Can I Afford a House Loan and a Car Loan?

Ans: I understand your desire to reach a goal of Rs 3 crore by the age of 50. You’re on the right track by investing regularly. Let’s assess your current financial situation and develop a strategy to achieve your goal.

Assessing Your Current Financial Situation
To create an effective plan, we first need to review your current financial commitments and investments.

Income and Expenses
Monthly Income: Rs 1.20 lakh
Fixed Expenses: Rs 40,000 per month
Existing Investments
SIP: Rs 13,000 per month
PPF: Rs 5,000 per month
NPS: Rs 4,000 per month
Recurring Deposit: Rs 4,000 per month
FD: Rs 1 lakh
Liabilities
Car Loan: Rs 11,000 per month
LIC Premium: Rs 43,000 annually
Calculating Available Funds
After accounting for your fixed expenses and loan repayment, let’s determine the available funds for additional investments.

Total Income: Rs 1.20 lakh
Total Fixed Expenses and Loan: Rs 40,000 + Rs 11,000 = Rs 51,000
Remaining Amount: Rs 1,20,000 - Rs 51,000 = Rs 69,000
You currently invest Rs 26,000 monthly (SIP + PPF + NPS + RD). This leaves you with Rs 43,000 for potential additional investments.

Evaluating Your Investment Portfolio
Your current investments are diversified across different instruments. Let’s analyze each one to optimize your portfolio.

Systematic Investment Plans (SIP)
Growth Potential: SIPs in mutual funds are good for long-term wealth creation.
Flexibility: Allows for periodic review and adjustment based on performance.
Recommendation: Consider increasing your SIP allocation to leverage the power of compounding.
Public Provident Fund (PPF)
Security: PPF is a safe investment with decent returns and tax benefits.
Lock-in Period: Has a 15-year lock-in period but offers partial withdrawals after 7 years.
Recommendation: Continue with PPF for its stability and tax advantages.
National Pension System (NPS)
Retirement Corpus: NPS is designed to build a retirement corpus with tax benefits.
Equity Exposure: Offers equity exposure for higher returns but has restrictions on withdrawals.
Recommendation: Continue NPS for retirement planning, but do not solely rely on it for your Rs 3 crore goal.
Recurring Deposit (RD)
Low Risk: RD offers low-risk returns but generally lower than equity investments.
Short-term Goal: Useful for short-term savings but not ideal for long-term wealth creation.
Recommendation: Evaluate the need for RD; consider redirecting funds to higher-return investments.
Optimizing Your Investment Strategy
To reach Rs 3 crore in 15 years, a well-structured investment strategy is essential.

Increasing SIP Contributions
Aggressive Growth: Increasing SIP contributions in equity mutual funds can help achieve higher returns.
Monthly Contribution: Consider increasing your SIP by an additional Rs 10,000 to Rs 15,000 per month.
Review Regularly: Monitor the performance of your SIPs and adjust as needed to stay on track.
Diversifying Investments
Equity Mutual Funds: Allocate a higher portion of your investments to equity mutual funds for growth.
Debt Funds: Maintain a portion in debt funds for stability and risk management.
Balanced Funds: Consider balanced or hybrid funds for a mix of growth and stability.
Utilizing Lump Sum Investments
FD Utilization: Use the Rs 1 lakh FD for emergencies or short-term needs; avoid premature withdrawal.
Lump Sum in Mutual Funds: Invest any additional savings or bonuses in mutual funds to boost your corpus.
Planning for Specific Goals
Your primary goal is to accumulate Rs 3 crore by the age of 50. Let’s break down the approach:

Goal-Based Planning
Define Goals: Clearly define milestones such as education, buying a home, or retirement.
Allocate Funds: Allocate investments based on the time horizon and risk appetite for each goal.
Track Progress: Regularly track progress towards each goal and make adjustments as necessary.
Child's Education
Separate Corpus: Create a separate corpus for your child’s education using child-specific mutual funds or education plans.
Time Horizon: Align the investment horizon with the expected timeline for education expenses.
Retirement Planning
NPS and PPF: Continue contributions to NPS and PPF for retirement security.
Equity Exposure: Increase equity exposure to achieve higher returns over the long term.
Emergency Fund: Maintain an emergency fund to cover unforeseen expenses without disturbing your investment plan.
Tax Planning and Savings
Effective tax planning can enhance your savings and investment returns.

