Hello, Am 29 years old not married single child, having currently a monthly income of ~1.35 lakhs(excluding some rental incomes ~30 to 40k), I did buy my new car of 12 lakh at 26 and have paid it off previous month, I have an investment per month of around 50k rupees in NPS, PPF, Lic, Pension scheme small amount in Mutual funds and small recurring and have couple of FDs (excluding probable inheritance money of 1.5cr and have some emergency fund of ~4lakh kept untouched for like 3 months backup) ...so as am done with my car loan, I live in my family house wich does evaluates more than 1cr never planning to sell this, I have booked a flat for myself as investment and for a middle class dream of around 62 lakhs with a down payment of 12 lakh, (50lakh loan 20years ~40k emi) is it a good decision now considering the rate of interest have slashed down got a good 7.45% loan sanctioned, and please suggest if yes, as to shall i keep the rate of interest fixed or floating...as i see 7.45% fixed gives me a good set of eyes to the near future to plan my fixed Emi's for the house mortgage. Was planning to buy another car for 25 lakh, please tell me I am dumb or if yes when should I go for it/how long after. N.B- a marriage in the near future is imminent that also costs hefty :( Thanks in advance

Ans: You are doing many things right. Let’s look at your financial life from a 360-degree view. This will help you make clear and confident decisions.

Income & Existing Financial Commitments

You are earning around Rs. 1.35 lakh per month.

Rental income of Rs. 30,000 to Rs. 40,000 is an additional support.

Your income profile is stable and strong for your age.

You’ve paid off a Rs. 12 lakh car loan at 29. That’s disciplined.

Appreciation:

Having no car loan now improves cash flow.

Investing Rs. 50,000 per month is a very good practice.

Emergency fund of Rs. 4 lakh is well thought through.

Booking a house at 62 lakh is a balanced step at this point.

Living in family home avoids rent and supports long-term financial growth.

Current Investment Style and Gaps

You are investing in NPS, PPF, Pension, LIC, and mutual funds.

There is also some money going to recurring deposits and FDs.

This shows a diversified approach, but we need a deeper look.

Some concerns:

LIC and pension policies could be low return products.

If they are investment + insurance type policies, surrendering and reinvesting is better.

Regular mutual fund SIPs with proper asset allocation can offer better returns.

Avoid direct mutual funds if investing without guidance.

A Certified Financial Planner + Mutual Fund Distributor gives better monitoring and rebalancing.

Direct funds don’t offer hand-holding, which is critical.

Investment needs purpose, discipline and expert review. Not just execution.

Your Flat Purchase – Is it a Good Move?

You have booked a 62 lakh flat with 12 lakh down payment.

Loan of Rs. 50 lakh for 20 years at Rs. 40,000 EMI/month.

This decision is timely and well-structured.

Why it looks fine:

Loan rate at 7.45% is attractive in the current rate cycle.

You are not disturbing emergency funds or other key investments.

You stay with family, so you are not burdened with two houses.

The property is not for selling. It is more emotional + aspirational.

A flat adds stability and ownership satisfaction, not necessarily investment return.

Fixed vs Floating Interest Rate – Which to Pick?

Fixed Rate – Advantages:

Predictable EMI helps you plan monthly cash flow better.

Helps especially if your job has fixed income.

Emotional comfort for many borrowers.

Fixed Rate – Disadvantages:

If rates go down in future, you cannot benefit.

Fixed loans have lock-in and foreclosure charges.

Floating Rate – Advantages:

Long term average rates tend to drop or stay moderate.

Any rate cut by RBI passes benefit to you.

Floating Rate – Disadvantages:

Uncertainty in EMI when RBI hikes repo rate.

Budgeting for monthly expenses can become hard.

Your Situation Analysis:

You are still unmarried. Future commitments can rise anytime.

You are already investing Rs. 50,000 per month.

You have room in your budget to absorb slight EMI increases.

Loan is long-term (20 years), interest rate cycles will vary over this.

Recommendation:

Go with floating rate loan.

Keep monthly budget flexible to absorb EMI changes.

Avoid fixed rate loans for now. Only choose it if rates touch 9% or higher.

Buying Another Car – Is it Smart Now?

You plan to buy a Rs. 25 lakh car soon. Let’s assess.

Your Financial Position Today:

Just finished one car loan.

Just booked a flat with 20-year EMI.

Still unmarried. Marriage expenses are near.

Good investments and emergency fund are in place.

Monthly income is Rs. 1.35 lakh with Rs. 40k rental buffer.

Car will likely need Rs. 4 to 5 lakh down + Rs. 30-40k EMI.

Issues with buying now:

It can pressurise your cash flow too soon.

Post marriage, cash outflows will rise sharply.

Maintenance, fuel, insurance cost adds up yearly.

Existing car still has usable life probably.

Recommendation:

Don’t go for Rs. 25 lakh car now.

Delay it by at least 2–3 years.

Re-evaluate after marriage and 2 years of home loan EMI.

For now, channel money to mutual funds to build marriage + future reserves.

Marriage Expenses – How to Prepare

Marriage will be a big emotional and financial event.

Costs can go beyond Rs. 10–15 lakh easily.

You need to prepare 6–12 months in advance.

Steps to prepare:

Start a dedicated monthly investment for wedding fund.

Use short-term debt or hybrid mutual funds.

Avoid FDs for this purpose. Returns won’t beat inflation.

Don't break emergency fund for this.

Keep the marriage budget realistic and communicate with family.

Inherited Money – What to Do With It?

You mentioned expected inheritance of Rs. 1.5 crore.

Don’t count it in your plan unless it is certain.

Even if it comes, don’t use all for spending.

Allocate 80% to long-term investments.

20% can be used for lifestyle and upgrades.

Emergency Fund – Is It Enough?

You have Rs. 4 lakh as emergency fund.

It is set for around 3 months.

As your financial responsibilities grow, this must increase.

Target:

Emergency fund should cover 6 months’ expenses.

Don’t include EMI, luxury or investment in this.

Keep it in liquid or ultra short debt funds.

Tax Planning – Are You Doing It Right?

NPS, PPF, LIC and pension help save tax.

But be careful with overlapping benefits.

Check if your Sec 80C is overshooting.

Tips:

Track total 80C deductions. Max is Rs. 1.5 lakh.

NPS gives extra Rs. 50,000 under Sec 80CCD(1B).

PPF is safe but lock-in is high.

LIC premiums above Rs. 1.5 lakh/year have low utility if returns are low.

Avoid mixing insurance with investments.

Insurance – Do You Have Proper Cover?

No info shared on life or health insurance.

These are must before increasing EMI or car plans.

Action:

Take term insurance of Rs. 1 crore minimum.

Buy health cover of Rs. 5 lakh for yourself.

Later convert to family floater post marriage.

Don't rely on employer cover alone.

Investment Gaps & Suggestions

Areas of Improvement:

Too much in traditional low return products.

Real estate is dominating portfolio. Avoid adding more.

Need higher exposure to good quality mutual funds.

Corrective Actions:

Stop LIC or ULIP if returns are