FY 2020-21 was a super exceptional year, and I don’t think the world (as well as myself) will witness a year like this very soon. This FY started with the lockdown and ended in semi-lockdown state. I witnessed two major events of my life- buying land at Guwahati and getting married- both has major significance from financial angle.
How I fared against the goals set last year:
a. Xomidhan money and my personal accounts are separate now. This was a great achievement of last year. AT- money still comes to my SBI, which I transfer regularly.
b. On my trading goal, I could not become short term investor. During Covid-19, the market touched bottom and I managed to acquire some good stocks such as Infy. However, the biggest blunder was selling of RIL, one day after I sold-off, Facebook announced to invest in RIL. I am so stupid and unaware. On selling fronts, my decisions have not been wise. I only invested 5,000/- into Sharekhan in last FY. Because of Corona uncertainty, I mostly stayed away. Also, there were lot of expenses otherwise.
c. I stick to my earlier promise of creating no more FDs. In fact, the FDs I opened with Maa (I guess partial amount left in the form of new FD) and Moina got matured and never opened again. I am now waiting for my 6 lakh FD in ICICI to get matured so that I can buy a car in cash.
d. I was all game for opening one Saving Bank account with Kotak Bank which is offering Savings Bank interest of around 7% before pandemic starts. I even got phone number and the representative was about to come to NSDC office to meet me. After Covid rising starts in March-end, I returned to Assam and I didn’t pursue further. Now, I see even Kotak is offering only 3.5 to 4% interest rate.
e. Real estate investment – yes, I did it. All thanks to Karuna Da- a long cherished dream indeed from Deuta’s time; financially sound option as well.
f. Although I could not get hold of a CA, I talked with Salil Nagpal (Audit Head, NSDC) on all possible ways to save tax. Except donating to charity org (some CAs have contact of such org and you may say upto 5K after their cut), I have exhausted all options. Admit it Manjit- you are paying ~2.5 lakh per year as tax- you are rich
g. Increasing expenditure—yes, I need come out of middle class. I tried in bits and pieces (say, in enrolling the English writing Udemy course), but not enough. Having a wife is helping me in this goal now. She is not over-spender but does not shy away from important expenditures. This is a good sign.
Some quick facts from last FY:
a. Marriage expenditure:
· Total kharcha: 13,24,058/- *
· Expenses incurred by me only: 9,81,323/- ; rest shared mostly by Maa followed by Dada and Moina
· Money saved: By canceling return gift (around 32 K), by not keeping ceiling by bamboo, by having own bamboo from samaguri (around 16K), by borrowing sofa from Lohid Da's house (around 15K), by having Kapil Da for videography, by not having LED screen and speakers all around etc.
· The distribution of cost in the big categories as below. The detail is there in an excel file, which I uploaded in my Google Drive.
|
Major categories |
Sum of Price |
|
Food (all, veg, non-veg, sweets for all day) |
298117 |
|
Food Distribution (it was a major thrust to be environment friendly) |
56477 |
|
Front Decoration (it was the highlight by Nayan Da, Madan) |
111851 |
|
Gifts (mainly to family members, others, dresses dominate) |
110087 |
|
House preparation (making the back side ready, mostly by Maa) |
98166 |
|
Memories (photo, Goru gari, flower tub etc) |
81400 |
|
Post-Marriage (aath mongola, aloha khoa, office treat etc) |
24590 |
|
Ritual (jewelry, dress for bride, upanayana, aloha ghar sua, everything) |
425672 |
|
Self (dress, makeup) |
17328 |
|
Tent House (Hatembhai, except Bamboo all other work) |
78000 |
|
Transport (Petrol at diff occasions, bus booking etc) |
13040 |
|
Winter (blanket, khat etc) |
9330 |
|
Grand Total |
1324058 |
*considering 28,600/- paid for Mithai by cheque which never got deducted + 2K around is left to be paid to Kapil for video + including post marriage expenses to an extent.
