My mother is a Sr. citizen and receives family pension from the central govt after my father’s death. There is a small business in her name and the profits are in the range of 1-2 lakhs per annum. She has income from bank interest and does not have any salaried income. Is she eligible for standard deduction of 50K or is she only eligible for deduction of 15K (due to family pension) while filing her ITR? Also due to the small business which she is showing, which ITR form does she have to file (last year she filed ITR4).

Ans: You are taking a good step. Seeking guidance at this stage will help your family a lot. A proper financial structure will bring peace, purpose and stability.

You are earning Rs. 1.2 lakh and your wife is earning Rs. 75,000. Together, this is Rs. 1.95 lakh monthly. You have a home loan of Rs. 23 lakh with an EMI of Rs. 25,000 and a gold loan of Rs. 19 lakh. You have a land asset worth Rs. 23 lakh and mutual funds worth Rs. 8 lakh. No health or term insurance yet. Your daughter is 11 years old and her education goals need focus now.

Let us address this one step at a time.

Assessing Your Present Financial Position

Your total monthly income is strong at Rs. 1.95 lakh.

You have a home loan EMI of Rs. 25,000. This is quite manageable.

The gold loan of Rs. 19 lakh is a concern. Gold loans usually carry high interest.

Land worth Rs. 23 lakh is a good asset. But it is not giving income now.

Mutual funds of Rs. 8 lakh are your only liquid investments.

No life insurance or health cover exposes your family to big risk.

No investments yet for your daughter’s education or your retirement goals.

Action Plan for Debt Management

Start with the gold loan. Prioritise paying this off early.

Allocate any bonus or annual surplus towards gold loan repayment.

Do not extend the gold loan. Interest outgo will damage your savings.

Avoid taking any top-up loans or new personal loans.

Control monthly lifestyle expenses. Keep your family’s monthly costs in check.

Maintain a simple lifestyle till loans are cleared.

If you can save Rs. 30,000 monthly after EMIs and expenses, direct it to debt.

Do not stop your home loan EMI. It builds your asset gradually.

Selling land should be considered only if gold loan becomes a burden.

Securing Family with Insurance

Buy a term insurance plan of Rs. 1 crore for yourself.

Your wife should also have a term cover of Rs. 75 lakh.

Term plan is very cheap. Premiums are low for high cover.

Buy policies from established and reputed insurers.

Do not mix insurance and investment.

ULIPs or endowment plans are not suitable. Avoid them.

Buy individual health insurance policies for all three members.

Health plan should be minimum Rs. 10 lakh for each member.

Add a critical illness rider if budget permits.

Hospital bills can destroy savings without health insurance.

Medical cover is urgent. Do not delay this step.

Rebuilding Emergency Fund

Emergency fund gives peace of mind during job loss or illness.

Keep at least 6 months’ expenses in liquid form.

Around Rs. 3–4 lakh should be kept in savings or liquid mutual funds.

Build this slowly after paying off the gold loan.

Do not depend on credit cards for emergencies.

Planning for Daughter’s Education

She is already 11 years old. You have 6–7 years only.

Higher education may cost Rs. 15–25 lakh or more.

Once gold loan is cleared, start investing monthly for this goal.

Use well-diversified actively managed mutual funds.

Choose a mix of equity and balanced funds for 7-year horizon.

Avoid index funds. They lack flexibility in volatile markets.

Index funds also follow the market. They can’t beat the market returns.

Actively managed funds give better long-term results with good fund managers.

Invest through a mutual fund distributor who is a Certified Financial Planner.

Do not go for direct funds on your own. You may make poor fund choices.

Regular funds with guidance avoid emotional decisions and switching errors.

Start SIPs after debts are under control and term plans are in place.

Stay consistent with SIPs every month.

Planning for Retirement

Retirement planning must start soon. You are already 44.

You have about 16 years to prepare for it.

Retirement goal should be inflation-adjusted and realistic.

First focus on clearing debts and securing insurance.

Then build a mix of equity and hybrid mutual funds.

Increase monthly investments once daughter’s education fund is ready.

Keep increasing SIPs every year by 10% or more.

