Managing INVESTMENTS and a LOAN | Money Matters Ep. 40 | Ankur Warikoo Hindi

"Shubham, at any point you should have three to six times this in the bank for the simple reason that if by chance your income stops, you leave your job or you get laid off or anything else like this, you should have a buffer period of three to six months in which you can still live your life and try to generate income in that."

"So, your first goal, in my opinion, should be to create an emergency fund of Rs 1 to 1.25 lakh."

"Okay, your corporate plan will work only till you are in this company. The day you leave this company, your plan will end and then you will join another company and get another plan, but all the benefits of continuing an insurance plan will continue. You will buy health insurance for your wife and yourself. And since you are in a city like Indore, it is not a very expensive city, at least compared to tier one cities, so if you take health insurance of even Rs 3 to 5 lakh, that should be enough and it will not be very costly."

"So, the first thing that I would do is check the tax regime for you and if you are in the new tax regime, if you are in the new tax regime, then stop future ELSS. You don't need to go ahead and buy ELSS."

"So what I would suggest is that if I had to replan your Rs. 15,000 again, then my suggestion would be that out of this Rs. 15,000, you should invest Rs. 15,000 in Nifty 50 or Nifty Next 50. Basically, invest in a large cap index, then around 4 or 5 in a flexi cap or mid cap index and then invest around 3 to 5 in a small cap index."

"So after six months prepay home loan by 5k every month and reduce it. My approximate calculation is not accurate. The approximate calculation is that if you give this 55000, then your 15 year loan will be repaid within about 6 to 8 years and that should be how you deal with your loan so that in about five to seven years you are completely loan free from those loans."

"But if you tell them that you will take this 5,000 rupees and reduce my tenure, not my EMI, then this is a big mistake. People make when they make a prepayment, the bank says, 'Sir, reduce the EMI.' And we all reduce the EMI. Why? Because we like reducing the EMI. We feel that we have saved money every month, but because of that, you are still paying the loan for 15 years."

"My actual salary which I told is 67 K in hand, in this sir, my TDS of Rs 4 K is deducted per month, which I file sir, then I will get it back, so if I put my money in then it can happen because if you have a home loan, you get its benefit and if you do EIL then you get its benefit, so it is possible that the old tax regime is still beneficial for you and if So please continue with ELSS. If not, you can stop ELSS and move to the new tax regime."