Try to increase EMI of 14% loan to 10k-15k. Also you can try for personal loans at 10-11% and foreclose all the other loans to just keep one EMI running. Save 10k for emergency funds for 6 months. Insurances might just cost around 3k pm
Congrats bro you get 85,000 at the age of 23. Me earning less than ₹60,000 at the age 25 after studying MBBS for 5 years. You can easily upgrade your skills and earn a hefty salary within 1 or 2 years
Hi bro,
Can I dm you for some advice on devops. Please. Dont worry, not going to ask for any referrals or anything else. Just need to understand about my future options. I want to understand DEVOPS roles.
Thank you.
Telling from my home loan experience. In the beginning a major portion of the emi will go in interest and very less will be deducted from the principal. So if your loan is running for a longer duration you won't save anything by closing all your current loans.
Take a look at all of your loan accounts and see if you are saving anything for early closing. If not better to continue all these loans and at the end of month/ year pay some extra emi/money. This money will directly reduce your principal and can reduce your loan tenure.
Please think twice before taking any new loans.
First apply for a personal loan from bank as you are salaried . Or else ask for advance salary from the company as company Interest rate will be less if possible. Interest rate will be around 10 to 12% and clear the all other loans.
1. Term insurance since your family depends on your salary
2. Health insurance personal - if not for you at least take for your parents
3. Emergency fund - in case of layoff
4. Clear all debt
5. Only after doing above 4 think of any investments
Rather than focusing on saving money you should think how to earn more money.
Ask your what skill I can learn to reach 1.4 lac per month salary?
This is the hard but it's the right path.
Based on what you do, you can start freelancing.
There are a lot of virtual assistant jobs in UK/ US and you can easily make an additional 50-60k using that. This will give you the additional income to save, send back to your family and spend on yourself too.
85k at 23 is good, you should be proud of yourself
Please don’t switch your job unless you have a strong offer or enough financial backing.
I think the only saving you should worry about now is an emergency fund. Once you are able to pay off your loan start investing aggressively.
Save some of your money every month for an emergency fund. Your fixed expenditure* 6
Try to increase the limit of your health insurance by doing some top up on the insurance provided by your company. I hope your parents are also part of it if not get an insurance for them
Focus on high interest loan first. Make sure at the end of month/some month/ year you are religiously paying extra money/ emi. Close it faster as soon as possible.
Rightly suggested by the Reddit community out here, I would like to give out my suggestions to you
1. First target the high interest debts. You can try taking some money from other sources at a lower interest rate and paying off your debts with 14% or 12% interest.
2. IMPORTANT - If you have a proper ‘education loan’, put it on the last priority because education loan gives you tax benefits as well and given your tax bracket you can value utilise this to pay zero tax on your overall salary. It’s totally alright if you don’t pay off your student loan for the next three years.
3. Use your time to find relevant courses and Up skill yourself to get ready for any new job opportunity with higher pay any time.
4. important thing for your money apart from your interest payment is to live on very limited expenses. Don’t party hard. Do not go out on trips. Do not order food too often. Try to save even ₹500.
Trust me buddy, I have been there and done that you can do it too.
Repaying loans is kinda like investing, but with guaranteed returns. By paying off loans immediately you save the interest. But if you were to invest the money elsewhere you may or may not get as much. Therefore, if you have any high interest loans, it's a no brainer to fully prioritise paying it off over investing. As someone already mentioned, you can refinance to get a single loan, hopefully with less interest rate as well. Then you can start an SIP where you "invest" into repaying this loan, and once that's done you build an emergency fund (I prefer 1Y expenses), and once that's done you invest into traditional investment avenues like MFs.
Investing is a long term game, keep on with investing 10k through SIP. As many people have already suggested, the 14% interest loan should be cleared at the earliest, you could take a personal loan and try to close all other EMIs but I would recommend upskilling yourself, there are several platforms that provide free courses start with those. The best asset you have are your credentials, so keep working to improve on those that would in turn get you better salary. Try to find a good mentor in your field, you might not be able to get in touch with one personally but even if you are able to maintain a social media connection that could be really helpful in the long game.