Don’t depend on land for retirement. It gives no monthly income.

Liquid investments are more useful during retirement.

Avoid depending on pension products or annuities. They give low returns.

Use mutual fund route for long-term wealth creation.

Rebalancing and Monitoring Your Mutual Fund Portfolio

You have Rs. 8 lakh in mutual funds.

Review if the funds are aligned with your goals.

Rebalance the portfolio through a Certified Financial Planner.

Do not redeem mutual funds now unless gold loan burden is extreme.

If needed, redeem only a small part to reduce gold loan principal.

Avoid mixing long-term investments with short-term needs.

Maintain goal-based portfolios – education, retirement, and emergency fund.

Tax Planning

Invest in tax-saving mutual funds after goals are met.

Avoid investing just to save tax.

Long-term capital gains above Rs. 1.25 lakh from equity mutual funds are taxed at 12.5%.

Short-term capital gains are taxed at 20%.

Keep tax in mind while redeeming for goals.

Use ELSS mutual funds only if they match your financial goals.

Practical Budgeting and Expense Management

Track your monthly expenses carefully.

Use mobile apps or excel to record every spending.

Cut unnecessary lifestyle costs – food delivery, gadgets, memberships.

Fix a cap on monthly personal spending for both of you.

Avoid new gadgets, vehicles or foreign trips for now.

Focus more on family goals, less on material needs.

Discipline in spending is key to long-term wealth.

Budgeting helps avoid falling back into debt.

Avoiding Common Pitfalls

Do not take loans for investing.

Do not borrow again once current loans are closed.

Do not invest in random policies without knowing the terms.

Do not mix emotions with investment.

Do not get influenced by relatives or friends’ advice.

Always verify claims before choosing any scheme.

Get written reports from a Certified Financial Planner regularly.

Final Insights

First pay off the gold loan fully.

Buy term and health insurance immediately.

Build emergency fund gradually.

Start child education investments soon.

After that, start retirement investments.

Review mutual funds with a qualified CFP every 6 months.

Keep personal expenses in control.

Avoid emotional decisions with land or gold.

Stick to simple and long-term plan.

Your financial discipline now will help your daughter in future.

Step-by-step approach will secure your family’s future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You are 35 years old. Your monthly income is Rs. 1.5 lakh. Your personal loan burden is Rs. 50 lakh. Monthly EMI is Rs. 1.3 lakh. No savings at present. You also have a child to plan for. This is a difficult financial stage. But it is possible to rebuild. Step by step progress is needed. Let me walk you through a complete solution.

Assessing Your Current Financial Health

You earn Rs. 1.5 lakh. But Rs. 1.3 lakh goes towards EMI.

This leaves only Rs. 20,000 each month.

You are highly leveraged. Debt-to-income ratio is very high.

You have no emergency fund. This increases financial risk.

Loan EMIs will continue for 4–5 years. That’s a long commitment.

At this stage, saving is difficult. But still, it must be planned slowly.

There are no investments yet. But you have time. Age is still in your favour.

You have a child. Long-term responsibilities will come.

You need to plan for retirement too. Without delay.

Step 1: First Reduce Financial Stress

You must first bring EMI burden down. That is the first goal.

Explore loan consolidation. Approach your bank.

Take a top-up on one personal loan. Use it to close others.

Or approach a lending platform. Ask for a lower EMI plan.

Choose longer tenure. That will reduce EMI load.

Target to bring EMI to Rs. 80,000 or less.

That gives you more monthly surplus to work with.

Also, speak to banks for restructuring option. Many offer it now.

Always pay EMIs on time. Avoid penalty and credit score damage.

Avoid new loans or credit cards. Even if pre-approved.

Step 2: Track Your Monthly Spending Closely

Maintain a spending journal. Record every rupee.

Create three buckets. Essentials, non-essentials, and EMIs.

Cut down non-essential spends. Start with OTT, dining, shopping.

Even Rs. 5,000 saving monthly can help you start.

Avoid small loans for big purchases. Save and buy later.

Family must be aligned. Spouse support is critical.

Don’t try to impress others with spending. Focus on goals.

