hi, i am 46 year old central government employee in Pune, I had several bad financial decision in my life. i have two daughters aged 11 and 17 i have no saving left, i have a flat in pune with liability of 38lac on home loan and 10 lac on personal society loan at 9% interest i have a ancestral property of 50 lac in Tamil nadu where my mom lives per month iam paying 550000 as home loan and personal loan EMI, My income is around 86000 how can I come out of this EMI burden and improve financial stability

Ans: Considering your financial situation, here are some steps to enhance your financial stability:
1. Budgeting: Start by creating a detailed budget that includes all your expenses, including EMIs, household expenses, and utilities. Track your spending to identify areas where you can potentially save money.
2. Emergency Fund: Build an emergency fund equivalent to at least 3-6 months of your living expenses. This fund will provide a financial cushion in case of unexpected events like job loss or medical emergencies.
3. Debt Management: Since you have a significant home loan, focus on managing this debt effectively. Consider making occasional lump-sum payments towards the principal amount to reduce the interest burden and shorten the loan tenure.
4. Increase Income: Explore opportunities to increase your income, such as taking up freelance work or pursuing higher education or certifications that could lead to salary increments or better job prospects.
5. Investment Planning: Review your current investments and assess whether they align with your financial goals and risk tolerance. Consider diversifying your investment portfolio across different asset classes like equity, debt, and real estate to spread risk and maximize returns.
6. Retirement Planning: Start planning for your retirement early by contributing to retirement accounts like EPF or PPF, in addition to your SIP. Aim to build a sizable retirement corpus that will sustain your lifestyle post-retirement.
7. Insurance Coverage: Ensure you have adequate insurance coverage, including health insurance and life insurance. This will protect you and your dependents financially in case of any unforeseen circumstances.
8. Rental Income: Since you receive rental income from your other flat, consider utilizing this income to supplement your monthly cash flow or to accelerate your debt repayment.
9. Review Expenses: Regularly review your expenses and look for opportunities to cut costs without compromising your quality of life. Consider negotiating with service providers for better deals or eliminating discretionary expenses that are not essential.
10. Seek Professional Advice: Consider consulting with a Certified Financial Planner who can assess your financial situation holistically and provide personalized advice tailored to your goals and circumstances.
By implementing these steps systematically, you can work towards achieving better financial stability and securing your future.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: You're a Civil Engineer with significant experience, facing a tough financial situation. Here's a holistic approach to tackle your debt:

Assessing the Debt Situation
Understand the total debt burden and prioritize repayments.
Evaluate personal loan terms and conditions for possible restructuring.
Managing Current Expenses
Budget meticulously to cover essential expenses for your family.
Minimize discretionary spending to allocate more towards debt repayment.
Maximizing Income Opportunities
Explore opportunities for additional income leveraging your engineering skills.
Consider freelance projects or consulting work to boost earnings.
Debt Repayment Strategy
Focus on paying off high-interest loans first to reduce overall interest burden.
Negotiate with lenders for feasible repayment schedules or interest rate reductions.
Emergency Fund Creation
Start building an emergency fund gradually, even with small amounts.
Ensure it covers at least 3-6 months' worth of living expenses.
Family Financial Security
Review insurance coverage for health and life to protect against unforeseen events.
Plan for your child's future needs, such as education and upbringing costs.
Long-Term Financial Planning
Once debt is under control, prioritize systematic savings and investments.
Avoid high-risk investments; opt for diversified options suited to your risk tolerance.
Final Insights
By strategically managing your debts, expenses, and income, you can gradually regain financial stability. Seek professional advice if needed to tailor a plan that fits your specific circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

Try and understand from the home loan lender as to how 59.45 L principal is overdue despite paying a sum of 43.85 L, despite factoring 80% of this as interest payment, the overdue principal should be below 50 L.

Double check if this is as per the terms of moratorium.

If you are not satisfied with replies from the lender escalate the matter to the highest authority at lender or RBI.

Lender can't behave irrationally just because you availed moratorium during COVID.