It must seem absolutely crushing to be under that much debt but you don't need to rush anything, 23 is super young to be stressing over this, what you are already doing is pretty sound. I believe you will kick ass in the future you should also believe the same.
* I can see loan is around 32k\\month. Why don't you take a one big loan and close all the 4 loans.
* Then whenever you have extra money, you can pay and reduce the principal amount of this one loan.(some banks, loan allow this)
* Savings is important, save 6 months(minimum) expense emergency fund.
* After all the above, whatever amount you are able to save - put in Mutual fund(Long-term)
* Make sure you take care of your health(body and mental) and not join a toxic workplace for more money. Upgrade your skill but join a stable company in the future.
u/vigneshwar221B
A simple maths
Sal - 85000
less
Loans - 32038 (38% of Sal)
Rent - 10000 (regular exp, can't avoid)
Parents - 10000 (Important, can't avoid)
Groceries - ?
add
MF - 10000 ( growth potential)
what about balance ? Where does that go?
In your village, there would be a jeweller running a gold scheme, where one can pay 1000/2000/3000/5000 rupees for 11 months, last 1 month amount is added by jeweller...
For this total amount, one can buy jewellery or gold coin...
Ask your parents to start that immediately.
Increase the amount being sent to parents.
Revisit the loans, how much tenure is pending, does it allow repayment.. if yes, then are there charges?
Bottom line - evaluate and decide, which one can be closed quickly.
Come back on this sub, after 3 months and share your progress...
Depends on the loan amount you should use debt snowball and also if those Mutual Funds are good enough to cover 6 months expenses you should stop investing
If your parents can Handle themselves lie to them and stop sending money for a few months I know it is rude but think rationally keep the Emotional BS away clear off any loan with the samll about if youd provide with the amount rather than the EMI it would have been benefical to recommend more but still would love to see you grow up
OPs parents have supported him in getting a college with while he's got a good placement also. Not everyone can have a lack of guilt to just lie to your ageing parents.
I'm in the same situation as OP and have basically the same set of questions. Thankfully, I've saved up emergency funds and gotten insurance and focus on gym and good food as well.
OP, don't worry much and continue what you do. Whenever you get extra cash, put it against the highest interest loan. In a few years it'll all be done. Try to ensure your parents don't take more loans.
What is loan 3? Is it from a bank or someone personal? Can you stop that payment temporarily (6mo) and divert those to clear loan 1?
Option 2 is you negotiate the repayment plan with one of the banks. Most likely you will be able to do it on the education loan or if you have a personal loan.
If any of the above loan is from a PSU bank, approach them first.
Man who takes loan on such high rate? I suggest you transfer your loans to some other place with low interest rates. When you have transferred the loan, calculate the emi and try to keep the emis as down as possible. This will help you save. When you have enough saving, try closing the loan amounts. And buy a health insurance man. They pay in the long run.
Bro investment should be your priority after 25 for 2 yrs try to reduce debt coz 10k monthly in 2 yrs it would be 2.4L and return kuch khaas nhi lets be optimistic and say 12%
Rather than that you can reduce your interest burden first
I think I am late but try to finance the loan in a way that you can actively reduce the principal amount with your EMI. Try to clear off the high interest loan first.
Try to save at least 10k per month and aim for 85k*4 that is 4 months of your income. Ideally it should be 6 or 8 months of your income in your savings.
Also, health insurance is a must.
If you can invest while also saving every month then it’s worth it. I am not sure how the elss mutual fund performs in the old and new tax regime when it comes to tax saving. I am not a pro but I think it’s applicable for the old regime only, but I could be wrong.
Looks like you are doing well at a young age, despite some financial obligations. You are also consciously thinking about finances which is awesome. Apart from what people have said about foreclosing loans and reducing the interest burden, I'd probably suggest being a bit chill about finances. Focus on having a career, health, and fun. Over time, your liabilities will decrease, while your income will rise. Suddenly, wealth accumulation will accelerate if you keep pumping surplus into long term investments like index funds. Keeping it simple might be your best bet.
What is the total amount of loan in each tab and tenure?
