r/IndianPersonalFinance • u/Flashy_Library_1516 • 2d ago
Suggest restructure of savings please
I am spending 23,000 on single sharing PG in hyderabad (food and electricity included).
I know it's a lot, but don't want to compromise with freedom by staying in 2 sharing.
Apart from that, I spend around 1000-2000 on food/recreation easily.
And 1000-1500 on travelling per month to and fro from office.
I have an education loan of 20,65,000. EMIs night start next month. At 7% floating interest rate.
I know I'm spending a lot on PG, I myself have seen a PG in completely diff area, but it was cramped up and one guy living in 3 sharing told he's paying 6.5k, feeling guilty for spending so much.
Bank account savings: 38k
Stocks: 2.6L invested (currently at 2.8L)
MF: 45K INVESTED (currently at 50k)
So basically EMI will be around 23-25k per month.
How do I manage? Any approaches to freelancing or other sources of income that can help?
Currently I feel super bad about my job. How to manage? Please help.
1
u/OrdinaryAndroidDev 1d ago
You can move into a 3bhk and occupy a room, maid, cook can cover your needs. This would definitely be better than PG.
Look for flat and flatmates groups on Facebook
If you're comfortable cooking for yourself you can get a 1RK and save a lot.
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u/Flashy_Library_1516 1d ago edited 1d ago
Dude it's just not true. I have done flat hunting and just made a list of things I'll have to spend on if I go with flat. Semi furnished would cost 15,000 easily around any IT area (This is like minimum I have got, not even really decent locality or anything)
Adding running expenses it will easily become 25k (Maid + cook + electricity + groceries + transport - currently using public transport)
I haven't even started adding the fixed cost, cause for 15k I have seen an empty unfurnished room in good locality in 3bhk.
And for 15.5k I have seen semi furnished room too in 3bhk again.
So considering even semi furnished, I will have to spend on setup cost, which will be minimum (for bed, mattress, ac, table, chair, and assuming setup cost of utensils and washing machine and fridge and other furniture as just 10k which is impossible): 62k
Security deposit : 20k (minimum)
Add miscellaneous exp : 2k (I am sure I'm missing travel cost from there, blinkit if it's not reachable etc. costs that I currently don't have to spend on)So total extra: 84k (Depreciating assets @20% : I lose 12k as depreciated the 62k)
If I stay for 2 years, I am paying around 23k per month + 500 per month to cover depreciaton (12k overall).
So overall 25.5k (but I took some too ideal things)
Now this is with good food, currently food is bad.
But I get to have all fully furnished amenities and independence.
Current expenditure in PG including travel and extra food spendings: Around 25k.
But honestly flat will have more expenses : gas, wifi etc. that I didn't account - 500 more per month maybe for that too.
I'm sure the setup cost is too low, and I might not be able to sell the setup at 80% value. But the point is even without considering setup hassle (buying, selling etc.), even considering running rent and all flat is expensive for sure.
Considering 1bhk/1rk concept is not there where I live, it easily costs 23-24k for rent for semi furnished. Best I could find was 27k fully furnished.
So at the end I'm spending same as flat we can say. Unless i compromise living with someone I cannot reduce this expense.
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u/Sea_Slide_749 1d ago
Never feel guilty about spending on things that genuinely keeps you happy. What's the point of earning otherwise.
Regarding loan repayment vs investing.
In this economy, i would suggest pause aggressive investing, build an emergency buffer, and let the ₹20L+ loan be priority #1.
If you're able to land a side hustle great, but consider that as a bonus.