cantplayalick
New member
@amazing_henry I think it's fairly uncommon. OP surely would have other sources of emergency funds because I think most people maintain (or atleast are advised to maintain) 3 months of salary as funds in bank.
Milestone Achieved: 31M - 1 Cr Net Worth!
- Thread starter juanna
- Start date
@cantplayalick Yes, I do have an Emergency Fund of 12 Lakh with my wife.
highlyblessed
New member
@amazing_henry It actually is, few people believe in all investing (including me)
stratocaster
New member
@amazing_henry Anyone who keeps money in the bank is an idiot
xmudpuddle
New member
@juanna Congrats on achieving the 1 C mark.
Good to see that you figured out your limits and have a clarity on where not to invest.
Some suggestions
1. Go aggressive on pre-paying your home loan. Pay additional emis now to bring down your total repayment interest. Right now your emi is basically interest. Early prepayments will also help reduce your overall tenure.
2. Revisit your MF portfolio, 3 out of 4 funds target large caps. Managed large cap funds have generally not beaten the index.
3. Create a term insurance ladder. By laddering I mean you gradually scale up your cover to 10X your earnings, based on risk and your dependant needs buying in units of 1 or 2 cr per policy so that premiums don't mess up cash flows. To cut your premiums, you can take the cover for a shorter time frame like upto age 70 instead of 85 years in most offers.
Enter your term plans now so that your premiums are lower. Your savings plus insurance should add up to your planned debt free retirement corpus.
The next 5 to 10 years may feel tight due to cash outflows, but things will ease up from then.
Plan for a contingency of buying another home in 5-10 years, you may find your current place small and need for more space. My savings got wiped out when I decided to buy something bigger.
Good to see that you figured out your limits and have a clarity on where not to invest.
Some suggestions
1. Go aggressive on pre-paying your home loan. Pay additional emis now to bring down your total repayment interest. Right now your emi is basically interest. Early prepayments will also help reduce your overall tenure.
2. Revisit your MF portfolio, 3 out of 4 funds target large caps. Managed large cap funds have generally not beaten the index.
3. Create a term insurance ladder. By laddering I mean you gradually scale up your cover to 10X your earnings, based on risk and your dependant needs buying in units of 1 or 2 cr per policy so that premiums don't mess up cash flows. To cut your premiums, you can take the cover for a shorter time frame like upto age 70 instead of 85 years in most offers.
Enter your term plans now so that your premiums are lower. Your savings plus insurance should add up to your planned debt free retirement corpus.
The next 5 to 10 years may feel tight due to cash outflows, but things will ease up from then.
Plan for a contingency of buying another home in 5-10 years, you may find your current place small and need for more space. My savings got wiped out when I decided to buy something bigger.
@xmudpuddle Thank you for writing such a detailed reply.
- Wife and I have a plan to close the home loan as soon as possible. We’ll be deploying our bonus in prepaying the Home Loan.
- I should definitely do that.
- I’ll definitely look into it.
ziggizoggi
New member
@juanna One question. You have 1 cr corpus currently (in MF, EPF and stocks). How much of this are you breaking for home loan down-payment? Also, if you alone would have to take home loan, how much loan amount would you go for? Additionally, what percentage of monthly salary would you pay in home loan emi? Would you prefer to prepay fast and close loan first or keep it running without breaking your monthly investment cycle?
Apologies if too many questions. I'm in similar situation and planning home loan amount (albeit with not so great investment) and would love to know your thoughts
Apologies if too many questions. I'm in similar situation and planning home loan amount (albeit with not so great investment) and would love to know your thoughts
@ziggizoggi
- I haven’t included any of home loan down or pre-payment in my current net worth.
- That’s a tricky question. TBH, If I were to be a sole breadwinner for the family I would have delayed purchasing Home by at least 3-4 years.
- 23% of our combined take home monthly salary.
- We’re planning to close our home loan early while simultaneously not keeping our investments at hold. We plan to use our bonuses and monthly saving for this purpose. We don’t have any plan ( as of now) to touch our investments.
@xmudpuddle Can you recommend any term insurance?
xmudpuddle
New member
@russellm I am not a financial advisor, so no recommendations from me. Shop around for a company with low premiums and a good claims settlement record. Also play around with duration of policy and payment term to work out the premium and coverage that works out best for you.
Remember this is supposed to cover your dependants in case something happens to you. So don't look at it as an investment that will give you returns.
Split your total amount into separate policies of 1 to 2 cr. This will give you flexibility wrt payments during a tough financial time, when you may not be able to make every payment.
Remember this is supposed to cover your dependants in case something happens to you. So don't look at it as an investment that will give you returns.
Split your total amount into separate policies of 1 to 2 cr. This will give you flexibility wrt payments during a tough financial time, when you may not be able to make every payment.
vijayadass
New member
@vijayadass RemindMe! -2 days
@juanna Congratulations to you!
I’m a 24M and have just finished my MBBS, to start earning by the end of march 2025. Though i hate our education system for not teaching us about anything like taxes and investments, but seeing my father’s bad habit of not planning things financially has really put the bug in my head that i need to invest and plan it all out.
I still manage to save 5-8k per month on way pr another.
I have a few questions if you’d give your opinions on.
1) what should be the minimum salary ( or extra cash per month) for one to consider investing?
2) Where do i teach myself about Mutual funds and other investment plans (except stocks. I’m going through zerodha slowly. Plus my brother used to be a stock trader so he helps but idk anything about other strategies.)
3) When i entered college i saved up 50k and put it in fd in my first year and my father was impressed and he gave me 1 L more. By now i have put 3L in FDs because I didn’t want to take any risks. But I’m in my early twenties without much responsibility, and i want to take risks now. If you had to suggest me, which would you suggest, SIPs, MFs or Stocks to learn about and invest in first?
(If you mention sips and Mfs do name 1-2 good ones)
Thanks man! Hope you keep growing exponentially!
Any other financial tips you wish you would’ve known back when you were 24year old, feel free to drop it!
I have a few questions if you can give your opinion
I’m a 24M and have just finished my MBBS, to start earning by the end of march 2025. Though i hate our education system for not teaching us about anything like taxes and investments, but seeing my father’s bad habit of not planning things financially has really put the bug in my head that i need to invest and plan it all out.
I still manage to save 5-8k per month on way pr another.
I have a few questions if you’d give your opinions on.
1) what should be the minimum salary ( or extra cash per month) for one to consider investing?
2) Where do i teach myself about Mutual funds and other investment plans (except stocks. I’m going through zerodha slowly. Plus my brother used to be a stock trader so he helps but idk anything about other strategies.)
3) When i entered college i saved up 50k and put it in fd in my first year and my father was impressed and he gave me 1 L more. By now i have put 3L in FDs because I didn’t want to take any risks. But I’m in my early twenties without much responsibility, and i want to take risks now. If you had to suggest me, which would you suggest, SIPs, MFs or Stocks to learn about and invest in first?
(If you mention sips and Mfs do name 1-2 good ones)
Thanks man! Hope you keep growing exponentially!
Any other financial tips you wish you would’ve known back when you were 24year old, feel free to drop it!
I have a few questions if you can give your opinion