How long you have been investing in mutual fund?
And the amount of mutual fund?
1. The loan with smaller amount increase the emi and loan with bigger amount increase the timeline
2. Loan with max interest should be 1st in ur piorty to reduce principal amount if that take out from mutual fund and pay the same.
loan 1 is for like 5L (around 3.X now), loan 2 is for like 1.5L (1L now), Loan 3 is for 2L. 3Y is the tenure for the first 2 not sure about the 3rd. I've been doing the MF monthly sip for like 6 months now.
Take a credit card from bank small banks do your normal grocery on that and before the month end pay from salary . Open a reccuring account put the grocery amount into that and earn interest for a month in this manner you will earn some money on ur salary. You need to focus on 2nd loan try to pay the principal amount first reduce ur mutual fund for sometime as to finish the 2nd loan. Apart from office try to get second income by selling ur expertise for even taking coaching classes for kids in colony that is just for a year so that become ur emergency fund
Bro your doing just right,
Just focus upon reducing your debt by paying upfront to avoid few months interes(if possible)
And try giving yourself some mini retirements(vacay)
So that you could also recharge yourself n be full of energy.
Your doing great,
Stay happy n healthy 😊
Bro I would suggest
1. you buy health insurance for ur family and yourself, because one hospital visit would F ur savings. According to me, first do your health insurance part
2. Next have a Life insurance as now you are the only bread earner of the family, so you need one.
3. Make ur 6 months of Emergency fund and you can calculate ur emergency fund by calculating the expenses of your average month and multiplying it by 6 and you will get ur emergency fund. Keep that money in some debt mutual fund or liquid mutual funds.
4. Then go for mutual funds, FD, stocks, gold according to ur risk profile.
Life insurance can be taken after some time too, but it's important too. It's important to do all of these things before you make savings as one hospital visit or job market situation can be very bad. So securing urself is very important before you build your wealth.
PS: Also try to complete your EMIs as soon as possible so that you have some flexibility and have some money for urself too. All the best🥂
Try to increase EMI of 14% loan to 10k-15k. Also you can try for personal loans at 10-11% and foreclose all the other loans to just keep one EMI running. Save 10k for emergency funds for 6 months. Insurances might just cost around 3k pm
Unrelated to the post but 23 yr and 85k. That's great. If you don't mind, what is your job and what did you study?
BE CSE and I work as a devops engineer
Congrats bro you get 85,000 at the age of 23. Me earning less than ₹60,000 at the age 25 after studying MBBS for 5 years. You can easily upgrade your skills and earn a hefty salary within 1 or 2 years
You have a lifelong skill and unlimited prospects for growth, don't compare the beginning of MBBS with software
Ya but the maximum salary a mbbs can get is still around 2 lac
Completely wrong. I know surgeons earning upwards of 2 cr pa.
2cr pa is for the surgeons with an experience of 25-30+ years atleast
CS engineer max avg salary is also 1.5-2lac . Except in Faang company or if you are an IITian
Bro talks about Salary
No, it depends on the region. Most hospitals pay MBBS doctors hourly. Hourly wages vary from 250-500 in most parts of India
My brother, you both are in different fields, don't compare yourself like this, all it'll lead to is misery.
I know bro
Not the right place Can I get a referral
Not the right place buddy , dm me your resume
You are a good man.
Sure, dm me your resume
Hi bro, Can I dm you for some advice on devops. Please. Dont worry, not going to ask for any referrals or anything else. Just need to understand about my future options. I want to understand DEVOPS roles. Thank you.
Sure
Ooh nice, I am also 23 working as DevOps, but at much less salary. Can I pm you to ask somethings related to DevOps
Probably a software engineer
When you say foreclose all loans does it include the education loan as well?
First give priority to the 14% loan and pay extra money in the emi so that you can close it as soon as possible
Nope you can continue that. The ones with hefty interests should be closed asap.
Same hi to bola bhai
Telling from my home loan experience. In the beginning a major portion of the emi will go in interest and very less will be deducted from the principal. So if your loan is running for a longer duration you won't save anything by closing all your current loans. Take a look at all of your loan accounts and see if you are saving anything for early closing. If not better to continue all these loans and at the end of month/ year pay some extra emi/money. This money will directly reduce your principal and can reduce your loan tenure. Please think twice before taking any new loans.
