Here's how you save more

With a bit of planning, we believe, finances of first-time entrepreneurs, who ditch white-collar jobs to be promoters themselves, too can be orderly. This column looks at, how young founders can and should save, without deviating from their desire to pursue innovation

Home Purchase

■ You would like to buy your own home worth J50 lakh (current value) after six years. I advise you to make down payment of roughly 20% and opt for a housing loan

■ You can invest J22,000 per month in Balanced Fund of MF to build the desired corpus. You can start with J10,000 p.m after credit card EMI is over and increase

■ Buying own home makes sense instead of spending good amount in rentals. Home loan also gives added tax advantage, which reduces your tax liability

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Retirement

■ You will require a corpus of J3.58 crore towards retirement, upto 80 years. It is required assuming household expenses of J11,000 p.m.

■ There is no existing asset available to link to retirement goal. You can start monthly investment of J5,000 via SIP in diversified equity mutual fund scheme. Since funds aren’t available for your retirement goal, you can start retirement plan once your income increases. You may also have to revise the retirement goal after marriage as expenditure will go up thereafter

Dream Vacation

■ You would like to go for a dream vacation after 1 year, which will cost you J1.50 lakh. Any lifestyle expenses such as buying car, two wheeler, camera or going for vacation will defer your above major goals. Prioritising goals is most important part of financial planning

■ The plan is based on details provided by you. You are advised to review the plan and rebalance your portfolio every year. This needs to be revised after marriage

Pankaaj Maalde, Certified Financial Planner

Want advice? Write to us: bizdesk@newindianexpress.com