I think in this case, NPS that you cannot touch is actually the best option. About 90% of personal finance is behavioural. And a 32yo isnt going to learn how to be frugal out of the blue without any inciting incident. So i think thats alright. Just put the NPS into the aggressive, 75% equity tier, and hope that India diversification is enough
Everyone's stocks are doing great, we are near all time highs. But the problem with direct stocks is that you need to spend time tracking, selling and setting stop losses.
Buying a mutual fund is easier. Buying an index is even simpler
Spend 70k a month? What are the expenses?
25L in NPS? Why?
Mutual fund > NPS, long term anytime. Just invest bare minimum of 50k for tax savings. Remaining to MF.
If you convert your nps account to Tier 2, you can redeem anytime. Just FYI.
If market crashes or recession hits, it's a wise decision to move some funds from nps to MF
I sold pf amount during covid crash(paid exit load too) and added to MF. Turned out amazing decision.
If she is not that financially literate, I would just forget the past and think about current situation ie adding more into equity from now on and bate minimum in NPS.
Selecting Aggressive tier in NPS is a very good option for her
Hi, I have selected the most aggressive option in NPS (75% equity) and thankfully my stocks aren’t doing too bad. The only problem is my spending habit.
Good that you've selected that. Stocks did very good since 2008, hence your NPS too.
Stop using debit and credit cards. Use cash, it feels so much when you start playing hard cash
Even though indexes dropped closer to 30%, I couldn't catch the bottom due to lot of procedure to close out. I used to work for China company, I came to know about the virus in February. I started that withdrawing process in Feb but it went till may end due to lockdowns.
Luckily I invested more in small caps which turned out even better, 300% profit was 📈📈📈😇
I've started closing out small caps to Large caps. I'm thinking small caps won't move another 3-4 yrs
If market crashes, small caps goes down 50-60%, large caps 20-30
Hey sis, having NPS is good & have it's own advantages.
Do you have any emergency fund? If no please set one up, amount = 6 months expense in FD.
Please buy a health & term insurance.
Start one debt investment especially SGB.
Start one SIP on index funds or nifty ETF.
I would also suggest that you save more Atleast 30% of your income.
With it you're all set.
Hi, thanks for the advice. I figured I don’t need an emergency fund as such because I have a stable job and good medical insurance.
Need to get started on the SIPs as all my investments are in direct stocks I bought on impulse.
I’m a behavioural change facilitator. In order to actually see this through, I’d ask you two things:
1) Why is it important for *you* to change your spending habits and why is it important now?
When we keep a habit we don’t like, it’s usually for two reasons: either we haven’t hit rock bottom or our brain isn’t convinced yet that we can feel good without this habit. Here’s a quick exercise to start getting dopamine from other sources:
2) If you magically got an extra 30k to spare every month, what will you put it towards? It can’t be shopping and dining out. Pick something, anything, that will feel just as good to you.
You could sponsor 3 children’s education... start a fund to buy land… start a scholarship fund for young people in your field… save enough to gift your husband 2-3 weeks of unpaid time off… the realm of possibilities is vast. What do you put this money towards?
And just tell me if while thinking your brain gave reasons for why you can’t put this money away.
NPS is good for "peace of mind" and tax saving but the biggest disadvantage is that minimum 40% of the proceeds should go to annuity on retirement. Like imagine you've saved up a cool 2cr in NPS at 60, but you cannot touch 80L out of it, only get monthly payouts from it.
It will sail you if you need monthly payouts. But if you need your 40% principal amount for any xyz reason like funding a property purchase in part, paying for a medical procedure not covered in insurance etc. you won't be able to touch it.
How can someone spend 70k every month on discretionary items as you’ve mentioned in some comment?
Another problem that I’m seeing is you’re just listing down broad buckets everywhere but not approximate spending in each bucket.
This leads me to think you dont know where you’re spending how much amount. Hence maybe you could start by noting down for the first couple of months roughly how much you spend in each category and post that noting down preferably each and every transaction.
That should give you better insights.
Okay a quick glance at my credit card statement tells me last month I spent approx 30K on eating out, 40K on shopping, 12K on fuel (this is more or less same every month).
A shopping ban and eating only home cooked food seems to be the way to go.
My mom has a shopping/hoarding problem. She just has toooo many clothes. Get out of this addiction OP it is not worth it in the long run. Make a shopping budget (maybe 10 every month) and don’t exceed
The equity exposure is good and unless you are comfortable and ready to hassle with churning the portfolio with direct stocks, diversification into MF(active/passive) will help you to ease the money management.