Utilizing Tax Benefits
Section 80C: Utilize the Rs 1.5 lakh limit under Section 80C through PPF, NPS, and ELSS.
Section 80D: Avail tax benefits on health insurance premiums under Section 80D.
Tax-Free Returns: Prefer investments that offer tax-free returns to maximize post-tax income.
Regular Reviews
Annual Review: Conduct an annual review of your investments and tax planning.
Rebalancing Portfolio: Rebalance your portfolio to maintain the desired asset allocation and risk level.
Financial Discipline and Monitoring
Maintaining financial discipline is crucial to achieving your long-term goals.

Budgeting
Track Expenses: Keep a detailed record of your monthly expenses to identify areas of saving.
Reduce Unnecessary Spending: Cut down on discretionary spending to increase your investment potential.
Emergency Fund
Maintain Liquidity: Keep 6-12 months of expenses in a liquid fund to handle emergencies.
Avoid Debt: Use the emergency fund instead of incurring high-interest debt for unexpected expenses.
Final Insights
Reaching a goal of Rs 3 crore by the age of 50 is achievable with a disciplined and strategic approach. Increase your SIP contributions, diversify your portfolio, and regularly review and adjust your investments. Utilize tax benefits and maintain financial discipline to stay on track. With a focused and proactive strategy, you can achieve your financial goals and secure your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I understand you're looking to manage your finances better. You're 28, working in an MNC, with a salary of Rs 50,000. You have Rs 4 lakhs in savings. Your monthly expenses are Rs 15,000, and you send Rs 10,000 home. Let's work together to create a solid financial plan for you.

Monthly Budget Analysis
First, let's break down your monthly income and expenses:

Monthly Income: Rs 50,000
Monthly Expenses: Rs 15,000
Amount Sent Home: Rs 10,000
This leaves you with Rs 25,000 every month. You have been managing your expenses well. Let's see how we can make the most of your savings and surplus income.

Building an Emergency Fund
An emergency fund is essential. It covers unexpected expenses like medical emergencies or job loss. Aim to save at least 3-6 months of your expenses.

Monthly Expenses + Amount Sent Home: Rs 25,000
Emergency Fund Target: Rs 75,000 - Rs 1,50,000
Since you already have Rs 4 lakhs in savings, allocate Rs 1 lakh for your emergency fund. Keep this money in a liquid fund or a high-interest savings account for easy access.

Managing and Growing Your Savings
With Rs 3 lakhs left after setting aside your emergency fund, let's look at some options for growing your savings. Diversifying your investments can help in achieving your financial goals.

Fixed Deposits and Recurring Deposits
Fixed Deposits (FDs) and Recurring Deposits (RDs) are safe investment options with fixed returns. They are ideal for short-term goals.

FD: Invest Rs 1 lakh in a fixed deposit for a tenure of 1-2 years. This ensures safety and liquidity.
RD: Start a recurring deposit with Rs 5,000 per month. It helps in disciplined saving and earns decent interest.
Mutual Funds
Mutual funds offer higher returns than traditional savings options. Consider a mix of equity and debt mutual funds for balanced growth and stability.

Equity Mutual Funds: Allocate Rs 1 lakh to equity mutual funds for long-term growth. Choose funds with a good track record.
Debt Mutual Funds: Invest Rs 50,000 in debt mutual funds for short to medium-term goals. They are less risky than equity funds.
Systematic Investment Plan (SIP)
SIPs are a great way to invest regularly in mutual funds. They average out market volatility and build wealth over time.

SIP Allocation: Start a SIP of Rs 5,000 per month in a balanced mutual fund. This ensures consistent investment and capital appreciation.
Insurance: Protecting Your Finances
Having adequate insurance is crucial to protect against unforeseen events. Ensure you have both health and life insurance.

Health Insurance
Health insurance covers medical expenses, reducing financial strain during health emergencies.

Coverage Amount: Opt for a health insurance policy with a coverage of Rs 5 lakhs. It provides a good safety net.
Family Coverage: If possible, include your parents in the policy. This ensures they are also covered in case of medical emergencies.
Life Insurance
Life insurance secures your family's financial future in case of your untimely demise.

