विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
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Ramalingam Kalirajan10881 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 05, 2025
Asked on - Jun 03, 2025
Hi sir. I earn 59800 and pay around 30000 in emi. I have 3 dependents and a rent of 16k a month. I have zero savings and emergency fund. I recently got out of debt trap.Monthly house hold and travel takes up the other remaining salary. I earn from renting out my car roughly around 15k a month. I want to build a house and a good corpus for my kid. I am 34 year old
Ans: You have done a great job by escaping the debt trap. That is a big win already.
Now it is time to rebuild your financial life. We will slowly and steadily create a solid base for your future.
Let us look at your current situation, step by step.
Your Income and Cash Flow
Your main income is Rs. 59,800 per month.
You also earn Rs. 15,000 monthly by renting your car.
Your total monthly income is around Rs. 74,800.
This includes both fixed and variable sources.
It is important to treat rental income as extra, not permanent.
Try not to depend fully on this side income for regular expenses.
Current Expense and EMI Burden
Your monthly EMI is Rs. 30,000. That’s almost half your salary.
You pay Rs. 16,000 for house rent.
You have three dependents. This increases pressure on monthly budget.
The remaining amount goes into groceries, travel, school and utilities.
You are left with almost nothing by month-end.
This means you are not saving or investing anything.
Situation Analysis
You are 34. Still young. You have time to recover.
But your income is already stretched. That leaves no space to save.
The EMI burden is too high. It affects your freedom and planning.
You have no emergency fund. That is risky.
Any sudden expense can push you back into debt.
You wish to build a house and create wealth for your kid.
These goals need long-term commitment and step-by-step saving.
For now, your financial life is in survival mode.
First Priority: Emergency Fund
Before investing, you need to build a safety cushion.
Emergency fund is like a helmet while riding. Always needed.
Start small. Try to save Rs. 1000 to Rs. 2000 each month.
Use your car rental income for this purpose.
Save it in a separate savings account or a liquid fund.
Aim to build Rs. 50,000 in next 12 months.
This will give peace of mind and reduce stress.
You must not touch this fund for regular expenses.
Second Priority: Reduce EMI Burden
Rs. 30,000 EMI is heavy for your income.
Check if your loan can be refinanced at lower EMI.
Talk to banks or NBFCs about longer loan tenure options.
You can reduce EMI by increasing loan duration.
Even Rs. 3000 less EMI monthly will help your cash flow.
That saved amount can go to your emergency fund.
After 1–2 years, you can start investing once EMI is better managed.
Third Priority: Budget and Expense Control
Track your spending for 3 months. Use a notebook or app.
Divide expenses into necessary and optional ones.
Try to reduce mobile recharges, eating out, subscriptions, etc.
Small savings each month will build habit and confidence.
Keep Rs. 1000 aside every month, like a bill.
Treat saving as a must, not optional.
Fourth Priority: Child’s Future Plan
You have one child and want to build a good future.
Start with a small SIP in mutual fund. Even Rs. 1000 is fine.
Use only regular plans. Invest through a Certified Financial Planner.
Avoid direct mutual funds. You will not get help or reviews.
Direct funds look cheap but may cost more due to mistakes.
An MFD with CFP will guide you with fund choice and corrections.
Use equity mutual funds for long-term goals like education.
Over 10–15 years, even small SIPs can grow big.
Increase SIP amount as your income grows.
Fifth Priority: Don’t Rush into Real Estate
You want to build your own house.
Right now, your finances do not allow this safely.
Avoid taking more loans for house building.
Property requires huge cost and long-term EMI burden.
It will slow down your wealth creation and disturb cash flow.
Focus on building assets first, not buying assets.
If you save well for 5–7 years, house plan can be reviewed later.
Income Growth Strategy
Your current job gives Rs. 59,800 monthly.
Try to increase income through upskilling or side jobs.
Improve your skill in your field. Take online certifications.
Better jobs or promotions can give bigger income jumps.
If car rental is stable, treat it as second income, not primary.
Use 100% of side income for savings and goals.
Insurance and Risk Cover
You did not mention insurance.
You must take term life insurance for Rs. 50 lakh to Rs. 1 crore.
This will protect your family if something happens to you.
Premium is low if taken now, around Rs. 500–800 per month.
Also, take a basic health insurance policy for family.
Don’t depend only on company health plans.
Medical costs are rising fast. Even one hospital bill can wipe savings.
Mental and Emotional Discipline
Financial recovery is a long journey. Don’t expect instant change.
Focus on doing small things right every day.
Avoid peer pressure. Don’t compare lifestyle with others.
Stay away from credit cards and buy-now-pay-later traps.
Celebrate small wins. Even saving Rs. 500 is a good start.
Talk to family. Share your goals. Involve them in budgeting.
Investing Basics to Keep in Mind
Don’t invest in gold, chit funds, or unverified schemes.
Avoid ULIPs, endowment plans or insurance-linked investments.
They give poor returns and lock your money.
If you already have such policies, surrender them and shift to mutual funds.
Mutual funds offer better returns and higher flexibility.
Start small. Increase amount as situation improves.
Stick with the plan. Don’t stop SIP in panic.
Mutual Fund Tax Rules
If you hold equity mutual funds, keep these new tax rules in mind.
Long-term gains over Rs. 1.25 lakh taxed at 12.5%.
Short-term gains taxed at 20%.
For debt funds, all gains taxed as per your slab.
Exit funds slowly and wisely. Avoid full withdrawal in one shot.
Your Certified Financial Planner will help with this planning.
Final Insights
You are recovering well from a tough phase.
The focus now should be safety, stability and small savings.
Don’t think about house construction now. It can wait.