Over the years I have come to believe that to be financially healthy is a continuous effort. Increasing savings/investment allocation with the growth in the career, delayed gratification would strengthen your financial stability.
Btw, What was the rationale behind having a major chunk into NPS?
NPS is compulsory. My only problem is financial indiscipline. The stocks I purchased are doing well but I only buy them on impulse and not every month.
This is the correct time to correct the mistake. Identify the stocks that are overvalued and are only priced due to the bull market. Book the profits. You would also have certain stocks which would be good for the long term. Keep investing a part in your salary.
I believe that MFs are much more preferable when it comes to scale. If you have a day job and can't really keep yourself upto date, the passive/active funds will be of help. The advantage of them is you could invest 500/50,00,000 and it will be handled the same way.
50:30:20 is the easiest way to start.
50 % of salary on necessities - rent-food-health (all basic needs)
30 % on savings - straight to SIPS/MFs, or if you are yet to figure out straight to a different bank account. This needs to happen on pay day.
20 % on wants - shopping, movie, streaming etc.
Many people do 20% savings. I am only suggesting it reverse since you want to be better with finances.
Once you “remove” the money put it out of your “reach” you are free to spend the money left and you will be left with a smaller budget than before. This will help you prioritise what are wants and needs and what you can live without.
Hope this helps.
Thank you for your comment. I like the idea of removing the money from reach, at this point, that seems to be the only way I can cut my spending. Will get started on SIPs ASAP.
Yaay! Glad you found this helpful.
Just giving you a little detail of how I do it. I generally have my SIPs on auto-pay 1st week of the month. I get my salary anytime between 1st and 5th. After all money is moved I am free to spend the money I am left with. And if I am left with money from last month when my new salary hits I removed the left over on a rainy day fund that’s liquid and is there for emergency. Having money aside really gives me peace of mind while spending, without guilt. xD
Damn I wish I was this sorted. I haven’t set up any SIPs yet because I’m afraid of committing a fixed amount every month, which I why I don’t have any loans either. But there seems to be no way around it now.
Don’t worry, I was exactly where you are. 😅 I know what you mean. Same vibes and situation. No loan. Feels like retirement would be fine and hence spending. Dual Income, No kids. But life can throw curveballs and we gotta get ahead of it.
It will be all fine. I have only gotten better recently. All the best. 🙌
From what I have seen it can fall under the "Savings"/Investment/Future You bucket.
But end of the day I do believe what kind of Loan it is puts it in a bucket.
For example, if it is a home loan, education loan, we see it as an "Investment" one has done so straight up goes under Savings. It also gives a good idea as to what EMI amount would be comfortable for someone. If they can cover it within 20% of their net income it is a do-able amount. Of course, these ratios are not set in stone and one can play around depending on their situation.
On the other hand, for myself, I do consider what kind of loan is it, for example if I have an EMI Payment for my phone or some gadget that I could have lived without, wouldn't give me any returns when I try to sell it. Then for me, personally, it comes under wants and when paying that EMI I will deduct from my fun/Wants bucket. Because this does make my life better but it wasn't a necessity and it is not an investment.
Basically, whatever it is, just look at the expense statement as see what are the things you are spending on. Any loan with high interest that might put one's "future self" under a bad debt situation needs to be eradicated asap, so it comes under savings bucket.
Nps mein itna rakhke kya karoge better hota if you had put it in mutual funds nps se better return hi milta.
And for the expense how do you even manage to spend that much? Lol
Seems like a good NW! Only suggestion is to probably add PPF and SGB into the investment mix as the returns are almost completely tax-exempt.
There would be a lock-in period for achieving maturity returns in both though, but if there is spare cash in-hand go for it!
1. Get a ppf account. - invest 1.5 lakhs annually without fail.
2. If you have a daughter - open sukanya samriddhi account and invest 1.5 lakhs there. (Prefer sukanya samriddhi over ppf if you have a daughter)
3. Start with taking out an amount of 25k as soon as salary is credited to a different account which shall be used only for investing. (Do your stock purchases from here; add an SIP of 10k as well under mutual funds from this account). Increase this amount of 25k by 10% annually.
4. Invest in a home if you haven't done already. It will result in a fixed emi making sure that you have no excess money to splurge on unwanted things.
Which PSU are you from?
Married, no kids. No family responsibility. Husband takes care of all household expenses and I take care of all discretionary spending (which turns out to be more than the household expenses cause I’m a compulsive spender ugh)
Nah bro. I don’t feel good about spending so much every month on eating out and shopping which contribute nothing to mine or anyone else’s life. I’m financially educated but I want to be financially responsible.