Term Insurance: Choose a term insurance policy with coverage of Rs 50 lakhs. Term insurance is affordable and provides high coverage.
Avoid ULIPs: Avoid Unit Linked Insurance Plans (ULIPs) as they mix investment and insurance, often leading to higher costs and lower returns.
Tax Planning: Maximizing Your Savings
Effective tax planning helps in maximizing your savings and investments. Utilize available tax deductions and exemptions.

Section 80C Deductions
Investments under Section 80C help in reducing taxable income. The maximum limit is Rs 1.5 lakhs.

Public Provident Fund (PPF): Invest Rs 50,000 in PPF. It offers tax-free returns and long-term growth.
ELSS Funds: Allocate Rs 50,000 in Equity Linked Savings Scheme (ELSS) mutual funds. They provide tax benefits and potential high returns.
Employee Provident Fund (EPF): Your EPF contributions are also eligible for Section 80C deductions. Ensure to check your EPF balance and contributions.
Health Insurance Premiums
Premiums paid for health insurance are eligible for tax deductions under Section 80D.

Self and Family: Claim up to Rs 25,000 for premiums paid for yourself, spouse, and children.
Parents: If you pay for your parents' health insurance, claim an additional Rs 25,000. If they are senior citizens, this limit increases to Rs 50,000.
Financial Goals and Planning
Identify and prioritize your financial goals. This helps in creating a focused and efficient investment plan.

Short-Term Goals
Short-term goals are those you aim to achieve within 1-3 years.

Emergency Fund: As discussed, ensure your emergency fund is well-maintained.
Travel Fund: If you plan to travel, start a dedicated fund. Allocate a part of your savings for this goal.
Medium-Term Goals
Medium-term goals are those you plan to achieve within 3-5 years.

Higher Education: If you plan to pursue higher education, start saving now. Consider education loans if needed.
Buying a Vehicle: If you intend to buy a car or bike, start a dedicated fund. Allocate Rs 1 lakh towards this goal.
Long-Term Goals
Long-term goals are those you plan to achieve in 5+ years.

Retirement Planning: Start saving for retirement early. The power of compounding works best over long periods.
House Purchase: If you plan to buy a house, start saving for the down payment. Allocate Rs 1 lakh towards this goal.
Monitoring and Reviewing Your Financial Plan
Regularly review your financial plan to ensure it stays aligned with your goals. Adjust your investments based on changes in your income, expenses, and financial goals.

Monthly Budget Review
Track your income and expenses every month. Ensure you are sticking to your budget and making necessary adjustments.

Investment Portfolio Review
Review your investment portfolio every six months. Assess the performance of your investments and make changes if needed.

Insurance Policy Review
Review your insurance policies annually. Ensure your coverage is adequate and update your policies as required.

Seeking Professional Advice
Consulting a Certified Financial Planner (CFP) can provide valuable insights and personalized advice. A CFP can help you create a comprehensive financial plan tailored to your needs and goals.

Benefits of Consulting a CFP
Customized Advice: Get advice that matches your unique financial situation and goals.
Holistic Planning: A CFP considers all aspects of your finances, ensuring a well-rounded plan.
Expert Guidance: With their expertise, CFPs help you make informed decisions, optimizing your financial planning.
Final Insights
Managing your finances effectively involves careful planning and disciplined execution. By building an emergency fund, growing your savings through diversified investments, ensuring adequate insurance coverage, and maximizing tax savings, you can achieve financial stability and growth.

Regularly review and adjust your financial plan to stay aligned with your goals. Seek professional advice if needed to ensure your financial strategy is robust and efficient. With these steps, you can secure your financial future and achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I understand managing finances can be a bit overwhelming. You are doing a great job balancing your home loan EMI, household expenses, and life insurance payment. Let's break down your financial situation and explore ways to optimize it for a better future.

Understanding Your Current Financial Situation
Your monthly salary is Rs 55,000, and you have several financial commitments.

Home loan EMI: Rs 26,000
Household expenses: Rs 10,000
Annual life insurance payment: Rs 53,000
This leaves you with Rs 19,000 each month. Your annual life insurance payment translates to roughly Rs 4,417 per month.

Assessing Your Financial Goals
At 30, you likely have various financial goals.

Building an emergency fund
Saving for future expenses, such as children's education or marriage
Planning for retirement
Enjoying life and achieving personal milestones
Let's break down how to achieve these goals step by step.

