Every month, once we get the salary one out of 10 portions of a salary goes to got. One tenth of your income goes to your church. Wow, the essential expense ratio is now going up. Do you have an emergency fund to fall back on? No, no, nothing! As of no special thanks to you guys for supporting this video uh, you guys thought kia.
We sponsored it, but every video is not sponsored but special thanks to job insurance for sponsoring this video. This video is sponsored I'll talk about the product. Later today, I have got 27 year old alan. Who is an engineer he lives of sarjapur road in bangalore. He has recently gotten married and he wanted to fix his finance welcome alan how's it going hi, hi and so on. It's going really good. Firstly, can you tell me what do you do for a living I work as a system, validation, engineer in the semiconductor industry? Since how long have you been in in the job market, I just completed five years in the field in these five years? Have you been in the same company? Yes, yes, how's the experience been like there are very few people like you in today's day and age, who you know, work for a company for like five years, I kind of feel I've found the right balance, like both learning ways and also career pay financially also have been getting hikes and promotions as and when required so I feel like the needs, as of now satisfied. So what is your total compensation, as of today, it's 22 lakhs? What is your total household income, including your life, 27 lakh? Apart from that any other income source? Only the house that we purchased recently so the monthly rent is 35 800. Okay. So what is your total in hand? Monthly income? What are some of the perks uh that you enjoy? Financial perks that you enjoy in this company I get a 15 discount in the stocks of the company. It's called employee stock purchase program yeah. Yes, apart from that, you get medical insurance and also paid leaves, and also you can go for outpatient, uh, 25 000 per year, wow outpatient, which means that even if allen or his family does not get hospitalized consultation, medicine up to 25 000 per year, is covered by the company.
So that's a very good perk. That's a perk which most of the central government companies offer correct. Very nice. Do you have an emergency fund to fall back on? No, no, nothing! As of no with your responsibility is and all expenses, it is very important to build an emergency fund to have some kind of savings more than that in this uncertain environment, where there are layoffs, left right and center, we need some kind of safety net to fall back in case something wrong happens, the best part is job. Insurance has now come up with india's. First income protection plan. You have to pay a premium wherein, if you get laid off jobsurance, will pay you an emergency fund worth three months of your salary. In your case, your monthly gross salary with all taxes and reductions is around 1.85 lakhs. With this income protection scheme for the first three months, you will get a salary of one lakh 50 000 per month, all this at a cost of less than 500 rupees per month. The main reason why everybody needs an emergency fund or an income protection plan like this to fall back on is tomorrow by chance. If something wrong happens and your income stops, your expenses will still be there.
So you need some kind of a backup plan and I feel this income protection plan, which starts at just 399 rupees per year, is a very small price to pay just to make sure all of us are financially more secure if something wrong happens so check out. Jobsurance the link is in description and alan. While I was talking about this product and also doing the integration, we have already purchased an income protection plan for the next one year to fix your finances, you never know so description and be a part of fixer finance.
So now coming to your expenses, firstly, this house: is it rented or purchased? This is rented. How much are you paying for it? It's 31, 500 resident and the maintenance is 4. 2010 next is food. How do you guys manage food, see my wife, cooks and she's? A really good cook: how much do you spend on groceries on a monthly basis around 15 000 would be the what about eating, or do you guys eat out regularly, not very regular, but during the weekends or sometimes when we feel like eating out, come I guess around some four to five thousand four to five. So what do you guys generally do during your weekends? So recently we purchased a car, also second hand yeah, so we would be going for some small, not a long trip with just some drive to the city, and how much did you spend on this car? This car was fine enough flex. If you bought the same car new. How much would it be, of course 12 lakhs, so you saved on seven lakhs? How old is this car? This car is nearly eight years old, but it has been driven around some 85 000 kilometers. How did you finance this car? Fortunately, I didn't have to take any loans or anything so I had some of my savings and also some from my parents and my in-laws. Also one additional thing: I took a bit of withdrawal from my pf, so the epf employee pf. So how much did you withdraw around to 2.5 lakhs generally, don't do that. Okay, because that money is made meant for your retirement, but still still, even after withdrawing two and a half lakhs, you didn't go overboard. You bought a car worth five lakhs. You took a pre-owned car so overall, even after withdrawing from the pf, you have done a good job. So how much do you generally spend on commute if I consider for just a two wheeler, it will be around 800 rupees, but for car it will be like seven thousand two times.
