Aditya's Journey: From Financial Uncertainty to Investment Clarity

Aditya is earning ₹20+ lakhs/annum but lacked clear financial goals and struggled with investment decisions. His primary aspiration was to purchase a home for himself and his mother, but he needed a roadmap to achieve this.

It's not about how much you earn but how wisely you manage your earnings to achieve your financial dreams.

Our Intervention

Building a Foundation: A ₹1 Lakh Goal

• We set an initial saving goal of ₹1 lakh.

• He started investing ₹10,000/month in low-risk mutual funds, ensuring stability even in market fluctuations.

• Within 7 months, his portfolio grew from ₹70,000 to ₹95,000, keeping him on track.

How did this happen?

• Set clear, achievable goals.

• Invest consistently, even in small amounts.

• Choose low-risk investments for stability.

Homeownership Plan: A Strategic Delay

Aditya and his mother envisioned a ₹30 lakh home loan with a ₹5 lakh down payment. Their savings could have covered the down payment, but it would have depleted their emergency fund. We advised a one-year delay, enabling them to save more and alleviate financial strain.

Future Readiness: Positioned for Success

• With a 15% annual salary growth, they would be in a much stronger financial position to buy a home without financial strain the following year.

Quantifiable Impact

• Reduce Financial Strain by delaying home ownership

• Prepared for future emergencies 

Does this resonate with you? Let’s start by 

• Connect with our advisor: https://app.truexwealth.com/dl/Coach 

  • Create a realistic financial plan 

    • Differentiating between aspirations, reality, and needs 

  • Achievable milestones

  
  

Financial Wellness at Every Career Stage

Achieving Financial Wellness at different Career Stages

Since 2020, corporate India's average annual salary increase has been 9%, while inflation has remained at 6%. At the same time, personal income tax rates have risen to approximately 40%.

In India, the middle class isn't defined solely by salary range but rather by a mix of extrinsic factors. This unique classification has led many companies to focus on mental well-being as part of their corporate offerings. However, it’s equally important to address employees' financial well-being and mental health.

To truly support our employees, it’s essential to recognize how their needs and aspirations evolve. Financial goals and challenges shift at different stages of life, so we should approach financial well-being in phases. These phases can be broadly categorized as follows:

1. Budding: Young professionals earning ≤ 12 lakhs annually, with upto 5 years of work experience.

2. Growing: Professionals earning between 12.75 – 25 lakhs annually, with upto 10 years of experience, entering new life stages with added responsibilities such as EMIs and growing financial commitments.

3. Thriving: Professionals over 35 years old, 10+ years of experience, with responsibilities for retirement and long-term goals, earning 25+ lakhs annually and managing multiple financial obligations including home loans.

For all the three phases, here are some financial parameters to refer to achieve financial wellness -

	Budding	Growing	Thriving
Tax (FY 25-26)	No tax	Comparison between the old and new regime	Old Regime, factor in capital gains
Expense Ratio  (% of salary)	60% - 70%	45% - 60%	35% - 50%
Saving Ratio (% of salary)	10% - 20%	15%-25%	20%-30%
Loan Ratio (% of salary)	Upto 15%	Upto 20%	Upto 30%
Emergency Funds	3 months	6 months	12 months
Health Insurance	5 Lakhs	10 Lakhs	20 Lakhs
Investment Plan	Start small, focus on Compounding	Goal-based Investments	Long Term Investments
Loan	Payback Student Loan/ Avoid others	Short term - Vehicle	Long term - Home

Disclaimer: Every individual's needs, situation, responsibilities, aspirations are different. These parameters should be referred as an input to create personalized plan for employees.

At TrueXwealth, we’ve designed tailored pathways for each of the three career phases mentioned above, helping employees achieve financial security and peace of mind. To learn more about how we can support your financial journey, reach out to us at advisor@truexwealth.com 

The Real Debate of Our Time - Buy or Rent?

There has been significant criticism directed at a celebrity who, despite being a staunch advocate for renting for years, suddenly decided to buy a house. Followers who trusted his advice felt misled and disappointed.

Why did this happen? Why was his personal choice perceived as generic advice applicable to everyone?

His main argument against buying a house is the EMI trap, which binds individuals for 20 years or more. Over such long durations, the total interest paid to the bank often exceeds the loan amount itself. While renting offered financial advantages, the emotional and personal benefits of owning a home tilted his decision towards Ownership.

Let’s evaluate both buying and renting through a combination of factors - financial, emotional and personal.

The Case for Buying a Home

1. Stability and Security

Owning a house—a home—creates roots and provides both financial and emotional security for the family. A home fosters community with neighbors and fulfills the human need for social belonging.

2. Appreciating Asset

In India, real estate has historically been an appreciating asset, withstanding economic fluctuations. Property prices either rise significantly or stabilize at a benchmark. It is rare for real estate prices to drop, except during catastrophic events like wars, pandemics, or economic depressions.

3. Generational Wealth

Homes are often passed down through generations, creating family legacies. Ancestral homes carry strong emotional value and are rarely sold.

4. Tax Advantages

The government provides income tax benefits for home buyers, which can reduce the annual tax burden. With proper planning and multiple homeowners in a family, substantial tax savings can be achieved.

5. A Space of Your Own

Owning a home means having a space designed to your taste and fully under your control. This sense of ownership is rarely felt in other types of investments.

The Case for Renting

1. No EMI, No Burden

Renting frees you from the burden of a monthly EMI, allowing greater financial flexibility. Without the stress of a fixed deduction, you can take career risks, adjust your expenses according to your income, and live life on your terms.

2. Freedom

Renting offers the flexibility to live wherever you choose without being tied to one location. This is particularly beneficial in today’s hybrid work era, where remote work allows people to explore new cities, cultures, and passions.

3. Liquidity

With no large down payment or EMI commitments, renting increases liquidity. This frees up resources for other investments or personal goals.

4. Shared Living

Sharing a rented place can reduce living expenses and foster a sense of community for those working away from their hometowns.

Renting does come with its challenges, such as increasing rents and the inconvenience of frequent relocations, which can make the experience less pleasant.

So, What Should You Do?

1. Check Affordability

• Do you have enough cash for a 10% down payment on the property?

• Is the EMI less than 25% of your monthly income?

2. Understand Market Conditions

• Are current market prices reasonable, or is there a price bubble?

• Research thoroughly to decide whether it’s the right time to buy or wait.

3. Align with Your Aspirations

• Are you planning to stay in the same city long-term?

• Does your work involve frequent relocations or extended travel?

4. Assess Your Need for Stability

• How important is stability for you and your family?

• Would frequent relocations due to rental agreements cause discomfort or disruption?

As your lifestyle and income evolve, the decision to buy or rent may also change. Every few years, reassess your circumstances and use these parameters to make a choice that best suits your needs.

P.S. You can use the help of our financial coaches and home loan planners to create a financial plan which can maximise your home ownership through EMI planning, Pre Payment Strategy and Tax Deductions. Start here -> https://app.truexwealth.com/