Building an Emergency Fund
An emergency fund is crucial. It should cover at least six months of your expenses.

Your monthly expenses total Rs 36,000 (EMI, household expenses, and life insurance).

Aim to save Rs 2,16,000 in your emergency fund.

Start by saving a portion of your Rs 19,000 surplus each month.

Optimizing Your Life Insurance
Review your life insurance policy.

Ensure it provides adequate coverage.

Consider whether it’s an investment cum insurance policy, like ULIPs or endowment plans.

These policies often have high costs and low returns.

If so, think about surrendering it and reinvesting in a more efficient mutual fund.

Exploring Mutual Funds
Mutual funds can be a powerful tool for wealth creation.

They offer diversification and professional management.

Let’s explore the types of mutual funds.

Types of Mutual Funds
Equity Funds: Invest in stocks, suitable for long-term goals. Higher returns but more risk.

Debt Funds: Invest in bonds, suitable for short-term goals. Lower returns but safer.

Hybrid Funds: Invest in both stocks and bonds. Balanced risk and return.

Advantages of Mutual Funds
Diversification: Reduces risk by investing in various assets.

Professional Management: Experts handle your investments.

Liquidity: Easily buy and sell mutual fund units.

Systematic Investment Plans (SIPs): Invest small amounts regularly, ensuring disciplined savings.

Power of Compounding
Investing in mutual funds harnesses the power of compounding.

Earnings from your investments generate more earnings.

The earlier you start, the more your money grows over time.

Balancing Risk and Return
Investing always involves some risk.

Understand your risk tolerance before investing.

Equity funds are riskier but can offer higher returns.

Debt funds are safer but with lower returns.

Hybrid funds offer a middle ground.

Systematic Investment Plan (SIP)
SIPs are a disciplined way to invest in mutual funds.

You can start with a small amount.

It helps in averaging out the cost and reduces market volatility impact.

Reviewing Your Budget
Let's review your budget to free up more funds for investment.

Salary: Rs 55,000
Home loan EMI: Rs 26,000
Household expenses: Rs 10,000
Life insurance: Rs 4,417 (monthly equivalent)
This leaves Rs 14,583 each month.

Reducing Household Expenses
Consider reducing household expenses.

Small savings can add up.

Review your monthly spending and identify areas to cut back.

Increasing Income
Look for opportunities to increase your income.

Could be a part-time job, freelancing, or passive income sources.

Regular Financial Review
Regularly review your financial plan.

Make adjustments based on changes in your life circumstances.

Consulting a Certified Financial Planner
Consulting a Certified Financial Planner (CFP) can be beneficial.

They can provide personalized advice and help you navigate complex financial decisions.

Final Insights
Balancing financial commitments and planning for the future can be challenging, but with a strategic approach, it's achievable.

Build an emergency fund, optimize your insurance, explore mutual funds, and review your budget regularly.

Your financial journey is unique, and making informed decisions will help you achieve your goals.

Stay disciplined, be patient, and consult a CFP for tailored advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You and your husband have a combined monthly salary of Rs. 1,30,000. You have a home loan EMI of Rs. 52,000 and an outsourcing income of Rs. 60,000 every three months. You both have health insurance costing Rs. 15,000 annually. Your current investments include a SIP of Rs. 15,000 and a mutual fund investment of Rs. 10,000 monthly.

