Journey to become financially wise!

Rohan is a 25-year-old young married professional working in an MNC.

He recently married the love of his life Nina. One day Nina, Rohan, and Ravi were having dinner together and that’s when they were remembering and laughing at the time when Rohan couldn’t even manage to pay his phone bills. He used to just give missed calls to Nina.

Five years ago, Rohan hit the jackpot. He was recruited on campus by a leading IT company as a software engineer on a monthly salary of Rs.35000. Like any middle-class child who grew up on a monthly stipend, the dream of getting the first paycheck became a reason to celebrate.

Most sensible people spend their first salary giving gifts to family members or treating them with a dinner at a fancy restaurant but Rohan’s celebration continued for the entire year. He purchased a new cell phone, a laptop, and a bike. Not to mention the dinners & parties he had and by the end of year one. He was basically living from one paycheck to another.

Though, Rohan’s spending phase didn’t last forever. Realizing his spending patterns was out of control brought about a change in his attitude and his habits. His dad’s impending retirement, and the pressure from family to get married led to Rohan shedding his carefree lifestyle.

Rohan started with small changes. He created a budget that enabled him to see exactly how much money he needs to spend each month, compared the amount he earns. Since he was getting married, the home loan EMIs also added to his expenditure.

On the suggestion of his financial planner, he also purchased a term insurance plan. The policy would give him a cover of Rs. 1 crore, and act as a shield for his family members in case of Rohan’s unfortunate demise.

Like any young, married couple, Rohan and Nina both love to eat out, catch a movie and take short trips over the weekend. They’ve managed to do this without compromising on their savings. Unlike many young married couples who often go overboard and enjoy, they’re now being very cautious as they have two incomes.

Since both Rohan and Nina love to travel, they started keeping aside a small portion of their salary to fund their travel. This ensured that they do not have to compromise on their annual travel plan.

They save almost 25 percent of their combined income in various investment plans. The couple has even invested the gift money from their wedding. It is now a part of their emergency fund, which they can use whenever they needed it.

With proper management of finances, Rohan and Nina could manage their income in an efficient way. A disciplined approach towards investments helped them streamline their money thereby assuring a secured and protected future for both of them.

Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.