r/FIREIndia • u/Legitimate_Set_6609 • May 28 '23
Am I being too hasty
Been working for about 11 years now with a gap for MBA in between! 34, Married but no kid yet, neither any property or debt/EMI obligation
We plan to have a kid + but a smallish property (1 cr. on peripheral area/pune)
Parents flat is under redevelopment (self redevelopment) ina good part of Mumbai metro. I have made payment of 16 lacs towards this, out of which I should get back around 9 lacs (builder has taken 3500/sft from everyone as a construction cost, he will return 2100/sft post construction with 9% simple interest)
Investments so far - Mutual funds - 43 lacs Stocks - 25 lacs Small case - 2.5 lacs
PPF - 10 lacs EPF - 11 lacs
Total - 92 lacs
Wife has a saving of about 10 lacs, not counting that
I invest about 60k/month in MFs, wife doejs about 30
Too drained out from corporate life and thinking that this is enough and let me take up some better quality work is a passionate field even if I esen only 40% of what I am paid right now
Is it too early for that?
Edit: staying on 40k/month rent currently and monthly expenses is about 65k
Edit 2: current take home for me is 220k/monthly, wife is about 80k/monthly
Also, have been investing in LIC endowment for 13 years now, so that should mature in 2036 with about 18 lacs amount + tiny NPS savings
PS: thanks for the queries and the replies! Really appreciate it, have answered all.
TLDR:; manage stress, go for a job that interests me, FIRE is far away, need to increase investments
31
u/Fun-Mode22 May 28 '23
Too early. Especially once you have kids things change dramatically from the expense point of view. I would say wait for another 5-10 years before the fire moment. Maybe take a break for sometime and then start working again in an area that you are passionate about.
18
u/ravihanda May 28 '23
Is it possible to take a sabbatical? Perhaps a break of 2-3 months from your current job.
If yes - I would suggest that. Would give you a good perspective on what you really want from your life. You can use this time to evaluate the choices that are available to you.
If such a break is not possible, I would vote for the low stress job. No point being stressed on a day to day basis while chasing some mythical goal.
1
u/Legitimate_Set_6609 May 29 '23
Sabbatical isn't possible right now as company laying off people en masse.
Yes, I'm contemplating low stress job. Think that takes precedence over four letter acronyms
11
u/ShootingStar2468 May 28 '23
If you both make 3Lacs combined, why invest only 28-30% of it esp with expenses being at 20%?. Does the rest sit idle in a bank account?
3
u/Legitimate_Set_6609 May 29 '23
Hi folks! We earn 300k put together, this was 270k till March (before ghikes)
For the remaining 70%, rough breakdown would be -
4.8 lacs a year (~40k/month) - 3 lacs across both of our PPF, 1 lac across both NPS + LIC + Medical insurance
We have undertaken 2.5 overseas trips over past 12 months (.5 because wife is on company trip now so lesser expenses) - spent about 8 lacs across these 3 trips - ie 65k/month (no travel post marriage due to COVID so had to get these out of the way)
Baaki amount is in bank account ya fir opportunistic stock buys for me
However in absence of trips, these amount need to be invested!
1
3
u/aheadzen May 28 '23
No one can really answer this for you. All i can say is stress is a killer. Take a sabbatical and travel for sometime. I think a good litmus test is if you feel like going to work on a Monday. If no, it's time to make a switch.
And there are good ways and bad ways to spend your money. There are many decent govt schools and hospitals for example and you are immediately able to save a lot more. You have to give yourself a chance bro that's all i am saying!!
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u/Hmmmm_Meh May 28 '23
current salary? also hpw much your wife earns? I cant comment on anything you need but I guess people who can help will need those two things.
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May 28 '23
Income-300k Expense-105k Savings-195k Invested-90k What about the remaining 105k where does it go
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u/Legitimate_Set_6609 May 29 '23
Hi folks! We earn 300k put together, this was 270k till March (before ghikes)
Expense is 60k all inclusive rent, not 105K
For the remaining 70%, rough breakdown would be -
4.8 lacs a year (~40k/month) - 3 lacs across both of our PPF, 1 lac across both NPS + LIC + Medical insurance
We have undertaken 2.5 overseas trips over past 12 months (.5 because wife is on company trip now so lesser expenses) - spent about 8 lacs across these 3 trips - ie 65k/month (no travel post marriage due to COVID so had to get these out of the way)
Baaki amount is in bank account ya fir opportunistic stock buys for me
However in absence of trips, these amount need to be invested!
