My husband is an engineer. He was working in a reputed company for many years. He left the job due to over work load and wanted to explore other work options or entrepreneurship. So he took a gap of 3 years. In his gap he was not able to do any business bcoz all the business ideas either had too much of hassle or required lot of investment, so, he learned trading in NSE he earned average income with it, enough to run the house. After 3 years of gap he managed to land a job again in a reputed company but he again says that work load is high and wishes to leave and get back to trading. I am teacher with an average salary. We have a 10 year old daughter. Kindly guide what can I do in this situation? How can I make him understand that he needs to work and trading is not a reliable source of income.

Ans:

Dear PS,

Typical nuclear family with very little family support relies solely on the mother being the caregiver and this can result in a lot of frustrations. Understood!

But what exactly are you trying to do fighting the situation knowing that things might be the same for a few years down the line till the children grow a little older? Are you planning on being frustrated for all these years?

Also, someone needs to give your husband a talk on these gender specific remarks and pushing the job of the home to you.

Maybe he didn’t mean it the way it sounded, but well…

In the digital world, there is enough and more to do to use the skills that a person has. So why not explore, a work-from-home part time option?

Depending on what your expertise is and the time that you can give to the work from home option, why don’t you focus on searching for this?

This will require an amazing time management and organization skills on your part, so you are able to give it at least 3-4 hours a day.

This will not only keep you occupied and financially stronger, it will also give you a sense of direction and purpose which is what is currently lacking.

Also, if you have an option of a ‘nanny’ for even two hours during the day when the children can be kept busy, you can even have some time for yourself which will re-energize you.

Caring for two small children is no mean feat and make sure when you discuss the work-from-home option (If you choose this), with your husband, you emphasize how important it is for you along with managing the home.

The commitment ‘to do something for yourself’ will be the focus of your discussion and please do something before your frustrations start seeping out and get onto the kids which might eventually happen.

First, be happy yourself to nurture your home and family.

Step Up…All the best!

Ans: Dear Anonymous,
Clearly your son has gotten used to all the comforts at home. What is the necessity to do anything?
Also, I suspect that writing one exam or the other is a way of escaping from what he truly wants to do in life. He is unclear and afraid to face what he might want and afraid that he might fail. This fear of failure will simply make him write one exam after the other in the hope that he does not have to decide what he needs to do.
Kindly take him to a Career Counselor who can evaluate his strength areas and suggest an academic course that is suitable for him. After which seek an appointment with a professional who can streamline his thinking and put him on a goal-focused path. This might help him.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ans: Current Financial Situation Analysis
Let's assess your current financial situation and explore potential solutions to manage it better.

Income Sources:

Your husband's pension: Rs 4,000
Your salary: Rs 50,000
Major Expenses:

Children's education
Household expenses
Housing costs
It seems that your combined income is Rs 54,000 per month. However, managing with this amount, given your expenses, is challenging.

Immediate Financial Management Steps
Budgeting:

Create a detailed budget. Include all expenses: education, groceries, utilities, and housing.
Track spending and identify areas to cut costs.
Emergency Fund:

Maintain an emergency fund. It should cover at least 3-6 months of expenses.
If you don’t have one, start building it slowly by saving a small amount each month.
Debt Management:

Prioritize paying off high-interest debts first.
Avoid taking on new debt if possible.
Increasing Income
Part-Time Jobs:

Your husband can explore part-time or freelance work. Options include consulting, tutoring, or clerical work.
Websites like Freelancer, Upwork, or local classifieds can offer opportunities.
Skill Development:

Invest in courses or training programs to enhance skills.
This can open up new job opportunities with better pay.
Utilize Assets:

If you have assets like property or gold, consider renting out space or selling non-essential items.
Education Planning
Scholarships and Grants:

Look for scholarships and grants for your children’s education. Many organizations offer financial aid based on merit or need.
Research online or consult school advisors for available options.
Education Loans:

Consider taking education loans if necessary. Choose options with favorable interest rates and repayment terms.
Investment Strategy
Mutual Funds:

Invest in mutual funds through a Certified Financial Planner. They provide professional management and diversify risk.
Opt for regular funds rather than direct funds. Regular funds offer professional advice and support from a CFP.
Avoid Real Estate Investment:

Given your current financial situation, avoid investing in real estate. It requires significant capital and is not liquid.
Actively Managed Funds:

Prefer actively managed funds over index funds. Actively managed funds have the potential for higher returns as they are professionally managed to outperform the market.
Long-Term Planning
Retirement Planning:

Ensure you are saving for retirement. Invest in options like PPF or NPS.
Consult a Certified Financial Planner to create a retirement plan tailored to your needs.
Insurance:

Ensure you have adequate life and health insurance coverage.
It protects against unforeseen circumstances and reduces financial burden during emergencies.
Final Insights
Managing your current economic situation requires careful planning and disciplined financial management.

