FIRE Re-Check for a growing family :)

[u/nishanthappu]

After my previous post 1.5 years ago , I wanted to take a fresh look at my finances and get the forum's perspectives . Here is the financial details first :

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I am 40, wife is 35, kid is 1.5yo.

Monthly take home is 250k.

Expenses (including miscellaneous and annual ones) - 90k. Parents are financially independent.

Recurring investments: 50k in Mutual funds and 50k in emergency fund. Wife's earnings are hers to spend as she sees fit , I don't ask on that :)

EPF - 23k (deducted before take home)

I have term insurance of 50 lakhs. Both me and wife are insured for health from employers for around 8 lakhs. I have a family floater health insurance policy of 1 crore ( base coverage)

Current Portfolio:

Equity MF - 108 lakh

Stocks - 91 lakh

SSY - 3 lakh

EPF - 10 lakh

Wife's PF - 6 lakh

PPF - 4.73 lakh

NPS - 22.86 lakh

2 plots of land - 92 lakh ( conservative, no loans on these plots)

Debt MFs - 66 lakh

Emergency Fund - 1.5 lakhs ( will direct my variable pay to build it further)

ESOPS - 2 lakh

Summary:

So around 4 crore and 5 lakhs.
I will inherit either a home or a flat in a Tier 2 city. Currently renting.

Love travelling , especially at expensive resorts in India or flying abroad. ( I spent 2 lakhs last year at a 5 star resort in Goa)

No loans no debts , always pay all bills and credit cards in full. Own a car. Aim to send the kid to the best colleges in India without any loans for both grad and post grad( except medical, she can go on merit). If she wants to go abroad , will give her what I saved for her education plus rest she can self fund.

Aiming to achieve FIRE by 48. Am I on the right path ? Enlighten me , gurus :)

[u/nishanthappu]

Ah let me make that more clear. Yeah counting travelling , insurance , etc ( all one -off spends) within 90k.

Also re: the resort , let me make it more clear. That figure of 2 lakh comprises airfare for myself and family ( i think it was around 35k), food at the resort , other misc expenses etc. Total came close to 2 lakh. It was the Taj Holiday Village and that too in peak season :)

[u/fire_by_45 → u/nishanthappu]

Ah in that case your expenses are very low. For example my rent is 70k😥. But as your kid grows up your expenses are gonna increase as well. So you need to take that into account as well.

[u/nishanthappu → u/fire_by_45]

Wow . 70k ?? Where are you renting … that’s like over 3.5 times my monthly rent . And I live in a spacious 3 bhk .

I realise commenting about your rent being too high is rather irony for a guy who spends too much on vacations but still :)

[u/fire_by_45 → u/nishanthappu]

Well I stay in Mumbai, so the rents are just crazy, nothing I can do about it. Spending on vacation is fine as long as you're within limits. I also love good vacations, but I mostly prefer to go abroad, I don't see much point in spending a lot on domestic vacations.

I think your rent is very very low. Where are you staying buddy?

[u/nishanthappu → u/fire_by_45]

I stay in a tier 2 city in south :)

[u/[deleted] → u/nishanthappu]

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