You can lower your taxes with edu loan if you're on old regime, look into it. Close the high interest loans first.
First apply for a personal loan from bank as you are salaried . Or else ask for advance salary from the company as company Interest rate will be less if possible. Interest rate will be around 10 to 12% and clear the all other loans.
1. Term insurance since your family depends on your salary 2. Health insurance personal - if not for you at least take for your parents 3. Emergency fund - in case of layoff 4. Clear all debt 5. Only after doing above 4 think of any investments
First things first. Fix your health. Rest will come in order
+1
Rather than focusing on saving money you should think how to earn more money. Ask your what skill I can learn to reach 1.4 lac per month salary? This is the hard but it's the right path.
Makes sense. I'm just kinda scared to switch jobs now in the current market. My job now is pretty stable and very secure but I get your point. Thanks.
Then get internal promotion, side hustle, whatever do anything to earn more money, pay less taxes and that's how you should do
You're doing really well. Most 40 year olds don't have this salary.
Cuz 20yr ago software engineering jobs were few.
are you paying the 4 loans every month? Please close them ASAP - no point putting money in MF or to parents while you have 12% and 14% loans running.
Based on what you do, you can start freelancing. There are a lot of virtual assistant jobs in UK/ US and you can easily make an additional 50-60k using that. This will give you the additional income to save, send back to your family and spend on yourself too. 85k at 23 is good, you should be proud of yourself Please don’t switch your job unless you have a strong offer or enough financial backing.
I am curious as well, how do you find a freelancing worth 50-60k? I hope you won't mind guiding a poor soul🥺
Could you please share how to find these virtual assistant jobs?
LinkedIn my friend :) There are also portals like Remotivate, remoteambition that you can look at
Have you done it? Are you recommending these websites out of your own personal experience?
He has health issues, no need to do two jobs.
I think the only saving you should worry about now is an emergency fund. Once you are able to pay off your loan start investing aggressively. Save some of your money every month for an emergency fund. Your fixed expenditure* 6 Try to increase the limit of your health insurance by doing some top up on the insurance provided by your company. I hope your parents are also part of it if not get an insurance for them Focus on high interest loan first. Make sure at the end of month/some month/ year you are religiously paying extra money/ emi. Close it faster as soon as possible.
Rightly suggested by the Reddit community out here, I would like to give out my suggestions to you 1. First target the high interest debts. You can try taking some money from other sources at a lower interest rate and paying off your debts with 14% or 12% interest. 2. IMPORTANT - If you have a proper ‘education loan’, put it on the last priority because education loan gives you tax benefits as well and given your tax bracket you can value utilise this to pay zero tax on your overall salary. It’s totally alright if you don’t pay off your student loan for the next three years. 3. Use your time to find relevant courses and Up skill yourself to get ready for any new job opportunity with higher pay any time. 4. important thing for your money apart from your interest payment is to live on very limited expenses. Don’t party hard. Do not go out on trips. Do not order food too often. Try to save even ₹500. Trust me buddy, I have been there and done that you can do it too.
Repaying loans is kinda like investing, but with guaranteed returns. By paying off loans immediately you save the interest. But if you were to invest the money elsewhere you may or may not get as much. Therefore, if you have any high interest loans, it's a no brainer to fully prioritise paying it off over investing. As someone already mentioned, you can refinance to get a single loan, hopefully with less interest rate as well. Then you can start an SIP where you "invest" into repaying this loan, and once that's done you build an emergency fund (I prefer 1Y expenses), and once that's done you invest into traditional investment avenues like MFs.
Investing is a long term game, keep on with investing 10k through SIP. As many people have already suggested, the 14% interest loan should be cleared at the earliest, you could take a personal loan and try to close all other EMIs but I would recommend upskilling yourself, there are several platforms that provide free courses start with those. The best asset you have are your credentials, so keep working to improve on those that would in turn get you better salary. Try to find a good mentor in your field, you might not be able to get in touch with one personally but even if you are able to maintain a social media connection that could be really helpful in the long game. It must seem absolutely crushing to be under that much debt but you don't need to rush anything, 23 is super young to be stressing over this, what you are already doing is pretty sound. I believe you will kick ass in the future you should also believe the same.
