Initiate a recurring deposit, with your salary being debited for the deposit. Once a savings habit is established, diversify into other investment instruments, such as mutual funds.
Currently earning a net salary of Rs 59,000 while grappling with two personal loans totaling Rs 3.6 lakh, with respective EMIs of Rs 9,200 and Rs 5,500. A job switch is planned, anticipating a salary raise to Rs 75,000 in two months. Preparing for parenthood in 2025, with a home loan on the horizon within six months. A 29-year-old with family responsibilities, including support for a 62-year-old father running a shop and an 18-year-old sister. Seeking advice on clearing loans and managing finances.
Firstly, streamline your financial situation. Allocate a portion of your Rs 33,000 surplus income after EMIs and rent to prepay personal loans. Consolidation into a more affordable loan with a shorter tenor is an option. Establish a small emergency fund through a recurring deposit, gradually expanding into other instruments like mutual funds.
Evaluate your financial obligations to family and determine your capacity for a home loan. Your eligibility for a home loan is currently around Rs 25-28 lakh. Plan for out-of-pocket expenses related to home purchase, covering 20-30% from personal savings. Consider waiting six months after job switch before applying for a home loan.
For now, prioritize loan consolidation, saving, and later, investing in a home, ensuring financial commitments align with manageable liabilities.
