in Crypto, your money might get stuck there. -Apart from that, I invest in

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto as well. -Okay. I invested Rs. 7,500. It is not a large amount, if I compare it to my Portfolio. But I invested it last year. It is about Rs. 2,500 right now. It has decreased a lot. I have a question

regarding this. If I want, should I increase my Portfolio in this, since the market is down? -In stocks or Crypto? -In bold; color: #1a73e8; text-decoration: none;">Crypto. Should I invest more or not? Why did you invest Rs. 7,500 last year? In hopes that it would grow. If you are investing in anything, any asset, you must have faith in it. Especially in bold; color: #1a73e8; text-decoration: none;">Crypto. Reason being, it is a newer asset class, it’s more volatile. Every time there is a news, there will be a big repercussion in the prices as well. So that’s about color: #1a73e8; text-decoration: none;">Crypto. What’s your CTC right now? -Rs. 8.3 lakhs. -Okay. How do you save your Taxes? I had a question regarding that as well. The SIP I am investing in right now, that is a pure mutual fund, it is not an ELSS fund. So it might be 1

lakh in HRA, but how should I proceed after that? Because NPS has such a big lock-in, so I am not very comfortable it that. The way of choosing an ELSS is the same as how you study an Equity mutual fund. It is just like that. Don’t just look at the returns. Don’t just

look at the star ratings. I know you said that you are not comfortable, but NPS is tax-exempt. There is no tax when you invest. When you take the money out, there is no tax. And after retirement, when you get the annuity of 40-50%, that too is tax-exempt. Of course, it is a longer-term investment,

but it is a great way to save your Taxes. Now you have to answer these questions quickly. The first question is, How much money do you need for retirement? You are 25 years old now. How much do you think you’ll need for retirement? I think I would be comfortable with 9-10 CR.

Great. Next question is, if you had an unlimited budget, what would you gift your mother? -A house. -Great. How much money do you think you’ll need for your wedding? For my wedding, which will just be for family, it shouldn’t be more that 10-15 lakhs. And the last question is, what is

the one financial behaviour that you’d like to change in your family? My mother used to invest a lot in FDs. I kind of shifted her Portfolio a little bit. She is older, so she would need that, but a little bit to Equity as well. I think that I should increase

the Equity Portfolio. You want to convince your mom to take a little more risk for a higher return. Let’s end today’s CashNews.co on this sweet note. Thank you so much, man, for inviting us to the PG. -I think we might be your first guests. -Yes, you

are my first guests. If you don’t have any guests in your house, and you want some, fill out the form right now. We will come to your home, discuss your Finances, and

joke around as well. If you liked this CashNews.co, hit the like button. If you are new here, subscribe to the channel. Every CashNews.co that you watch, 75% people have not subscribed to the channel yet. Please subscribe. The more you subscribe, the more you will be supporting us. We will be

motivated to bring such CashNews.cos to you every week. Thanks to CRED for sponsoring this CashNews.co. Check out CRED. The link is in the description. Goodbye. The Rs. 7,500 which you are paying for the PG, you are squeezing out every single rupee! I am feeling very hot, but my t-shirt is dirty,

so I can’t even take it off.