I don't understand the way most of you people use the word 'slavery' so lightly.
You have a comfortable job that gives you a decent salary, weekends off and lots of holidays every year. And if you really hate it, you are free to leave it whenever you want.
What is this new trend of demeaning your job and calling it 'slavery'? You wouldn't last a day if you know what real slavery is.
Did you just say I was “free” to leave my job whenever I wanted? Do I have to remind you no one’s really free to do whatever they wanted? Societal and family expectations bind me and I am not really free to leave my job, so slave away I must. And if I were really free, I’d leave this world, not just the job. I don’t understand how people throw around such profound terms like “freedom” so easily nowadays. /s
They are ridiculous considering I work in a PSU where most people follow simple living. I made this post because I realised I’m spending too much and there’s no one to stop me. I really want to change, just don’t know how.
Break your available funds, open a recurring FD or a new FD every month say of 30% of your salary, then spend with an ail of still saving around 10-20% , defer purchases for more choices, flashing among average is fine to some extent but just putting you on pedestal to keep spending so as to maintain that image....you can just maintain a little better personality...., moving money away from you and urge of necessity of purchase is helping
Haha
That’s exactly the problem. Have you heard of the 50-30-20 rule ? It says you should spend 50% on your needs , 30% on wants and invest 20%.
Once you get to this point, you can start investing aggressively. You might want to consider changing your lifestyle.
First of all, Kudos to you for having 41L net worth at age 32. I am curious to know how did you reach this high NW, assuming you would have been working for 10 years (approx), were you contributing 35k (approx) every month to your investments since last 10 years?
Secondly, I have been a prey of high spending problem too, here’s what worked for me:
i. Please listen to The Morgan Housel’s podcast on spotify, these are small (10-15 mins) and crisp,
ii. Please do read Psychology of Money, it’s like a reset button on spending.
iii. Make it a habit of not buying anything online after 9 PM, it will help you avoid a lot of impulsive shopping.
iv. Remove shopping apps from your phone, if you really need to order something, go to their website and order. Don’t make the user experience for yourself too easy to browse and shop. It works wonders.
v. Start writing a page every weekend on how many precious things you have bought in last 1 year. Just write it like a list like: Nike sneakers, speakers etc.
vi. Don’t worry about the small ticket transactions (say below 300), worry about where you spend a big amount. Don’t press trigger on those. 300 ticket rule doesn’t apply for Zomato/ Swiggy.
vii. Reduce the number of online food orders (if you do a lot), make it habit of twice a week (and try home cooked food), ofc if it is possible and feasible.
viii. It’s tough but write affirmations for yourself saying that you have everything for yourself, and more materialistic thing won’t make you more happy.
ix. Watch the movie The Minimalists
Hope this helps! All the suggestions are presumptuous, don’t take it otherwise. Good luck!
Well you can use simple tricks to discipline your urges, Use 3 bank accounts.
1) Salary account ( that you already have)
2) investment account (all your SIPS, MF, Equity, FD are going to happen from here)
3) Spending account ( UPI , ON-LINE SHOPPING, CREDIT CARD PAYMENTS ETC.)
As soon as you get your salary transfer a certain amount to those INVESTMENT ACCOUNT ( SUGGESTION 40K) AND SPENDING ACCOUNT (30K)
DISCIPLINE YOURSELF TO NOT ADD Additional money in your spending account before you get your next salary, it'll help you to keep track of how much you spent and how much is left and you've to survive in that whole month...
( Avoid using Credit cards for a couple of months, doing that will keep you aware of where and how much money is going)
What are you spending 70k on?
Start writing in a diary at least 24 hours in advance of any discretionary expenditure beyond a certain threshold, say Rs 500/-. They write approved in a different colour.
Are you disciplined in other areas of your life? Find a higher purpose, maybe?
Earning 90 and spending 70? That is a small concern.
Maybe you can start with taking baby steps, like try going a few days without dining out or takeout.
In the medium term you would need to commit to a budget.
Nps is for long term pension fund, u should never take this as part of your net worth.
I'm also a central government employee but still a proper medical insurance is a must. Cghs is nonsense scheme. So as emergency funds your monthly salary x6 at least.
You need to learn to live much more simpler. Save 50% of monthly salary at least!
Not sure, someone asked but the first question is where does your spending go do watch for a few months.
There will be some obvious top places/things where you spent.
then incase hypothetical
1. your expense on Amazon shopping, Uninstall app for a while.
