We continue with our series on youth and their financial planning strategies.
We began with Anjali and Uday and Nikhil and Arpita, two young couples who shared their financial plans and objectives with us. Financial expert Gaurav Mashruwala analysed and advised them on their strategy.
Anil and Ruchira are a young couple in their late twenties residing in Hyderabad.
He comes from a middle-class family. She has an upper middle-class background. They fell in love a few years ago and have been married for the past three years.
Anil is a tech guy. Ruchira is trying her hand at some "working from home" Net-based options. Right now, Anil is the only earning member with a monthly take-home salary of Rs 48,000. In addition, in September and March, he gets a taxable bonus of Rs 25,000 over and above his salary. He also has an additional source of income (Rs 50,000 to Rs 75,000 per annum).
"I used to be a miser," says Anil. But, when you talk to him, you realise he is being harsh on himself. At a very young age, he was aware of the value of money and had to make do with whatever he had. At one time, he had to live with his brother and parents in a single room. "We did a lot of window shopping in those days," he reminisces. "When we wanted something, we could not just buy it. We had to save for it."
He speaks of his bachelor days, of when he got his first job and how most of his earnings were spent on helping his brother get a decent education.
Ruchira did not have any such monetary considerations. She loved to splurge (not only on herself but on others too). As the youngest child in a well-to-do family, she was allowed to indulge.
Their weakness is shopping (clothes and books). Being artistic, they also love to shop for their home. Ruchira loves to buy gifts for her family (though this happens just twice a year when they visit each other).
Socialising is limited to eating out around twice a week and catching a movie on and off. They are non-drinkers and non-smokers and they don't like visiting pubs.
The smart move they have made is to buy a house in January this year. They are currently living in this home, which they bought with a loan. "I must have shifted between 18 houses from the time I was born," says Anil. "My biggest dream was to own my own house which I could call home."
Now that he is earning well and they have no children or dependents, they both feel this is the right time to save. They have started to keep track of where the money is being spent and all unnecessary splurging has been stopped.
Shopping has been cut down substantially. They no longer splurge or buy things on a whim. Instead, they ask themselves if they really need something before picking it up. They also try to time it with a sale or discount offer.
They have a car -- Maruti 800 -- that they bought in February 2003. They have no plans to upgrade it in the near future.
Take a good look at their expenses and goals, before you read the comments of our expert, Gaurav Mashruwala.
Expenses and investments: Where their money goes.....
What they are saving for: Anil and Ruchira's goals
Gaurav Mashruwala's comments and advice: How to save for your goals
Would you like to be financially appraised? Then do write to us with these details and Gaurav Mashruwala will comment on your investments.
1. Name
2. Age
3. City you live in
4. Phone number
5. Take-home salary/earnings
6. List of your current investments and the amount invested in each
7. Number of loans you are servicing with details of tenure and EMI
8. Monthly expenses
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10. Number of dependents
11. Goals towards which you would like to save
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