BQPortfolio: What Must Chinmay Bindal Do To Prepay His Education Loan?
For a 23-year-old, wrestling with a Rs 16-lakh loan can seem like a daunting task. It helps, of course, if the salary is large enough.
Pune resident Chinmay Bindal manages his Rs 25,000 equated monthly instalment comfortably with his salary of Rs 90,000. But, based on his current spending pattern, he is unlikely to be able to pre-pay his loan. In fact, he only manages to save a little over 10 percent of his salary every month.
Most financial planners advocate an early start to saving. Squirreling away a small amount every month in your first few years of employment, with the help of compounding, can make a huge difference once you retire.
To achieve this, especially with fixed costs like an EMI, it becomes important to curtail expenses wherever possible.
On this episode of BQPortfolio, Mrin Agarwal, founder director of Finsafe, advises Chinmay to curtail his spending by Rs 12,500 every month and raise his rate of saving to at least 25 percent of his salary.
Watch the video here: