Financial Planning for a 30 yr of female – Please help

POSTED BY RuchiBCS ON June 21, 2014 2:10 pm COMMENTS (13)


I am 30 year old female. I am very much worried about my financial status, so looking for your valuable advice. As of now I have total 1 lac savings. I want to do proper financial planning which will include emergency fund, pension fund, life cover, health insurance, house purchasing etc.

I have 19000 savings each months after excluding personal loan EMI around 6000 and my monthly expenditures. Could you please guide me how efficiently I can manage my financial wealth. Your help will be really appreciated.


13 replies on this article “Financial Planning for a 30 yr of female – Please help”

  1. Kshitij_Peter says:

    Hello Ruchi,

    Apologies for the delay response. Can you please email me at kshitij_peter on my id.


  2. nsabhyankar says:

    I have a point to ponder:

    Are you single? Do you stay alone?
    If the answer to these questions is ‘Yes’, do you really need to purchase a home urgently (given that the same money can be invested towards the retirement corpus)?

    Home loan is a big commitment and a drain on your finances. There will be a cost of home ownership as well (property tax, maintenance, furniture etc.) You will save the rent if you go for a ready to move in property but will have to shell out the EMI. The EMI is very much likely to be higher than the rent.

    I would also suggest to clear the personal loan first before looking for a home and home loan.

    1. RuchiBCS says:

      Hi Nsabhyankar,

      I am single but still I am willing to purchase home early. Since I am living in Pune, one of the fastest growing city in India. Real Estate rates are drastically changing in this City. Before 2-3 years one can afford 1BHK flat in 15 – 20 lacs easily but now rates are grown to 30-35 lacs for 1 BHK, so if I delay it more then again I have to pay more ………. 🙁 . I am thinking instead of paying 5000-6000 for monthly rent I can invest same amount in EMI. In financial area I am a kid ……….. 😛 . so please don’t laugh if you find my thinking silly…… ;). That’s why I am seeking an advice from expert people like you……….. 🙂


  3. Kshitij_Peter says:

    Hi Ruchi,

    Reminds of the same situation I was in couple of years ago.

    You can do the following:
    1. emergency fund -In next 3-5 months ensure that you have liquid funds for next 6 months expenses – reevaluate the amount every 2 years against inflation – I keep 3 small term(7 -45 days) FDs maturing intermittently.
    2. Pension fund – You can put a target of how much you want when you are 50-58 years. You can invest in PPF and EPF(from your employer). Say if your EPF is 5K (2.5+2.5) and you need to invest 2k per month(25K an year) in PPF.
    3. Life cover – You can take online one which would cost around 6K per year for 50 Lakhs. If you feel the need for more you can always take more…even 5-6 years down the line.
    4. Health insurance – Look at your previous 3years medical expenses and friends’ expenses and decide an amount say 2-5 lakhs, this will cost you 3-7 K per year.
    5. House purchasing- Now this is a big expenditure even though you might be from a small city or some place like Mumbai. It depends on when do you plan to buy one. If its within next 1-2 years then I’d say first get rid of the personal asap and then start a RD for your planned duration.
    If its in next 2-4 years then you can start a 1-2 year RD of about 8-10k and you can use FDs(private ones give you 10-11.5 pa) and invest in equity(stocks/mutual funds) – for this you’ll need to either get a good broker (paying them some comission will still give you better returns) or just keep monitoring how your investment/stock market is, say every 2-3 weeks.

    Hope this helps.

    Also, these are rough calculations. I can give you more calculations (have done 100s of them in last 2 years thanks to this blog) based on the amount and time you want/have. Though I am not sure if a public forum is a good place to discuss you exact finances.

    Happy Investing.

    1. RuchiBCS says:

      Hi Kshitij,

      Thank You very much for you valuable suggestion and your opinion on how exact amount I should start investing.

      As you said, I would like if you give exact calculations on how much should I invest in RDs, FDs , life cover, health insurance, emergency fund, pension fund etc. by keeping house purchase goal on priority. so that I will get accurate directions towards my investment.

      My monthly EPF is 1767. I have taken Axis bank loan of Rs 100000 at 17% ROI for 5 years recently and HDFC cash on call loan of Rs 30000 for 1 year.

