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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Sai on Jul 16, 2025Hindi

My salary was 30000 and my savings was 00 and my personal loan was playing around 15k,and my bike emi was 7800 and my rent was 3000,so please suggest how can i manage my salary for future

Ans: Thank you for being honest about your current situation.

You have shown courage to seek help.
That itself is a big step forward.

Rs. 30,000 monthly salary with high EMIs is difficult.
Still, with discipline, you can turn things around.

Let us build your financial plan slowly.

It will not be easy in the beginning.
But with steady action, you can move forward.

? Understand Your Cash Flow

– Salary is Rs. 30,000 per month.
– Personal loan EMI is Rs. 15,000.
– Bike EMI is Rs. 7,800.
– Rent is Rs. 3,000.
– Total fixed expenses are already Rs. 25,800.
– That leaves only Rs. 4,200 per month.
– This is not enough for food, transport, and savings.

? Manage Personal Loan First

– Personal loan EMI is too high.
– Rs. 15,000 EMI on Rs. 30,000 salary is 50%.
– That is putting pressure on your life.
– Call your bank.
– Request for EMI reduction or extension of tenure.
– Even 2 years extra can reduce EMI.
– Explore loan consolidation if possible.
– Goal is to reduce EMI to under Rs. 10,000.
– If you get bonus or extra income, repay loan part.
– Do not take new loans until old one is cleared.

? Consider Postponing Bike EMI Temporarily

– Rs. 7,800 bike EMI is also high.
– If bike is not essential, try to sell it.
– Use the money to close the loan.
– Or check if loan can be restructured.
– Focus on reducing total EMI burden.
– If both loans continue, your cash flow will stay tight.
– Cut this pressure as soon as possible.

? Keep Rent Low and Fixed

– Rent is Rs. 3,000, which is okay.
– Do not shift to bigger house now.
– Save housing upgrade for later.
– Keep rent stable for 2–3 years.

? Control Daily and Monthly Expenses

– You have only Rs. 4,200 left after EMIs and rent.
– You must control daily spending strictly.
– Use cash envelope method.
– Withdraw Rs. 4,000 and use only that for month.
– No food delivery, no online shopping.
– Carry food from home if possible.
– Take public transport or walk more.
– Every rupee saved helps future plan.

? Start Emergency Fund Slowly

– Once EMI pressure reduces, start saving small.
– Start with Rs. 500 per month.
– Put it in a separate savings account.
– Do not touch for monthly expenses.
– This is your emergency fund.
– Build it till it reaches Rs. 15,000 first.
– Later grow it to Rs. 50,000.
– This protects you from sudden expenses.

? No Mutual Funds or SIPs Now

– Right now, you should not invest in mutual funds.
– You are not yet ready for that step.
– First clear your loan.
– Then save some emergency money.
– After that, SIP can start slowly.
– Don’t follow others blindly.
– Build your base first.

? Avoid Taking Direct Funds Later

– When you start mutual fund SIPs later,
do not go for direct funds.
– Direct funds look cheaper.
– But they give no service or guidance.
– You may choose wrong funds or stop at wrong time.
– Invest only through regular funds with MFD and CFP support.
– It gives proper support during ups and downs.

? Stay Away from Index Funds Always

– Index funds copy market blindly.
– They do not protect in crashes.
– Actively managed funds adjust faster.
– They give better performance long-term.
– Index funds have no human expertise.
– You need a strong planner-backed fund.

? Avoid Real Estate and Annuities

– Do not buy land or flats for investment.
– They need big money and have poor liquidity.
– Also, do not go for annuities.
– They give poor returns and no flexibility.
– Focus on mutual funds later, when ready.

? Build Basic Insurance Cover

– If you don’t have term insurance, don’t buy now.
– Wait till your EMI load reduces.
– But try to get health insurance of Rs. 3–5 lakhs.
– It avoids medical burden later.
– Pick simple policy with low premium.

? Boost Income Wherever Possible

– Try part-time jobs if possible.
– Use evening or weekend hours.
– Look for online skill-based income.
– Tutoring, delivery jobs, freelancing may help.
– Even Rs. 3,000 extra per month makes a difference.
– Use any bonus or gift to repay loan faster.

? Track Everything on Paper

– Write down your income and expenses.
– Use small diary or free mobile app.
– Know how much you spend on food, mobile, transport.
– Cut non-essentials wherever possible.
– Monthly review builds control.

? Follow 3-Phase Strategy

– Phase 1: Clear loans and manage cash flow.
– Phase 2: Start saving monthly and build emergency fund.
– Phase 3: Begin investing through SIP in regular mutual funds.

– Don’t rush between phases.
– Spend minimum 6–8 months per phase.
– Don’t skip steps.
– Each phase builds a solid base.

? Build Discipline First

– Success comes from habits, not income alone.
– Learn to say no to wasteful spending.
– Control emotional buying.
– Set simple goals each month.
– Celebrate small wins like saving Rs. 500.

? Create Basic Safety Net First

– No big moves till loans are cleared.
– No credit card debt.
– No new EMI for TV, phone or furniture.
– Wait for better cash flow first.

? Focus on Financial Literacy Slowly

– Read simple articles on saving and budgeting.
– Watch short videos in Tamil or Hindi.
– Learn about compounding and inflation.
– Don’t follow tips or hot stocks.
– Real wealth grows slow and steady.

? Finally

– You are under pressure now, but not stuck forever.
– Clear personal loan and bike loan first.
– Keep expenses tight and focused.
– Save little by little in emergency fund.
– Then start SIPs in mutual funds.
– Use only regular funds with Certified Financial Planner support.
– Avoid index funds, direct funds, and real estate.
– Stay away from annuities.
– Focus only on your financial freedom.
– Track your money monthly.
– Improve your skills and income slowly.
– You can build wealth step by step.
– It takes time, but it is possible.
– Stay hopeful and stay disciplined.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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