My 75k Salary Vanishes! How Can I, a 32yo Dad, Get Secure?

Ans: I understand that managing multiple loan EMIs along with credit card expenses can be challenging, but with a strategic approach, you can effectively save money and improve your financial situation. Here are some steps to consider:

Evaluate Your Expenses
Genuine Compliments on recognizing the need to save money despite your financial commitments. Start by reviewing your monthly expenses, including necessities like rent, utilities, groceries, and discretionary spending. Identify areas where you can cut back or eliminate unnecessary expenses.

Prioritize Debt Repayment
Your home loan, personal loan, and credit card debts are likely accruing high-interest charges, making them priority areas for repayment. Allocate a significant portion of your monthly income towards clearing off these debts as quickly as possible to reduce interest payments and free up more money for savings.

Create a Budget
Develop a realistic monthly budget that accounts for your essential expenses, debt repayments, and savings goals. Stick to your budget religiously and track your spending regularly to ensure you're staying on track. Consider using budgeting apps or spreadsheets to streamline the process.

Emergency Fund
Building an emergency fund is crucial to cover unexpected expenses or financial emergencies without resorting to further borrowing. Aim to save at least 3-6 months' worth of living expenses in a high-yield savings account or liquid investment that you can easily access when needed.

Automate Savings
Set up automatic transfers from your salary account to a separate savings account or investment account each month. This "pay yourself first" approach ensures that you prioritize savings before spending and helps cultivate a consistent saving habit over time.

Review and Negotiate
Regularly review your expenses and look for opportunities to negotiate better deals or lower interest rates on your loans and credit cards. Explore options such as balance transfers or loan refinancing to consolidate debt and reduce interest costs.

Additional Income Streams
Consider exploring additional sources of income, such as freelancing, part-time work, or selling unused items, to supplement your salary and accelerate debt repayment. Every extra rupee earned can make a significant difference in achieving your financial goals.

Seek Professional Advice
As a Certified Financial Planner, I'm here to provide personalized guidance and support tailored to your specific financial situation and goals. I can help you develop a comprehensive financial plan that addresses debt management, savings strategies, and long-term financial security.

Conclusion
In conclusion, by prioritizing debt repayment, creating a budget, building an emergency fund, automating savings, reviewing expenses, exploring additional income streams, and seeking professional advice, you can effectively save money and improve your financial well-being despite your existing financial commitments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's commendable that you're seeking guidance to improve your financial situation. Let's delve into a comprehensive plan to help you achieve your goal of saving 1 crore in the next 10 years.

Current Financial Snapshot
Firstly, let's assess your current financial standing. With an income of 1.5 lakhs per month, you're earning a decent salary. However, your EMIs for personal and car loans are consuming a significant portion of your income, leaving little room for savings. It's essential to address this imbalance to pave the way for wealth accumulation.

Debt Management Strategy
Your priority should be to reduce high-interest debt. While EMIs are essential commitments, consider evaluating options to refinance or consolidate your loans to lower interest rates. This would alleviate some financial burden, allowing you to allocate more towards savings.

Optimizing Expenses
Review your expenses meticulously to identify areas where you can cut back. Analyze your monthly spending patterns and distinguish between essential and discretionary expenses. Trim unnecessary costs and redirect those funds towards debt repayment and savings.

Emergency Fund
Building an emergency fund is imperative to handle unexpected expenses without resorting to additional borrowing. Aim to set aside at least 3 to 6 months' worth of living expenses in a liquid, accessible account. This fund acts as a financial safety net during unforeseen circumstances like medical emergencies or job loss.

Strategic Investment Approach
Your SIP and LIC policies are steps in the right direction, but optimizing your investment strategy can yield better returns. Instead of solely relying on LIC policies, explore diverse investment avenues tailored to your risk appetite and financial goals. Consider diversified mutual funds managed by seasoned professionals to maximize growth potential.