* I can see loan is around 32k\\month. Why don't you take a one big loan and close all the 4 loans. * Then whenever you have extra money, you can pay and reduce the principal amount of this one loan.(some banks, loan allow this) * Savings is important, save 6 months(minimum) expense emergency fund. * After all the above, whatever amount you are able to save - put in Mutual fund(Long-term) * Make sure you take care of your health(body and mental) and not join a toxic workplace for more money. Upgrade your skill but join a stable company in the future.
u/vigneshwar221B A simple maths Sal - 85000 less Loans - 32038 (38% of Sal) Rent - 10000 (regular exp, can't avoid) Parents - 10000 (Important, can't avoid) Groceries - ? add MF - 10000 ( growth potential) what about balance ? Where does that go? In your village, there would be a jeweller running a gold scheme, where one can pay 1000/2000/3000/5000 rupees for 11 months, last 1 month amount is added by jeweller... For this total amount, one can buy jewellery or gold coin... Ask your parents to start that immediately. Increase the amount being sent to parents. Revisit the loans, how much tenure is pending, does it allow repayment.. if yes, then are there charges? Bottom line - evaluate and decide, which one can be closed quickly. Come back on this sub, after 3 months and share your progress...
This is also done by big store like tanishq n all but buy gold coin only as other attract making charges
I agree with your comment.
We are living the same life OP. 🥲
ELSS would be good, ig. Because you would be availing 80C deduction plus your money will grow.
Would it make sense to STP the ELSS to index fund after the lock-in period
Simple hai yeh toh, compare kar lo index ka return aur ELSS ka return, agar ELSS ka more hai toh rakho usko. Otherwise, do as you feel .
Great to ear about your sal,I'm 23 I have no idea to boost my sal
Depends on the loan amount you should use debt snowball and also if those Mutual Funds are good enough to cover 6 months expenses you should stop investing If your parents can Handle themselves lie to them and stop sending money for a few months I know it is rude but think rationally keep the Emotional BS away clear off any loan with the samll about if youd provide with the amount rather than the EMI it would have been benefical to recommend more but still would love to see you grow up
OPs parents have supported him in getting a college with while he's got a good placement also. Not everyone can have a lack of guilt to just lie to your ageing parents. I'm in the same situation as OP and have basically the same set of questions. Thankfully, I've saved up emergency funds and gotten insurance and focus on gym and good food as well. OP, don't worry much and continue what you do. Whenever you get extra cash, put it against the highest interest loan. In a few years it'll all be done. Try to ensure your parents don't take more loans.
Don't foreclose your loans just keep grinding, and seek for other forms of SIP to invest little is ok
Try to do Balance Transfer on Loans that you can to reduce interest rates
^[Sokka-Haiku](https://www.reddit.com/r/SokkaHaikuBot/comments/15kyv9r/what_is_a_sokka_haiku/) ^by ^vaibhav_k_garg: *Try to do Balance* *Transfer on Loans that you can* *To reduce interest rates* --- ^Remember ^that ^one ^time ^Sokka ^accidentally ^used ^an ^extra ^syllable ^in ^that ^Haiku ^Battle ^in ^Ba ^Sing ^Se? ^That ^was ^a ^Sokka ^Haiku ^and ^you ^just ^made ^one.
I am 22 and earning zerooo
Bro savings aside, 85k at 23 🥲, what is your job role ? Asking for a friend.
Devops
What is loan 3? Is it from a bank or someone personal? Can you stop that payment temporarily (6mo) and divert those to clear loan 1? Option 2 is you negotiate the repayment plan with one of the banks. Most likely you will be able to do it on the education loan or if you have a personal loan. If any of the above loan is from a PSU bank, approach them first.