Conclusion: It is one time and totally worth. Being at home gave me resources to explore and apply wild imagination. I just loved everything. Now gearing up for the next marriage in the family.
b. Land buying expenditure:
· Land valuation as per registration certificate: 6,11,928/-
· Land Development Cost: 8,50,000/-
· Land registration brokerage: 68,000/-
· To Dr. Gogoi: 72,000/-
· Land Naamjari cost: 10,000/-
· Transportation/other cost: 5800/-
· Still to be paid to Mr. Gogoi: 4,66,072/-
c. Rent saving in Mahipalpur due to Covid:
· In normal scenario – 1,74,000 (not counting possible increase once you cross 2 years)
· I paid- 1,10,500 with a saving of 63,500/-
· Getting a fully furnished 3BHK in Dwarka Sector 22 @21,000/- should be termed good deal.
d. New home setup at Dwarka:
Since the Dwarka flat is furnished, I had little to spend for setting up the home. Some expenditures are due (Split AC, mirror etc) which I am yet to buy. The security money is one month only and that’s a relief. The brokerage is of 20 days and I am yet to pay around 5K. Shifting took 3800/-- all come in one big tempo type vehicle.
e. CTC going down due to Covid:
NSDC did not give any hike and cancelled the variable pay. Hence, the effective CTC went downwards for all employees. This was terrible at this stage. My performance was excellent last year and I was expecting good hike. While I am appreciative of the fact that the employer did not hold the salary, there was scope for paying the full amount. Situation hasn’t changed at all with the same management this year and new CEO joining in. The process for appraisal has not yet started until now. The attrition rate at NSDC has touched 20%.
f. Drastic changes in expenditure trend:
Due to Covid and marriage, one may observe disruption in the normal trend in my outflow budget. My travel and recreation expenses are hovering in 1%. The expenses under personal category that hovers around 1%, has jumped to 48.78%. The investment (includes land purchase) has seen huge jump with 88.86%. Upkeep is still below 10%.
Thought for next year:
a. Different expense tracking template with much delegation: Now that I am married, additional expenses have come. Also, expenses wouldn’t be made only by me. Reconciling both the two has been a challenge and I, with my wife have been thinking on the same. As a philosophy, I believe delegation and I think Nina must be given independent responsibilities to handle. Of course, there are trust and capability issues, but I ought to build that up eventually even if the other person is struggling initially. I have decided to give some categories such as utility payment, sabji etc completely to her. Some categories such as rent will completely be me. Rest will be common. I will transfer an amount (15K to start with) on first day of the month. We made the excel template for both of us. I am not 100% convinced as I don’t have anything to refer to. Let’s see, maybe, this will evolve with time.
b. Managing Nina’s expense: Until the time Nina starts earning, I need to devise a way of taking care of her expenses. Also, I need to delegate some responsibilities so that she learns to spend, as I mentioned above. Also, I see Nina’s needs as my attempt to get out of the middle class mentality. In Last FY, I spent INR 89,507/- for expenses related to her. However, it includes, 37K for the Scooty and 26K which is lying in her Canara Bank account. For next FY, I separated categories of expenditure as written aove. I will start from 15K and based on first month’s feedback, I will decide. My expectation that she learns how to manage home routine expenses.
c. Cryptocurrency investment: The last year witnessed unbelievable surge in Bitcoin as well as other crypto currencies. The Hon’ble Supreme Court of India had lifted the ban imposed by Govt of India. Also, Elon Musk tweeted favourably for Bitcoin. I just missed the whole part. After govt of India brought ban in 2017-18, I stopped following the development in this space. This was a big mistake. I need to follow the trend from now and invest if getting an opportunity.
d. Big expenses lined up: Moina’s marriage, buying a car and completing the remaining payment of Ghy land purchase are the three big expenditures pending. I am prepared for all three. I am afraid of the unexpected expenditures in terms of medical emergency or personal emergency of any family members.
e. Categories might see jump: I am expecting to see expenditure jump in the below categories:
1. Transportation: Now that I don’t walk to office, there will be regular addition into this. For office trip, it costs me INR 64/- per day. There is provision of time bound, station specific passes by which I can reduce this further to ~40/- per day, but I am not opting for that since alternate day office visit is going on currently.
2. Food: This should have increased earlier, let be it now with coming of wifey
3. Upkeep: Monthly rent has increased, although not to the extent I was expecting (25K per month). Fixed assets for home will be additional too.
4. Personal: This will increase as I moved some other heads (say my own mobile bill) here. Also, if you are living with a lady, you can’t ignore some things on medicine, dress etc. This is good though. There will be personal expenses for Nina as well.
5. Travel: I think it will increase. Although my solo trips will get curtailed (will be zero, I guess), cost components for two persons will push this component any way. The other point that I always believe, for people like us living outside home state, a significant cost is the hope trips which happen minimum twice a year.
6. Gift/Donation: This will go up certainly.
At the same time, I am expecting slump in expenses in Investment and Family.
f. New category structure:
· I have removed Family. The utilities will go to Nina’s utility bills and any gift, ticket will go to Gift/Donation tab.