Retirement Planning
It's never too early to plan for retirement. Allocate a portion of your savings towards retirement accounts like EPF or PPF, which offer tax benefits and long-term growth potential. Additionally, consider investing in retirement-focused mutual funds to build a robust corpus for your golden years.

Wealth Creation Roadmap
To achieve your target of 1 crore in 10 years, you'll need a disciplined approach to wealth creation. Calculate the monthly savings required to reach this goal, factoring in inflation and investment returns. Adjust your budget accordingly to ensure you're consistently contributing towards your financial objectives.

Regular Financial Reviews
Periodic reviews of your financial plan are essential to track progress and make necessary adjustments. As life circumstances change, your financial strategy should evolve accordingly. Consult with a Certified Financial Planner regularly to fine-tune your plan and stay on course towards your wealth-building goals.

Conclusion
In conclusion, by adopting a strategic approach to debt management, expense optimization, and diversified investments, you can pave the way towards financial freedom and achieve your goal of saving 1 crore in the next decade. Remember, consistency and discipline are key ingredients for success on this journey to wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your financial life shows strong income, disciplined savings, and long-term thinking. You are already managing EMIs, rent, LIC, MFs, and gold purchase every month. Also, you are considering buying another house.

Let us now go step-by-step and review your financial situation.

We will assess each part and then create a 360-degree saving plan.

Income Overview
Your monthly salary is Rs. 2.48 lakhs.

You also earn Rs. 27,000 from house rent.

So, total monthly inflow is around Rs. 2.75 lakhs.

This is a strong inflow. Good job on maintaining dual income sources.

Monthly Commitments
Home loan EMI is Rs. 52,000.

Car loan EMI is Rs. 13,600.

House rent is Rs. 34,000.

LIC premium is Rs. 10,000.

Monthly SIP in mutual funds is Rs. 10,000.

Monthly gold purchase is Rs. 25,000.

So total outgo is about Rs. 1.44 lakhs.

This leaves you with around Rs. 1.31 lakhs monthly surplus.

This gives you a good scope to plan your savings better.

Assessment of Current Expenses
Let us evaluate the quality of expenses.

House EMI is okay. But this home gives rent of only Rs. 27,000.

You live on rent paying Rs. 34,000. There is a mismatch here.

Car EMI of Rs. 13,600 is manageable, but it reduces flexibility.

LIC premium of Rs. 10,000 is a concern. It is most likely a traditional plan or investment-cum-insurance. Returns will be low. Around 4% to 5% only.

Gold purchase of Rs. 25,000 per month is very high. Unless for marriage or jewellery needs, this is not efficient.

Mutual Fund SIP of Rs. 10,000 is low compared to your capacity.

Let’s now create an optimised plan.

Action Plan: Protection Comes First
You must ensure life insurance. But not through LIC traditional plans.

You may already have term insurance from employer. Please check.

If not, take term insurance with cover of 15 to 20 times your annual income.

Cancel LIC traditional plans if it is a low-return policy. Reinvest surrender value in mutual funds.

Also take health insurance for self and family. Employer policy may not be enough.

Consider critical illness cover as well.

Rebalancing Current Investments
You are putting Rs. 25,000 in gold.

This may be emotional or cultural. But gold should not be your main savings.

Keep gold to 5-10% of total portfolio.

Reduce monthly gold savings to Rs. 10,000.

Redirect Rs. 15,000 to mutual funds.

You have LIC policies of Rs. 10,000 monthly.

If they are traditional or endowment or ULIP plans, please review surrender value.

Once surrendered, invest the value in lump sum in mutual funds.

Also stop future premiums and shift monthly amount to mutual funds.

Mutual Funds Strategy
Right now, you are investing only Rs. 10,000 per month in mutual funds.

That’s too low compared to your earning power.

After reducing gold and LIC, your mutual fund SIP can become Rs. 35,000.

Use well-diversified equity mutual funds for long-term wealth creation.

Mix large-cap, flexi-cap, and balanced advantage funds.

Prefer regular mutual funds through MFDs guided by a Certified Financial Planner.

