Can we switch sides I think you can help me fix my finance better. So what you said right now changes a lot of things. So has the brands and everything changed for you in these four five years, hello and welcome to a new episode of fix your finance powered by cred. Today we are at whitefield to meet prashanth and shamli to engineers, who met in iit bombay, and they have been happily married ever since welcome welcome to the show when were you in iit bombay, we studied in iit bombay from 2015 to 17. So, where are you currently working? I am working in an mnc. What about you I'm working in a restaurant? What do you do there? I am a senior software engineer. What about you? I am a software engineer. So what are you earning right now? We collectively uh earn a little over 1.2 crores. Can we switch sides I? Think you can help me fix my finance better. So what was your first salary I'm? Very curious? Okay.
So currently, what is your in hand? Income we collectively make about 6.8 lakhs per month. So when you jump from 4 lakhs to 6.8 lakhs, what changed for you like? Was it the expense it did? The expenses increase. Did the investments increase? I need shopping? What what do you like to shop, clothes and accessories? So has the brands and everything changed for you in these four five years? Yeah I've been spending more money on premium brands premium. Brands I can see that you are wearing a designer watch as well. Okay, what about you uh, I, think I've always been kind of spending more, but things like buying a house buying a car. These things I think bigger decisions, bigger purchases, okay, so, let's start with the expenses. Firstly, I can see that you have beautifully decorated. Your house, so is: do you own this house or is it rented? Oh yeah? This is okay. So when did you buy this house around the near back and what was the cost of the house? It was around 1.2 cr. Can you help me with the emi amount, the tenure and the interest rate? We took loan of 80 lakhs for 12 years. Interest was around 6.7 at that time and now it's around 9.1 do you guys have a car? Yes, how much did you spend on the car 17 18 lakhs? How much loan did you take? We didn't take alone. We have been saving up and in different forms of instruments and that money we've always planned and we diverted it to buying the houses down payment as well as the car.
Also one additional thing is like since we're working with big mncs earlier uh. We had a lot of stock options. We worked there for three four years and things like that, so that wasted on time and that helped us even making this one. Okay, because you were there for like three four years most of the stocks that you got, you were able to sell them when the right time came stocks and all these investments do not exist to buy you, your new tv, that is a smaller dream, the bigger game is when you buy a new house when you buy that expensive car your stock should be able to fund that so keep reinvesting stay in a company if it's good for longer period and reap the benefits in the long run. How do you guys travel so? How much do you spend on fuel maintenance and everything it's a little on the expensive side, because I take care of my parents, vehicle maintenance, also, so everything together with insurance, we spend about 20 000 a month. How do you guys manage your food groceries, we get online and we sometimes order.
We also have a cook who helps us out. So how much do you spend on groceries around fifteen thousand? What about the cook around ten thousand? You said that you take care of your parents vehicle as well. Do you send them money apart from this, so I don't send the money but I we end up spending around 10 000 a month so monday to friday. How do you relax during the weekend?
We travel around, we have done a few longer trips, maybe even towards north india or abroad as well, and we we end up spending about 25 000 a month on both of this maybe weekend outings as well as our travel. Ah, you said that you like shopping right, so how much do you end up spending every month, so around 20 000. What do you spend what time? What do you guys spend every month? No I think I think maybe it's around 10ks on us, our family members and 10k is for doing something else: okay, yeah! Because uh, when we bought the house, we did minimal things and then we thought as and when we get money. We add one one thing. So how do you do your shopping using credit card? Okay? How many credit cards do you have I have two credit cards? Two credit cards: what about you, how many cards you have I have two cards yeah and how much do you spend I think we, both together, spend around sixty thousand, because you guys are using your credit cards for shopping exclusively. You should definitely sign up on cred because they have this feature wherein they will tell you, rewards and offers you have on shopping with your existing cards shopping credit card credit card, three man. So if you are also use using credit cards for shopping download, the cred app right now use the link which is given in description all in all, including the home loan.
How much are you spending every month about 2 lakhs, so you guys spend 2 lakhs. You earned almost 7 lakhs. If I just look at your income and your expenses, you are sorted okay, so, let's start with the absolute basics. Firstly, do you guys have an emergency fund yeah? What is the amount around 10? Lakh, second, is: do you guys have health insurance, so our companies provide us the health insurance okay, so we were thinking. Should we take our insurance out of like I personally feel you should take a health insurance, the reason being right now, both of you are young, but the probability of having some issues later in life is higher and once that happens, then it will be very difficult to get a health insurance because a lot of companies will just reject it.