Overall. If we look at your housing, food and travel, you are spending around 64, 65 000 rupees moving on. Do you have any loans? Yeah I have actually two loans, so one is my housing loan, so we purchased the house in december 2020. Where is this home uh home? Is it a bangalore only in uhbli road? So do you guys, like it better over here, yeah yeah, especially my wife? This property specifically focuses on more greenery and open space. So earlier before wedding, were you planning to live there? That's when did you buy it? Yes, yes, how much did you pay for that house? The overall value is 62 lakh, so around 12 lakhs I would have paid, so you have paid around 12 lakhs and 50 lakhs. You took alone look alone and it's down to now 45 lakhs. Currently, for how many years 15 years and what is the emi for that 45, 000.50 and I've, given it for rent also how much rent are you getting from there? 35 000 35 000 here is 36 000, so, basically the rent it is.
It is being canceled. Okay, so the first is the home loan. Second user said you have another personal loan. This was during my marriage, I had taken. Actually it was around for three lakhs and the ema is around 9 800, so around approximate ten, ten thousand for three years. So if we look at just your essential expenditures, which is your liabilities and the spending on your housing, travel and food, you are spending 54 of my of your income. Right generally, there is a thumb rule, 50, 30, 20 50 on needs, 30 on wants and twenty percent on investments and savings. You are going a little above the limit, but I feel you guys are still young. You are 27 right, so that is fine like the limits can be extended a little. But having said that, since you said this company is a company where people come to retire, the growth of your income will not be very high. Is that correct? Is that I feel like even after five years, I feel like it will be good to have a oh you're planning to shift your open to shifting open to shifting I went just now, I've been getting the starting thoughts in my head.
Let's move on to your other expenditures like what are some of the other areas where you spend your money shopping, sometimes they go and we you can say around, like eight thousand to nine thousand or any other expense. Every month, once we get the salary, each of us there's a something called in a religion, tradition of giving tights. So that is like one out of ten portions of a salary goes to god. So we send it to back home to our parents where they give it to church and they take care of other activities like giving dolphin ages or any philanthropic, basically one tenth of your income without fail, goes to your church wow. What is the amount like? A total like around 12 plus five? She said 17, okay, so this is something which is new for me. I also believe that giving back to the community giving back to the world will make more money for me, although I'm, not religious, but still amazing man I'm, but at the same time the essential expense ratio is now going up, and now it is going up to a level where it needs to be controlled right, it is going beyond, 60 percent, so in that case you have to cut a few corners.
Do you think there are some areas where you can cut your expenses as of now? Maybe if we can be a bit stringent on the spending, that is one thing: we're spending where spending like I don't see. One is like we are not going out that much also yeah, so it's like one thing that you can do here right now is: if you get bonuses this year, then you can pay off some part of your personal loan like pay off the full personal loan and also keep paying your principal, so your current fixed obligation is a little high right. You need emergency fund boss in your case. That amount should be around four to five lakhs. Second, you have health insurance uh, not personally, but the company is are both of you covered yeah yeah, both of her covered and dependents are also covered. Ideally, you should also have a personal health insurance just to make sure that, during any job transitions you are not naked. All of us are just one health calamity away from facing financial instability. If we don't have the insurance, do you have a term insurance? You know term insurance can wait right now, but that is also a priority.
Buy it as soon as possible reason being as early you buy it, the premiums will be lower. Currently, are you able to save any amount uh around 30 um saving? Where does this money go? What do you do as of now, ppf I've been spending 10 000 like see in your case or anybody's case right, whoever has a monthly pay monthly income fixed monthly income. The best way to make sure that your future is getting secured is to find ways to automate your savings and investments. Epf is one option which is already happening. Then there is nps. Then there is an sip in the starting of the month, so for you at least what you should do is you should set an recurring deposit of 30 40 000 till you reach that emergency fund threshold. Like you said you say you are able to save 30 to 40 000 rupees every month. What do you do with that? As of now I am planning for the trip? That is a honeymoon trip which me and my wife are planning. Where are you planning to go? We are going to south africa. How much will a trip to south africa cost it's around four and a half lakhs four lakhs yeah? And how are you planning to make that money so, as of now, some I've already saved and kept it uh? How much like around 1.5? So okay, so you are left with three three lakh, so I'll be saving some in the coming months and also her parents are used to cheat funds basically, and you see it's better than taking a loan, as of now don't take a loan. My point is like: if you go for this south africa trip I understand a honeymoon.
Will be the most memorable tool, but if that trip is coming at the cost of zero or negative savings, then you are in a very uncertain financial situation. So that's why I would suggest if this trip can be go to a place which will cost you one 1.2 lakhs, with an amount which you have already saved. That would be better financially.
That's all for today's video guys. Thank you so much alan. Thank you. I hope this session was helpful, for you I hope you take some action towards securing your personal finances. If you like this video, please please hit the like button. If you watch till the end and if you haven't subscribed to the channel yet do subscribe, your love and support will keep us motivated also make sure to check out job assurance goodbye, see you guys in the next one
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