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Balancing IVF Debt and New Baby Expenses: Where Do We Start?

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 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
Asked by Anonymous - Apr 16, 2025Hindi
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We took a loan to cover IVF - it worked, and we have a beautiful baby. But now the expenses have doubled, and we still have 3 lakhs to repay. Diapers, baby care, doctor visits - it's chaos. Do we focus on paying off debt or just survive the baby phase first?

Ans: First of all, congratulations on your baby! That’s a beautiful milestone.
Also, hats off to you both for getting through the IVF phase. Emotionally and financially, that’s not easy.

Let’s now help you tackle this new phase — parenting with a loan and rising expenses — through a clear, structured, and emotionally balanced financial plan.

When You’re Juggling a Baby and a Loan
This phase is chaotic for everyone. You are not doing anything wrong.

Newborns bring joy, love, and higher expenses.

Your Rs 3 lakh loan feels heavier now, but it helped you achieve parenthood.

So don't treat it as a burden. Treat it as an investment with emotional returns.

That said, your next steps must be emotionally calm and financially clear.

First Priority: Emergency Cushion for Baby Phase
Before anything else, make sure you don’t borrow again.

That means:

Keep Rs 30,000 to Rs 50,000 untouched in your savings account.

This is not an investment. This is your “baby survival buffer”.

It is for emergency doctor visits, medicines, or unexpected spends.

Without this, any sudden cost will push you into another loan or card debt.

Only after this buffer is ready, should you accelerate loan repayment.

How to Treat the Rs 3 Lakh IVF Loan
This loan has already given you value: your child.

So now, you handle it strategically:

Don’t panic. Don’t rush to close it too soon if it hurts your monthly flow.

But don’t delay beyond reason either. Emotional loans become financial chains if stretched.

So your goal: finish this loan within 12 to 15 months, without stress.

Set an auto EMI, then add small top-ups every month if you have surplus.

Example: Rs 1,000 extra here, Rs 2,000 extra there. These reduce interest quietly.

Real Expenses Now: Where Can You Adjust?
Baby expenses feel like they doubled everything. But many are flexible.

Let’s break it down:

Diapers – bulk buying or shifting to cloth part-time saves Rs 800–1000/month.

Medicines – ask paediatrician for generics where safe. Big cost saver.

Baby gear – buy second-hand or take from family friends. Babies outgrow fast.

Feeding bottles, toys, clothes – don’t fall for Instagram guilt. Buy what you need.

Maid, cooking help – if you’re spending here, treat it as recovery support. It’s okay.

Your focus should be: reduce wasteful spends, not essential care.

Should You Pay Loan First or Just Survive?
Here’s the Certified Financial Planner answer, in Indian language:

First 6 months: Just survive. Build that Rs 30K–50K buffer.

Then slowly: move to a balanced path. 70% focus on baby. 30% on debt.

By month 7 or 8: Shift to 50-50. That means both debt and baby costs get equal attention.

After 12 months: Prioritise closing debt fully. Start saving for child’s future.

The Emotional Cost of Debt During Parenting
This is real. Many parents feel shame or fear about loans during baby years.

Please don’t.

You did the right thing for your family.

A Rs 3 lakh loan is not failure. It is love in advance.

What matters now is a plan to get stronger every month.

What You Can Start Right Away
Here’s your action checklist, simple and doable:

Keep Rs 30K–50K untouched for emergencies.

Automate the loan EMI. Add Rs 1000–2000 as top-up when possible.

Track your top 5 baby-related monthly spends. See what can reduce 10% without stress.

Review UPI and lifestyle spends monthly. Shift any leftover to an RD.

After 12 months: Plan a SIP of Rs 1,000 for your child’s future.

Final Insights
You are not stuck. You are in a transition.

This is a high-expense year. But it’s also a foundation year.

You built a family. That’s the biggest wealth.

You took a loan. That was wise and courageous.

You are asking these questions now. That shows you’re ready for financial clarity.

So don’t panic. You don’t need to choose baby care or debt.

You can choose a middle path for 12 months.

That’s all it takes to regain full control — and start saving with confidence again.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 28, 2024

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Hi, My age is 34 with 3 year old kid in my family ... Currently out monthly income is 1.20 Lakh per month I own house monthly EMI of 35 K (20 year) loan value is 40 lakh (3 year already passed). I am having monthly SIP of 20 K per month (for last 2 years) prior to this I was doing SIP of 6K since 2019. Health insurance Medical claim Own car but no loan. How i can finish my loan asap and what should by corpus for child education. Retirement plan
Ans: First, I want to say that you’re doing a great job managing your finances. You’ve taken some solid steps, and with a bit more planning, you can achieve your goals.

