Im 36 years old i need to start investment i dont have investment currently having 110000 in hand salary. 51k personal loan emi
Ans: You are 36 years old. Monthly income is Rs 1.10 lakhs.
You currently have no investments.
You are paying a personal loan EMI of Rs 51,000.
Let us now do a 360-degree assessment and plan your financial path properly.
Current Financial Snapshot – Focus Needed on Cash Flow
Monthly income is Rs 1.10 lakhs. This is a good earning level.
EMI of Rs 51,000 is very high. Almost half your salary goes there.
This leaves you with Rs 59,000. From this you manage all expenses.
There is no existing investment. This needs urgent correction.
Debt burden is quite heavy. It affects your ability to invest.
Step 1 – First Focus: Emergency Fund Creation
Before starting any investment, protect yourself with emergency money.
You should build Rs 1.5 lakhs emergency fund. Keep in liquid savings.
Don’t invest this money. Use it only for job loss or medical needs.
Save slowly if needed. Try to keep Rs 10,000 per month for this.
Build it over 12 to 15 months. Emergency fund gives financial stability.
Step 2 – Review and Restructure Your EMI Burden
Personal loan EMI of Rs 51,000 is very high.
Try to consolidate loans. Explore options for lower interest.
Speak with bank. Check if longer tenure can reduce EMI.
Balance transfer to lower rate lender can help.
Goal should be to reduce EMI to below Rs 35,000.
High EMI blocks investments. Low EMI gives investment space.
Never take new loans now. Avoid credit cards and shopping loans.
Step 3 – Basic Protection with Insurance
You need to secure yourself and your family first.
Start term insurance of Rs 50 lakhs minimum. Premium is very low.
It covers your family if something happens to you.
Health insurance is also important. Get minimum Rs 5 lakh policy.
Company health policy is not enough. Take separate personal policy.
Step 4 – Start Investments with Clear Goal
Once emergency fund and insurance are ready, start investing.
Begin with mutual funds. You can start SIP of Rs 5,000 per month.
This builds financial habit. Later increase SIP when EMI reduces.
Focus only on actively managed mutual funds. They aim for higher returns.
Index funds don’t beat market. They don’t suit your growth needs.
Avoid direct funds. They lack support and review.
Invest in regular funds via Certified Financial Planner.
Start small. Grow slowly. But stay regular.
Step 5 – Reduce Loan and Increase SIP in Future
Over the next 2 years, focus on two things:
Reduce your personal loan principal. Try to pay Rs 10,000 extra per month.
Simultaneously, raise SIP from Rs 5,000 to Rs 10,000 monthly.
As loan gets smaller, shift that EMI amount to investments.
In 3 years, you can build Rs 4 to 5 lakh mutual fund portfolio.
Step 6 – Plan for Retirement Starting Today
At age 36, retirement is still 24 years away.
That gives you good time. Compounding will work in your favour.
Start a separate SIP of Rs 3,000 monthly for retirement.
This SIP can grow into large corpus over time.
Avoid depending only on PF or NPS for retirement.
Use equity mutual funds with proper review each year.
Step 7 – Don’t Fall for Wrong Products
You will see many agents offering insurance-linked investments.
Avoid ULIP, endowment or LIC policies for investment.
They give low returns and block your money for long years.
If you already have such policies, surrender them and invest in mutual funds.
Keep insurance and investments separate.
Step 8 – Maintain Clear Budget and Expense Plan
With Rs 59,000 left after EMI, keep tight control on spending.
Break monthly expenses into food, rent, utility, transport, etc.
Fix a monthly budget. Track your expenses.
Avoid eating out too often. Control impulse shopping.
Save minimum 15% of income every month in mutual funds.
Step 9 – Stay Away from Real Estate and Gold for Now
You may think of buying property or gold later.
Right now, don’t lock money into such assets.
Real estate has low liquidity. It doesn’t help you grow wealth fast.
Gold bonds can be used later for diversification. Not now.
Step 10 – Review Your Progress Every Year
Planning is not enough. Reviewing is important.
Sit once every 12 months. Check income, SIP, loan, expenses.
If salary increases, raise SIP. Don’t raise lifestyle too much.
Meet a Certified Financial Planner once every year. Get guidance.
Keep your financial goals in writing. Stay focused.
Final Insights
Reduce personal loan EMI to under Rs 35,000. This is urgent.
Build Rs 1.5 lakh emergency fund. Use liquid savings, not investments.
Take Rs 50 lakh term insurance. Take Rs 5 lakh health insurance.
Start mutual fund SIP of Rs 5,000 monthly. Grow it step by step.
Use only regular mutual funds. Avoid direct funds. They lack advice.
Don’t go for index funds. They only copy market. No extra returns.
Avoid LIC, ULIP, and endowment policies. They give poor growth.
Fix budget. Track all expenses. Avoid loans and credit purchases.
Increase SIP every year. Use salary hikes wisely.
Begin separate SIP for retirement. Don’t delay it.
Stay disciplined. Don’t panic if markets fall. Think long-term.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by NILADRI on Feb 06, 2024Hindi