Build emergency fund first. Then start SIPs.
Take insurance cover immediately. That is your safety net.
Every month saved is a step closer to financial peace.
Stay focused. Keep discipline. Your future will improve.
You can surely build wealth and provide a better life for your child.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Now it is time to rebuild your financial life. We will slowly and steadily create a solid base for your future.
Let us look at your current situation, step by step.
Your Income and Cash Flow
Your main income is Rs. 59,800 per month.
You also earn Rs. 15,000 monthly by renting your car.
Your total monthly income is around Rs. 74,800.
This includes both fixed and variable sources.
It is important to treat rental income as extra, not permanent.
Try not to depend fully on this side income for regular expenses.
Current Expense and EMI Burden
Your monthly EMI is Rs. 30,000. That’s almost half your salary.
You pay Rs. 16,000 for house rent.
You have three dependents. This increases pressure on monthly budget.
The remaining amount goes into groceries, travel, school and utilities.
You are left with almost nothing by month-end.
This means you are not saving or investing anything.
Situation Analysis
You are 34. Still young. You have time to recover.
But your income is already stretched. That leaves no space to save.
The EMI burden is too high. It affects your freedom and planning.
You have no emergency fund. That is risky.
Any sudden expense can push you back into debt.
You wish to build a house and create wealth for your kid.
These goals need long-term commitment and step-by-step saving.
For now, your financial life is in survival mode.
First Priority: Emergency Fund
Before investing, you need to build a safety cushion.
Emergency fund is like a helmet while riding. Always needed.
Start small. Try to save Rs. 1000 to Rs. 2000 each month.
Use your car rental income for this purpose.
Save it in a separate savings account or a liquid fund.
Aim to build Rs. 50,000 in next 12 months.
This will give peace of mind and reduce stress.
You must not touch this fund for regular expenses.
Second Priority: Reduce EMI Burden
Rs. 30,000 EMI is heavy for your income.
Check if your loan can be refinanced at lower EMI.
Talk to banks or NBFCs about longer loan tenure options.
You can reduce EMI by increasing loan duration.
Even Rs. 3000 less EMI monthly will help your cash flow.
That saved amount can go to your emergency fund.
After 1–2 years, you can start investing once EMI is better managed.
Third Priority: Budget and Expense Control
Track your spending for 3 months. Use a notebook or app.
Divide expenses into necessary and optional ones.
Try to reduce mobile recharges, eating out, subscriptions, etc.
Small savings each month will build habit and confidence.
Keep Rs. 1000 aside every month, like a bill.
Treat saving as a must, not optional.
Fourth Priority: Child’s Future Plan
You have one child and want to build a good future.
Start with a small SIP in mutual fund. Even Rs. 1000 is fine.
Use only regular plans. Invest through a Certified Financial Planner.
Avoid direct mutual funds. You will not get help or reviews.
Direct funds look cheap but may cost more due to mistakes.
An MFD with CFP will guide you with fund choice and corrections.
Use equity mutual funds for long-term goals like education.
Over 10–15 years, even small SIPs can grow big.
Increase SIP amount as your income grows.
Fifth Priority: Don’t Rush into Real Estate
You want to build your own house.
Right now, your finances do not allow this safely.
Avoid taking more loans for house building.
Property requires huge cost and long-term EMI burden.
It will slow down your wealth creation and disturb cash flow.
Focus on building assets first, not buying assets.
If you save well for 5–7 years, house plan can be reviewed later.
Income Growth Strategy
Your current job gives Rs. 59,800 monthly.
Try to increase income through upskilling or side jobs.
Improve your skill in your field. Take online certifications.
Better jobs or promotions can give bigger income jumps.
If car rental is stable, treat it as second income, not primary.
Use 100% of side income for savings and goals.
Insurance and Risk Cover
You did not mention insurance.
You must take term life insurance for Rs. 50 lakh to Rs. 1 crore.
This will protect your family if something happens to you.
Premium is low if taken now, around Rs. 500–800 per month.
Also, take a basic health insurance policy for family.
Don’t depend only on company health plans.
Medical costs are rising fast. Even one hospital bill can wipe savings.
Mental and Emotional Discipline
Financial recovery is a long journey. Don’t expect instant change.
Focus on doing small things right every day.
Avoid peer pressure. Don’t compare lifestyle with others.
Stay away from credit cards and buy-now-pay-later traps.
Celebrate small wins. Even saving Rs. 500 is a good start.
Talk to family. Share your goals. Involve them in budgeting.
Investing Basics to Keep in Mind
Don’t invest in gold, chit funds, or unverified schemes.
Avoid ULIPs, endowment plans or insurance-linked investments.
They give poor returns and lock your money.
If you already have such policies, surrender them and shift to mutual funds.
Mutual funds offer better returns and higher flexibility.
Start small. Increase amount as situation improves.
Stick with the plan. Don’t stop SIP in panic.
Mutual Fund Tax Rules
If you hold equity mutual funds, keep these new tax rules in mind.
Long-term gains over Rs. 1.25 lakh taxed at 12.5%.
Short-term gains taxed at 20%.
For debt funds, all gains taxed as per your slab.
Exit funds slowly and wisely. Avoid full withdrawal in one shot.
Your Certified Financial Planner will help with this planning.
Final Insights
You are recovering well from a tough phase.
The focus now should be safety, stability and small savings.
Don’t think about house construction now. It can wait.
Build emergency fund first. Then start SIPs.
Take insurance cover immediately. That is your safety net.
Every month saved is a step closer to financial peace.
Stay focused. Keep discipline. Your future will improve.
You can surely build wealth and provide a better life for your child.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment