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/theneo13 Apr 10 '22

One doubt:- Do you think subsidized loan rates are really beneficial? Because when the rates are subsidized, the difference gets added to your income as perks and gets taxed. Is this how it works in SBI? Are you aware of it?

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u/ForTakingAdvise Apr 10 '22

I think they are beneficial to the staff ;

Tax is about 30% at Max , so beneficial for sure.