Financial Goals
Debt Management: Efficiently manage your home loan EMI.
Savings and Investments: Build a secure future and plan for retirement.
Risk Management: Ensure adequate insurance coverage.
Creating a Financial Plan
1. Budget and Expense Management
Track Expenses: Record all income and expenses to understand your cash flow.
Prioritize Spending: Focus on essential expenses and loan repayments.
2. Emergency Fund
Safety Net: Maintain an emergency fund equal to 6-12 months of expenses. This ensures financial security in case of unforeseen events.
Liquid Assets: Keep this fund in liquid assets like savings accounts or short-term deposits for easy access.
3. Increase Investment Contributions
Systematic Investment Plan (SIP): Continue with your current SIP of Rs. 15,000. Increase contributions as your income grows.
Diversify Investments: Allocate funds to a mix of equity, debt, and balanced mutual funds. This will optimize growth and reduce risk.
4. Retirement Planning
Long-Term Savings: Invest in retirement plans like PPF or EPF. These plans offer tax benefits and long-term growth.
Regular Contributions: Make regular contributions to build a substantial retirement corpus.
5. Adequate Insurance Coverage
Health Insurance: Ensure your health insurance coverage is adequate. Consider increasing the sum insured as needed.
Life Insurance: If you don't have life insurance, consider getting a term insurance policy to cover any liabilities and secure your family's future.
Analytical Insights
Managing Home Loan EMI
Prepayments: Whenever possible, make prepayments on your home loan. This reduces the interest burden and loan tenure.
Budget Adjustment: Adjust your budget to prioritize EMI payments and avoid missing any installments.
Investment Strategy
SIPs: SIPs are a disciplined way to invest and can benefit from rupee cost averaging.
Diversification: A diversified portfolio with equity, debt, and balanced funds can provide growth and stability.
Long-Term Horizon: Investing with a long-term horizon allows you to benefit from compounding returns.
Risk Management
Health Insurance: Ensure your health insurance coverage is sufficient for medical emergencies.
Life Insurance: Adequate life insurance is essential to cover liabilities and secure your family's future.
Key Considerations
Risk Tolerance: Assess your risk tolerance to determine the right mix of investments.
Financial Goals: Align your investments with your long-term financial goals, such as retirement and building a corpus.
Regular Review: Review your financial plan annually and adjust investments based on performance and goals.
Final Insights
To achieve financial security and a comfortable retirement, focus on efficiently managing your home loan EMI and increasing your investment contributions. Maintain a balanced portfolio and an emergency fund for financial security. Ensure adequate insurance coverage for health and life. By tracking your budget, making disciplined investments, and regularly reviewing your financial plan, you can build a substantial corpus for a secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You are 37 years old, with over a decade in IT. You are responsible, debt-aware, and family-focused. With home and personal loans, a young child, and limited liquidity, managing your finances now becomes more strategic than ever. Let’s explore your financial journey from a 360-degree view. This will help you repay loans steadily, stay financially secure, and build a better future.

Emergency Fund and Immediate Safety
You are currently maintaining Rs 3 lakhs in cash for emergencies.

This is a good beginning, but not fully sufficient.

Ideally, your emergency fund should be 5 to 6 months of total monthly expenses.

This includes EMIs, home needs, school fees, medical, and unplanned expenses.

Right now, your combined EMI burden is Rs 66,000 monthly.

Your total expenses are probably Rs 90,000–1,00,000 monthly.

So your ideal emergency fund should be Rs 5–6 lakhs.

You can gradually build this in 6 months.

Avoid putting emergency money in savings account.

Instead, use liquid mutual funds or ultra-short debt funds for better returns.

This ensures liquidity and safety without market risk.

Build this fund as priority before any other investment.

Smart Loan Strategy: Personal Loan First, Then Home Loan
You are paying Rs 19,000 per month for personal loan.

This loan will run for the next 6 years.

You are also paying Rs 47,000 as home loan EMI.

Your total EMI burden is Rs 66,000 each month.

Personal loan usually has higher interest than home loan.

So, focus on clearing personal loan first.

If you get bonuses or salary hikes, use them to part-pay this loan.

Once the personal loan ends, you will save Rs 19,000 monthly.

Redirect this amount to home loan prepayment or investments.

Do not increase lifestyle expenses when the personal loan ends.

Prepaying home loan after personal loan saves interest and gives peace of mind.

Avoid missing any EMI, and maintain a healthy credit score.

Use auto-debit to avoid delays in repayment.

Your Home Purchase: Big Step, Now Manage Wisely
You recently used Rs 13 lakhs from your savings to buy a home.

This was a big and bold step.

Ensure you stay within budget now.

Avoid further loans or purchases that increase your EMI.

Track all home-related expenses strictly.

Avoid using credit cards to furnish or improve the home.

Do not fall into the trap of "I own a home, so I can splurge."

Keep your lifestyle in check for next 5–6 years.

This will help reduce stress and improve savings rate.

Plot Valued at Rs 13 Lakhs: Use With Purpose
You own a plot worth Rs 13 lakhs.

You are not using it currently.

Think carefully whether to retain or sell.

If you hold, it may appreciate over the next 10–15 years.

But it does not give regular income.

Also, you are paying high EMIs now.

Selling the plot can allow you to prepay the personal loan fully.

