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VARUN Jain

VARUN Jain, 27, is a young executive with a FMCG firm in Mumbai. At 27, he is already in the senior management with net earnings of Rs 1 lakh per month. His parents are settled, but Varun still makes it a point to send them Rs 20,000 pm.

Varun spends around Rs 35,000 and Rs 20,000 per month on household expenses and rent respectively. He makes a monthly contribution of Rs 4,166 towards donation. After all the expenses he’s left with a surplus of Rs 20,000 per month. He has no current assets or property, and only owns a car. Whatever surplus he has, he spends on consumption.

Varun will get married to his fiancée in two years time and wants to fund the marriage himself. His financial goals are as follows:
1. He needs to save Rs 5 lakh for his marriage, set in 2011
2. He wants to replace his old car with a new one costing Rs 12 lakh by 2010
3. He wants to retire at the age of 50, ie, 2032 and lead the same lifestyle

Taking into account his current income-expenditure and inflation at 7 per cent, here’s my advice:

http://wealth.moneycontrol.com/features/financial-planning/high-paying-job-but-no-financial-security-/14382/0

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