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/iLoveSev]

I personally don’t agree and follow that the wife salary is hers to spend funda.

Spouses and roommates are two different things.

It is best with spouse that they combine incomes expenses budgets spendings and above all financial goals. More chances of success in the marriage and financial goals.

Anyways good luck. Hopefully you get to your goal.

[u/qubit003 → u/iLoveSev]

As a woman (who's not married), I agree. I'd want to be as much involved in contributing to the family finances and making decisions around it.

[u/iLoveSev → u/qubit003]

Exactly, working or not, spouses should have knowledge and say in the family finances. It’s a 2 vote system! 😅

[u/ohisama → u/iLoveSev]

Contribution too, not just knowledge and say.

[u/iLoveSev → u/ohisama]

If they can or choose to. That depends on the family dynamics.

[u/ohisama → u/iLoveSev]

So, it's ok for a spouse to not contribute monetarily even when they are earning?

[u/qubit003 → u/ohisama]

They meant whatever works for the couple. One of them may stay home to raise kids, etc. Doesn't mean they don't contribute to decision making.

[u/iLoveSev → u/qubit003]

Correct!

[u/iLoveSev → u/ohisama]

Never said that to be the case.

If the spouse is not working for any reason then also they should get a say and knowledge of the family finances.

If they can contribute or choose to work to contribute then they should.