Step 3: Start Building an Emergency Fund

You need at least Rs. 1.5 lakh as emergency reserve.

Start with just Rs. 2,000 monthly. Gradually increase to Rs. 5,000.

Use recurring deposit initially. Keep it separate.

Once you reach Rs. 1.5 lakh, don’t touch it unless urgent.

Emergency fund reduces loan dependency later.

It also brings peace of mind during job or health crisis.

Step 4: Protect Your Income First

Take a term insurance. Cover of Rs. 1 crore is minimum.

Premium is low. Less than Rs. 1,000 per month.

Your child’s future depends on this cover.

This is a must. Not optional. Don’t postpone it.

Also get health insurance. Minimum cover Rs. 5 lakh.

You and your family must be included.

This avoids medical debt. Many families fall due to this.

Don’t rely only on company insurance.

Step 5: Start Small and Smart Investments

Even if only Rs. 2,000 monthly is free, start investing.

Use mutual funds through a Certified Financial Planner.

Choose regular plans. Not direct. Regular gives you support.

Direct plans save cost but miss expert guidance.

CFP-guided MFDs monitor and adjust for you.

Regular plans with advisor keep your discipline on track.

Actively managed funds have better potential returns than index funds.

Index funds don’t protect in market crashes. No flexibility to exit.

Active funds are managed with care. Portfolio is adjusted to changes.

Start with balanced funds. They suit beginners.

Slowly diversify into large-cap and flexi-cap.

Increase SIP every 6 months. Even by Rs. 500.

Keep SIP automated. Don’t stop due to market fear.

Step 6: Create a Simple Financial Goal Map

Break your goals into short, medium, and long term.

Short term: Emergency fund, debt reduction.

Medium term: Child education fund.

Long term: Retirement planning.

Write them down. Attach target years.

Assign expected cost to each goal.

Track your progress every 6 months.

This creates focus. Helps you stay on path.

Step 7: Slowly Reduce Loans Faster

As income grows, increase loan repayments.

Use yearly bonus or incentives to prepay loans.

Even one extra EMI per year shortens your term.

Target small loans first. Close them fully.

Create a snowball effect. Debt falls faster.

But don’t stop investing completely. Balance both.

Avoid emotional spending during festivals and functions.

Step 8: Say No to Wrong Products

Don’t invest in ULIPs or endowment plans.

Their returns are very low. Lock-in is very long.

You already have loan pressure. Don’t take insurance-linked products.

Never mix investment and insurance. Keep them separate.

No annuities needed either. They are rigid and give poor returns.

Avoid chit funds or private schemes. Too risky.

Don’t invest in real estate now. You can’t afford loan again.

Step 9: Build Credit Score Slowly

Pay all EMIs on or before time. Never delay.

Avoid minimum payments on credit cards.

Don’t apply for more loans or cards.

After 6 months, check CIBIL score.

If score is below 700, work on it.

Better score gives better interest in future.

Step 10: Involve Your Family in the Journey

Talk openly with spouse. Involve in money decisions.

Create joint targets. Share progress monthly.

If any family member asks for money, explain situation.

Family support will reduce emotional pressure.

Step 11: Secure Your Child’s Future Smartly

Once debt pressure is lower, start a separate SIP.

Name the SIP with child’s goal. That motivates discipline.

Education cost rises fast. Delay will hurt.

Don’t wait for loans to end. Start small for child.

Keep these investments untouched till maturity.

Review every year. Increase slowly.

Step 12: Retirement Planning is Not Optional

You are 35 now. Retirement is 25 years away.

But delay reduces your final wealth.

Start SIP for retirement separately.

Even Rs. 1,000 monthly matters now.

Retirement fund should not mix with other goals.

After loans are over, shift EMI amount to retirement SIP.

Finally

You are in a tight spot today. But you are taking the right step now.

Loan burden is high, but manageable. Plan must be tight and consistent.

You are still young. That’s your strength. Use next 5 years wisely.

Start small, stay consistent. Don’t lose patience if results are slow.

Avoid shortcuts. Don’t chase fast money schemes.

Take the support of a Certified Financial Planner.