      My monthly savings is 19000 and I hope I will work 30 years more. So is it possible for you out of your busy schedule to give exact figures on how much should I invest in each section. But one thing here to notify you I don’t have any knowledge of share market, what is equity fund, liquid fund and all.


      1. RuchiBCS says:

        Hi Kshitij,

        I didn’t heard back from you since last few days, are you very busy?


        1. Kshitij_Peter says:

          Hi Ruchi,

          Sorry was on a trip to Pune. Please email me on

  4. Sambaran Mitra says:

    Whether you are lagging on your financial goals is a difficult question. I will recommend you to use your monthly expenditure as a guide.
    You said your expense is 15000 and that you want to retire at 60. Assuming you live till 100, you need 15000*12*(100-60) for your retirement. That is 72 lakhs. This is the minimum amount you need.
    On other hand your saving is 19000 and you want to work till 30 more years. So you will be able to save 19000*12*30 = 68.4 lakhs. Hence, as of now, you are slightly behind your target. Consider working till 65? Or get that second income if you want to retire earlier?
    Do note that I have assumed 0-inflation and 0-rate-of-return.
    Keep tracking your monthly expense and investment-corpus periodically and you will be able to figure whether you are on your way to achieve your goal.

    Let me know if you come about a good ‘algorithm/thought-process’ for your second income. I would like to know that for myself. Job market is extremely uncertain.

    1. RuchiBCS says:

      Hi Sambaran ,

      Thanks for your quick reply!

      As you suggested – 1. I will take health insurance for me and my parents.
      2. I will invest some money in good mutual fund like HDFC- Cash- management-savings(growth) which down the years I can utilize as a down payment for purchasing a house.
      3. Will use a good equity fund like QLTEF or PPF for retirement.

      I am very much confused about second source of income on how I can start with it. whether it is a small scale business or part time job or something else? Don’t have any straight forward algorithm for it as of now. If you get something please share…… 🙂


  5. Sambaran Mitra says:

    There are two competing contrary views (with sufficient rationale on both side) on whether personal health insurance should be taken in addition to company-provided-one. I chose to take a personal-mediclaim over and above company-provided-one.
    I see you have two goals: House-down-payment(6-7 years away) and Retirement (real long term).
    I would recommend you to put house-down-payment money in a debt-mutual-fund for next 6-7 years. You can use HDFC-Cash-management-savings(growth) as the investment vehicle for this goal. I recommend debt-fund over bank-fixed-deposits because of higher/comparable-post-tax-returns and much less tax-return-form-filling-complexity.
    I would recommend you to put the rest of money in Quantum Long Term Equity Fund (QLTEF) for retirement.

    BTW, are you responsible for your parent’s health? If yes, do get them covered through company-insurance (preferred) or personal-insurance. This expense is a potential bomb.

  6. RuchiBCS says:

    Hi Sambaran,

    Company is providing 2.5 lacs of health insurance yearly. Please suggest if I need to buy another health insurance in addition to this.

    As you suggested, I am maintaining the daily expense report in a diary. My overall monthly expenditure is around 13000- 140000 …….. 🙁 which includes rent 5000, travelling 1500 + lunch , dinner etc 4000+ other expenditure (mobile bills and so on, I am keeping some amount out of this as a buffer amount) 2500

    I am assuming I will continue service till the age of 60 , not sure though about it. So I am trying to earn good corpus by that time so that after 55-60 I can live my life without financially depending on anybody.

    By short term I mean to say 5 to 7 years and middle term is 8-10 years, please don’t laugh if you find these figures funny …… 😛 I am very weak at financial planning. As a financial goal I am looking at owning a house on priority that will give me a feel of bit relaxation and will save monthly rental I am looking at collecting a good corpus for retirement as a second largest financial goal.

    I am not sure with monthly savings of Rs. 19000 how much corpus I can collect till I get retired.

    Could you please have a look and provide your valuable opinion on this. Please help me if I am lagging behind in setting the financial goals.

    Also I am thinking of second source of income but very much confused about how can I go about it?


  7. Sambaran Mitra says:

    A health insurance for yourself is the first thing.
    If people depend on your income, a life insurance that you can afford is the second thing.
    Then comes the question of investment.

    1. RuchiBCS says:

      Thanks Sambaran for your reply!

      Could you please suggest how much should I invest in health insurance and life insurance. Nobody is depending on me as of now. Can you please suggest good options for short term and middle term investments.

      Thanks ,

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