ot a question about your money? What you should or should not do with it?

Our expert Uma Shashikant has the answers.

I am a 25-year-old software engineer earning around Rs 30,000 per month. My husband is 28 years old and earns the same amount.

He has a loan payment of Rs 7,000 every month and also runs the house. In addition, he gives money to his three sisters and parents. Hence, he saves nothing.

I am concerned about my children and us as a family.

I have decided to save my entire salary and not contribute a single pie towards the house.

Is this right? How must I save?

- Pallavi Patil

I understand your frustration.

As we grow older, our economic status with regard to our own siblings with whom we grew up, changes. We need to be sensitive to these differences, and show tolerance rather than get frustrated. 

Sure, your sisters-in-law should live within their means. But it is tougher for your husband to give up on them. Give him time. How we behave with those who have nothing to give us reflects on what kind of people we are. 

Would you hold the same view if his parents were giving him money and taking care of you as well? Try and stay above these feelings, they will only make you smaller.

On a more pragmatic note, if you believe you are free to do what you like with your earnings, why should you grudge your husband the same freedom? If you live in the same house, why should he bear all expenses? Do you feel it is alright if you live off him?

If your issue is saving, work on a plan. Speak to him about your concerns. 

If you both are comfortable with a total monthly savings of Rs 20,000, do that first before meeting any other expenses.

Opt for a Systematic Investment Plan that will directly debit the money from your bank account, so the amount is not available for spending. SIP is an investment scheme provided by mutual funds where a fixed amount is directly invested every month in the fund. To understand how it works, read How to invest in a mutual fund.

If you would like to place a limit on how much your husband spends on his family, get him to see your point first. Work on a fixed percent and set that aside. Don't bother about how this money is used by your in-laws.

Secure your happiness, make sure your husband respects your point of view and is secure in the fact that you respect his views.

If your objective is to save, focus on that and don't mix up too many feelings and frustrations into it.

• Save now! Here's how

I started earning at a young age and had saved around Rs 1,00,000 by the time I was 19. I am now 22 years old now and save Rs 10,000 every month.

How can I be a crorepati by the time I am 30?

- Vishal Sharma

You are doing very well, Vishal, but trying to be a crorepati at 30 sounds a bit too ambitious. Give yourself some more time and you should be there. 

Save consistently. Don't get taken in by greed. 

Also remember, you will be spending a lot more money when you start a family. 

• I want to be a crorepati

A friend keeps putting pressure on me to invest in the equity market though I am not conversant with it. I have a annual income of Rs 4,00,000 and a saving of Rs 6,00,000.

My friend suggests I invest Rs 5,00,000 in the stock market.

He says the returns could be as high as 70% per annum if I buy the right shares and trade them well.

Should I take the chance?

- R Ram

If you are not buying lottery tickets or indulging in horse racing, and totally disagree with these methods to make money, you are absolutely correct in refusing to be taken in by 70% return promises.  

Such returns are not normal and there are no surefire tricks that work all the time. 

Your friend could be speculating, and might have had a good patch that makes him believe he has mastered the art of making money.

The truth is that equity investing is rewarding on a sustainable basis. One must invest for the long term, have the skill to understand company fundamentals and the attitude to manage risk. 

You have professional fund managers who can do this for you. You are missing an investment opportunity by shunning the equity market, but speculating is clearly not the way to do it.

Read 5 things you must know before buying shares to help you understand some basic principles.

If you trust your friend, give him Rs 50,000 and a one-year time frame to make the promised returns, after brokerage costs and taxes. 

In the meanwhile, invest Rs 1,00,000 in diversified equity mutual funds. These are mutual funds that invest in the shares of various companies of different sectors. 

Once you have seen how the two work for you, you will be able to make your mind up on what the right option is for investing in equity, and what works for you.

Illustration: Dominic Xavier

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