Regular funds give you dedicated service, portfolio review, emotional coaching, and tracking.

Direct funds miss out on personalised advice and behavioural guidance.

So, regular funds are better for long-term investors who seek ongoing monitoring.

Emergency Fund Setup
It is important to have an emergency fund.

This helps when job loss or major health issue happens.

Keep at least 6 months of expenses as liquid money.

Keep this in bank FD or liquid mutual fund.

Don’t touch this money unless needed.

Goal Planning
Now let us align savings with future goals.

You already have one house on loan.

You plan to buy another house for Rs. 90 lakhs.

This can strain your finances.

Let's think carefully before taking another big loan.

Problems with second home loan:

EMI will be high. May reduce flexibility.

Rental yield is low. Around 2% only.

Maintenance, tax, and loan interest will reduce returns.

Real estate is not liquid. Can’t sell quickly when needed.

Too much debt can impact credit score and peace of mind.

So instead of buying second house, focus on building wealth through mutual funds.

But if buying is important due to emotional or family needs:

Take a smaller loan with bigger down payment.

Keep EMI within 35% of your monthly income.

Ensure you have emergency fund and insurance before taking loan.

Don’t stop your mutual fund SIPs for paying home loan.

Tax Planning Insights
You have house loan, LIC, and mutual funds.

Use these smartly to reduce tax.

Claim home loan interest under section 24 up to Rs. 2 lakhs.

Principal under 80C. LIC may give benefit, but return is low.

Mutual fund ELSS gives tax benefit under 80C. Better return.

Invest in tax-saving mutual funds instead of insurance-based products.

If you sell mutual funds, consider new tax rules:

Equity funds: LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG taxed at 20%.

Debt funds: taxed as per income slab.

Children’s Future and Retirement
You are 38 now. Plan retirement and children’s education now itself.

Use mutual funds with clear goal tagging.

Have separate SIPs for:

Retirement goal

Child higher education

Family travel or any large expenses

This helps you track and stay committed.

Summary of Monthly Savings Plan
Based on above assessment:

Salary + Rent: Rs. 2.75 lakhs

Total EMIs + Rent + LIC + Gold + SIP: Rs. 1.44 lakhs

Optimised Plan:

Stop LIC (Rs. 10,000) and reinvest

Reduce gold to Rs. 10,000

Increase mutual fund SIPs to Rs. 35,000+

Keep Rs. 10,000 aside for emergency fund till 6-month fund is ready

Continue Rs. 25,000 in hand as buffer for other needs

This way, you balance lifestyle, protection, and growth.

Final Insights
You have good income. You also have the right intention to grow wealth.

But few areas need fine-tuning.

Avoid too much real estate exposure.

Avoid mixing insurance with investments.

Avoid high gold allocation.

Avoid loans that stretch your savings.

Focus more on mutual fund investments.

Stay guided by Certified Financial Planner.

Track your goals once a year.

Your money can do more. Just align it with purpose, not products.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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

Ans: You have strong income but high EMI obligations.
Your clarity and awareness show excellent financial foresight.
Let’s craft a plan that frees you from debt and builds savings.

1. Financial Snapshot
Age: 32, monthly income Rs.?2.3 lakh

EMIs:

Home loan + other loan EMI: Rs.?55,000 (remaining 3 years)

Credit card EMI: Rs.?25,000 (remaining 6 months)

Expenses: Rent, groceries etc. Rs.?40,000

Total outflow: Rs.?1.20 lakh per month

No health insurance and no savings

Surplus before tax savings & discretionary spends: ~Rs.?1.1 lakh

You have high-output needs currently.
Now we will chart steps to regain financial control.

2. Immediate Action: Eliminate High-Interest Credit Card Debt
As credit card EMI ends in 6 months, pay attention now.

These carry highest interest and have no protective structure.

Make priority payments to clear it fully within 4–6 months.

This will free up Rs.?25,000 monthly.

You also avoid building fresh outstanding balances.

