Dear sir, My salary is 68000, and I have credit card bills pending on me worth around 60k from 2 different cards. My monthly expenses are like 25k to the family, 20k for credit card emi, around 15k for monthly expense and whatever is left I try to invest in stocks and MFs, The amount differs every month as per the expenses as I'm married and have a kid. I want to start a firm investment strategy with fixed amount every month, kindly help !!

Ans: Your Financial Snapshot

Salary is Rs. 68,000 per month (take?home).

Credit card standing dues are Rs. 60,000 across two cards.

Monthly credit card EMI is around Rs. 20,000.

Family living expenses total Rs. 25,000.

Additional monthly expenses are Rs. 15,000.

You try to invest the leftover amount in stocks and mutual funds.

Investment amount fluctuates monthly based on expenses.

Step 1: Eliminate High?Cost Credit Card Debt

Credit card interest is very high and can spiral over time.

Priority one is to clear the Rs. 60,000 debt first.

Use surplus cash for a month to pay one card entirely.

Then accelerate repayment of the second card within 1–2 months.

Clear debt before starting fixed monthly investments.

This step saves interest, improves cash flow, and boosts peace of mind.

Step 2: Build a Small Emergency Buffer

Even after clearing cards, expenses will be irregular.

You need a small cash buffer to avoid fresh debt.

Aim for Rs. 20,000 to Rs. 30,000 held in easily accessible form.

Use bank savings or a liquid mutual fund for this.

Keep this buffer untouched unless a real emergency arises.

Step 3: Stabilise Monthly Budget

After debt repayment, recalculate your monthly cash flow.

Let’s assume:

Salary: Rs. 68,000

Family living: Rs. 25,000

Personal expenses: Rs. 15,000

Credit EMI: Rs. 20,000 (until fully paid)

Once EMI ends, surplus becomes available.

This helps plan fixed investments easily.

Step 4: Determine Sustainable Monthly Investment Amount

Once credit card EMIs are over, you can invest regularly.

Suppose EMI ends next 2 months.

That frees Rs. 20,000 monthly.

Use Rs. 15,000 of that for investments.

Keep Rs. 5,000 for buffer or build emergency further.

This ensures investments don’t stress your cash flow.

Step 5: Choose the Right Investment Vehicles

Avoid reactive trading with surplus.
Instead, adopt a systematic plan using regular mutual funds. Here’s why:

Do not use index funds.

They mimic the market without active risk defence.

They fall fully in market corrections.

An actively managed fund adjusts allocation during volatility.

Avoid direct mutual fund plans.

They look cheaper due to no distributor fee.

But you miss expert advice, portfolio health checks, rebalancing support.

A regular plan via MFD with CFP support offers ongoing guidance.

Choose actively managed equity mutual funds for growth.

Equity beats inflation over long term.

Actionable diversification and professional management help.

Use hybrid (balanced) funds for stability.

They combine equity and debt to smooth returns.

They give a cushion in downward markets.

Place small amounts in liquid or short?duration debt funds for liquidity and safety.

Good for short?term needs or emergency top?ups.

Better tax efficiency than FDs.

Step 6: Allocate Your Monthly Investment (Post?EMI)

Here is a suggested split for your Rs. 15,000 monthly investment:

Equity Mutual Fund (Regular plan) – Rs. 8,000

Use multi?cap or large+mid cap fund.

Hybrid Balanced Fund (Regular plan) – Rs. 4,000

Provides stability and partial equity returns.

Liquid or Short?Duration Debt Fund – Rs. 2,000

For buffer or recurring liquidity needs.

Small Digital Gold or Cash Reserve – Rs. 1,000

Optional comfort segment for special moments.

This mix balances long?term growth, stability, and liquidity.

Step 7: Starting Systematic Investment Plan (SIP)

Begin SIP of Rs.?8,000 in your selected equity fund.

Start SIP of Rs.?4,000 in hybrid balanced fund.

Start SIP of Rs.?2,000 in a debt fund.

Continue this every month consistently.

Do not skip any month; keep discipline over time.

Step 8: Avoid These Common Mistakes

Don’t buy any new credit or personal loans.

Don’t shift investment in response to market noise.

Don’t try active stock trading.

Don’t invest in ULIPs, annuities, or LIC?endowment plans.

Don’t mix goals in single fund.

Don’t invest in real-estate or physical gold EMI.

Step 9: Build Insurance Safeguards

You should have term insurance that covers family dependency.

Ensure you have health insurance for you and family.

Avoid investment-cum-insurance products.

They are costly and provide low returns.

Use pure term insurance and separate health cover.

Step 10: Monitor and Review Every Six Months

Check current value and fund performance periodically.

Review whether equity portion grew above target; rebalance if needed.

Consider increasing SIP amounts every year if income rises.

If you receive a bonus or increment, top up SIPs then.

A CFP or MFD can help you with rebalancing and portfolio health.

Understanding Tax Rules While Redeeming MF

When you redeem equity funds:

LTCG above Rs. 1.25 lakh taxed at 12.5%

Gains under one year (STCG) taxed at 20%

Debt fund gains are added to your income and taxed per your slab.

So aim to hold equity more than one year.

Use staggered withdrawal to reduce tax.

Step 11: Plan for Future Financial Goals

While building your SIP habit, think ahead:

Kid’s education – start a separate SIP once surplus grows.

Home down-payment – align separate RD or debt fund plan.

Retirement – plan for long-term equity once salary increases.

Upfront medical buffer – continue to build as income increases.

Your current step is stability. Future steps will cover goals.

Step 12: Handling Surplus or Bonus

If you receive bonus or extra income:

Use Rs. 10,000–15,000 to prepay credit or reduce expenses.

Top up equity or hybrid SIPs with any remaining surplus.

You can also create a fixed deposit or debt buffer from part of it.

Step 13: Simplify and Systematise

Link bank account and UPI for SIP auto-debit.

Set calendar reminders for SIP top-ups and portfolio review.

Keep all fund statements in one folder or app.

Ensure nominee details are updated.

Save receipts and documentation for annual review.

Step 14: Gradually Shift from Stocks to Funds

If you are investing in stocks now with surplus:

Stop investing in direct stocks now.

Focus on mutual funds with disciplined approach.

You can keep existing stocks as legacy allocation.

Once they profit reasonably, you may gradually shift to funds.

This avoids market timing risk and brings diversification.

Step 15: Celebrate Financial Milestones

When you clear the credit card debt, mark it as a milestone.

When you complete 6 months of SIPs without fail, reward yourself.

This builds positive habits emotionally.

Your family will also appreciate disciplined investing.

Integrating CFP Support

Working with a Certified Financial Planner offers guidance.

CFP can help pick suitable mutual funds.

CFP will help you rebalance allocation yearly.

They assist in tax-efficient withdrawals.

They also give emotional support during market drops.

Final Insights

Clear credit card debt first.

Build small emergency buffer.

Use fixed monthly SIPs in equity, hybrid, and debt funds.

Avoid index funds, direct plans, ULIPs, annuities.

Use funds only through regular plans with CFP.

Monitor your portfolio every six months.

Plan future financial goals step by step.

Start this journey now.
This will transform your ad?hoc investing into a strong financial foundation.

You deserve a strategy that grows with you and protects your family.

Best Regards,

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