Sumit may get married soon considering his financial condition. Marriage brings with it responsibility and unforeseen expenses On gifts, on travel, on outings, on clothes, etc. Sumit can swipe his credit card to pay several of these Expense which is unlikely to fit into his monthly income, This is an expensive way to fund his lifestyle, and he may find himself cumbersome. Sumit needs to create a corpus, preferably in a bank Deposit And mutual fundsSo that he can start his married life on a solid foundation without falling into the debt trap. Sumit may have to balance his personal expenses with the contribution made in the family budget. It will certainly help if his wife is also earning and can contribute towards the expenses of the couple.

Sumit may have to increase his income to meet the aspirations of his parents and possibly his wife. He may not have enough financial assets or high income to buy a bigger house so soon. Sumit may also have to consider higher education as a serious option. With 3-4 years of work experience, he will be eligible to join a top management programme. He may have to quit his job, take an education loan and complete his degree, so that he can get a higher paying job and better career growth in the future. It may be difficult for him to make this call, unless his wife is on the job and is ready to support him and his family while he studies. Sumit may have to curb his spending habits to create financial stability before marriage. Buying a car is a bad idea as the car loan EMI will reduce one’s ability to save. Since the car is a depreciable asset, investing in it will not give it any return. Sumit needs property appreciation at this stage of his life.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.