In our Finance Category, We are coming up with a series of articles of various facets of Financial Planning, specially for the kind of family structures we have in India. This is the first article in the series which tells a story of an average Indian family. We’ll keep posting in this series in future to address various finance related problems faced by such families.
Subodh is 30 year old IT professional working in Noida in a software company, in a swanky glass office. His career graph could jealous anyone since it grew exponentially in the last 7 years as soon as he stepped out of his collage with a placement letter in his hand. His parents still live in his native town feel proud about the achievements of his son. In a few years, he leapt from a two wheeler to a car, from a shared one room on rent to a new flat in an upcoming township close to his office. Any bank would run after Subodh to give him a Housing Loan keeping in view his excellent package and good credit history. He opted for a hefty loan from a private bank to buy the flat.
Last year was a landmark year in his life as he got married to his child hood friend Sanjana and both of them decided to move in their new flat this year. Sanjana opted to be a home maker after marriage and Subodh’s dream run continued until one day…when he met an accident. He could not survive and the world came crashing on young Sanjana and Subodh’s parents who lost their only son. It was a bitter emotional loss for them. At that moment, no one thought of the financial turbulence that is going to hit the family in a few days time.
Sanjana got a call from the bank after a couple of month that the EMI of the flat they are living in, is irregular. She had no clue of the finances, the savings, the liabilities and the one who knew was no longer alive. The emotional loss evaporated suddenly and Sanjana was suddenly left with no Income, too few savings and too huge liabilities. Calls from banks from which Subodh had taken the housing loan, the car loan and the latest consumer durable loan with which Subodh had bought a 55 Inch LED TV at an attractive 0% rate of interest.
One of Subodh’s friend stepped in to help Sanjana and the family. He could facilitate the settlement of a death claim for a Life Insurance Policy which was bought by Subodh’s parents in his name when he was a teenager and it fetched the family merely 50k rupees. The money came and vanished.
How many of us could connect to this tragic episode that occoured in Subodh’s Life??? Are we waiting to become One more Subodh???
If we could change anything after Subodh’s death in this heart wrenching incident, what could we have changed..??
We hope you liked the content of this article. We’ll post the next article in this series very soon which will talk about how Indian families should go about planning their finances and what factors should be kept in mind while planning investments for your loved ones. To get first hand access to the next part of this series, please subscribe to allzhere from the sidebar.