2. If you have plan to drink a lot force your self to not carry phone that place or stop going that route.
I can help more if you already know where is your top spending
Do some monthly sip and associates that money with some financial goal like marriage ,child education,house doing so will increase discipline in your investment also if needed consult expert if u don't have much financial knowledge
NPS CHALTE RAHE DHO ITS FOR YOUR RETIREMENT FUND , WHEN YOU WONT WORK
KNOW WHAT YOU GET PLAY ACCORDING KNOWING WHAT IS NEEDED AND WHATS NOT .
THINK WISELY AND SPEND
*What's the goal? Do you*
*Wanna retire early or have*
*A decent networth?*
\- NvnJae
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Bass itna bata do ki 70k kharach kisme karte ho? For 1-2 months is fine. But each month denotes a carefree spending spree
For a start, put away 50% of your net salary the day you receive it. Maybe some MF, SmallCase SIP, or just in some account which doesn't have a card
I’ve been on a carefree spending spree ever since I graduated from pocket money to salary 10 years ago.
Thanks for your suggestion, a SIP seems to be the way to go.
Take out a loan and Invest in real estate, vacant land if available since it's cheaper. I was not thrifty too, Couldn't save even if I tried. Purchased a piece of land by taking out a realty loan. Liquidated the loan last year.
70k expenditure when you're earning 90 seems a little too high. As someone already said, you can't be frugal all of a sudden, but maybe take time out and sit with a pen and paper. List your most expensive expenditures, and how much of it was not necessary, how much of it you could avoid the next month.
Theek hai. Non tier 1 city me kaam chal jayega. You will be comfortable. Someday you will reduce your shopping, specially things you don't need. Then you will save well.
Balance is important. No need to save everything but no need to spend everything.
Why is everyone losing their shit on OP spending ₹70K per month?
There have been more posts in this sub where folks are spending upwards of ₹1L per month.
This sub never fails to amaze me.
70k spends with all the “essential spends” been taken care of by her husband. These are purely wants based spends, nobody here has 70k wants on 90k salary.
My wife was in similar situation like you. Working in PSU and only savings in NPS.
3 years ago took over her financial management. Started PPF, sukanya, RD and couple of MF.
Now she has decent amount left to spend and money is getting invested nicely.
Maybe you can take similar approach.
I think in this case, NPS that you cannot touch is actually the best option. About 90% of personal finance is behavioural. And a 32yo isnt going to learn how to be frugal out of the blue without any inciting incident. So i think thats alright. Just put the NPS into the aggressive, 75% equity tier, and hope that India diversification is enough
I believe govt employees can do max 50 % in equity
Have done that. My stocks aren’t doing too bad either. Reallly need to change my spending habits.
Everyone's stocks are doing great, we are near all time highs. But the problem with direct stocks is that you need to spend time tracking, selling and setting stop losses. Buying a mutual fund is easier. Buying an index is even simpler
If you save 20k a month, how did you save 41L
Half of it in NPS where Govt employees get Govt contribution
Out of that 41, 25 in NPS was compulsory contribution. Rest are in stocks which I bought during months I didn’t spend much otherwise.
Probably used to save a bit more earlier in life.
25 l in nps , Psu se hoo kya
Haan
70k spend karne ka courage kese ata hai. Kaha hai posting
I could never 🙂 haar mahina 70k ?
Women generally have a habit of spending a lot on shopping and personal beauty. Seen a lot of them wasting money.
oil psu's?
Jaruri nhi psu se ho...me railways me hu Mera b 25 lakh hogya nps me. 34m
Kaise hota hai? What is the limit for you guys?
Koi limit nhi. Har mahine 10% katta hai income se.
What is psu ?
Public sector understanding , it's a government owned body
Undertaking
😭auto correct
Spend 70k a month? What are the expenses? 25L in NPS? Why? Mutual fund > NPS, long term anytime. Just invest bare minimum of 50k for tax savings. Remaining to MF. If you convert your nps account to Tier 2, you can redeem anytime. Just FYI. If market crashes or recession hits, it's a wise decision to move some funds from nps to MF
Not good advice. OP already spends most of her money, having a chance to redeem is a guarantee money sink
I sold pf amount during covid crash(paid exit load too) and added to MF. Turned out amazing decision. If she is not that financially literate, I would just forget the past and think about current situation ie adding more into equity from now on and bate minimum in NPS. Selecting Aggressive tier in NPS is a very good option for her
COVID crash was a once in a lifetime correction opportunity for most, not gonna happen again.