Next is term insurance. Do you guys have any term insurance? No, so yeah, that's something we wanted to ask you. So the question is: do we need a term insurance considering? There are no dependents honestly, like our parents are not dependent on us financially at least, and you guys are personally also earning a lot. So that's the right question to have- and this is the same question which I had with myself in 2022, okay I- am single. My parents do not rely on me financially. Why should I take a term insurance? The first answer to this question was: you: are young right now? I am 25 right now, if I, lock a term insurance at this age, the premium will be the same for my entire life, so I'll get a term insurance at a cheaper rate number one. Second, important thing is: even if you don't have responsibilities today, you might have responsibilities after five or ten years, but if you end up taking a term insurance at the age of 40, it will be a way more expensive affair as compared to when you take one at the age of 29., I think you are left with four four and a half lakhs, even after all, your expenses. So how do you invest? Every month we put about uh one lakh in mutual funds: okay, equity mutual funds, debt, mutual, equity, insurance, okay, I, have a lot of stocks. You don't want to ask how many? How many do you have 100 100, but most of it is concentrated into maybe 15 or 20 stocks. Others are just two five thousand I've just put to just see if it was something there is no point investing in 100 stocks, because it's never gonna make you any money. Even if one of your investments does 10x, it should ideally change your life, but here because the value in each stock is so low, it's not gonna make any difference for you. If you want to pick 100 stocks, you are better off just investing in mutual funds. You're not playing a safer diversified game, so these are a few metrics that you should look at and if you want to understand these metrics I have made a detailed video, any other investments that you are doing in ppf and nps.
Both I invest. So it's around 2 lakh per annum, each! No! No just me just why aren't you investing I am trying to put that money in the market, but yeah I thought let her understand? Okay. So how do you save your taxes? Are you in the old tax regime on new tax regime no I'm in the old tax regime, but atc I get it from the principal yeah of the home loan and uh interest. Part I get uh two lakhs okay, so 3.5 lakhs is what I get uh and whatever remains we try to put it in some form of fd or some difference. We want to buy a house for our parents. What do you suggest? How should we invest it? So that we can achieve this goal, do you know what the amount is uh it's about one cr, currently at the rate that you are prepaying your loan. When will you be able to finish the loan around three four years? Is it possible for you to buy the parents house after five six years or do you want to buy it right away? No, we can buy it afterwards. Okay, so in that case you can assume this one karodka house will become around 1.4 or 1.5 crores. So out of this 1.5 cr, if you are able to save up around 60 to 70 lakhs, then it's good enough. If you are able to allocate around 1 lack for this goal every month, so then, you are investing 12 lakhs a year, 60 lakhs!
You will be able to have a corpus of around 70 to 80 lakhs and whatever is the remainder.
You can take up a loan because your mod gates for this house will be over one more question I had is we wanted to kind of be financially independent early? So you know, maybe in five or ten years, I want to take up something lighter. So how do I save up for that or do I need any additional planning for that. So what you said right now changes a lot of things: okay, because earlier I assume that you guys will continue working and that's why having a second home loan shouldn't be a very big issue. But if you are planning to you know retire early or something, then you have to be light on the liability side. So in that case, I am not sure if you will be able to take another loan to buy that house for your parents. But if we'll just look at it independently, without you know the house and everything house and every other factors, then there is a fire number: the fire number is the amount that once you have that in your bank account you are ready to retire. The amount is basically 30 to 35 times your annual expenses. So let's say you are spending around 25 lakhs overall every year. So, in your case, the amount will be anywhere between 7.5 crores to 9 crores. Once you have that amount in your portfolio, then you can redeem four to five percent every year to fund your expenses and at the same time, because it is invested in the equity market, the remainder will keep growing and that amount will be enough to supplement your lifestyle but I have one question: I'm, not planning to retire at least for 10 to 15 years. So, basically, you like what you are doing and you are fine with it, which means that x, stable income yeah your income, will keep growing as you. Your experience increases right and your current income is enough to supplement your expenses.
She will be able to cover even after 10 years, so that's the best part of having both the members in a family working because then the risk appetite increases I personally feel that the day when india's female participation rate goes up, our economy will do wonders because the risk appetite of every family will go up. So this is our fatafat finance round. You have to answer all the questions number one. If you had to change one financial behavior of your partner, what would it be spend less money? Uh I had to ask her to invest more in the market than fds. If you had an unlimited budget, what would you give to your spouse? I'd get her a house. Okay, and the last question is: do you enjoy what you are doing right now? Yes, I enjoy okay, I think I do to some extent, but I think I can enjoy other things by doing something which means no okay. On that note, we are towards the end of the video. That's it guys if you're liking these videos, then please hit the like button and if you are new here, then please subscribe the channel videos.
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