I am 29 years old and my wife, 25, is a home maker.

We are expecting a child next year. Under my employment, I don't have PF, gratuity and other benefits.

My monthly income is Rs 90,000 and rental income is Rs 3,500.

My expenses are Rs 35,000. I also pay an EMI of Rs 12,500 for a plot loan. My monthly instalment in two chit funds is Rs 30,000. I bid for both of them during my plot purchase. I own a flat and three plots worth Rs 26 lakh. I have a 50 per cent share in a house and its current value is Rs 30 lakh. I took the loan but my father supports the EMI payment. I have sold all my investments while purchasing the flat. My current liability is Rs 7.5 lakh, which is interest-free and needs to be repaid within six months.

I have taken a floater health insurance policy for Rs 5 lakh. I plan to take term insurance for Rs 1 crore.

My goals are:

I want to buy a car for Rs 9 lakh in few years.

How much do I need to save for my child’s higher education and for my retirement at 50. We may live till 80.

— Sridhar

One way of settling the loan is to take a top-up loan on the existing home loan. You may need to shift your loan to a housing finance company to avail of a top-up.

For a loan of Rs 7.5 lakh at 11 per cent interest, your EMI outgo will be Rs 11,000 for a 9-year tenure. If you take the loan you will be left with limited surplus.

Buying car

If you wish to buy a car for Rs 9 lakh, you should save monthly a sum of Rs 21,500 for the next 36 months and it should earn return of 10 per cent.

Child’s Education

If a sum of Rs 8 lakh is needed for higher education currently, in 18 years it will be Rs 27 lakh, if inflation is 7 per cent. You need to save Rs 3,560 monthly and it should earn 12 per cent.

Retirement

At 50 you should have a corpus of Rs 2.9 crore and it should earn inflation-adjusted return of one per cent.

To create such a corpus in 21 years you should save monthly a sum of Rs 25,600 .

(The author is CEO , myassetsconsolidation.com).

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