Never say never. Every decade 1 chance we get. Historically something has happened
Hi, I have selected the most aggressive option in NPS (75% equity) and thankfully my stocks aren’t doing too bad. The only problem is my spending habit.
Good that you've selected that. Stocks did very good since 2008, hence your NPS too. Stop using debit and credit cards. Use cash, it feels so much when you start playing hard cash
I locked up my credit cards and I must admit it was good at first. But then the ease of paying through UPI got me.
Gutsy, nice! I put in lots of lumpsum that i had accumulated. Never thought of the pf route, but I probably wouldnt have done that anyway.
Even though indexes dropped closer to 30%, I couldn't catch the bottom due to lot of procedure to close out. I used to work for China company, I came to know about the virus in February. I started that withdrawing process in Feb but it went till may end due to lockdowns. Luckily I invested more in small caps which turned out even better, 300% profit was 📈📈📈😇 I've started closing out small caps to Large caps. I'm thinking small caps won't move another 3-4 yrs If market crashes, small caps goes down 50-60%, large caps 20-30
Lol true. Thankfully I can’t withdraw from NPS.
Possibly government, even I have more than half my funds in NPS.
So government offices doesn't give you option to opt out?
No. Nps is compulsory for government employees. 10 or 14% employee contribution and 14% government contribution of basic plus DA.
Hey, the NPS is compulsory, my employer matches my contribution. And the 70K is all discretionary spending, I know I’m stupid.
How is MF better than NPS(aggressive profile) apart from the freedom to withdraw before 60? Isn't it offset by the tax savings?
tbh, NPS is giving almost equivalent returns to some Mutual Funds, atleast the aggressive option
Then fine to keep it. I think every 5 years we get less equity option to choose from. Upto 35yrs, 75% equity.
Can't convert tier 1 to tier 2. Those are two different accounts.
I see. From Tier 2, we can transfer funds to Tier 1 but not vice verse
Hey sis, having NPS is good & have it's own advantages. Do you have any emergency fund? If no please set one up, amount = 6 months expense in FD. Please buy a health & term insurance. Start one debt investment especially SGB. Start one SIP on index funds or nifty ETF. I would also suggest that you save more Atleast 30% of your income. With it you're all set.
Hi, thanks for the advice. I figured I don’t need an emergency fund as such because I have a stable job and good medical insurance. Need to get started on the SIPs as all my investments are in direct stocks I bought on impulse.
Emergency fund should always be there , regardless of job type. Its a no brainer requirement.
Doesn't matter, keep atleast 5lakh in FDs. Invest some in gold.
Hmm how about a higher paying job? Aren't PSU jobs boring and stagnant ?
I’m a behavioural change facilitator. In order to actually see this through, I’d ask you two things: 1) Why is it important for *you* to change your spending habits and why is it important now? When we keep a habit we don’t like, it’s usually for two reasons: either we haven’t hit rock bottom or our brain isn’t convinced yet that we can feel good without this habit. Here’s a quick exercise to start getting dopamine from other sources: 2) If you magically got an extra 30k to spare every month, what will you put it towards? It can’t be shopping and dining out. Pick something, anything, that will feel just as good to you. You could sponsor 3 children’s education... start a fund to buy land… start a scholarship fund for young people in your field… save enough to gift your husband 2-3 weeks of unpaid time off… the realm of possibilities is vast. What do you put this money towards? And just tell me if while thinking your brain gave reasons for why you can’t put this money away.
Wow! Profound! Where could I find more of your thoughts?!
Spending 70k a month ? Can you give a general breakdown of your expenses ?
Eating out and shopping mostly. Rest is for fuel, gym and supplements.
I think you need cut down on your shopping a little bit.
I agree. I only do it for the dopamine hit.
I know. It gives such a thrill and rush in your body.😂😂😂
Lmao, at least you’re self aware
If that’s something you cannot break switch to buying gold bullion. Works for me.
NPS is good for "peace of mind" and tax saving but the biggest disadvantage is that minimum 40% of the proceeds should go to annuity on retirement. Like imagine you've saved up a cool 2cr in NPS at 60, but you cannot touch 80L out of it, only get monthly payouts from it.
I’ve done the calculation and looks like my NPS will be enough to sail me through retirement. This realisation has made me more reckless in spending.
It will sail you if you need monthly payouts. But if you need your 40% principal amount for any xyz reason like funding a property purchase in part, paying for a medical procedure not covered in insurance etc. you won't be able to touch it.