Or you can reduce the home loan EMI burden by a large amount.

Another option is to split the proceeds: use some for loan and rest for investing.

Do not rush into selling the plot.

Evaluate market rates, legal status, and long-term needs.

If you sell, invest the amount wisely in safe and growth-focused products.

Avoid putting this amount into a bank account.

Consult with a Certified Financial Planner before you take this call.

PPF and PF: Solid Foundation, Continue With Discipline
You have Rs 8 lakhs in PPF.

This is an excellent long-term savings tool.

Continue contributing Rs 1.5 lakh per year to get full benefit.

PPF has no tax at withdrawal.

Also, you have Rs 7 lakhs in EPF.

This is also building up steadily through your salary.

Together, these can form your debt side of retirement savings.

Do not touch this amount for any emergency or goal.

Allow them to compound till you retire.

You can increase your VPF contribution gradually once loans reduce.

This helps build more tax-free retirement savings.

Start Goal-Based SIPs Slowly, Grow Over Time
You said you are not currently investing in mutual funds.

This is understandable, since you are focused on EMI.

But over time, you need equity exposure to beat inflation.

Start a small SIP of Rs 3,000–5,000 per month.

You can increase this once personal loan ends.

Later, once your home loan is cleared, SIPs can go up to Rs 25,000–30,000 monthly.

SIP helps you invest monthly in small steps.

Use active mutual funds, not index or direct plans.

Regular plans through a Certified Financial Planner give guidance and review.

Avoid investing in index funds.

They lack human judgement and cannot protect against market fall.

Also, avoid direct plans as they miss expert tracking.

You need professional help to plan exits, rebalance, and avoid poor fund selection.

Choose well-diversified flexi-cap and hybrid funds.

Review them every 6 months with your planner.

Stay invested for minimum 10–15 years.

Do not stop SIPs during market fall.

This discipline builds wealth and helps meet goals.

Planning for Your Child's Future
Your son is 6 years old now.

You need to plan for two goals: higher education and marriage.

Education will need money from age 18 to 24.

Marriage may be needed around age 28.

Start with a SIP of Rs 3,000–5,000 monthly in equity mutual funds.

Later, add lump sum or increase SIP when loans reduce.

You can create a separate folio just for his education.

From age 14, slowly shift to hybrid or debt funds to protect capital.

Marriage planning can remain in equity longer.

Avoid mixing this goal with your retirement savings.

Insurance Protection for the Family
You have not mentioned life or health insurance.

This is a must-have.

Buy term insurance of at least Rs 1 crore immediately.

Premium is low at your age.

Take a separate term plan, not ULIP or endowment.

Avoid LIC or savings-based insurance plans.

Your family depends on your income.

Insurance gives them security if something happens.

Also buy health insurance of at least Rs 10 lakh for family.

This covers major hospitalisation costs.

Even if employer provides it, take a personal plan.

You can also add critical illness rider.

Premiums paid give tax benefit under 80D.

If you already hold ULIP or LIC, consider surrendering them and reinvesting.

Mutual funds give better growth and flexibility.

Future Plan for Wealth Creation
Let’s break down your future plan in simple steps:

For next 6 years, focus on:

Maintaining emergency fund of Rs 5–6 lakhs

Repaying personal loan faster with bonuses or plot proceeds

Starting small SIPs for son and retirement

After 6 years:

Personal loan ends, saving Rs 19,000

Redirect this to mutual fund SIPs and home loan prepayment

By year 10:

Try to clear home loan or reduce tenure

Your total EMI will be zero

You can start investing Rs 66,000+ every month

This builds large wealth for retirement

By age 50:

Have clear separation between education fund and retirement fund

Have insurance, emergency fund, and investments working smoothly

Avoid real estate and focus on liquid, growth-oriented financial assets

Finally
You are doing many things right.

No unnecessary credit.

No impulsive spending.

You invested in a home with your savings.

You have PPF, PF, and some cash buffer.

Now the next steps are simple but important.

Build emergency fund more.

Kill personal loan faster.

Start SIP, however small.

Buy term and health insurance now.

Sell plot only if that helps your loan reduction.

Avoid real estate investment again.

Use mutual funds through Certified Financial Planner.

Do not choose direct or index funds.

Focus on child education goal.

Be disciplined for 10–15 years.

The result will be peaceful life and secure future.

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