· Created a new category for Unique/First. This will be for common for me/Nina for any new thing we try this (inspired from the paragliding I did)
· LIC/Health policy etc, that I was putting in Investment, will be put under personal from now. I think I must distinguish what is considered as investment.
· My Food expenses will be limited to the expenses made by Food wallet or any online medium- no cash expenses. Cash things will go to personal.
The inflow table of FY 2020-21:
|
Salary+Food wallet |
Reimbursement (Office, others) |
Loan Repay(includes EMI interest) |
Interest (Savings Account) |
Interest (FDs) |
Market (Equity, MF) |
Others |
||
|
April |
132503 |
23673 |
17460 |
173636 |
||||
|
May |
147328 |
80 |
28373 |
1000 |
176781 |
|||
|
June |
141515 |
36309 |
8673 |
15408 |
17292 |
219197 |
||
|
July |
141516 |
8673 |
331 |
150520 |
||||
|
August |
141516 |
78673 |
166 |
2000 |
222355 |
|||
|
Sept |
141516 |
8673 |
17238 |
1284 |
9000 |
177711 |
||
|
Oct |
141516 |
8673 |
161 |
150350 |
||||
|
Nov |
141516 |
2340 |
2200 |
146056 |
||||
|
Dec |
141515 |
5011 |
8673 |
13780 |
480 |
1570 |
171029.25 |
|
|
Jan |
141516 |
8688 |
10400 |
318 |
76271 |
237193 |
||
|
Feb |
142373 |
7898 |
8673 |
1072 |
1357 |
10630 |
172003 |
|
|
Mar |
142374 |
8673 |
12651 |
5993 |
6410 |
176101 |
||
|
Total |
1696704 |
57986 |
191430 |
59077 |
34757 |
30307 |
102671 |
2172932 |
|
78.08% |
2.67% |
8.81% |
2.72% |
1.60% |
1.39% |
4.72% |
The Outflow table of FY2020-21:
|
Upkeep |
Food |
Personal |
Family |
Investment |
Transport |
Travel |
Gift |
Recreation |
Tax |
Loan |
Total |
|
|
April |
14971 |
5360 |
0 |
6871 |
93508 |
3000 |
0 |
6235 |
0 |
20728 |
0 |
150673 |
|
May |
9471 |
8630 |
4185 |
2031 |
165327 |
500 |
0 |
0 |
0 |
21550 |
0 |
211694 |
|
June |
9471 |
7341 |
50840 |
20707 |
47985 |
4500 |
0 |
20967 |
0 |
21550 |
0 |
183361 |
|
July |
8485 |
4405 |
4200 |
5863 |
15045 |
1000 |
0 |
13550 |
570 |
21550 |
0 |
74668 |
|
August |
8477 |
3336 |
810 |
10256 |
17045 |
4250 |
0 |
3001 |
0 |
21550 |
0 |
68725 |
|
Sept |
11171 |
3063 |
0 |
2393 |
51415 |
3700 |
0 |
1220 |
0 |
21550 |
0 |
94512 |
|
Oct |
11471 |
7132 |
135793 |
3592 |
83415 |
3540 |
0 |
3200 |
950 |
21550 |
0 |
270643 |
|
Nov |
11522 |
7010 |
378409 |
6502 |
828343 |
4970 |
0 |
830 |
0 |
24050 |
17000 |
1278636 |
|
Dec |
11477 |
820 |
56994 |
3068 |
393430 |
500 |
0 |
2417 |
700 |
21550 |
0 |
490956 |
|
Jan |
16070 |
720 |
414690 |
5383 |
95480 |
2000 |
6572 |
5840 |
0 |
21550 |
3770 |
572075 |
|
Feb |
69340 |
10974 |
10947 |
0 |
126415 |
1525 |
1500 |
8730 |
16014 |
20693 |
0 |
266138 |
|
Mar |
3490 |
6198 |
3150 |
131 |
13415 |
2273 |
17140 |
9050 |
1678 |
20692 |
9350 |
86567 |
|
185416 |
64989 |
1060018 |
66797 |
1930823 |
31758 |
25212 |
75040 |
19912 |
258563 |
30120 |
3748648 |
|
|
Percentage |
8.53% |
2.99% |
48.78% |
3.07% |
88.86% |
1.46% |
1.16% |
3.45% |
0.92% |
11.90% |
1.39% |
172.52% |
No comments:
Post a Comment