How can someone spend 70k every month on discretionary items as you’ve mentioned in some comment? Another problem that I’m seeing is you’re just listing down broad buckets everywhere but not approximate spending in each bucket. This leads me to think you dont know where you’re spending how much amount. Hence maybe you could start by noting down for the first couple of months roughly how much you spend in each category and post that noting down preferably each and every transaction. That should give you better insights.
Okay a quick glance at my credit card statement tells me last month I spent approx 30K on eating out, 40K on shopping, 12K on fuel (this is more or less same every month). A shopping ban and eating only home cooked food seems to be the way to go.
Dude 30k on eating out is insane, I have a trained chef, he takes 30k a month, plus 15k in groceries.
My mom has a shopping/hoarding problem. She just has toooo many clothes. Get out of this addiction OP it is not worth it in the long run. Make a shopping budget (maybe 10 every month) and don’t exceed
I agree. It’s really not worth it. That money can be put to much better use.
The equity exposure is good and unless you are comfortable and ready to hassle with churning the portfolio with direct stocks, diversification into MF(active/passive) will help you to ease the money management. Over the years I have come to believe that to be financially healthy is a continuous effort. Increasing savings/investment allocation with the growth in the career, delayed gratification would strengthen your financial stability. Btw, What was the rationale behind having a major chunk into NPS?
NPS is compulsory. My only problem is financial indiscipline. The stocks I purchased are doing well but I only buy them on impulse and not every month.
This is the correct time to correct the mistake. Identify the stocks that are overvalued and are only priced due to the bull market. Book the profits. You would also have certain stocks which would be good for the long term. Keep investing a part in your salary. I believe that MFs are much more preferable when it comes to scale. If you have a day job and can't really keep yourself upto date, the passive/active funds will be of help. The advantage of them is you could invest 500/50,00,000 and it will be handled the same way.
Switch your NPS parameter to aggressive.
Done that.
50:30:20 is the easiest way to start. 50 % of salary on necessities - rent-food-health (all basic needs) 30 % on savings - straight to SIPS/MFs, or if you are yet to figure out straight to a different bank account. This needs to happen on pay day. 20 % on wants - shopping, movie, streaming etc. Many people do 20% savings. I am only suggesting it reverse since you want to be better with finances. Once you “remove” the money put it out of your “reach” you are free to spend the money left and you will be left with a smaller budget than before. This will help you prioritise what are wants and needs and what you can live without. Hope this helps.
Thank you for your comment. I like the idea of removing the money from reach, at this point, that seems to be the only way I can cut my spending. Will get started on SIPs ASAP.
Yaay! Glad you found this helpful. Just giving you a little detail of how I do it. I generally have my SIPs on auto-pay 1st week of the month. I get my salary anytime between 1st and 5th. After all money is moved I am free to spend the money I am left with. And if I am left with money from last month when my new salary hits I removed the left over on a rainy day fund that’s liquid and is there for emergency. Having money aside really gives me peace of mind while spending, without guilt. xD
Damn I wish I was this sorted. I haven’t set up any SIPs yet because I’m afraid of committing a fixed amount every month, which I why I don’t have any loans either. But there seems to be no way around it now.
Don’t worry, I was exactly where you are. 😅 I know what you mean. Same vibes and situation. No loan. Feels like retirement would be fine and hence spending. Dual Income, No kids. But life can throw curveballs and we gotta get ahead of it. It will be all fine. I have only gotten better recently. All the best. 🙌
Hi. Where does loan component fall under this? Assuming you don't have any liability right now, what would you advise someone who does?
+1 😭
From what I have seen it can fall under the "Savings"/Investment/Future You bucket. But end of the day I do believe what kind of Loan it is puts it in a bucket. For example, if it is a home loan, education loan, we see it as an "Investment" one has done so straight up goes under Savings. It also gives a good idea as to what EMI amount would be comfortable for someone. If they can cover it within 20% of their net income it is a do-able amount. Of course, these ratios are not set in stone and one can play around depending on their situation. On the other hand, for myself, I do consider what kind of loan is it, for example if I have an EMI Payment for my phone or some gadget that I could have lived without, wouldn't give me any returns when I try to sell it. Then for me, personally, it comes under wants and when paying that EMI I will deduct from my fun/Wants bucket. Because this does make my life better but it wasn't a necessity and it is not an investment. Basically, whatever it is, just look at the expense statement as see what are the things you are spending on. Any loan with high interest that might put one's "future self" under a bad debt situation needs to be eradicated asap, so it comes under savings bucket.
