Neha's financial background

Neha shares details of her earnings, investments, expenses and goals.

Monthly take-home salary
Rs 14,000

Mutual Funds

• SBI Magnum Tax Gain: Rs 5,000 in July 2005
• Fidelity Systematic Investment Plan: Rs 500 every month. Started in March 2006 for one year.

Monthly expenses

Rent: Rs 3,500
Cell phone bill: Rs 1,500
Mutual fund investment: Rs 500
Payment to life insurance policy: Rs 1,667
Food/ Travel/ Socialising/ Living expenses/ Medical expenses: Rs 6,000

Neha has also had to undergo some medical treatment for her skin hence she does not save any money by the end of the month.

Life Insurance

ICICI Lifetime policy of Rs 1,00,000 taken out in December 2005.

She has to pay Rs 1,667 every single month for three years.

By the end of three years, she would have accumulated around Rs 80,000. This would include the premiums which add upto Rs 60,000 over three years and the interest earned. She can then withdraw part of the amount, ie upto Rs 70,000.

By retaining Rs 10,000 in the insurance policy, she will ensure it stays in force. On her death, it will be given to her nominee.

Medical insurance

Her company covers her for Rs 3,00,000; she does not have any cover of her own. Her skin treatment is not covered by this policy.

While her company does offer an EPF, she has no other investments at all. No PPF, NSC, bank fixed deposits or shares.

• Neha's background               
• Gaurav Mashruwala advises