Sir i ihv home loan 16 Laks emi 15k monthly salary 1 laks . Other income after monthly expenses from my wife business 50 k
Ans: You and your wife are managing your finances well. Having a home loan with stable income is good. With Rs. 1 lakh salary and Rs. 50,000 monthly surplus from your wife’s business, you are in a strong position to plan long-term wealth. Let me give you a full assessment of your situation and steps to move forward smartly.
Understanding Your Current Financial Position
Your EMI is Rs. 15,000 monthly for a Rs. 16 lakh home loan.
Your monthly salary is Rs. 1 lakh, which gives good monthly cash flow.
Your wife contributes Rs. 50,000 monthly after her business expenses.
You have a total monthly income of Rs. 1.5 lakhs.
This gives a strong foundation for financial growth and long-term planning.
Smart Loan Management Strategy
Rs. 15,000 EMI is only 10% of total family income.
This is within a safe EMI limit. Keep paying it on time.
Don’t rush to prepay the loan aggressively. Instead, invest surplus smartly.
Keep 2–3 months’ EMI as emergency backup in a liquid fund.
Build Emergency Reserve First
Your priority should be to save 6 months’ family expenses.
Keep this emergency money in a separate bank account or liquid mutual fund.
This gives peace of mind if income is delayed or an emergency comes.
Don’t mix emergency fund with your investments.
Build Protection with Insurance
Take a pure term life cover of 15 to 20 times your yearly income.
Choose a term policy only, not investment-cum-insurance plans.
Avoid endowment or ULIP policies. They give low returns.
Take a family floater health policy for Rs. 10 to 15 lakhs.
Also take a personal accidental insurance policy.
Savings and Investments – Smart Allocation
Your monthly savings potential is high. Use it with planning.
Allocate 40% of monthly savings in mutual fund SIPs.
Use regular funds through a Certified Financial Planner for guidance.
Don’t invest directly. Direct funds give no advice or human help.
Regular funds through certified planners give better discipline and performance.
Choose a mix of diversified flexi-cap, large-cap, and mid-cap funds.
Prefer actively managed mutual funds. They beat markets long-term.
Avoid index funds. Index funds copy market returns with no alpha.
Index funds don’t protect during market falls. Actively managed funds do.
PPF for Safe and Long-Term Goal
Invest some money in PPF for long-term goals like retirement.
PPF is safe, gives tax-free returns, and builds discipline.
Lock-in works as an advantage for retirement corpus.
Invest every year to get compounding benefit.
Child’s Future Planning (If You Have or Plan Children)
Start early planning for future education and marriage.
Use equity mutual funds for long-term growth needs.
Use SIPs in child’s name to build long-term corpus.
Tag each SIP with the goal name like “Daughter's College Fund”.
Don’t Ignore Retirement Planning
Begin investing for retirement from today. Don’t delay.
SIP in mutual funds + PPF + NPS is good mix.
NPS gives tax benefit and helps save for retirement.
Invest monthly to benefit from compounding effect.
Don’t stop SIPs even during market corrections.
Avoid Gold Chits and Risky Options
Gold chit funds are risky and unregulated.
Instead, invest in sovereign gold bonds or gold mutual funds.
They are safe, give interest, and are tax-friendly if held till maturity.
Be Careful With Lifestyle and Expenses
Monitor your monthly spending. Track online purchases like Amazon bills.
Avoid using credit cards for EMI or unnecessary shopping.
Keep personal expenses within 20% of income.
Create a monthly budget and review it monthly.
Don’t Chase Fancy Investment Schemes
Don’t invest in Ponzi schemes or unknown chit funds.
Don’t fall for schemes promising fixed high returns.
Stick to tested options with long history like mutual funds, PPF.
Avoid investments without proper documentation and transparency.
Estate and Will Planning
Prepare a basic will to name your dependents as nominees.
Update all nominations in mutual funds, insurance, and bank accounts.
This avoids family disputes and smooths financial transition.
Tax Planning Tips
Use Section 80C for PPF, ELSS, and life insurance.
NPS gives extra Rs. 50,000 deduction under 80CCD(1B).
Use health insurance to claim under Section 80D.
Take help from a Chartered Accountant if taxes are complex.
Keep Financial Records Properly
Maintain separate folders for insurance, mutual funds, PPF, loans.
Store soft copies and passwords safely.
Share the location of these records with your spouse.
This ensures peace of mind during any emergency.
Investing Should Be Goal-Based
Don’t invest blindly. Link each investment to a specific goal.
Short-term goals: use liquid or short-term funds.
Medium goals: use hybrid funds or balanced advantage funds.
Long-term goals: use diversified equity funds and PPF.
MF Taxation Updates to Know
Equity fund gains above Rs. 1.25 lakh are taxed at 12.5% LTCG.
STCG on equity is now taxed at 20%.
Debt fund gains are taxed as per your income slab.
File taxes properly to avoid notices later.
Systematic Investment Review Is Must
Review SIPs every year with your planner.
Rebalance your portfolio if one type of fund grows too much.
Avoid switching funds often. Stick to plan for long term.
Don’t stop SIPs during market dips. Stay consistent.
Reinvest Any Windfall Wisely
If you receive bonus or gifts, don’t spend all.
Put them in your emergency fund or increase your SIPs.
Build wealth slowly and steadily. Avoid shortcuts.
Plan for Future Life Milestones
Save for child’s birth, education, your retirement, and family medical needs.
Review your goals every year and adjust investments accordingly.
Don’t follow friends blindly. Your goals are different.
Finally
You are already ahead by having home loan and family income of Rs. 1.5 lakh.
You have manageable EMI and a good monthly surplus.
Create a written financial plan with proper goals.
Avoid emotional investments. Focus on logic and long-term growth.
Stay patient. Wealth grows slow, not overnight.
Work with a Certified Financial Planner to guide and monitor progress.
You will reach your goals with discipline and clear direction.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
