How do I Manage Money for Setting up Financial Goals

I am 47 and self-employed. My wife, 43, is a home-maker. My son is in his first year of engineering, daughter in class 8. After returning to India, I tried my hand at a few business ventures with my savings but they all failed. Now I am doing catering, which gives me some decent income. To clear my liability, I have sold the property. How do I meet my financial goals?
Muthukumar

Work pressure spurs many to try their hand at entrepreneurship but they fail to have a business plan. Catering being a low-capital business do concentrate and build from here. With a limited budget, you can save only for your daughter’s marriage.
So here we are suggesting you some basic steps to create your financial spreadsheet to complete your household budget.
For your son’s post-graduation fees, allocate ?15 lakh from the savings account and for the balance ask him to avail education loan. To meet your present monthly expenses at retirement you need a corpus of ?1.91 crore and it should earn 1 percent over and above inflation to support you till you turn 85. Allocate ?20 lakh from your savings account for this goal.
If you earn 12 percent return at retirement, it will be worth ?87.3 lakh. To meet the shortfall you need to invest ?27,900. Once your surplus increases, plan to achieve your remaining financial goals. During retirement, if you still face the issue in your financial account, sell the commercial property; it will help you bridge the shortfall and you can save your money.
Reduce health policy to ?5 lakh and buy either auto restoration or top-up policy to lower premium outgo. Buy term insurance with the difference in the premium.

The writer is a SEBI-registered investment advisor and Founder, myassetsconsolidation.com
Send your queries to blinefp@gmail.com

This article was published in The Hindu Business Line (20.11.17)