Focus on budgeting, increasing income, and making informed investment choices. Seek scholarships for education and invest in mutual funds with professional guidance.

Your husband can explore part-time job opportunities to supplement the household income.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Current Financial Overview
Income: Rs. 1.3 lakh per month.
Assets:
Rs. 10 lakh in equity.
Rs. 10 lakh in mutual funds.
Rs. 2.5 lakh in PPF.
Rs. 8 lakh in physical gold.
Shop valued at Rs. 50 lakh (Rs. 14,000 per month in rent).
Rs. 15 lakh in EPF.
Rs. 5 lakh in gratuity.
Rs. 12 lakh in liquid cash.
Own house valued at Rs. 1.5 crore.
Liabilities: No liabilities mentioned.
Current Monthly Expense: Rs. 50,000.
Future Plans: Your son wants to pursue engineering and potentially study abroad for his master’s degree.
Evaluating Your Desire to Quit Your Job
Current Situation: Your job requires you to travel 250 km daily, leading to frustration. You have a strong interest in technical services.

Financial Impact: Quitting your job will reduce your monthly income. To replace this income, you will need to generate income from your investments.

Mental Well-being: Pursuing a career in something you love is important. Transitioning to a technical service-based career could offer you happiness and peace of mind.

Immediate Income Generation Options
Shop Rental Income: You already receive Rs. 14,000 monthly. This can be a stable source of income, but it falls short of your Rs. 30,000 goal.

Systematic Withdrawal Plan (SWP):

You could invest part of your liquid assets in mutual funds and opt for an SWP.
SWP allows you to withdraw a fixed amount monthly, offering steady cash flow.
Investing Rs. 50 lakh in mutual funds via SWP could generate around Rs. 30,000 per month.
Long-term Investment Strategy
Mutual Funds:

Continue your investments in mutual funds for long-term growth.
You have Rs. 10 lakh in mutual funds already. Consider adding more if your risk appetite allows.
Invest in a mix of equity and hybrid funds to balance growth and stability.
Public Provident Fund (PPF):

Your PPF account holds Rs. 2.5 lakh. Continue contributing to it as it offers tax-free returns and is a safe long-term investment.
Equity Investments:

Rs. 10 lakh in equity can potentially grow significantly over 10-15 years.
This will support your long-term goals, especially for your son's education.
Gold Investments:

Gold can act as a hedge against inflation but doesn’t generate regular income.
Consider holding onto it as a safety net but not relying on it for income.
Emergency Fund:

Rs. 12 lakh in liquid cash serves as your emergency fund. Maintain this fund to cover unforeseen expenses.
Future Planning for Your Son’s Education
Abroad Education: If your son aims to study abroad for his master’s, you’ll need significant funds.

Start earmarking investments specifically for his education.
Consider creating a separate mutual fund portfolio for this purpose.
Technical Education for Yourself:

Since you have an interest in technical services, consider investing in courses or certifications.
This investment in yourself can lead to a new income stream.
Contingency Planning
Health and Insurance:

Ensure you have adequate health insurance coverage for your family.
Consider getting term insurance to protect your family’s financial future.
Retirement Planning:

Your EPF, gratuity, and PPF will support you in retirement.
Continue contributing to these to ensure a comfortable post-retirement life.
Assessing the Feasibility of Quitting Your Job
Income Replacement: With the SWP strategy and rental income, you could achieve your Rs. 30,000 monthly income goal.

Pursuing Passion: Transitioning to a technical service career might initially reduce your income but could lead to long-term satisfaction.

Final Insights
Balanced Approach: Continue your current job while gradually building your technical skills and exploring new opportunities.

Investment Strategy: Use your assets to create multiple income streams. This will give you the financial freedom to make a career change.

Long-term Focus: Keep an eye on your son’s education and retirement needs. Your investments should cater to these long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in