Financial Planning: Malhar Majumder

I, 25, am an engineer. My monthly income is Rs 20,300. I want to invest. Which schemes generate high returns? I plan for long- and short-term investments and the annual budget is Rs 12,000.
Decide a rate (30 per cent) for savings. Freeze goals. Decide the type of investments for attaining these. Some are good in short term but may be destructive in the long term. These run various levels of risk.

I got married recently. Due to work commitments, my spouse and I stay in separate cities. I, 28, and he, 30, earn Rs 40,000 each. We both have home loans. He pays Rs 18,000 a month and I Rs 10,000. While he resides in the house, I stay in a rented place (rent: Rs 7,000 a month). Monthly expenses are Rs 10,000 each. Individually, we have invested Rs 15,000 a year in PPF. I invest Rs 9,000 a month in two equity-diversified funds and Rs 25,000 a year in an endowment scheme. I have a bank deposit worth Rs 30,000 and want to make a deposit of Rs 10,000 for tax-saving. He was investing in tax-saving fund, but discontinued, though the sum stays invested. He has a bank deposit, too. We plan to pre-pay both loans early and buy a car next year. But, we aren't able to marry our finances. We have a life and a firm health insurance each.
If you buy a car, who would keep it? Do you plan to stay together the next year. The financial picture will be completely different then from the one now. Or, how long do you wish to continue this way? In this case, one apartment could be sold, bringing a lump sum, or leased, ensuring a flow of income. However, the current scenario indicates that after all the EMIs, expenses and investments, you will have nothing left.

 

The spouse is enjoying cash flow, as he has invested little. So, it is difficult to marry finances, as both have separate expenses to cater to.

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The writer is director, Gliese Consulting. Views expressed are his own. Send your queries at yourmoney@bsmail.in