Get a long-term investment roadmap designed for your goals.

Over time, you will move from debt-heavy to wealth-creating.

Your child and your retired self will thank you later.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You are earning Rs. 1.5 lakh per month. You are paying Rs. 70,000 as EMI. You have no savings or mutual funds. You are carrying a large personal loan of Rs. 28 lakhs. You are worried and want to close this loan soon. You are not alone. Many professionals go through this phase.

You are earning well. That’s your biggest strength now. You want a clear plan. That’s a very good decision. Let us now evaluate your situation in detail. Let’s move towards a solution, step by step.

Understanding Your Present Cash Flow
Your salary is Rs. 1,50,000 per month.

Your EMI is Rs. 70,000 per month. That is nearly 47% of your income.

You have no other EMIs or savings at this moment.

You are using the rest of Rs. 80,000 for your expenses.

You want to become loan-free as early as possible.

This intention is very good. Stay consistent with that.

Step 1: Evaluate and Trim Monthly Expenses
Write down every single monthly expense.

Split into essentials and non-essentials.

Try to reduce expenses by 20–30%.

Cancel unwanted subscriptions, upgrades, or luxuries.

Limit outings, dining, gadgets, and impulsive spends.

If you are living alone, shift to a modest house.

If you are supporting family, discuss financial goals together.

Try to save Rs. 15,000 to Rs. 20,000 more each month.

Your goal is to free up maximum cash flow.

Step 2: Create an Emergency Reserve
Loan EMI is high. So, you must plan for emergencies.

Keep 2 months’ worth of EMI and basic expenses aside.

That means around Rs. 2 lakh in savings account or liquid fund.

Do not touch this amount unless urgent.

It will protect your credit score during job loss or illness.

Build it slowly over 6–8 months.

Keep it parked separately, not mixed with other expenses.

Step 3: Prioritise Loan Repayment
Your main goal is to repay the Rs. 28 lakh loan quickly.

Use every extra rupee for part-payment.

Contact your bank to know prepayment terms.

Ask if there are charges for extra payments.

Try to part-pay every 6 months.

Even Rs. 1 lakh every 6 months can reduce tenure.

Avoid extending the tenure for short-term relief.

Focus on reducing principal, not EMI amount.

Never miss EMI. It affects credit and future loan options.

Step 4: Avoid Taking Any New Loan
Do not apply for car, gadget, or holiday loans.

Say no to top-up on personal loans.

Do not buy items on credit cards or EMI offers.

Personal loan is already a costly loan.

Your focus should remain on clearing it, not adding to it.

Step 5: Protect Yourself With Term Insurance
In case of sudden death, the burden shifts to family.

Take a pure term insurance cover of Rs. 1 crore.

Premium is low if taken at a younger age.

It will not return money but gives protection.

Avoid any endowment or return-based insurance now.

Keep insurance and investment separate always.

Step 6: Don’t Invest While Repaying Loan? No.
Many think they must repay the loan fully before investing.

But you are still young. Time is on your side.

Wealth creation also needs early action.

So, start small SIPs while repaying loan.

Begin with Rs. 3,000–5,000 per month if possible.

Gradually increase SIP with every increment or bonus.

Don’t wait for a “perfect time” to invest.

Discipline matters more than timing.

Step 7: Avoid Direct Mutual Fund Investing
Some people invest directly without guidance.

Direct plans have no human advisor.

Mistakes and panic are more likely without support.

Performance tracking, rebalancing, goal alignment is missing.

It may look cheaper, but it costs more in long term.

Better to invest through a Mutual Fund Distributor with CFP.

Regular plans give ongoing service and portfolio control.

That’s how you stay committed and consistent.

Step 8: Why Not Index Funds?
Index funds follow stock index without human skill.

They copy the market. They don’t beat it.

They lack flexibility during market crashes.

They can’t avoid bad stocks in index.

You need alpha, not average returns.

Actively managed funds offer better growth options.

Fund managers analyse and select best stocks actively.

This approach fits your goal better.

Step 9: Create a Bonus Utilisation Strategy
Use your annual bonus wisely.

