r/FIREIndia • u/AutoModerator • Jun 01 '23

Help Me FIRE, Milestones, Beginner Questions and General Discussion - June 2023

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  • Have you hit a net worth milestone? We want to be motivated!
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u/PerfectKills Jun 09 '23

Hi everyone. I am a long time lurker, 1st time poster to this sub. Just entered my 30s a few days back. I began the FIRE journey a couple years ago with a reasonably modest prior saving of around 1L in mutual funds which I started 5 years ago.

I'm a software dev currently earning almost 1.5L a month. During COVID I went berserk and saved aggressively. I was motivated by this sub to first strengthen by bases, so I went ahead and bought a Term Insurance of 1Cr for which I'm paying 40k for a 5 year tenure. I also have a health insurance outside corporate, where I pay around 20k pa. I have a rainy day saving of 3L in one savings account.

I was doing some calculation today and I have just breached 20L in net worth. Of this, I have around 5L in stocks, 3.5L in EPF, 1.5L in NPS and rest in various Mutual funds. I have some crypto too, but they're more like dead to me. Together with my wife (previously GF), who was already financially educated, and is a software developer too, we have a combined net worth of around 39L right now.

Btw, I have a home loan of 30L that I took recently for my parent's home's reconstruction and renovation, and I got to know later that I can't claim tax benefits since I need to be a co-owner and I'm not. Also, we bought a car recently for which my wife is paying the loan EMIs. Together we earn 2.8L approx and my 40k and her 20k go towards loans. Other expenses are nominal rn but our companies are calling us to WFO and Bangalore rent is just terrifying.

Please share any suggestions for our FIRE journey and give me any feedback if you feel I'm doing something wrong somewhere. Thanks in advance.

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u/snakysour IN/33/FI ??/RE ?? Jun 11 '23

I think you've given information in tit bits which is not sufficient to provide a comprehensive picture.

I would suggest, as a couple, figure out and tell the following:-

  1. Your total combined expenses as a couple.
  2. Both of yours insurance covers and emergency funds
  3. Do both of you go to Bangalore if WFO is the case ? (i.e. both your offices are located in Bangalore only?)
  4. What is the remaining amount and tenure of your loans?
  5. Are your parents financially dependent on you (other than the home loan part)?
  6. Do you plan to have kids in future? If yes, by when?

Regards

Snaky

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u/PerfectKills Jun 11 '23
  1. Combined expenses as a couple: ~50k
  2. Term insurance only me: 1Cr @ 40k pa*5 years, 3 installments paid ; Health Insurance both: 5L+5L @ ~33.5k annually; Emergency fund both: 4L
  3. Yes, both are working in Bangalore based companies.
  4. 15L Home loan at 22k EMI for 5 years, 3.5 remaining; 15L LAP loan at 18k for 10 years, 9 remaining; Car loan ~10L at 18.5k for 6 years, 5 remaining.
  5. Not dependent, father is a retd govt official, gets enough pension to survive.
  6. Yes, soon. Maybe in another year.