जानिए क्या है नवदम्पत्तियों के लिए सही INVESTMENT FORMULA??

5 money tips for double-income families with no kids.


If you utilise your high disposable income in a planned manner, you can achieve most of your financial goals.


Among the many things in which millennials’ preferences differ from their predecessors include structure of their own family. Many prefer to be ‘double income no kid or DINK’ family. While both husband and wife work and share costs, these families are often characterised by high disposable family income. Here are some money tips.

Know your spending: “Given the high level of income and limited responsibilities there is a tendency to spend and enjoy a better lifestyle,” But keep a track of your spending and avoid overspending. Sometimes the spending goes beyond one’s income and opens doors to a debt trap. Be careful with your spending and stick to your budget.

For all large expenses such as – a holiday overseas, buying your dream car; opt to go by ‘goal based financial planning’. Define the goal in money terms and specify the time line. For example – buying a car worth Rs 10 lakh three years from now.

This will help you carve out a plan to achieve the goal in a stress-free manner.

Save & invest: Though lifestyle is a focus for most DINKs, one should never ignore saving. Instead of ‘spend-save-invest’ embrace the smart way – ‘save-invest-spend’. “Write down your financial goals and build a financial plan to achieve them,”

Just because you have risk-taking appetite and the markets are doing well, do not invest all your money in stocks and equity mutual funds.  Instead take a goal-based approach. For all short-term goals – typically less than three years, fund it using fixed income investment options such as bonds, fixed deposits and bond funds. For long term goals such as retirement, invest in equity funds and balanced funds.

Most financial planners advise DINKs to plan for a child financially, if they are keen to go for one. Maternity and a child’s education should be well funded.

Buy a home: Among the many financial goals of a typical Indian, home buying is the biggest goal. Though most millennials are not too gung-ho about buying a home as compared to their parents, the financial planners ask DINKs to go for one. “Buy a home if your income allows you to do so,”  “If you are going to avail a loan, buy the home in a joint name. This will enable you to enjoy the tax benefit fully.”

Given steep pricing of most houses in cities, buyers go for large home loans. Because of the restrictions put on the tax benefits associated with home loans, one borrower may not avail the entire benefit. Especially in the initial years, the large interest component goes unused if there is only one borrower. Hence, if the loan is taken jointly, then both the borrowers can enjoy tax benefit.

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Career & all that:  “If you have to take risks in your career, this is the time to take the plunge.” You may choose to learn new skill sets or take the entrepreneurial route. If you do not have much responsibility and your spouse is keen to support you, then you can jump now. But do take a calculated risk. Put in place your emergency fund – at least three years worth of expenses in safe fixed deposits along with adequate life and health insurance. You should be able to float even if your new venture does not pay you a single rupee in the initial period.

Emergency funds also come to help, if one loses his job. Even if you are happy with your current job and not keen to get start on your own, keep at least three to six months of expenses in fixed deposits or liquid funds.

Retirement: When you are young, not many think of retirement. But it is inevitable. “Typically after age 35 or 40, individuals start thinking of retirement. Many DINK families look at early retirement as one of their important financial goals,” If you too are considering an early retirement, better start preparing for it now.

“Since you have long time on hand for funding retirement, you can have a high allocation to equity mutual funds,” As you approach to your desired corpus reduce the exposure to equities. You may also want to reduce your exposure to risky assets as you near your superannuation age.


courtesy - moneycontrol

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