Keep 10% for personal use.

Use 40% for loan part-payment.

Use 30% for emergency fund building.

Use 20% for starting or increasing investments.

This strategy balances loan and wealth building.

Step 10: Build Financial Habits
Set monthly bank auto-debit for SIP and savings.

Track spending weekly using a mobile app.

Read about financial awareness 15 minutes weekly.

Review your money goals every 3 months.

Reward yourself when you stay consistent.

Share progress with family or trusted friend.

Step 11: Stop All High-Interest Debt
If you are using credit cards, pay full amount monthly.

Never roll over or pay minimum due only.

Credit card interest is higher than personal loan.

Stop using credit card till loan is reduced.

Avoid payday loans, buy-now-pay-later, or fast cash apps.

Step 12: Plan For Next 3 Years
In next 3 years, aim to reduce 40–50% of loan.

Start investing alongside debt repayment.

Slowly reduce lifestyle expenses.

Make yearly part-payments without fail.

Increase income through part-time consulting or freelancing.

Even Rs. 10,000 extra income helps in early closure.

Step 13: Track Credit Score and Loan Behaviour
Download credit report every 6 months.

Keep your score above 750 always.

Never delay EMI even by 1 day.

Do not apply for too many loans or credit cards.

A healthy score keeps your options open in future.

Step 14: Avoid Mixing Insurance and Investment
Do not buy ULIPs, endowment or money-back plans.

These give low returns, long lock-ins, and poor liquidity.

Focus on mutual funds for wealth building.

Keep term insurance for protection.

Do not fall for “tax-saving + insurance” traps.

Step 15: Choose Right Mutual Fund Strategy
Select 2–3 equity mutual funds with growth track record.

Begin SIP with small amount like Rs. 3,000–5,000.

Choose regular plans via MFD with CFP credential.

Review performance yearly.

Invest for long term, not for short term gains.

Don’t stop SIP during market crash. Add more if possible.

Step 16: Discipline and Patience Are Game Changers
Becoming debt-free takes time and patience.

Avoid shortcuts or emotional financial decisions.

Be consistent with part-payments and SIPs.

Track your money monthly.

Reward yourself for milestones achieved.

Celebrate progress without spending more.

Finally
You are earning well. That is your best asset now.

Your loan is high. But it can be reduced with discipline.

You need a plan. You now have it.

Cut expenses. Start saving. Make regular part-payments.

Also begin investing. Even with small amount.

Don’t delay building wealth.

Don’t wait till loan is over.

Take term cover. Avoid credit traps.

Invest through mutual funds with CFP and MFD.

Avoid index funds. Avoid direct plans.

Stay on track. Review progress yearly.

You will win over time. You have already taken the first step.

Keep walking. Stay focused. Stay steady.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You are 39 years old with two school-going children, a new home with a large home loan, and a dream to retire by 49. Your income is Rs. 1 lakh per month with Rs. 35,000 rent helping your EMI. You are on the right path. But to achieve all your goals—home loan closure, children’s education, and Rs. 2 crore retirement corpus—you need a structured, practical, and committed financial plan.

Let’s assess step-by-step and give you a full 360-degree roadmap.

Monthly Cash Flow Assessment

Your salary is Rs. 1 lakh.

Home loan EMI is Rs. 70,000.

Rental income is Rs. 35,000, used partly for EMI.

Your net cash outflow towards EMI becomes Rs. 35,000.

You invest Rs. 6,000 in mutual funds.

Annual LIC premium is Rs. 95,000. Monthly average is around Rs. 7,900.

After loan and LIC, your surplus is limited.

Review of LIC Policy and Recommendation

The LIC policy gives Rs. 60 lakh cover with Rs. 95,000 premium.

Traditional plans give low returns and lock your money.

It’s better to separate insurance and investment.

A term insurance plan is cheaper and gives higher cover.

Consider surrendering the LIC policy.

Use the surrender value and future premiums for mutual funds.

Invest through a Certified Financial Planner and MFD.

Regular plans give guidance and behavior control.

Direct plans don’t give advisory or portfolio discipline.

You need structured advice, not self-navigation.

