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Ramalingam Kalirajan |11063 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 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 - Jul 02, 2025Hindi

I had a career break of 1.5 years where i have exhausted most of my savings...i have started working last month with monthly earning of 70k and my expenses are 35k with no loan or emis. I also have a health insurance and term insurance. I am planning to get married after 2.5 yrs. How should i manage my expenses?

Ans: ? Your Current Situation

– You earn Rs 70,000 every month.
– Expenses are around Rs 35,000 now.
– You have no EMIs or loans.
– You already have term and health insurance.
– You plan to marry in 2.5 years.
– You had a 1.5-year break and used most savings.

– This is a good moment to reset.
– You can now rebuild your finances step-by-step.
– Starting fresh gives you full control.

? Fix a Clear Monthly Budget

– Start with a simple budgeting rule.
– Keep monthly spending below 50% of income.
– That means Rs 35,000 is already at the upper limit.
– Look where you can save Rs 5,000 to Rs 7,000 more.
– Cancel unused subscriptions or luxury spending.

– Track every rupee you spend.
– Use budgeting apps or simple Excel.
– Include annual expenses like gifts and festivals.
– Prepare for unseen costs by setting monthly limits.

? Build Emergency Fund First

– This is most urgent now.
– Start putting Rs 10,000 every month into liquid savings.
– Target is to save at least Rs 2 lakhs in 18 months.
– Keep it in a liquid mutual fund or sweep-in FD.
– Don’t touch it unless it’s an emergency.

– It gives peace during job loss or health crisis.
– It also avoids taking loans or credit card debt.

? Prepare for Marriage Expenses

– You have 2.5 years to plan.
– Marriage expenses may touch Rs 4 to 6 lakhs.
– You can save Rs 15,000 per month for it.
– Start a separate recurring deposit or hybrid mutual fund.
– Don’t mix this goal with other investments.

– If your family is contributing, adjust accordingly.
– Talk openly with your partner about shared costs.

? Start Investing Monthly

– After emergency and marriage saving, begin SIPs.
– Even Rs 5,000 per month in equity mutual funds is fine now.
– Choose actively managed mutual funds, not index funds.

– Index funds give average returns only.
– They also fall fully during market crashes.
– Actively managed funds adjust and protect better.

– Also avoid direct stock investing now.
– You need stability and compounding, not risky bets.

? Avoid Direct Funds

– Direct mutual funds look cheaper due to low expense.
– But they lack guidance and regular review.
– A wrong fund can hurt your long-term returns.
– Invest through a MFD with CFP credential.
– Regular plans give access to expert support and monitoring.

? Protect Your Insurance

– You already have term insurance.
– Check if the cover is enough.
– Rs 1 crore is good starting point if unmarried.
– After marriage, review again.
– Health insurance should cover hospital bills up to Rs 5-10 lakhs.

– Do not rely only on company health cover.
– Always maintain one personal policy too.

? Don’t Touch Credit Cards

– Avoid taking credit card loans or personal loans.
– Keep your lifestyle inside your budget.
– Loans can trap you again.

– If you swipe, pay in full every month.
– Carrying credit balances kills savings.

? Improve Financial Habits

– Automate your SIPs and savings.
– Avoid manual transfers.
– This builds financial discipline.

– Keep two accounts:

One for spending

One for saving

– Move money to savings account right after salary credit.
– This avoids accidental overspending.

? Keep Some Cash Buffer

– Always keep Rs 10,000 to Rs 15,000 in bank for small surprises.
– This is different from emergency fund.
– Helps when you need quick access without breaking FDs.

? Prepare Financially for Marriage Life

– Marriage brings new responsibilities.
– Talk about money with your future partner.
– Discuss joint goals and monthly spending habits.
– Decide how you will share costs after marriage.

– Make sure your partner also has insurance.
– Discuss and align investment goals.

– If your partner is earning, you can build joint plans.
– If not, plan for higher expenses.

? Tax Planning

– You are under new tax regime.
– That limits deduction benefits.
– Focus on building wealth instead of saving tax.

– Once income grows beyond Rs 10 lakh, explore NPS.
– But not before meeting emergency and marriage needs.

? Plan for Wealth Building in Phases

– First 1 year:

Build emergency fund

Save for marriage

Track expenses tightly

– Second year:

Begin monthly SIP

Improve insurance cover if needed

Avoid new debts or liabilities

– After marriage:

Build joint financial plan

Save for long-term goals like house or retirement

? Stay Away from ULIP, LIC, or Endowment

– Don’t buy insurance plus investment plans.
– They give poor returns and lock your money.
– Keep insurance and investments separate.
– If you already have LIC or ULIP, evaluate surrender.
– Move that money to mutual funds.

? Know Your Investment Options

– Choose equity mutual funds for long-term goals.
– Use hybrid mutual funds for medium-term goals.
– Use debt mutual funds or RDs for short-term needs.

– Avoid gold jewellery as an investment.
– You can use digital gold or gold mutual funds.
– Limit gold to 10% of your overall portfolio.

? Review and Reassess

– Set a review schedule every 6 months.
– Track your net worth and savings rate.
– Adjust your investments based on life events.
– Review insurance and tax-saving options yearly.

– Keep learning more about personal finance.
– Stay updated but don’t panic with news or market ups and downs.

? Finally

– You are back on your feet.
– That itself is a good restart point.
– Build savings slowly and stay consistent.
– Don’t overspend for short-term joy.
– Set goals and follow a written plan.

– Avoid comparing with others.
– Focus on your own journey.
– Long-term planning wins over random decisions.
– Make every rupee you earn work hard for you.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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