Benefit:

Reduces interest drain

Boosts surplus for savings

Improves financial breathing room

3. Build Basic Emergency Fund
Debt elimination must hand-in-hand with safety buffer.

Goal: Save Rs.?1.5 lakh (about 3 months of essential outflow).

Use liquid mutual fund or bank savings.

Sacrifice Rs.?20,000 monthly from existing surplus until buffer is built.

Don’t divert until debt is fully repaid.

Benefit:

Prevents re-borrowing

Eases financial stress in emergencies

4. Tackle Remaining EMI and Build Debt-Free Path
Once credit card EMI ends:

You’ll free Rs.?25,000 monthly

Use Rs.?15,000 to prepay home loan/other loans aggressively

Keep Rs.?10,000 as buffer/investment

Prepayment speeds up payoff and reduces interest

Review loan terms for prepayment facility

Result:
You will be debt-free within 2–3 years

5. Get Health Insurance First
Health risks can derail finances.
As soon as credit card EMI clears:

Purchase individual or family health policy of Rs.?5–10 lakh

This protects from sudden medical costs

Renew annually

6. Create Structured Monthly Investments
After credit card is cleared and buffer built:

Rs.?10,000 monthly in mutual funds (active)

Rs.?5,000 in NPS (or similar retirement vehicle)

Rs.?5,000 in liquid/debt funds for stability

Rationale:

Equity funds combat inflation over long term

Avoid index funds—they mimic market, lack downside hedging

Avoid direct plans—they lack ongoing advisory

NPS gives pension discipline and tax savings

Liquid funds build short-term buffer

7. Build a Child & Personal Long-Term Goal Plan
You may plan for future family needs.

Create separate mutual fund folio for personal or child goals

Invest Rs.?5,000–10,000/month after debt clears

Review and adjust as goals mature

8. Use Surplus Wisely When EMI Clears
Once all EMIs cleared (3 years):

Your free cash flow will be ~Rs.?1.1 lakh

Continue buffer maintenance of Rs.?20,000

Equity SIP: increase to Rs.?30,000

NPS: maintain or increase to Rs.?10,000

Hybrid fund/income fund SIP: Rs.?10,000

New goal SIPs: Rs.?10,000

Emergency savings: Rs.?5,000–10,000 for liquidity

This builds strong asset base and retirement cushion.

9. Rebalancing and Discipline
Check your portfolio every 6 months

Monitor fund performance and asset mix

Rebalance if equity grows too much

Use Certified Financial Planner for annual review

Keep aligned with goals and risk tolerance

10. Avoid Common Financial Mistakes
Do not take new loans without clear purpose

Avoid index funds—they offer no downside cushion

Avoid direct funds—they lack advisory steering

Avoid ULIPs or investment-linked insurance again

Don’t skip insurance due to tight budget

Avoid early debt repayment using emergency fund

11. Tax Planning Awareness
Use NPS contribution to reduce taxable income

Equity fund L?TCG above Rs.?1.25 lakh taxed at 12.5%

Debt fund gains taxed per your slab

Use SWP (Systematic Withdrawal Plans) to reduce tax burden

Plan redemption strategically when needed

12. Projected Timeline Overview
Months 1–6:

Target: Clear credit card EMI

Build part of emergency corpus

No new investments yet

Months 7–18:

Build remaining buffer

Prepay part of home loan

Buy health insurance

Start investment SIPs

Months 19–36:

Clear all remaining EMIs

Full structured SIP monthly begins

Build goal-based investments

Months 37+:

Surplus increases significantly

Focus on retirement, family goals, child education

Final Insights
Your income gives you power to restructure your finances.

Start with high-interest debt repayment.

Build safety reserves before stress begins.

Introduce structured investing slowly

Protect health, gain financial independence

Avoid risky or non-transparent instruments

Monitor and adjust yearly to stay on track

Execute this plan and you will transform your situation quickly.
Your financial horizon looks bright and well-secured ahead.

Best Regards,

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