If your salary is less than ₹ 50,000, do not forget to buy home and car:

News India Live, Digital Desk: Home Loan Eligibility: When every youth starts the first job, the two dreams in his eyes first reside – one is his roof and the other his car. But in today’s era of inflation, when it is difficult to run the expenses of the month, can this dream be fulfilled in a salary of ₹ 25,000? This question comes to the mind of all of us at some time.

When we asked this question to financial experts, the answer they gave may probably disappoint you a little, but it is very close to reality.

What does straight mathematics say?

According to experts, straight and flat thing is to buy home and car together at a monthly salary of ₹ 25,000 Almost impossible Is. It is very easy to understand the mathematics behind it.

There is a golden rule of financial planning that more than 40% of your total salary should not go to EMI (monthly installment).

• Maximum amount for EMI (40%): ₹ 10,000

Now you think for yourself, can you repay the loan of both a house and a car in a total EMI of ₹ 10,000 in today’s time?

• Home expenses: At the same time, if you also take a small house in a small town (Tier-2 or Tier-3), then its EMI will also be at least ₹ 10,000 to ₹ 15,000 month.

It is clear that it is impossible to bear the burden together.

So is there no way?

Experts say that there is a way, but it is a little long and sensible. It is important to understand the reality instead of living in dreams.

1. Increase earning first, then decorate dreams
This is the most bitter but most important truth. In a salary of ₹ 25,000, you should first focus on increasing your income. Learn new skills, change jobs, or find a source of side income. Till your salary is at least ₹ 50,000 month, thinking about these big expenses will also be a big financial mistake.

2. Save first, then buy
For any loan, you have to pay a large amount as a down payment. Therefore, make a habit of saving at least 20% i.e. ₹ 5,000 every month from your salary. Do not just keep this money in the bank, but invest in mutual funds through SIP (Systematic Investment Plan). In a few years this small savings will become a big amount, which will be useful for your down payment.

3. Set the same goal at a time
If both home and car are necessary, first decide who you need more. You will not live anywhere in an attempt to move the goal together. First finish one loan, then think of the second.

4. Adopt the rule of 50/30/20
Divide your salary with this rule:

• 30% (₹ 7,500): Spend on your desires (walking, shopping, entertainment).
• 20% (₹ 5,000): Save and invest.