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Balaji Thotadri

@iam_balaji

Sep 8, 2022

How I cut down my household expenses by 50%+ - Do read this thread. #personalfinance

Every family has a lifestyle which has been curated with habits that have been cultivated over years. A major part of increase in expenses over a period of time has lesser to do with 1/

increased cost of living and more with an increased standard of living which is an outcome of our lifestyle. Was thinking, are we as a family really cut out to toning down our lifestyle and live a basic frugal life in case we are faced with a job loss and not having adequately 2/

saved. We would be faced with a harsh reality of not spending as we normally do. How 2 push oneself out of the comfort zone and try to live out this phase was the idea which emanated from the thought.This experiment was done 3 years back pre covid.Ideating was the easier part; 3/

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Balaji Thotadri

@iam_balaji

Aug 22, 2022

Debt Repayment - Car Loan - Are you aware of the difference between Foreclosure and cancellation of a Loan - Brief Thread:
Wanted to share a personal experience I had while repaying a Used Car loan. I had taken a Used car loan of around 15L @ interest 15%. 1/

The amount was disbursed by the Bank and I got possession of the Car. Within a week of disbursement, I had an unexpected inflow of amount equivalent to my car loan. Prudently I thought of clearing my used car loan. On contacting the Bank - 2/

I was advised that in the first year of the loan I would have to bear foreclosure charges of 5% of outstanding amount – which would have translated to 75K for a week-old loan. Spoke to my car dealer (who happened to be a personal friend) too on the same. 3/

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Balaji Thotadri

@iam_balaji

Mar 1, 2022

Thread on my Mistakes in #personalfinance. Slightly long - hopefully insightful. We all make mistakes in personal finance in our early stages our life and career – I want to take this opportunity of sharing my mistakes – the sole objective being – others can learn from them - 1/

Not saving and investing early in life – lived life in a complete consumption mode on a monthly paycheck till the time I actually bought a house. This was for the first 5 years of my career. Had lived the first 30+ years of my life in a 300 sq ft house. 2/

Bought my first car before I bought a house – so EMI for my Maruti 800 had already started. Objective of buying a house (way back in 2001 – under construction – possession in 2005) was to force savings in the form of an EMI. 3/

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Balaji Thotadri

@iam_balaji

Jan 14, 2022

@sheroes

#Inspiring 🧵 on #personalfinance and how to manage finances - this is a story of my house help @sheroes who has been working in Bombay for the past 20+ years raised two kids.
1 - Created passive income wealth generating assets - 6 small houses - of which she stays in one and 1/

Rents the other 5 - generating rental income ( which is 4 times her monthly outflow of expenses)
2 - How was this created - worked as house-help and invested significant monies in chit funds - when asked isn’t this risky - it was earlier when she was investing in others funds 2/

Now she runs the Chit fund ( BC as she calls it) wherein all participants are of her circle of trust (credit risk managed). She draws the first chit - so makes most returns.
3 - my next q was where is this drawdown invested - immediate response is in known circles @ monthly 3/

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Balaji Thotadri

@iam_balaji

Mar 25, 2021

#personalfinance #Debt #Realestate Thread on my experiences with real estate as a primary home and investment -
Always dreamt of living in a bigger house as I had spent the better part of my life till My late twenties in a 250 sq ft rented house in mumbai
1/

Bought my 1st house in 2001 a 3 bed apartment 1395 in a good locality in Hiranandani - in Thane - with the power of leverage - got 100% of property value + stamp duty + registration and insurance term cover for loan amount fully funded by HDFC - did not have to invest a pie 2/

Power of a branded property to get this level of leverage - and also loan to CTC at that point was 500% - but did not seem risky as asset backed the liability (cant say the same in today’s times) Got possession in 2006 and moved in ( got married too a year prior) - 3/

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Balaji Thotadri

@iam_balaji

Sep 30, 2020

#personalfinance #debt #fingeekid Just wanted to share my thoughts on debt consolidation and how if managed effectively it can reduce the overall interest outflows.
When an individual has a couple of debts which is being serviced through multiple EMI’s, it's always advisable 1/14

to explore options to consolidate debt. This is possible mainly when one has taken a housing loan and has serviced a couple of years of debt or that the property has appreciated from the time it was acquired. 2/14

This is explained in the example below: Value of Property Purchased say is 1 Cr – Loan to Value is say 80% and 80L, a 20 Year EMI @ a Floating interest Rate of say 9% is 71,948, In addition to this this individual has a Personal loan of 6L and a Second-hand car loan of 3/14

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