Current Financial Snapshot

You’re 34 years old with a young family. Your monthly income is Rs 1.20 lakh. You have a home loan with an EMI of Rs 35,000 and a loan value of Rs 40 lakh. You’ve been paying this loan for three years. You have a monthly SIP of Rs 20,000, which you’ve been maintaining for the last two years. Before that, you had a SIP of Rs 6,000 since 2019. You also have health insurance and a car without a loan.

It’s commendable that you have a systematic investment plan (SIP) in place. Your commitment to SIPs over the years shows great discipline. Owning health insurance also shows you are mindful of unforeseen medical expenses. Having no car loan is also a good position to be in financially.

Goals and Challenges

You have two primary goals:

Finish your home loan as soon as possible.

Build a corpus for your child’s education and plan for retirement.

Assessing Your EMI Strategy

Your current home loan EMI is Rs 35,000. Paying off your loan faster will save you interest. One way to do this is by making extra payments towards your principal. Any extra amount you pay will directly reduce your principal, thus reducing the interest over time. You can make a yearly or half-yearly lump-sum payment towards the principal. This will help you finish your loan faster.

Optimizing Your SIP Investments

You are currently investing Rs 20,000 per month in SIPs. SIPs are a great way to build wealth over time. They offer the benefit of rupee cost averaging and the power of compounding. Considering your goal to finish your home loan early, you can temporarily divert a portion of your SIP amount towards making extra payments on your home loan.

Balancing Loan Repayment and SIPs

A balanced approach would be to continue your SIPs but at a reduced amount. For example, if you reduce your SIPs to Rs 15,000 per month and use the extra Rs 5,000 towards your home loan, you can accelerate your loan repayment. Once your home loan is paid off, you can increase your SIPs again.

Child’s Education Corpus

Education costs are rising, and it’s essential to start saving early. Considering your child is three years old, you have about 15 years to build a corpus for higher education. You can start a dedicated SIP for your child’s education. The power of compounding will work in your favor, given the long investment horizon.

Retirement Planning

Planning for retirement is crucial. Since you are 34 years old, you have around 26 years until retirement. You need to ensure that you have a sufficient corpus to maintain your lifestyle post-retirement. Diversify your investments across equity mutual funds, debt funds, and other instruments to balance risk and returns.

Evaluating Current Investments

Review your current SIP portfolio. Ensure that it is diversified across various sectors and types of mutual funds. This will help in mitigating risks and optimizing returns. Avoid putting all your investments in one type of fund. Consider a mix of large-cap, mid-cap, and multi-cap funds.

Health Insurance and Emergency Fund

You already have health insurance, which is excellent. Ensure that the coverage is adequate for your family’s needs. Also, maintain an emergency fund equivalent to at least six months of your expenses. This will help you handle any unexpected financial emergencies without disrupting your investments.

Regular Review and Rebalancing

Regularly review your financial plan and investment portfolio. Rebalance your portfolio at least once a year to ensure it aligns with your goals and risk tolerance. Life circumstances and market conditions change, and so should your financial plan.

Importance of Professional Guidance

While you can manage your finances on your own, having a Certified Financial Planner can provide you with expert guidance and help optimize your financial plan. They can offer personalized advice based on your unique situation and goals.

Financial Discipline and Consistency

Continue with your disciplined approach to saving and investing. Consistency is key to building wealth. Avoid making impulsive financial decisions based on short-term market movements. Stick to your plan and make adjustments as needed based on a thoughtful review.

Creating a Financial Buffer

Building a financial buffer is essential. This buffer can be in the form of a savings account or a liquid fund that you can access easily in times of need. This ensures that you don’t have to disrupt your long-term investments for short-term needs.

Benefits of Actively Managed Funds

Actively managed funds can potentially offer higher returns compared to index funds, as fund managers actively select stocks to beat the market. However, they come with higher expense ratios. Make sure to weigh the benefits against the costs and choose funds with a good track record.

Disadvantages of Direct Funds

Direct funds have lower expense ratios, but they require more active management and understanding of the market. Investing through a Mutual Fund Distributor (MFD) with CFP credentials can provide you with valuable advice and help you navigate the complexities of the market.

Final Insights

Your financial journey is unique, and you’re already on the right path. By making a few strategic adjustments, you can achieve your goals more efficiently. Keep reviewing your financial plan regularly and stay committed to your goals. Remember, financial planning is a marathon, not a sprint.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Asked by Anonymous - Jul 01, 2024Hindi
Money
Hi Sir, Im 33 years old with monthly salary 1.9L Have a baby of 5 months old. I invested in stick 2L and MF 6L(sip 17k) PPF 4.5L (10k sip)and NPS 5k sip. ESPP 3 lakhs. Having a 1cr term life cover .10k monthly gold scheme Recently purchased an apartment worth 90L and paying 70k for 15years and already completed 1 year EMI. I want to know what approach it should be now in terms of my child education marriage and corpus. How to deal with loan. What strategies I need to follow
Ans: You've taken several smart financial steps already, and that's commendable. With your growing family, it's important to have a clear, strategic plan for the future. Let's discuss how you can approach your child's education and marriage, your loan, and your overall financial corpus.

Understanding Your Current Financial Situation
You have a healthy monthly income of Rs. 1.9 lakhs. Your investments include:

Stocks: Rs. 2 lakhs

Mutual Funds (MF): Rs. 6 lakhs with a SIP of Rs. 17,000

PPF: Rs. 4.5 lakhs with a SIP of Rs. 10,000

NPS: Rs. 5,000 SIP

ESPP: Rs. 3 lakhs

Gold scheme: Rs. 10,000 monthly

Term life cover of Rs. 1 crore

Apartment worth Rs. 90 lakhs with a monthly EMI of Rs. 70,000 for 15 years

You’re in a solid position to build a secure future for your family. Let’s break down the next steps for your financial goals.

Child's Education and Marriage Planning
1. Education Planning

Education costs are rising, and it's wise to start early. Begin by estimating the future cost of your child's education. Consider factors like inflation and the type of education (domestic or abroad).

Action Steps:

Systematic Investment Plan (SIP): Continue your SIPs in diversified mutual funds. They provide potential for higher returns over the long term.

Dedicated Fund: Create a separate investment plan solely for your child’s education. This could include a mix of equity and debt mutual funds for balanced growth and safety.

Review Annually: Reassess your investments and goals every year. Make adjustments based on market performance and changes in your child’s educational aspirations.

2. Marriage Planning

Marriage expenses can be significant. Like education, it’s beneficial to start saving early.

Action Steps:

Goal-Based Investments: Allocate specific investments for marriage expenses. This could include equity mutual funds for growth and debt funds for stability.

Long-Term SIPs: Continue SIPs in equity mutual funds for long-term growth. Consider adding a few conservative funds to balance the portfolio.

Gold Investments: Your existing gold scheme can be helpful for marriage expenses. Gold is a traditional investment for such occasions in India.

Loan Management
Your home loan is a significant financial commitment. Managing it effectively can free up resources for other goals.

1. Regular EMI Payments

Make your EMI payments on time. It’s the best way to avoid penalties and reduce your principal faster.

2. Prepayment Strategy

Whenever you get a bonus or extra income, consider making a partial prepayment towards your loan. This reduces the principal and overall interest burden.

3. Loan Reassessment

Periodically review your home loan terms. If interest rates drop, explore the possibility of refinancing for better terms.

Building Your Financial Corpus
A strong financial corpus provides security and supports long-term goals. Here's how to build and manage it:

1. Diversified Investments

Diversify across asset classes to balance risk and return. Your current investments in mutual funds, PPF, NPS, and stocks are a good start.

Action Steps:

Equity Mutual Funds: Continue SIPs in diversified equity mutual funds. They offer growth potential and help beat inflation.

Debt Mutual Funds: Add debt funds for stability and regular income. They are less volatile than equities.

PPF and NPS: Keep investing in PPF and NPS. They are safe, long-term investments with tax benefits.

2. Emergency Fund

Maintain an emergency fund covering 6-12 months of expenses. This ensures liquidity during unforeseen situations.

3. Regular Monitoring

Review your investments regularly. Track performance and make necessary adjustments to stay on course.

Detailed Look at Mutual Funds
Advantages of Mutual Funds

Diversification: Spread risk across various securities. This minimizes the impact of poor performance by any single security.

Professional Management: Fund managers with expertise handle investments, saving you time and effort.

Liquidity: Mutual funds are relatively liquid. You can redeem your units anytime, subject to exit loads and taxes.

Flexibility: Choose from various fund types based on your risk tolerance and goals – equity, debt, hybrid, etc.

Categories of Mutual Funds

Equity Funds: Invest primarily in stocks. Suitable for long-term goals and higher risk tolerance.

Debt Funds: Invest in fixed-income securities. Suitable for conservative investors seeking stable returns.

Hybrid Funds: Mix of equity and debt. Balances growth and stability.

Risk and Compounding

Mutual funds come with market risk. However, with a long-term horizon, the power of compounding works in your favor, growing your investments exponentially over time.

Strategies for Financial Goals
1. Systematic Approach

Adopt a systematic approach to investing. Regular, disciplined investments like SIPs help in rupee cost averaging and harness the power of compounding.

2. Clear Goals

Define clear, specific financial goals. This provides direction and helps in choosing the right investment vehicles.

3. Risk Management

Balance risk with a diversified portfolio. Regularly reassess your risk tolerance and adjust your portfolio accordingly.

