Worried about how to handle your money? Here are some solutions.

I am 29 and got married a year ago. My monthly gross income is Rs 29,000.

Current outgoings

Home loan Equated Monthly Installment = Rs 14,000.

Moneyback LIC [Get Quote] policy for Rs 2,00,000 = Rs 13,000 per annum

LIC pension policy = Rs 6,500 per annum

Unit Linked Insurance Plan = Rs 18,000

Small amounts in Public Provident Fund and National Savings Certificate

I now face the challenge of doing up my home. Basically, we are not spendthrifts but any money that I save is mostly spent on a weekend outing.

I am unlikely to get high raises as I am employed in the non-profit sector.

My parents live in my hometown and are not dependent on me. However, I do realise my responsibilities if and when the need arises.

My wife is from an affluent background; we have had severe troubles and are now trying to get on with life.

I blew up all my savings on my wedding and honeymoon. Have lost my peace of mind but am still positive about life.

- S Sahai

I do hope your wife earns as well. It is a shame if a desire to spend is not matched by a desire to earn. Make sure you don't focus so much on chasing a lifestyle that life gets lost in the process. 

It is possible to create a magical weekend at home, without spending a rupee. Tough for a honeymooning couple to get grounded on the reality of life, but the sooner you take charge of your spending, the better it will be for you. 

It is important for the two of you to sit down and come to terms with the fact that you now make an independent family unit. How you lived before this is not relevant to how you will live now. 

For sheer self-respect and esteem, your life will be shaped by your income and you must define it in that manner. 

Using 50% of your income to repay your debt is clearly limiting your liquidity. If you need the house, make sure you save the rest of your income. Else, increase your income by asking that she work too.

To care for your parents is not about whether they need it, or from some sense of duty and gratitude. It is about including them in your life, in a way that brings both of you joy. You will learn that this is not about money either. 

Take your time, but take charge of your spending. Saving will happen if you do that.

• Get out of debt, NOW!

I earn Rs 25,000 a month and have to provide for my two children. My husband has been unemployed for the last two years.

I have no savings and only an insurance policy of Rs 1,50,000, which should mature in around nine years time.

I would like to take a home loan with an Equated Monthly Installment of Rs 4,500.

- Jayashree

Your EMI approximately translates into a loan of Rs 5,00,000 for 15 years. 

It would be good if you were able to use at least Rs 50,000 of your own money when you buy the house. 

What people tend to overlook is the expenses that follow when one buys a house. You must be in a position to dip into your income for all of these.

Given your current situation, I am not sure if you are ready and willing to take on the liability of a loan. If you can, then Rs 4,500 is not a big chunk of your salary and you should be able to go for it.

• Buying a house? Answer these questions first

Begin to save some money for the children, even if it is Rs 500 each per month. There is a sense of security in having some money, however little, put aside. 

At the end of every month, you can review how you have done, and see if you have money left for investing. If yes, save that money for a while, to see if you are able to keep money aside without dipping into it. It should then be possible to invest regularly.

• How to invest for your child

Continue to persuade your husband to find a job. Without pre-defining a job in any manner, if he is able to open his eyes to low- investment, but income-earning possibilities, I am sure he will find one. 

Illustration: Dominic Xavier

Uma Shashikant is a well-known Knowledge Management Consultant.

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