In my view you should have just sold the gold rather then taking loan against it.

That way you could have lessened EMI burden on your finances and ensured investments for retirement and other goals.

Unfortunately we have a tradition of attaching emotional value to precious metals and real estate.

The best "jewellery" you can offer to your kids is good education, which you have already done.

In matters of health insurance never discontinue a policy due to dissatisfaction with the insurer, port it to another insurer, 1.5/2 months before the renewal date so that your benefits remain intact. Now you may be need to find another health care insurance.

You may begin a monthly sip of 25-30 K in diversified large cap oriented mutual fund for 5 years.

Also give a thought to NPS, you can contribute till 70 age, for retirement pension.

Best wishes;

Ans: You are 29, young and hard-working. You have responsibilities and debt pressure. Still, you are committed. That is a strength. Wanting financial freedom and planning for your son shows maturity. You can achieve both goals. But it needs proper structure, action, and discipline.

Let’s break down your current financial position and build a 360-degree solution.

Understanding Your Current Financial Picture
Your salary is Rs. 92,000 per month.

Your home loan EMI is Rs. 52,000 per month.

Personal loan EMI is Rs. 21,000 per month.

Society maintenance is Rs. 5,000 per month.

LIC premium is Rs. 5,000 per quarter (Rs. 1,667 per month approx).

You also have Rs. 2 lakh saved in a ULIP.

A bonus of Rs. 1.5 lakh is expected next month.

You recently became a father. That’s a big milestone. Congratulations on that.

But your monthly outflow is already more than Rs. 79,000. That leaves you very tight.

No room is left for basic needs, emergencies, savings or future planning.

Let us now analyse all areas step by step.

Analysing Your EMI Burden
Your EMIs (home + personal loan) are Rs. 73,000 monthly.

That is 79% of your salary. It is extremely high.

Ideally, EMI should be under 40% of your salary.

This is why you are struggling with basic expenses.

You are in a debt trap cycle. But it can be solved.

You cannot continue this structure for the next 4–12 years.

Debt reduction must be your number one focus now.

Personal loan must be cleared first. It has higher interest.

You must prepare an exit plan from this high EMI cycle.

Let’s now break it down with action steps.

Step-by-Step Strategy to Ease Financial Stress
You have two loans — home and personal.

Home loan: Rs. 46 lakh. 12-year term. EMI Rs. 52,000

Personal loan: Rs. 7 lakh. 4-year term. EMI Rs. 21,000

Bonus arriving: Rs. 1.5 lakh

Use 100% of your bonus to part-pay personal loan.

That will reduce either EMI or tenure of personal loan.

Ask bank to reduce EMI, not the tenure.

Lower EMI gives more monthly cash flow.

Do not spend bonus on anything else.

Next, stop LIC policy immediately.

LIC gives poor returns and locks your money.

If this LIC is an investment plan, then surrender it now.

Use surrender value to further pay your personal loan.

This gives you quicker cash flow relief.

Then, stop any fresh investment in ULIP.

ULIP is also an investment-insurance mix. Returns are poor.

ULIPs lock your money and give low growth.

Avoid ULIP for future. You already have Rs. 2 lakh in it.

Do not withdraw now. Let it continue till lock-in ends.

After that, redeem and reinvest in mutual funds.

That gives better growth for child and retirement.

Building a Simple, Survival Monthly Budget
Let’s say your EMI drops after bonus and LIC surrender.

Assume EMI now becomes Rs. 65,000 in total.

Now you will save Rs. 8,000–10,000 per month.

You must then follow a basic priority-based budget.

Divide into 4 buckets — Needs, EMIs, Safety, Growth.

Needs (food, child, transport): Rs. 10,000

EMIs: Rs. 65,000

Safety (emergency + term cover): Rs. 5,000

Growth (long-term): Rs. 10,000

Use this structure and never cross limits.

No luxury, no splurging, no credit card EMIs.

Be very frugal for next 3–5 years.

It will free you for life.

Your Child's Financial Security Plan
Your son is newborn now. Time is your friend.

You must start a goal-based fund for his education.