Final Insights
Your financial journey is commendable. With strategic planning, you can secure your child’s future and build a robust financial corpus. Focus on goal-based investing, maintaining diversification, and regularly reviewing your portfolio. These steps will ensure a balanced approach to achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Kanchan

Kanchan Rai  |581 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 28, 2024

Asked by Anonymous - Nov 20, 2024Hindi
Listen
Relationship
Hi I'm married women my husband is very loving we are now married for 4years we don't have children yet as I'm running 38 of my age and he is in his 41. We got arranged marriage post our marriage he worked for an year in a company were he used to work for last 10years due to some issues he got fired however later that he got few opportunity and worked in different companies for more or less 6months now he is jobless he is not taking things seriously but he wants to have children on this topic I said I won't be the alone person to bear the medical expenses I want you also to contribute the same I'm working in reputed MNC and he wants me to change my job as I work in shifts I'm getting paid handsome amount my concern is shall I think of making children as the inflation is high and expenses are increasing like thing. Some time I feel why I'm with this failure person I feels to get apart but he loves me alot need advice should I continue the relationship with him or get parted
Ans: When it comes to having children, your hesitation makes sense. Bringing a child into the world is a profound decision that requires emotional readiness and practical planning. If you’re feeling unsupported or uncertain about your husband’s ability to contribute—financially, emotionally, or practically—it’s wise to pause and reflect. Your decision to delay this step shows your self-awareness and your commitment to creating a stable and nurturing environment for a child. That’s admirable.

Your concern about his career trajectory is another important factor. A marriage thrives on mutual effort, and it’s reasonable to expect your partner to take responsibility for his own growth and stability. However, it’s also worth exploring why he’s been unable to sustain a job. Is it a matter of confidence, market conditions, or something deeper like a lack of motivation or direction? If he hasn’t been taking things seriously, as you’ve mentioned, it’s important to have a frank and compassionate conversation about how this is impacting both of you.

At the same time, his love for you seems genuine, and it’s important to recognize that. His suggestion for you to change your job might stem from a place of care, possibly concern for your health or the toll of shift work. However, if your current job provides financial stability and satisfaction, you need to weigh that against his concerns. Ask yourself: is this request aligned with what’s best for you both, or is it coming from his own discomfort with his current situation?

As you navigate these emotions, take some time to reflect on your core needs and values. What does partnership mean to you? Are your current frustrations a temporary phase, or are they reflective of deeper, long-term patterns in the relationship? It’s also worth considering whether he is open to making real changes. Has he shown willingness to take responsibility for his career and future? Does he listen to your concerns and actively work toward addressing them?

It’s okay to have moments where you question why you’re in this relationship—doubt doesn’t mean failure. It means you care enough to want something better for both of you. If you feel the love is worth fighting for, then it’s essential to have honest, open conversations with your husband. Express your feelings without blame and seek to understand his perspective as well. Couples counseling can also be a valuable tool to help you both navigate these challenges together and find a path forward.

However, if you find that the emotional and practical gaps in the relationship persist despite your efforts, it’s okay to ask yourself whether this partnership is meeting your needs. You deserve to feel supported, valued, and secure in your marriage. Whatever decision you make, let it come from a place of self-respect and a desire to build the life you truly want. You’re not alone in this, and reaching out for guidance shows how deeply you care about making the best decision for your future.

..Read more

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Study Abroad Expert - Answered on Apr 24, 2025

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Hello Sir. My Son has got offer from follwing University.. 1)University of Padua - Italy (BSC - Information Technology) - 3 years Course 2)University Of Strathclyde - UK (BSC - HON Computer Science) - 4 yrs 3)Caledonian University of Glassgow - UK (Bsc Hons Computing). 4 yrs 4) National College of Ireland (BSC - HON Computer Science Engg) - 4 yrs We are confused to select the university / country
Ans: Hello ASAD,

First and foremost, thank you for getting in touch with us. I am glad to know that your son has received offers from the above mentioned universities. As an answer to your query, I would like to tell you that a prestigious and budget-friendly education in a lively Italian environment, along with a reputable academic standing and lower living expenses is offered at the University of Padua; its 3-year BSC - Information Technology may also provide a quicker path to higher education or jobs. Coming to the University of Strathclyde, top-ranked in the UK for Computer Science, this university is renowned for its linkages with industry, research possibilities, as well as outstanding student services, offering robust employment opportunities. Next, situated in a student-centric city with budget-friendly costs in comparison to other cities in the UK, Glasgow Caledonian University focuses on hands-on, industry-focused learning with impressive graduate employment rates. The National College of Ireland provides a small, contemporary campus in Dublin with robust ties with the technology sector, internships, and employment prospects in one of Europe’s key technology hotspots.

Lastly, deciding which university and country to select depends on your son’s professional objectives, ideal learning atmosphere, budget, as well as plans for the future- whether he prefers a shorter course term, robust industrial connections, global exposure, or residing in a specific nation.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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