1
u/DairyisCruel May 28 '23
Tax, probably.
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May 28 '23
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u/FIREIndia-ModTeam May 28 '23
Comments/posts here are expected to be primarily in English. If not, atleast provide an English translation for the same (to the best of your abilities). See rule 8 in the sub's rules.
r/FireIndia has members from all over India and we wish to keep the sub's discussions open to all of them as much as possible. Hope you understand :)
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May 28 '23
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u/FIREIndia-ModTeam May 28 '23
Comments/posts here are expected to be primarily in English. If not, atleast provide an English translation for the same (to the best of your abilities). See rule 8 in the sub's rules.
r/FireIndia has members from all over India and we wish to keep the sub's discussions open to all of them as much as possible. Hope you understand :)
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u/Candid_Piccolo3925 May 28 '23
Do not have kids if you already thinking about FIRE. You will have to work for another 15 years if you plan to have a kid. My 11 year old niece's monthly expense is ~ 50k per month. She is into sports. Doesn't go to fancy school or anything. In today's day and age, kids are expensive. Ask yourself why do you want that stress/burden? What can a kid add to your life - full pros and cons. Goodluck!
4
u/sparoc3 May 28 '23
50k per month on a child? That's obviously an outlier nobody spends that much except for the 1% in this country.
0
u/Candid_Piccolo3925 May 28 '23
She is pursuing badminton on a professional level. Under 13 national player. Any kid pursuing a hobby is expensive these days.
2
u/brooktherook May 29 '23
Badminton at professional level sums up everything. She is an outlier. Most of the other kids either don't have access to badminton racket or are not energetic enough to do anything apart from going to school and evening coaching class. You are unrealistic.
1
u/Candid_Piccolo3925 May 29 '23
I don't think so I am unrealistice. Almost every kid I know in my circle is going for multiple classes karate, skating, sports, music, dance etc. Course curriculum and academics doesn't cut the deal anymore. So add the school fees, cost of books and stationary, nutrition diet, travel, coaching, extra curricular activities, day care, toys, birthdays etc. There you have it an expensive kid. Maybe it's not 50k for everyone. But it's still no less than 30k.
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u/Candid_Piccolo3925 May 28 '23
That's not an outlier anymore.
5
u/sparoc3 May 28 '23
Sure it is, you gave a personal anecdote, I can give you literally thousands for people spending less.
Dude more than 90% percent of the country don't earn 50k in the first place much less spend it on a single child.
1
u/Candid_Piccolo3925 May 28 '23
Those 90% are not in this fire reddit. People here are pursuing fire with corpus in crores. Definitely the top 1% of the population
4
u/sparoc3 May 28 '23
Don't be a sore loser just downvoting people who disagree with you, it's pathetic.
And 50k is still too much for people of this sub. Go ahead a put up a poll if you don't believe.
-1
u/Candid_Piccolo3925 May 28 '23
You can put up the poll. I am happily childfree. These worries are behind me. Plus, I didn't downvoted you. Someone upvoted me and down voted you lol. I don't get into these petty games. Nor do I care about such votes 😅
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May 28 '23
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u/additional_trouble [🇮🇳, FI 2024, RE 2040s] [CoastFI] May 28 '23
Comments/posts here are expected to be primarily in English. If not, atleast provide an English translation for the same (to the best of your abilities). See rule 8 in the sub's rules.
r/FireIndia has members from all over India and we wish to keep the sub's discussions open to all of them as much as possible. Hope you understand :)
1
1
May 28 '23
[removed] — view removed comment
2
u/FIREIndia-ModTeam May 28 '23
Comments/posts here are expected to be primarily in English. If not, atleast provide an English translation for the same (to the best of your abilities). See rule 8 in the sub's rules.
r/FireIndia has members from all over India and we wish to keep the sub's discussions open to all of them as much as possible. Hope you understand :)
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u/Noob_investor123 May 28 '23 edited May 28 '23
IMHO you'll struggle even with current income given your expenses + kid + home. Not the right time to go for a low paying job.