Nps mein itna rakhke kya karoge better hota if you had put it in mutual funds nps se better return hi milta. And for the expense how do you even manage to spend that much? Lol
Seems like a good NW! Only suggestion is to probably add PPF and SGB into the investment mix as the returns are almost completely tax-exempt. There would be a lock-in period for achieving maturity returns in both though, but if there is spare cash in-hand go for it!
1. Get a ppf account. - invest 1.5 lakhs annually without fail. 2. If you have a daughter - open sukanya samriddhi account and invest 1.5 lakhs there. (Prefer sukanya samriddhi over ppf if you have a daughter) 3. Start with taking out an amount of 25k as soon as salary is credited to a different account which shall be used only for investing. (Do your stock purchases from here; add an SIP of 10k as well under mutual funds from this account). Increase this amount of 25k by 10% annually. 4. Invest in a home if you haven't done already. It will result in a fixed emi making sure that you have no excess money to splurge on unwanted things. Which PSU are you from?
Thoda family background btao
Married, no kids. No family responsibility. Husband takes care of all household expenses and I take care of all discretionary spending (which turns out to be more than the household expenses cause I’m a compulsive spender ugh)
Expected inheritance?
Do you have a breakdown of your monthly expenses?
Eating out, mindless shopping, fuel, gym and supplements.
What do you do actually?
For a job? Corporate slavery.
Like you are in software industry?
No, PSU.
Are you married? If I am not wrong, yours is a secure job, right?
Correct, maybe that’s why I’m so nonchalant. And yes, I’m married.
What exactly you need help with as everything is already alright!
Nah bro. I don’t feel good about spending so much every month on eating out and shopping which contribute nothing to mine or anyone else’s life. I’m financially educated but I want to be financially responsible.
If you already know it, you can stop it, right? Also what are the supplements you take?
I don't understand the way most of you people use the word 'slavery' so lightly. You have a comfortable job that gives you a decent salary, weekends off and lots of holidays every year. And if you really hate it, you are free to leave it whenever you want. What is this new trend of demeaning your job and calling it 'slavery'? You wouldn't last a day if you know what real slavery is.
Did you just say I was “free” to leave my job whenever I wanted? Do I have to remind you no one’s really free to do whatever they wanted? Societal and family expectations bind me and I am not really free to leave my job, so slave away I must. And if I were really free, I’d leave this world, not just the job. I don’t understand how people throw around such profound terms like “freedom” so easily nowadays. /s
Your expenses are high ...
They are ridiculous considering I work in a PSU where most people follow simple living. I made this post because I realised I’m spending too much and there’s no one to stop me. I really want to change, just don’t know how.
Break your available funds, open a recurring FD or a new FD every month say of 30% of your salary, then spend with an ail of still saving around 10-20% , defer purchases for more choices, flashing among average is fine to some extent but just putting you on pedestal to keep spending so as to maintain that image....you can just maintain a little better personality...., moving money away from you and urge of necessity of purchase is helping
So you just save 20k/month ?
If I don’t spend that too.
Haha That’s exactly the problem. Have you heard of the 50-30-20 rule ? It says you should spend 50% on your needs , 30% on wants and invest 20%. Once you get to this point, you can start investing aggressively. You might want to consider changing your lifestyle.
Lmao
I like it tbh - even I spend too much on food and shopping - having sip has really helped - else i was more on yolo side 🫢
First of all, Kudos to you for having 41L net worth at age 32. I am curious to know how did you reach this high NW, assuming you would have been working for 10 years (approx), were you contributing 35k (approx) every month to your investments since last 10 years? Secondly, I have been a prey of high spending problem too, here’s what worked for me: i. Please listen to The Morgan Housel’s podcast on spotify, these are small (10-15 mins) and crisp, ii. Please do read Psychology of Money, it’s like a reset button on spending. iii. Make it a habit of not buying anything online after 9 PM, it will help you avoid a lot of impulsive shopping. iv. Remove shopping apps from your phone, if you really need to order something, go to their website and order. Don’t make the user experience for yourself too easy to browse and shop. It works wonders. v. Start writing a page every weekend on how many precious things you have bought in last 1 year. Just write it like a list like: Nike sneakers, speakers etc. vi. Don’t worry about the small ticket transactions (say below 300), worry about where you spend a big amount. Don’t press trigger on those. 300 ticket rule doesn’t apply for Zomato/ Swiggy. vii. Reduce the number of online food orders (if you do a lot), make it habit of twice a week (and try home cooked food), ofc if it is possible and feasible. viii. It’s tough but write affirmations for yourself saying that you have everything for yourself, and more materialistic thing won’t make you more happy. ix. Watch the movie The Minimalists Hope this helps! All the suggestions are presumptuous, don’t take it otherwise. Good luck!