Once your personal loan is cleared, start investing monthly.

Use regular plan mutual funds with Certified Financial Planner’s help.

Avoid direct funds. They lack review and guidance.

Parents using direct funds often make emotional mistakes.

Regular plans help you choose better, stay disciplined, and switch on time.

Do not use ULIPs or LIC policies for child planning.

They give low growth, low liquidity, and poor flexibility.

Use SIP in well-diversified mutual funds instead.

Start with just Rs. 3,000 SIP after clearing loans.

Even that can grow well in 15–18 years.

Tag it for higher education. Keep it only for child.

Also, create a minor bank account in his name.

Update nomination and start documenting child’s future fund goal.

As income grows, keep increasing SIP amount.

Teach child the importance of savings early.

You are building a legacy with every small step.

Emergency Protection Plan
You have no emergency fund now. That is risky.

What if salary delays or job loss happens suddenly?

Once EMI drops, start saving Rs. 3,000–4,000 monthly.

Keep it in liquid mutual fund or high-interest savings account.

Build minimum 3 months’ expenses in that fund.

Do not touch it for any other use.

Also, take term insurance for at least 15x your annual salary.

That protects your wife and child if something happens to you.

Cancel LIC after term plan is taken.

Keep HRA, PF, and other benefits updated with nominee name.

Update your will or create one.

Write child’s future needs clearly.

Secure every angle of your life now.

Step-by-Step Loan Repayment Strategy
Use bonus to part pay personal loan now

Surrender LIC, use that money to reduce personal loan

Stop ULIP payment. Let it sit quietly till lock-in ends

Reduce monthly personal loan EMI by speaking to lender

Target to close personal loan in 18 months if possible

After that, use Rs. 21,000 freed EMI to part-pay home loan

You will close home loan 4–5 years earlier by doing this

That will free your future completely and reduce pressure

Keep one EMI-free month as buffer each year

Celebrate loan closure by increasing SIP, not shopping

That’s how real freedom begins

Smart Investment Planning (Post Debt Phase)
After your loans reduce, start investing regularly.

Follow this priority structure:

Emergency fund → SIP for child → SIP for retirement

Use only regular plan mutual funds with a Certified Financial Planner.

Avoid direct funds. They confuse and mislead investors.

Avoid sector funds, ULIPs, or complex plans.

Choose simple diversified equity mutual funds and good debt funds.

Mix of growth and safety is important.

Invest monthly and increase each year as salary rises.

Start small. Stay steady. That’s how wealth grows.

Tax Planning Tips
Once salary improves, use tax planning options wisely.

Use ELSS (in regular plan only) for Rs. 1.5 lakh limit.

Use PPF and term plan for extra benefit.

Avoid insurance-based tax saving plans.

They block money and give poor growth.

Submit investment proof on time every year.

Take help from your Certified Financial Planner to do it right.

Tax saving must also support your goals.

Final Insights
You are in a tight situation. But you are not alone.

Many face such a phase in life. Your mindset is your biggest asset now.

Your priorities are clear. You want freedom, not luxury.

Follow the above plan step-by-step for 3–5 years.

You will become debt-free and peaceful.

Your son will thank you later.

Every rupee saved now brings future stability.

Every small investment becomes a strong pillar.

Live simple now. Plan smartly. Grow steadily.

Get support from a Certified Financial Planner.

You need expert hands now. It makes all the difference.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hi,

Please continue the Home loan EMI payments without any default.

As your monthly expenses are managed by the rent received, you should focus on saving maximum from your salary to pay off the personal overdraft. If you can pay 1 lakh per month towards this, then in approx. 2 year or so, you can close this.
Also if your Mutual Fund investment is not giving you over 12.5% returns then use it to pay off the personal overdraft.
SIP reduced to 1k - again this you can use towards personal overdraft.

Having health and term life insurance is a good decision.

Once you close the personal overdraft, then focus on investment for the future. Mutual funds is a very good option to create wealth over a long period of time.

Thanks & Regards
Janak Patel
Certified Financial Planner.