I am 31-years old and married. My monthly take home salary is Rs 1.6 lakh. I pay a EMI of Rs 17,500 for a home loan and Rs 25,000 for a car loan. My parents stay in the house on loan, which will run for 10 years. I pay a monthly rent of Rs 27,500. My monthly household expense is around Rs 30,000. I have a term insurance plan for a sum insured of Rs 1 crore for which I pay an annual premium of R21,000. I have a family floater health insurance for my wife and myself with a sum insured of Rs 5 lakh. I have been investing Rs 40,000 for the last one year in ystematic investment plans or SIPs. I have recently taken a unit-linked insurance plan (Ulip) for 10 years and invest Rs 1 lakh per annum. I have Rs 2 lakh in savings account. I want to buy a second house in the next 5-10 years and the current worth of the house is Rs 1 crore. I would need money for my children's education 15-20 years from now (Rs 50 lakh), for their marriage 25 years from now (Rs 50 lakh) and a retirement corpus at the age of 60. - Mahesh
The good thing is you have started saving early. We have been repeatedly saying the key to wealth creation is to start saving early in life. It is not only the amount (what you save) that is critical, it is the habit of saving that makes all the difference.
Starting with your first goal (buying a second house). This you can do after five years as by that time you would have sufficient corpus to make the down payment and the balance can be taken as loan. Prefer to buy a ready-to-move property. This will help you save rent. However, this may make you buy a more expensive property but then it could be worth the cause as your cash flow would have improved by then.
(The views expressed are of Surya Bhatia, certified financial planner & principal consultant, Asset Managers)