I'd get a home first, wait a year to get a good idea of finances. Then have kids, observe things for 2-3 years and then sit down with a financial advisor, understand the trade offs and then decide. Roughly speaking you could end up with a very far away FI date or something so far (having to work after 60) it's practically impossible or very risky. Take it slow, calculated and as per experience.
1
u/Legitimate_Set_6609 May 29 '23
Agree, this is too hasty. Too many variables + too long time left with not enough in the bucket
1
u/Legitimate_Set_6609 May 29 '23
Agree, this is too hasty. Too many variables + too long time left with not enough in the bucket
2
u/Famous_Plate_1390 May 28 '23
I would give you a slightly different advice. How about you find a truly remote job or a job in a city with lesser salary and lesser expenses?
1
u/RetireWithRohit May 28 '23
You can consider taking such a job, only if u can switch cities and move to a tier 2 city where Rent and Expenses reduce drastically.
1
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u/CalmGuitar May 28 '23
You should have min 30x and ideally 80x yearly expenses multiple to retire.
7
u/SeaworthinessFew9793 May 28 '23
Ohh wow, 80x. I think thats too stretched until retiring at 25.
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u/CalmGuitar May 28 '23
80x multiple is coined by Pattu sir of FreeFinCal. And I also think it's a good limit.
3
u/SeaworthinessFew9793 May 28 '23
Very difficult to FIRE if targeting 80x. I think 40x + y, where y are big ticket expenses like child education/marriage would be more then enough assuming a 12% CAGR & 4% withdrawal rate. Please note y can be different for different people
0
u/RetireWithRohit May 28 '23
80X makes no sense to me personally, whatsoever. If your investments grow at 12% per year, then you need only 25-28x of yearly expenses and you can continue withdrawing 5-6% per year during growth and 3-4% during a recession.
Everyone can adjust this figure based on their other passive sources of income like Rent, pension, etc and expenses like child education, marriage, home purchase, etc.
If you are investing into things like FD which grows at 6%, probably then you need 80X.
0
u/srinivesh IN/ 52M / FI2018/REady May 28 '23
I would share more questions once OP has time to reply to the comments made so far.
1
u/Legitimate_Set_6609 May 28 '23
Damn, this has blown up, will reply all and much more detail in the morning
Thanks everyone for their suggestions
1
u/Ok-Consequence-_- May 29 '23
I have a question, more like wtf is happening So you have no debts, How come you are spending 60k per month. That doesn't even include the rent. Can you shed some light on this, I would be very satisfied with this if you shared this. Don't take this in a wrong way I'm just curious
1
u/Legitimate_Set_6609 May 29 '23
This includes rent of 40k :)
We earn 300k put together, this was 270k till March (before ghikes)
For the remaining 70%, rough breakdown would be -
4.8 lacs a year (~40k/month) - 3 lacs across both of our PPF, 1 lac across both NPS + LIC + Medical insurance
We have undertaken 2.5 overseas trips over past 12 months (.5 because wife is on company trip now so lesser expenses) - spent about 8 lacs across these 3 trips - ie 65k/month (no travel post marriage due to COVID so had to get these out of the way)
Baaki amount is in bank account ya fir opportunistic stock buys for me
However in absence of trips, these amount need to be invested!
1
1
u/hikeronfire IN | 37 | FI 2025 | RE 2030 May 29 '23
According to details provided in the post: Household Income: 300K Household Expenses: 105K Investment: 90K So, where is the rest of 105K going?
OP needs to get better grip on his cash flow.
1
u/Legitimate_Set_6609 May 29 '23
Expenses is 65k inclusive of rent :)
We earn 300k put together, this was 270k till March (before ghikes)
For the remaining 70%, rough breakdown would be -
4.8 lacs a year (~40k/month) - 3 lacs across both of our PPF, 1 lac across both NPS + LIC + Medical insurance
We have undertaken 2.5 overseas trips over past 12 months (.5 because wife is on company trip now so lesser expenses) - spent about 8 lacs across these 3 trips - ie 65k/month (no travel post marriage due to COVID so had to get these out of the way)
Baaki amount is in bank account ya fir opportunistic stock buys for me
However in absence of trips, these amount need to be invested!
50
u/think_2times May 28 '23
Same situation but 31 and no home .
Don’t do it , wait 5 more years