Your Financial Plan


I am 36 and my wife is 34, we are both employed with a private company. I have a son (eight years) and a daughter (six). I wish to start an automobile design company with capital of ₹60 lakh in 2021. How should I fine-tune my investments to ensure that my family does not suffer if my business doesn’t stabilise?

Dhanamchezhiyan R

Keep adequate running capital to keep business operations smooth.

For the first three years, it is always a challenge to run a business successfully. During this period, you should not feel financial constraints. Since you are planning to start your business with your own capital it will protect you from financial worries. But at the same time, you have not factored in running capital nor do you have financial back-up. So, do explore the possibility of pruning the capital and keep at least ₹20 lakh as running capital (earmark fixed deposits).

To meet your financial goals, you need to invest monthly a sum of ₹1,22,000 against your surplus of ₹1 lakh. So, try and reduce your expenses for the next four years and accumulate as much as possible.

In the initial years, you will not have surplus to invest for goals. Once you are on track, restart monthly investments.

The writer is a registered investment advisor and founder, Send your queries to

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