I felt worthless 6 years ago but have achieved financial stability today

Published: October 31, 2021 at 6:58 am

In this edition of the reader story, we meet Suresh Murugan. In Dec 2019, Suresh had shared his first financial audit with us: I met with an accident the day I got married and learned key money lessons. Since then, Suresh’s life has changed for the better significantly.

About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers.  Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive.

Opinions published in reader stories need not represent the views of freefincal or its editors.  We must appreciate multiple solutions to the money management puzzle and be empathetic to diverse views. To preserve the tone and emotions of the writer, articles are typically not checked for grammar unless necessary to convey the right meaning.

If you would like to contribute to the DIY community in this manner, send your audits to freefincal AT Gmail dot com. They can be published anonymously if you so desire.

Please note: We welcome such articles from young earners who have just started their investing journey (this edition is a good example. Also see, for example, audits by Suhas and Avadhoot linked below). Now over to Suresh.

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    Last time I shared the article regarding how an accident changed my life. That was six years back. This is an update on my financial situation.

    We purchased a new home with my brother( 50-50). We welcomed a new arrival to my family – My daughter – her name is ilavenil ( spring season). Two years old now. My wife and I switched jobs with double the last salary. Cleared 30 % home loan with savings. Got covid & claimed health insurance. 

    Current insurance & other details:

    One crore LIC Tech term policy – As of now, this is enough. If needed, I will go for another policy.

    Five lakhs health insurance and 15 lakhs top-up ( Last time it was ten lakhs). Added my daughter also.

    25 lakhs accident policy for me & 15 lakhs accident policy for wife ( last year added because she is also travelling to work)

    One lakhs covid insurance for me & wife.

    One year emergency fund in FD (50%)& Liquid funds (50%). 

    1 lakh in liquid funds for non-health insurance coverage bills ( I faced in the past, some of the things will not cover under health insurance) and for home appliance purchase ( if suddenly anything failed I will use this fund)

    One year school fee of my daughter in FD – it was done before she was born. It created some satisfaction, so I did it.

    Insurance claims:

    For maternity: I got a 50% claim from my health insurance. This is cashless, so the process was smooth. We went to KMCH Coimbatore. Apart from I got money from Dr Muthulakshmi maternity scheme. Somehow it covered the remaining amount.

    Apart from the above, my wife was covered under ESIC ( Employee state insurance), so they gave six months equivalent of salary for maternity leave. It also has maternity treatment as free. But my wife feels a private hospital is better. 

    For covid: Four months back, I got covid. It was minor, but I got admitted. The hospital refused cashless treatments. So I paid from the emergency fund.

    At the time of discharge, first, I gave documents to my 1 lakh Covid policy for reimbursement. The total bill was 1.25 lakhs. I thought 60-  70% could be claimed. But surprisingly, the entire sum insured was reimbursed.

    A policy with Godigit. The entire process with online credited on the third day. ( Now am planning to port all my policies to go digit next year).

    The remaining amount document was submitted to the main health policy. 10% reimbursed for post-hospitalization. Pre hospitalization is pending. ( with claimed amount & non-claimable fund, I recharged back my emergency fund).

    My retirement fund & my daughters fund( Education & marriage) status. I started both five years back before my daughter was born.

    For retirement fund am using one flexi cap mutual fund as equity & EPF as debt part ( Mine & my wife)

    For the daughter fund am using equity hybrid mutual fund as equity & PPF in my wife, SSY in daughter name as debt part.

    The target amount was found based on calculators given by Pattu sir. Rebalancing strategies were followed based on Patttu sir’s goal-based investing course.

    I started with multiple funds two years back entirely changed my way. Even I don’t follow freefincal youtube & blogs, Asan ideas Facebook page. Now I don’t care for any of them ( SORRY PATTU SIR & ASHAL JI). 

    Last year I did something. I don’t know if it was a mistake.

    I got a reasonably good amount in my portfolio. I wanted to foreclose my home loan with that, but at the time, family & one close friend needed urgent money  ( I know money giving to a friend is the worst idea, but he helped all the way from school, my marriage, and even my daughter’s birth). I foreclosed 30 % of my home loan. 20 % was given to my father and friend with repaying commitment of 3 years & 2 years respectively.  As a result, my goals are two years behind now. I will be back to track next year.

    Still, my total investment is now higher than my remaining home loan. I will not foreclose further because of home loan is reducing liability.

    Six years back, I was worthless. Now at 30, I have changed every aspect of life. This is happened because of my wife. She supported all situations in my life. One day we slept on the floor without money in a rented room. Now we are in our own house sleeping in an A/C room. Somehow I am worthy because of her. 

    She also improved her financial literacy. She knows where every investment password is saved & what to do if anything happens to me.

    And also, thanks to pattu sir & Ashalji for the private conversations.

    I am happy in the process of achieving financial independence following the path shown by both of them.

    Trust the process. Happy investing & thank you.

    Reader stories published earlier

    As regular readers may know, we publish a personal financial audit each December – this is the 2020 edition: How my retirement portfolio performed in 2020. We asked regular readers to share how they review their investments and track financial goals.

    These published audits have had a compounding effect on readers.  If you would like to contribute to the DIY community in this manner, send your audits to freefincal AT Gmail. They could be published anonymously if you so desire.

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      Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
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