Thread by @NikunjChhag

Thread-3: No, not all loans are for you only!

Date: 29/08/24

A call received from a neighbour who got my reference for personal finance guidance. He wanted to come to my office to meet me. I was about to leave but I stayed for him as he was a neighbour.

1/n

Aged 38, doing job in logistic sector.

Wife (33) in IT sector WFH.

Total salary Rs 1.4 Lakh/m.

He wanted me to get guidance on investing some 10-15k/m.

When collected all data, it was a shocker for me.⚡

2/n

Staying on rent (2bhk) and own property (1bhk) rented out.

Monthly expenses (ex-EMIs) Rs 75,700 – almost half of the income.

Now the best part – total 6 loans & EMIs Rs 65k. CC o/s of 1L on rollover. 😬

Loans ranging from home to OD!

3/n

Term ins cover of Rs 50L only, no emergency fund, no health insurance!

There was no visible liquidity.

I asked him first consider reducing loans/EMIs to get some liquidity, he told me he is exploring a job switch (Noida – so another household expense) to increase income.

4/n

I clearly told him increasing income is not the solution always, & control expenses/EMIs.

I recom him to close credit cards (discipline issue) liquidate 1bhk flat to close out max possible loans, work towards selling ancestral property to free cash.

5/n

After a few months he informed he took up that Noida job, salary increased and so as his expenses! I listened to him patiently, making notes.

6/n

Fast forward to 13/09/25, he asked me for my time to meet. This time I insisted come along with your wife & not alone!

He informed he has resigned from Noida job & is moving back to Ahmedabad & now total income is increased to Rs 2L+/m due to job switch & wife’s increment.

7/n

Now the finances were still overstretched due to increased expenses & frequent travels Noida-Ahmedabad.

So CC o/s zoomed to Rs 2L & converted to yet another EMI (7th loan). Rest of expenses remained almost same as last year.

8/n

So now I can see some visible liquidity.

So I asked the couple to first consider building up an emergency fund. We separated to check once he returns and start his new job.

9/n

On 12/10/25, he took my appointment to meet me again. This time he came with his wife without asking!

He informed this time he has some windfall income of Rs 12.5L and asked how should we go ahead with that?

10/n

I asked him to lets first close 5 loans so now 2 remains & pay 2 overdue HL EMIs & keep Rs 1.5L as emergency fund.

So we will plan SIP for emergency fund for next 2 months.

11/n

Reflection 💭
If I had started SIPs in the 1st meeting (without full data), his finances would’ve still been a mess!

Lessons learned:
1️⃣ Take only essential loans (Home/Car).
2️⃣ Never invest with stretched finances.
3️⃣ Build emergency fund & insurance first. 🧠💪

12/12

I have started posting such a real life experience with our clients or prospects & this is the 3rd thread.

Here are the past threads:

1) Silver mania: x.com/NikunjChhag/st…

2) Retirement gone wrong: x.com/NikunjChhag/st…

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