robinlynn1976
New member
Hey folks,
Seeking advice on how to structure my finances better for the times to come. A little background:
I (22M) come from a lower middle class family, dad used to work in a PSU, never traveled to fancy places, never wore fancy clothes, but he and mom together gave me and my sister the best life possible. Good education, and never let us feel that we miss anything from our lives.
He made me study in an institution with very high fees, because he believed that expensive college = good placement. Right into college, I understood that college placement wont help, so I started working hard. By Gods grace, I did 5 very well paying internships in college, and currently work as a Software Engineer at FAANG, and I make almost 1.8L a month post taxes
While this might seem great at the first thought and there seems to be no reason to worry about finances when making this much, that is far from reality.
During COVID lockdown, my dad got hooked to trading (probably FnO, unsure about this). After he retired in 2020, he got some 50L as gratuity.
He lost all the money + whatever savings he had trading them. If this wasn't enough, he took loans from BNPL companies, like Bajaj Finserv, HDFC CC Loans, etc. and lost all of that too. When confronted that he has an addiction, he says "I was just trying to recover my losses, I don't have an addiction".
My parents were devastated post this. Dad had lost almost around 70L by that time. He had to take a loan from my sister to pay the college fees of my last 2 semesters.
Cut to now, I am paying almost 45k every month right around from 2022 June, when all of this came to light to my dad. Back then, I was making 45k a month from my internship, and was somehow surviving living in Bangalore with my savings from my previous internships. Currently I'm doing okay, managing my finances, paying off the loans, and sending money to my parents for day to day activities. The loans currently amount to almost 14.25L. Out of that, me + dad's pension should payoff around 4L of it by next year end (by December 2025), rest 10L (home loan for our flat) will be taken care by me till 2030. My family has made dad realize it and made him quit trading for good, and closed all demat accounts. My mom often calls me and sobs uncontrollably thinking and worrying about all this. My parents will be soon moving out from the company provided quarters to our flat, and I will be bearing the almost 4-5L cost for the interior + furniture.
My expenses per month are as follows:
30k SIP
18k rent + food + groceries
10-15k miscellaneous eating out + clothes etc.
45k sent home for loan payment + expenses
50K liquid savings
Rest remainder, goes to emergency fund (NEED ADVICE WHAT TO DO WITH THIS + How to better manage the above investments/savings)
Currently have saved 4L for Emergency purposes, 4.5L in IDFC account getting 7% interest, and am doing a 30K per month SIP in 3 MFs (2 small cap and 1 mid cap) started in December, amounting to ~1L. Have my employer's stocks worth almost 20L but that will become liquid post 4 years so not counting that.
Need advice, as to how to better manage my money, and how to invest for the future. I have a few dreams, like a good bike (~3.5-4L, in maybe the next 2-3 years, can give up on this if need be), marriage and own house (in ~9-10 years time frame).
Till date, have paid off around 14L of loans + expenses to my father. If my dad didn't make this blunder, I would have a NW of maybe 25L by today, and not a single thing to worry about. But I guess that's how life is, jiske bhagya me jo likha hai
Thanks for your time and reading this.
Seeking advice on how to structure my finances better for the times to come. A little background:
I (22M) come from a lower middle class family, dad used to work in a PSU, never traveled to fancy places, never wore fancy clothes, but he and mom together gave me and my sister the best life possible. Good education, and never let us feel that we miss anything from our lives.
He made me study in an institution with very high fees, because he believed that expensive college = good placement. Right into college, I understood that college placement wont help, so I started working hard. By Gods grace, I did 5 very well paying internships in college, and currently work as a Software Engineer at FAANG, and I make almost 1.8L a month post taxes
While this might seem great at the first thought and there seems to be no reason to worry about finances when making this much, that is far from reality.
During COVID lockdown, my dad got hooked to trading (probably FnO, unsure about this). After he retired in 2020, he got some 50L as gratuity.
He lost all the money + whatever savings he had trading them. If this wasn't enough, he took loans from BNPL companies, like Bajaj Finserv, HDFC CC Loans, etc. and lost all of that too. When confronted that he has an addiction, he says "I was just trying to recover my losses, I don't have an addiction".
My parents were devastated post this. Dad had lost almost around 70L by that time. He had to take a loan from my sister to pay the college fees of my last 2 semesters.
Cut to now, I am paying almost 45k every month right around from 2022 June, when all of this came to light to my dad. Back then, I was making 45k a month from my internship, and was somehow surviving living in Bangalore with my savings from my previous internships. Currently I'm doing okay, managing my finances, paying off the loans, and sending money to my parents for day to day activities. The loans currently amount to almost 14.25L. Out of that, me + dad's pension should payoff around 4L of it by next year end (by December 2025), rest 10L (home loan for our flat) will be taken care by me till 2030. My family has made dad realize it and made him quit trading for good, and closed all demat accounts. My mom often calls me and sobs uncontrollably thinking and worrying about all this. My parents will be soon moving out from the company provided quarters to our flat, and I will be bearing the almost 4-5L cost for the interior + furniture.
My expenses per month are as follows:
30k SIP
18k rent + food + groceries
10-15k miscellaneous eating out + clothes etc.
45k sent home for loan payment + expenses
50K liquid savings
Rest remainder, goes to emergency fund (NEED ADVICE WHAT TO DO WITH THIS + How to better manage the above investments/savings)
Currently have saved 4L for Emergency purposes, 4.5L in IDFC account getting 7% interest, and am doing a 30K per month SIP in 3 MFs (2 small cap and 1 mid cap) started in December, amounting to ~1L. Have my employer's stocks worth almost 20L but that will become liquid post 4 years so not counting that.
Need advice, as to how to better manage my money, and how to invest for the future. I have a few dreams, like a good bike (~3.5-4L, in maybe the next 2-3 years, can give up on this if need be), marriage and own house (in ~9-10 years time frame).
Till date, have paid off around 14L of loans + expenses to my father. If my dad didn't make this blunder, I would have a NW of maybe 25L by today, and not a single thing to worry about. But I guess that's how life is, jiske bhagya me jo likha hai
Thanks for your time and reading this.