विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं

Ramalingam Kalirajan |10888 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - May 30, 2025

My Salary is 78000 per month and I have house rent 20500 and 17000 emi and 15000 monthly expenses other emis 15000 and iam unable to save please suggest

Ans: You are facing a very common challenge. Many earn well but struggle to save. The good part is that you are aware and looking for a solution. That’s the first important step.

Let me now give you a 360-degree analysis and practical advice to help you manage better.

1. Monthly Income and Expense Breakdown

Your salary is Rs. 78,000 per month.

House rent is Rs. 20,500.

EMI for one loan is Rs. 17,000.

Other EMIs total Rs. 15,000.

Monthly living expenses are Rs. 15,000.

After these, almost nothing is left.

There is no saving happening right now. But small adjustments can bring big changes.

2. Rent Expense Evaluation

Rent is the biggest cost. Rs. 20,500 is over 26% of your income.

Ideally, rent should not exceed 20% of income.

Check if slightly cheaper home is available.

A Rs. 3,000 to Rs. 4,000 saving in rent helps.

Shifting may feel hard. But it gives monthly relief.

Stay near public transport to reduce travel cost also.

Even small rent change brings long-term benefits.

3. EMI Consolidation Strategy

You have Rs. 32,000 total EMI every month.

This is over 40% of your income. That is too high.

Ideally, EMI should be under 30% of income.

Check if some loans are high-interest short-term loans.

If possible, combine all EMIs into one with lower interest.

Talk to your bank about loan consolidation options.

Even 2–3% interest reduction will help monthly cash flow.

Loan restructuring gives breathing space.

4. Monthly Expenses Assessment

You spend Rs. 15,000 monthly for all needs.

This looks reasonable, but break it down category-wise.

Note how much goes to groceries, mobile, subscriptions, fuel, etc.

Use a simple mobile app to track. Or a paper log.

You may find Rs. 1,000–2,000 saving opportunity easily.

Cancel unused services like OTT or apps.

Prepare weekly shopping list. Avoid impulse purchases.

Every rupee saved adds up.

5. Surrender Low-Return Insurance Policies (if any)

Do you hold any LIC, ULIP or endowment plan?

These plans mix insurance with investment. They give poor returns.

If held for more than 3 years, check surrender value.

If suitable, surrender and reduce premium load.

Take separate term insurance if not already done.

Reinvest in SIP when your cash flow improves.

This step will free up space in your budget.

6. Start Emergency Fund, Even Small

You may feel saving is impossible now.

But even Rs. 500–1000/month is a start.

Keep this money in a separate savings account.

Don’t touch unless it’s urgent.

Over time, it builds up to 3–6 months of expenses.

Emergency fund avoids fresh loans in future.

Even small savings matter. Start tiny, but stay regular.

7. Avoid New Loans or EMI Purchases

Say no to credit card EMIs or online EMIs.

These temptations disturb cash flow and cause stress.

If you need anything, plan and save first.

Delay buying until you have money.

EMI-free life feels peaceful and light.

Self-control today brings freedom tomorrow.

8. Health and Life Insurance Priority

Health emergency can break your finances.

Take a personal health insurance cover.

Group cover from employer is not always enough.

Also take a low-cost term life insurance.

Do not mix insurance with investments.

Term plan protects family. Premium is affordable.

Insurance is not optional. It’s your safety net.

9. Don’t Rely on Index Funds or Direct Mutual Funds

Some people suggest index funds or direct plans.

But these lack personalised support and active review.

Index funds don’t beat inflation in long term.

Direct funds don’t guide you in market changes.

Use actively managed mutual funds.

Invest through a Mutual Fund Distributor backed by a Certified Financial Planner.

Proper advice gives proper results.

10. Set a 3-Step Goal Plan

Step 1: Get control of monthly spending.

Step 2: Reduce EMIs or consolidate loans.

Step 3: Start small savings. Build emergency fund.

Once your cash flow improves, you can add SIPs.

Even Rs. 2,000/month SIP can build wealth slowly.

Long-term discipline matters more than short-term sacrifice.

11. Talk to a Certified Financial Planner

You don’t have to figure it all alone.

Certified Financial Planners can review your full profile.

They guide step-by-step based on your goals.

You get help with loan restructuring, budgeting and investing.

Regular plan reviews give better direction.

Guided support gives better results than guesswork.

Finally

Your situation is difficult but not unfixable. You are not alone. Many professionals earn well but have tight budgets. You are aware. That’s the key strength.

Now you need to make few lifestyle and financial changes. Nothing happens overnight. But over 6–12 months, you can turn things around.

Build better habits. Spend less than income. Don’t take more loans. Start even the smallest savings.

Once you’re stable, shift focus to long-term investments. Work with a Certified Financial Planner to guide you along the journey.

You’ll find peace, progress and purpose.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.