I recently lost my job where I was earning Rs80,000 per month. After staying unemployed for 5 months, I took up a job that is now paying me Rs50,000 per month. I have an EMI of Rs25,000 for the next 7 years. My investments are—Rs35 lakh in fixed deposits, Rs2 lakh lump sum in mutual funds and Rs5 lakh in PPF. I also have a flat, which I can sell but don’t want to give on rent. I am short by Rs15,000 every month.
—Rahul Lalwani
Your monthly income coming down has put a pressure on your cash flows. First, check if your monthly take-home salary can be increased. You are earning Rs50,000, expenses are Rs40,000, and the shortfall is of Rs15,000. If there are taxes being deducted from your income, check whether you have optimized tax savings under section 80C of the income-tax Act. If not, then part of your existing savings can be invested in a tax-saving mutual fund (cap of Rs1.5 lakh), called equity-linked savings scheme (ELSS). Another option is to give your apartment on rent. If you don’t want to do that, based on the surroundings and market expectations, you need to decide to hold or sell the property.
