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

Our expert Uma Shashikant has the answers.

Though my husband earns really well (Rs 90,000 a month), his expenses are getting out of control.

Presently, he owes Rs 1,00,000 (loan from a relative), Rs 1,35,000 (outstanding on credit cards), and Rs 45,000 (to me).

He wants to take a car loan now. Should I let him? How can he pay back his debts?

- Anisha S.

If his total debts are only what you list, they are about 25% of his annual income, and are not too high to press the panic button. If you save 25% and manage your home in 50% of his salary, you are fine.

If the loan from the relative and you are interest free, the burden is even lesser.  If he pays off Rs 30,000 a month towards his loans, he will be free in about a year. 

Were these loans for a specific purpose? For some emergency? If yes, your husband may not be a habitual borrower. 
If not, and he borrowed because he liked to spend more, there is cause for concern. 

If you have no other loan, have also begun to save some money, and manage to run your home at a cost that is about half his salary, you have the space to borrow for a car. 

• How to start saving

My father has recently sold a property worth Rs 32 lakh (Rs 3.2 million).  After buying another property, and paying off various debts, we have Rs 5 lakh in the bank.

My father is 49 and needs to invest in a pension plan. I am 22 and earn a monthly income of Rs 15,000.

I would like to save for my brothers' education (17 and 19 right now) and for my wedding in the next two years.

- Chinha Raheja

Before you make your saving and spending plans, I propose that you view the family as one whole unit. Make sure that everyone takes upon himself a fair share of the earning and saving, apart from the spending.

First, make a list of large spends that you have. You have listed your brothers' education and your wedding.  Find out if there is anything else.

 As the next step, find out how you can augment the income. You father perhaps can take up some work on his own. Your brothers can also take up part-time jobs as they study.

As the third step, find out other sources of funding for your needs. Maybe an educational loan which your brothers can repay after they begin to earn. 

Now ask yourself how much you can save.  If you need the money for your wedding soon, you may not be able to invest it for a high return. In that case, choose a short-term debt plan of a mutual fund, or simply use bank deposits.

• Too many loans? Here's help

On your advice to others, here's one which is going to stump you!

I know I have been foolish with money in the past but it's not the end of the world. I have to admit, I need help now!!!

I spend Rs 3,005/ month on a car loan and Rs 8,418 / month (4 personal loans). I earn Rs 10,000/ month.

Savings: Zilch

Illustration: Dominic Xavier

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