Focus on long-term wealth creation, not bundled products.

Home Loan Repayment Strategy

The home loan EMI is your biggest monthly expense.

Full pre-closure in 10 years needs aggressive planning.

Use the Rs. 35,000 rent fully for home loan part-payment.

Make part-payments once every 6 months or yearly.

Even Rs. 1 lakh extra per year reduces total interest.

Avoid stopping EMI even if rent increases.

Home loan pre-closure before age 47 should be your target.

Once home loan closes, use the rent for investments.

Children's Education Planning

Elder child is in 9th, younger in 5th.

You need funds for graduation and post-graduation.

Focus on wealth creation over the next 8–10 years.

Begin SIPs dedicated to each child’s education.

Right now you invest Rs. 6,000 in SIP.

Increase it to Rs. 10,000 per month over 1 year.

When you stop the LIC policy, shift Rs. 8,000 to SIPs.

That will make monthly SIPs around Rs. 16,000.

Invest in diversified equity mutual funds through CFP and MFD.

Avoid index funds.

Index funds only mimic markets. They lack active return generation.

Actively managed funds offer better risk-adjusted returns.

Your goal requires alpha, not just average growth.

Also create a small emergency fund for kids’ school needs.

Keep 2–3 months of education expenses in savings.

Education inflation is rising. Stay proactive.

Retirement Corpus Planning

You want Rs. 2 crore corpus by 49.

You have only 10 years left.

Present investment is Rs. 6,000 per month.

LIC premium of Rs. 95,000 can be redirected after surrender.

That makes SIPs Rs. 14,000–16,000 per month.

When EMI reduces or stops, shift EMI amount to SIPs.

After home loan closure, invest Rs. 70,000 monthly.

Continue till age 49 in equity mutual funds.

This way, you can move closer to your Rs. 2 crore goal.

Begin retirement-specific SIPs from now.

Invest in actively managed equity funds.

Track performance yearly with your CFP.

Don’t withdraw or pause SIPs due to markets.

Follow a goal-based approach with patience.

Emergency Fund and Health Planning

Create Rs. 2 lakh emergency fund in savings or liquid funds.

This should cover 3–4 months of EMI and household needs.

Keep it separate from other investments.

Get health insurance for family of 4.

Employer cover is not enough.

Get Rs. 10 lakh floater policy separately.

Medical expenses can disturb your savings plan.

Prevent financial shocks by being prepared.

Tax Efficiency and Liquidity

Plan tax-saving using PPF, mutual funds, and insurance wisely.

Avoid locking all money in illiquid or low-yielding tools.

Avoid new endowment or traditional insurance products.

Don’t invest in real estate for now.

Property involves cost, loan, and low post-tax yield.

Liquidity is more important at this stage.

Mutual funds offer better liquidity and flexibility.

Long term capital gains in equity above Rs. 1.25 lakh are taxed at 12.5%.

Short term capital gains are taxed at 20%.

Debt fund gains are taxed as per your slab.

Tax planning must match investment goals.

Your CFP can structure tax and investment together.

Annual Strategy Review

Review your financial plan yearly with a Certified Financial Planner.

Track goals and SIP performance yearly.

Adjust SIPs based on income increase.

Avoid stopping SIPs for small reasons.

Monitor loan closure progress.

Also track LIC surrender and mutual fund use.

Stick to the plan with patience.

Ten years can build huge wealth with the right approach.

Key Actions to Take Immediately

Start tracking monthly expenses to save more.

Surrender LIC policy and consult your CFP.

Build emergency fund of Rs. 2 lakh in next 6 months.

Increase SIP to Rs. 10,000 now. Target Rs. 16,000 within 1 year.

Use rent fully for part-payment of home loan.

Get term insurance for Rs. 1 crore cover.

Review insurance for children and spouse.

Start two SIPs for child education with Rs. 8,000.

Set goal-specific SIPs in equity mutual funds.

Prepare for retirement investment once loan closes.

Build good habits and avoid panic selling.

Finally

You are working hard and managing home, children, and loan well. You are already investing and earning rent. That is a good beginning.

