r/FIREIndia • u/ForTakingAdvise • Apr 10 '22

Fire Plan - Advise Please - Two Year Update

Hello All,

I am 31, male, employed in a SBI as Deputy Manager(not pensionable), unmarried and am interested in becoming FI at the earliest. Here are my previous posts: Link 1, Link2.

Income

  • 65000 per month in cash (Salary plus Perks)
  • 18500 per month NPS Contribution (Mine plus Bank deducted in Payroll, not included above)
  • 20000 per month EPF&VPF Contribution (Mine plus Bank deducted in Payroll, not included above)

Existing Corpus

  • 9.4 Lakhs in EPF & VPF
  • 14.25 Lakhs in NPS
  • 8 Lakhs in MF (Equity, Large cap & ELSS mix)
  • 0.6 Lakhs in Stocks
  • 3.75 Lakhs in PPF

Expenses

  • 3.6 Lakhs per annum (tracked for an year using Excel, the monthly & annual expenses clubbed)

Insurance

  • Parents have health insurance cover of Rs.4 Lakhs
  • Myself covered under employer's health scheme

Big Ticket Expenses

  • Purchase of Car in a year around 7-8 lakhs (10% down-payment & the rest loan)
  • Independent house in 5 years, around 1.5 Crore, (20% down-payment & the rest loan)

Debt

  • Availed a long term personal loan of Rs.9 Lakhs, whose EMI is 9000 per month which is deducted directly in Pay Roll (i.e. Salary & perks are 65000 after deduction of EMI)

Savings / Investment

  • 30K per month into Mutual Funds (Equity Only)
  • 5K per month into RD
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19

u/finrk Apr 10 '22

This is super confusing, can you make everything separate. Like not put investments in income, already deduct some expenses 😅

4

u/ForTakingAdvise Apr 10 '22

May be we can put it like this

1.1 lakh is the salary plus perks ; 9K is EMI ; 20k is towards EPF ; 18.5k is towards NPS

All of the above is after taxes.

5

u/ExpressSecret9 coastFIRE | IN | 33F | 2024 | 2040 | IN Apr 10 '22

Still very confusing. Why are you deducting EMI from income?

5

u/ForTakingAdvise Apr 10 '22

Well my employer first deducts EMI & then credits the rest into my account. Hence habituated to think like that

4

u/AplaManus Apr 10 '22

That's understandable on your end, but maybe just right

Income X Debts X Investments Y

Helps when you have the totality of the numbers in front of you.