Is 30% of my income enough to achieve goals?2 min read 02 Mar 2023, 10:55 PM IST
Beating inflation, for both education, which tends to be higher than consumer price inflation, as well as for living expenses for retirement is crucial.
I earn ₹92,000 per month after income tax and provident fund (PF) deductions. I invest about 45% of my salary, or ₹44,000, currently every month. This includes ₹21,000 in mutual funds through a systematic investment plan (SIP), ₹4,500 in voluntary provident fund (VPF), ₹2,000 in public provident fund (PPF), ₹6,000 in national pension scheme (NPS), ₹9,000 in saving insurance plan, ₹1,000 in term insurance of ₹50 lakh, and ₹1,000 in health insurance of ₹30 lakh cover. I don’t intend to cut down or increase my investments but would like to limit my investments to 30% of my income when my salary increases in the future. Do I need to make any changes to my portfolio to beat inflation and secure my child’s education and retirement plan?