Now shift focus to disciplined investing. Cut underperforming insurance. Use those funds in mutual funds.

Use the rental income as a smart weapon to finish loan faster. Each extra part-payment saves interest.

Your children's education and your retirement both need focused SIPs.

Start with available surplus and increase gradually. The 10-year goal is possible.

Plan. Track. Stick to your path.

Take help from a Certified Financial Planner for consistent progress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: We get many queries and you have not mention name, so it is difficult to track previous query.....please share facts again

Ans: Dear Prakash,

For communication you can look at the below mentioned options-

Read Books
Speak everyday in English (if you are facing challenge in this language)
Record yourself and hear and accordingly work on the gaps
Seek feedback on your communication from your friends and family and improve

Learning and practicing helps in regular improvements

Thanks
Ashwini
www.ashwinidasgupta.com

Ans: I would suggest staying positive, continuing to apply, upskilling yourself, and networking with people in your field. Wishing you all the very best!!

Ans: You are managing many responsibilities. It is not easy. Balancing income, expenses, and savings is a big task. But it is possible with thoughtful planning.

Below is a complete and structured guidance to reduce your financial stress and improve savings.

Let us go step by step.

?

Assess Current Financial Position

Your combined monthly income is Rs. 2.05 lakh. That is a strong starting point.

Home loan EMI is Rs. 55,000. That is over 25% of your income. It needs attention.

Your mother-in-law’s expenses of Rs. 25,000–30,000 are fixed and necessary.

Household and lifestyle expenses are managed by your husband. That gives you space to plan.

But very little is getting saved now. This must change with a clear roadmap.

?

Track and Categorise All Expenses

Start with writing down every rupee spent in a month.

Use simple categories. Example: EMI, groceries, medicines, education, transport.

Check for hidden spends. Subscriptions, dining out, online purchases, etc.

See which items are essential and which are flexible.

This small habit helps reduce wastage. It gives power over your money.

You will discover opportunities to save at least 5–10% monthly.

Involve your husband. Financial planning is teamwork. That makes it sustainable.

?

Home Loan Strategy and EMI Load

Rs. 55,000 EMI is high. You must check your loan tenure and rate again.

If the loan is more than 15 years old, consider refinancing to lower rate.

Don’t rush to prepay unless you are saving enough for emergencies first.

If your savings increase later, partial prepayments every year can reduce burden.

A Certified Financial Planner can help you assess interest vs savings balance.

Keeping EMI under 40% of income is ideal. Work towards that goal.

?

Emergency Medical Expenses for Mother-in-Law

Her health condition needs structured medical planning.

First priority: Check her current health cover. Does she have insurance?

If not, see if a senior citizen policy is possible. Costs will be higher at this age.

If insurance is not possible, start a dedicated medical fund for her.

Keep Rs. 5,000–Rs. 7,000 aside monthly in a low-risk instrument.

This helps reduce shock from hospital bills or scans.

Keep hospital records in order. Use preventive check-ups to reduce surprise expenses.

?

Emergency Fund Creation

You need a safety fund of 4 to 6 months of expenses.

This protects you in case of job loss, illness, or sudden repair costs.

Even Rs. 5,000 saved monthly can build this in a year or two.

Use low-risk, liquid tools. Do not mix this with investments.

Emergency fund should be easy to withdraw, without penalty.

?

Child’s Education Planning

Your son is 8 years old. In 10 years, college costs will start.

Higher education is getting more expensive. You must start a separate fund.

Begin a disciplined investment of Rs. 5,000–Rs. 7,000 per month.

Prioritise long-term, actively managed mutual funds through a CFP.

Don’t use direct mutual funds. Regular plans give access to expert reviews and advice.

Avoid ULIPs, endowment plans. These give low returns and poor flexibility.

Check this goal every year and increase SIP when income grows.

Small early efforts give big results later through compounding.

?

Improve Savings Flow

You may feel there is no money to save now. But small steps help.

Start with fixed savings immediately after salary credit. This is “pay yourself first”.

Even Rs. 3,000 to Rs. 5,000 savings monthly builds habit and confidence.

