Doctors are definitely the most respected professionals in the world. In India, doctors are the kind of people that no one negotiates with. But, after studying for 9-10 years, how much do doctors earn? And how good are they in managing their money? We'll find out in today's video. Special thanks to Deserve Wealth Monitor for sponsoring this video. Deserve Wealth Monitor lets you assess your mutual fund portfolio and also gives exit recommendations for absolutely zero cost. More about it later. Let's start the video. Hello and welcome to a new episode of Fix Your Finance.
Today I have with me Shantanu and Neha who live in Pune. Welcome guys, welcome to the show. Thank you. So what do you guys do right now? I'm a dentist by profession. What do you do? I'm into marketing, into IT company. I help the company to get new business in. Work on their sales pictures and presentations. Okay, and since how long have you been working? I've been working for around 8 years now. I've been in private practice since the last 11 years now. When you say it's a private practice, is it like a business? It's almost like a business. So what I mean by that is, I don't have a salary. I rather have a revenue that I generate in my clinic. Which varies with, like from month to month it is going to be different. What is your source of income? It is basically the clinical treatments that we do in the clinic. Not the consultation. On an average, how much do you make on a monthly basis? I would say somewhere around 3 lakhs is the revenue. What are the fixed expenses in your business? The fixed expenses would be something like the rent. Then followed by the payments that you make to your assistants, your associate dentist. And apart from that I have a cleaning maid. I have two assistants. I have an associate doctor. I have an evening assistant. So I have a staff of five people with me. Apart from that, there's something called as material expenses. Because it's basically all the treatments that we do in a dental setup will require certain materials. Of course. And those are expensive. So in your case, what are the margins of.
. It varies with every treatment. But approximately you can say somewhere around 65-70% is the margin on the overall revenue that I make. So if you are earning around 3 lakhs, then out of that you are earning 2 lakhs in hand? Safe to say that. Yes. Do you draw a fixed salary every month? The one that comes in the current account, I spend it. Okay. What about you? How much do you draw right now? My CTC is somewhere around 14 and a half. Every month I get around 90,000 in my hand. So as a couple collectively you guys earn around 3 lakhs per month? Safe to say, yeah. Before getting married, okay, do you guys discuss money? Not really. Just the basics like how much do you earn and that's about it. Nothing more than that. Did you get an idea of each other's lifestyles? The thing is that by general standards, we got married a little late. And one of the reasons was that we were looking for a very specific kind of a lifestyle to continue later. One of the main part of that was this whole adventure, travelling kind of a thing. Apart from that also the lifestyle like going out with friends or... So on a monthly basis how much do you spend to meet friends, go out with them? Around 15,000 is what we would in a typical month end up spending over the weekends eating out or going out. And apart from that every quarterly we go out for trips and that is typically 40-45,000 for a trip. What about this place? Do you own the house? Is it rented? It's rented. We are paying 20,500 presently as rent for this apartment. Do you have to travel to office every day?
Not at all. Not at all? Working from home. Nice. You of course have to go to the clinic. So how much do you travel on daily commute? 16 kilometers is my daily commute for a work day. Over the weekends it could be anything. Do you have a car? Do you use public transport? I have a car. My petrol expenses would be somewhere around say 12,000-14,000 in a month. Which car is this?That is giving soo much mileage Tiago And the car that you bought for Tiago, was it on cash? It was purely on cash. Any other major expenses? Right now there are a few medical expenses happening. There is orthodontic treatment happening and a few homeopathic treatments for her thyroid. What is orthodontic? I am getting my teeth straightened. So I have a liner right now. Let me guess, the dentist must not be charging anything. No. Despite the dentist not charging, we are spending somewhere around 20,000 a month on her treatments. We have a maid as well. So how much is her? 10,000. 10,000. What all does she do? Right from cooking to cleaning to everything.
Then how much would be the groceries that you cook? 5-6,000. After that, Wi-Fi, electricity, basic utility bills. How much would that be? Around 3,000 including the subscriptions and everything. Do you guys have any existing liabilities, loans? I have one loan on a 2BHK apartment that I had purchased around 7 years ago. So that EMI is somewhere around 27,000 presently. Where is this house? It's very nearby, so like walking distance from here. So why aren't you staying there? So that turned out to be a very bad investment for me. Because it's completion hasn't come yet. And we are not being able to utilize it. That's one of the biggest challenges you know. If you buy in construction property, the rates are very attractive. But the chances of something going wrong are also extremely high. And then you end up actually losing, not just losing, in multiples of what you have saved basically. So that has happened to me actually. So how much did you pay for that house? Back then I purchased it for 45 lakhs. This is one thing that you should make sure a lot of people lost their money. Or their money has been stuck for a very long time. Because the developer took their own time to build stuff. So don't do that. Even if a ready to move property is more expensive than an under construction one. Always go for that. So considering all these expenses on a monthly basis, you guys are spending around 1,30,000 rupees. Apart from that, do you use credit cards? She has a credit card.