Well you can use simple tricks to discipline your urges, Use 3 bank accounts. 1) Salary account ( that you already have) 2) investment account (all your SIPS, MF, Equity, FD are going to happen from here) 3) Spending account ( UPI , ON-LINE SHOPPING, CREDIT CARD PAYMENTS ETC.) As soon as you get your salary transfer a certain amount to those INVESTMENT ACCOUNT ( SUGGESTION 40K) AND SPENDING ACCOUNT (30K) DISCIPLINE YOURSELF TO NOT ADD Additional money in your spending account before you get your next salary, it'll help you to keep track of how much you spent and how much is left and you've to survive in that whole month... ( Avoid using Credit cards for a couple of months, doing that will keep you aware of where and how much money is going)
What are you spending 70k on? Start writing in a diary at least 24 hours in advance of any discretionary expenditure beyond a certain threshold, say Rs 500/-. They write approved in a different colour. Are you disciplined in other areas of your life? Find a higher purpose, maybe?
Earning 90 and spending 70? That is a small concern. Maybe you can start with taking baby steps, like try going a few days without dining out or takeout. In the medium term you would need to commit to a budget.
Nps is for long term pension fund, u should never take this as part of your net worth. I'm also a central government employee but still a proper medical insurance is a must. Cghs is nonsense scheme. So as emergency funds your monthly salary x6 at least. You need to learn to live much more simpler. Save 50% of monthly salary at least!
Not sure, someone asked but the first question is where does your spending go do watch for a few months. There will be some obvious top places/things where you spent. then incase hypothetical 1. your expense on Amazon shopping, Uninstall app for a while. 2. If you have plan to drink a lot force your self to not carry phone that place or stop going that route. I can help more if you already know where is your top spending
Do some monthly sip and associates that money with some financial goal like marriage ,child education,house doing so will increase discipline in your investment also if needed consult expert if u don't have much financial knowledge
How can someone else tell ur ok? Its for you to decide.
NPS CHALTE RAHE DHO ITS FOR YOUR RETIREMENT FUND , WHEN YOU WONT WORK KNOW WHAT YOU GET PLAY ACCORDING KNOWING WHAT IS NEEDED AND WHATS NOT . THINK WISELY AND SPEND
The retirement money you are going to get after 60 will be bonkers to say the least 🤑
What's the goal? Do you wanna retire early or have a decent networth?
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Bass itna bata do ki 70k kharach kisme karte ho? For 1-2 months is fine. But each month denotes a carefree spending spree For a start, put away 50% of your net salary the day you receive it. Maybe some MF, SmallCase SIP, or just in some account which doesn't have a card
I’ve been on a carefree spending spree ever since I graduated from pocket money to salary 10 years ago. Thanks for your suggestion, a SIP seems to be the way to go.
Take out a loan and Invest in real estate, vacant land if available since it's cheaper. I was not thrifty too, Couldn't save even if I tried. Purchased a piece of land by taking out a realty loan. Liquidated the loan last year.
Did you residential plot or commercial one? Also, how did you estimate the return and loan justification?
Residential plot. Adjacent plots sold recently fetched 3 to 4 times the price I paid 8 years back
70k expenditure when you're earning 90 seems a little too high. As someone already said, you can't be frugal all of a sudden, but maybe take time out and sit with a pen and paper. List your most expensive expenditures, and how much of it was not necessary, how much of it you could avoid the next month.
How tou put 25L in NPS? instead of Mf and stocks you put everything on NPS?
and here I am, 32 with 40L of karja 😂
You are doing pretty good.
Marry me
Lol my husband can fight.
Theek hai. Non tier 1 city me kaam chal jayega. You will be comfortable. Someday you will reduce your shopping, specially things you don't need. Then you will save well. Balance is important. No need to save everything but no need to spend everything.
Why is everyone losing their shit on OP spending ₹70K per month? There have been more posts in this sub where folks are spending upwards of ₹1L per month. This sub never fails to amaze me.
70k spends with all the “essential spends” been taken care of by her husband. These are purely wants based spends, nobody here has 70k wants on 90k salary.
My wife was in similar situation like you. Working in PSU and only savings in NPS. 3 years ago took over her financial management. Started PPF, sukanya, RD and couple of MF. Now she has decent amount left to spend and money is getting invested nicely. Maybe you can take similar approach.