Use auto-debit to mutual funds. Keep it separate from daily expenses account.

Don’t wait for “surplus”. Create savings as a non-negotiable part of monthly life.

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Insurance and Risk Protection

You must check your own term life insurance cover.

Minimum cover should be 10–12 times annual income. Your husband too needs the same.

Health insurance for all family members must be active. Confirm claim limits.

One hospitalisation without insurance can set you back financially for years.

Don’t rely on employer health plans only. Buy a personal policy too.

If existing policies are LIC or ULIP type, recheck their benefits.

If returns are low, surrender them after 5 years and shift to mutual funds.

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Joint Family Expense Sharing

Currently your husband handles household costs. That is generous support.

But as your income grows, split some expenses. This increases savings from both sides.

Joint saving goals for child, emergency fund, or a family vacation helps motivation.

Discuss money matters openly. Hiding expenses or worries creates stress later.

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Avoid Debt Traps and Buy Wisely

Don’t take personal loans or credit card EMI options unless very urgent.

Avoid buying expensive gadgets, furniture, or holidays on credit.

Focus spending on needs, not wants. That creates long-term peace.

Track EMI-to-income ratio regularly. Keep it under 40% total, including home loan.

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Invest in Growth-Based Instruments

Once emergency fund is ready, start equity mutual fund SIPs.

Do not use index funds. They give limited returns and copy market average.

Choose well-managed active funds through a certified MFD and CFP.

They give better risk control, fund rebalancing, and personalised guidance.

Rebalance your investments every year with help of a professional.

Avoid direct equity unless you have knowledge, time, and strong risk appetite.

For short-term goals, use safe options like short-term mutual funds or RDs.

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Use Bonuses and Increments Wisely

Any yearly bonus or appraisal should partly go to savings.

Avoid spending full bonus on gadgets or events. Use at least 50% for goals.

Increase SIP amount every time your salary grows. Even Rs. 1,000–2,000 more helps.

Stay consistent. Skipping SIP for small reasons breaks the wealth-building chain.

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Involve Your Son in Basic Financial Learning

Teach your son simple money lessons early.

Let him understand value of savings, budgeting, and delayed gratification.

This will help him grow into a responsible adult.

Financial literacy is as important as academic knowledge.

You are his best teacher. Your daily actions teach more than words.

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Mental and Emotional Health Check

Financial pressure can cause emotional stress in families.

Take one day a month to review your money matters calmly.

Don’t compare with others. Every family’s journey is different.

Seek help from Certified Financial Planner to structure your roadmap.

Set realistic goals. Celebrate small wins. Stay hopeful. Progress takes time.

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Avoid Common Investment Mistakes

Don’t invest in gold chits or unregistered chit funds.

Don’t mix insurance and investments. That reduces both benefits.

Don’t stop SIPs during market falls. That is when they benefit most.

Don’t rely only on FDs for long-term goals. They lose to inflation.

Don’t trust quick-return schemes. They often lead to scams.

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Final Insights

Your income is strong. But rising expenses and loan burden need balance.

Start with a written family budget. Identify cuttable costs.

Build emergency fund. Ensure full insurance coverage.

Begin long-term SIPs for child’s education and retirement.

Don’t aim for perfection. Consistency is more powerful than big steps.

Involve your husband and create joint financial goals.

Track progress every 6 months. Adjust based on income and health changes.

Stay disciplined. With patience, you can achieve financial security.

Consider a professional review once a year with a Certified Financial Planner.

That gives clarity, direction, and peace of mind.

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

Ans: You can appear for JEE Main with Physics, Chemistry, Biology, and Mathematics (via NIOS). To get admission in NITs and other premier institutes, you must have at least 75% aggregate or be in the top 20 percentile in your Class 12 exams. For private colleges, eligibility is generally more flexible, so you should be eligible if you meet their minimum requirements and have a good JEE Main rank. Ensure you meet the 75% or top 20 percentile criteria in your qualifying exam to secure admission in NITs and other government institutes. Meanwhile, prepare well for JEE Main to achieve a competitive rank. Also, check the specific eligibility criteria of private colleges where you plan to apply. All the BEST!