So what do you use your credit cards for? Most of the times it is flight booking and booking hotels whenever we are going out. So where all did you travel in the last one year? We have been to Kodaikanal, we have been to Kurga, we have been to Goatwais, Gokarna once. We have been to Rishikesh. And that is apart from the small little trips that we keep doing. Nice, nice. You guys like to travel. Now tell me one thing. The amount of trips that you have taken in the last one year. Do you guys actually track? No we don't. That is a philosophy at least for me that I never track my expenses when it comes to any experience. I never consider it as a cost. It is more like an investment in my own language. I would call it as an investment on my experiences. So this is your 1,30,000 rupees expenses. You are still left with a good 1,70,000 rupees. A lot of money is left. So what do you do with this money generally? I have been investing in mutual funds since the last six years or so. So how did you pick your mutual funds? I approached a financial advisor. And he made a basket of some mid caps, some small caps and some large caps. And then he put it in front of me and said these are the mutual funds that you should invest in. It's an SIP every month. Today we will do a detailed review of your mutual fund portfolio. We will use Deserve Wealth Monitor app. It is built by industry experts with more than 20 years of experience. And they have collectively managed about more than 50,000 crores of rupees. First of all, let's look at the investing discipline. You are investing every month.
Still, this app says that it is inconsistent. So they are saying that you should keep on increasing your SIP amount by 10% every year. So they are saying that if you top up all the existing mutual funds by 10% every year, then your current amount of 25-26 lakhs would become 35.71 lakhs. Next thing is they are saying that you should at least invest 20% of your income in mutual funds. Your risk exposure is very high because 99.5% of your investments are in equity. What is the purpose of these investments ? This is somewhat of a retirement fund that I am trying to accumulate over the next 15-20 years. So this is a long term plan and that's why most of it is invested in equity. But I would still feel and even the app feels that you should reduce your risk by investing and diversifying into different asset classes. In the end, why do we invest in mutual funds or any other asset? For returns. Here, it's written that your portfolio has underperformed by 61.6% as compared to your funds benchmark. And you have missed the gains of 1,37,000 in total during your investment tenure. Now let's see the mutual funds which have underperformed the benchmark. These 8 funds have underperformed the benchmark. And the wealth monitor's recommendation is you should avoid equity infrastructure category. Got it. These are the investments that I make but apart from that one major expense that we usually even I miss out on is the expense of upgradation when it comes to a clinic. Not just upgradation, even maintenance. That is going to cost you a certain amount of money. So that is somewhere I have been losing track of where I have spent a lot of money on. So to take care of this, I think you should focus on building a runway. Runway basically means that let's say your business needs 2 rupees to run every month. And if you have 10 rupees in your bank account, then you have 5 months of runway. Similarly, you should also work towards building a runway. For that what you need to do is firstly calculate all your fixed business expenses. And estimate the higher side of these variable expenses. Let's say you are saying that on an average it takes 1-1.5 lakhs per year. So you add 1.
lakhs extra and multiply your monthly business expense by 12. Saving up money and keeping it in a separate account. Got it. That is extremely important because if you know that if you have any expenses in your business, this is the account where I dip into. I don't have to change the couple's financial dynamics. You have to take out money from the business account itself. I also feel it is a very good tip that he has given to keep separate accounts. The business account and business expenses should be completely separate. This is a big question that you have answered for her. She is always anxious about this. Is this also the reason why you guys are not investing as much as you guys are saving? Yeah, you can say that. The other reason is that she has not started her journey yet. So I have been investing since like I said 6-7 years. But she will be starting now. I have a challenge that I do not have clarity on what is the amount that I should... I understand that we are earning well. But I am not being able to articulate and channelise how do I secure myself for future. We are not able to understand what should be done at this stage. Whether the savings and investment that we are doing is enough or not. We are planning to buy a house and we want to save something for the down payment. So there are two immediate priorities for you guys. You have to buy a house in 1-2 years and you have to build your own runway. So you guys have to prioritize between that. I personally feel before differentiating or separating your business and personal expenses. You should not get into a 20-25 year commitment. You should not take that home loan. Is there some way that we can actually think of a secondary source of income which has nothing to do with my profession? I personally feel that secondary sources of income should not be very different or very separated from your core skill sets. And if you want to make that a secondary source of income...
Then invest in simpler assets Right now you are cash flow rich You have a lot of money So start SIPs from now And by the time you are 15-18 years old When you want to slow down From that portfolio You can start redeeming 3-4% annually And still the amount will be preserved This is our quick finance round First question Who is better at managing finances? She Me Oh nice, okay If you guys had an unlimited budget What would you gift each other? Retirement We would just buy a camper van And just go out for a long vacation Okay, what would you gift him? I have a big list I want to gift him a PS4 I want to gift him a car I want to gift him a bike Luxurious vacations every month Or crazy house for the rest of your life What would you choose?
Vacations every month Both If money was out of consideration Would you be a dentist for a living? No What would you do? Oh that is something that I would like to take time off And think about Which I have not What about you? I would probably end up with the same job So you are very content with what you are doing Yeah And the last question is What are the three steps that you guys as a couple will do To be more financially healthy? So the first thing was what you have recommended Making a runway for my business The other is upping our game When it comes to saving that amount of money For whatever we need to plan Okay, what about you?
A few key takeaways It was very helpful the discussion about real estate Because we have been going all over our heads about Should we buy a plot somewhere? Should we buy a second shop somewhere? We have been thinking about that a lot And this conversation helped us a lot Yeah, despite me actually making one mistake earlier Again we were about to do the same thing all over again But yeah, now we have a very clear perspective on it Okay, that's it for today guys If you liked anything in this video Please hit the like button If you are new to the channel Consider subscribing A lot of you guys are watching these videos, okay? 80% of the people who watch these videos They watch They enjoy it They do everything but they don't subscribe Don't do that Please, when you subscribe Your support and your love will help us grow And help us stay motivated So please subscribe
Goodbye, thank you so much
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