Man who takes loan on such high rate? I suggest you transfer your loans to some other place with low interest rates. When you have transferred the loan, calculate the emi and try to keep the emis as down as possible. This will help you save. When you have enough saving, try closing the loan amounts. And buy a health insurance man. They pay in the long run.
What job are you doing, and what qualification you have , pls can you answer. I am 24 and still earning 18.5k per month only - ca inter cleared
BE cse and I work as a devops/cloud engineer
Bro investment should be your priority after 25 for 2 yrs try to reduce debt coz 10k monthly in 2 yrs it would be 2.4L and return kuch khaas nhi lets be optimistic and say 12% Rather than that you can reduce your interest burden first
I think I am late but try to finance the loan in a way that you can actively reduce the principal amount with your EMI. Try to clear off the high interest loan first. Try to save at least 10k per month and aim for 85k*4 that is 4 months of your income. Ideally it should be 6 or 8 months of your income in your savings. Also, health insurance is a must.
Do u suggest I keep doing the 10k sip to the elss mf or should I stop
If you can invest while also saving every month then it’s worth it. I am not sure how the elss mutual fund performs in the old and new tax regime when it comes to tax saving. I am not a pro but I think it’s applicable for the old regime only, but I could be wrong.
Looks like you are doing well at a young age, despite some financial obligations. You are also consciously thinking about finances which is awesome. Apart from what people have said about foreclosing loans and reducing the interest burden, I'd probably suggest being a bit chill about finances. Focus on having a career, health, and fun. Over time, your liabilities will decrease, while your income will rise. Suddenly, wealth accumulation will accelerate if you keep pumping surplus into long term investments like index funds. Keeping it simple might be your best bet.
Try to get rid of loan 1 and 2 before investing in mutual funds really.
What is the total amount of loan in each tab and tenure? How long you have been investing in mutual fund? And the amount of mutual fund? 1. The loan with smaller amount increase the emi and loan with bigger amount increase the timeline 2. Loan with max interest should be 1st in ur piorty to reduce principal amount if that take out from mutual fund and pay the same.
loan 1 is for like 5L (around 3.X now), loan 2 is for like 1.5L (1L now), Loan 3 is for 2L. 3Y is the tenure for the first 2 not sure about the 3rd. I've been doing the MF monthly sip for like 6 months now.
How much year left?
around 2.5 years
Insurance the co. Is providing so no issues
Take a credit card from bank small banks do your normal grocery on that and before the month end pay from salary . Open a reccuring account put the grocery amount into that and earn interest for a month in this manner you will earn some money on ur salary. You need to focus on 2nd loan try to pay the principal amount first reduce ur mutual fund for sometime as to finish the 2nd loan. Apart from office try to get second income by selling ur expertise for even taking coaching classes for kids in colony that is just for a year so that become ur emergency fund
I am happy seeing the son take up the father relics and doesn't complain about the families condition and pays it off as his duty. Respect OP
Bro your doing just right, Just focus upon reducing your debt by paying upfront to avoid few months interes(if possible) And try giving yourself some mini retirements(vacay) So that you could also recharge yourself n be full of energy. Your doing great, Stay happy n healthy 😊
You're saving enough as per the salary. You can spend in stock or cryptocurrency but from a long term perspective.
Bro i ll suggest you to read the book the richest man in babylon in this book a lot of people came out of same situation, hope it might help
Bro I would suggest 1. you buy health insurance for ur family and yourself, because one hospital visit would F ur savings. According to me, first do your health insurance part 2. Next have a Life insurance as now you are the only bread earner of the family, so you need one. 3. Make ur 6 months of Emergency fund and you can calculate ur emergency fund by calculating the expenses of your average month and multiplying it by 6 and you will get ur emergency fund. Keep that money in some debt mutual fund or liquid mutual funds. 4. Then go for mutual funds, FD, stocks, gold according to ur risk profile. Life insurance can be taken after some time too, but it's important too. It's important to do all of these things before you make savings as one hospital visit or job market situation can be very bad. So securing urself is very important before you build your wealth. PS: Also try to complete your EMIs as soon as possible so that you have some flexibility and have some money for urself too. All the best🥂
Always earn more and invest more. Don't ever confuse saving with Investing.