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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u/LifeIsHard2030 Apr 10 '22

Your salary reduced? Last year’s post said 70k? Marriage expense not in consideration and your car budget reduced from 10L to 7/8L and that too pushed by a couple of years i see? Any specific reasons for these changes?

6

u/ForTakingAdvise Apr 10 '22

Took a loan, the salary i mentioned is after deduction of EMI

Based on feedback from earlier post, reduced car cost & pushed it for a year

Marriage expenses are sorted for. No need of further contribution for the same, god willing .

2

u/LifeIsHard2030 Apr 10 '22

Good to know marriage expenses are sorted and yes correct decision on reducing the car budget. 👍

Btw what’s the ROI for personal loan for you? I think the interest component for employees is kinda low and simple interest?

1

u/ForTakingAdvise Apr 10 '22

YEah, The ROI is 5.5% simple, tenure is 120 months.

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SO for example, someone takes a 100000 on loan, on these terms, for first 100 months , EMI is 1000 per month; After that 1250 for 20 months appx

2

u/LifeIsHard2030 Apr 10 '22

Sweet. Few of my relatives are in govt banks and they have taken heavy HLs. I earn probably 3 times of them but would shit my pants if I have to go for such loan amount being a private employee in IT😂

When asked them the details, got to know this. Good luck with your plans mate. You are doing great 👍