But what worked in Angane’s favor was the dual income he earned from teaching French classes at night and his day job as a marketing executive. Instead of exploring job options after studying in France, she decided to return to India. Reason: Job prospects are good in India and cost of living is high in France.
Angane also uses her income to invest to achieve her financial goals with the help of a mutual fund distributor.
Investment composition
Angane says she didn’t know anything about investing at first. Her father always invested only in bank fixed deposits. After meeting a mutual fund distributor in 2022, she started investing in mutual funds.
So far, she has paid 20% of her education loan. Her investments are split between 58% equity funds and 42% non-equity funds. About 35% of her equity portfolio is in large-cap funds, 30% in flexi-cap funds, and 10% each in mid-cap and small-cap funds. The rest is invested in equity-oriented hybrid funds.
The non-equity portfolio has 20% liquid funds for emergency needs, 25% arbitrage funds for 6-12 month goals (travel plans), and 2-3 year goals (wedding expenses). It is made up of 55% equity savings funds.
She recently took out term insurance INRShe is the only one in the family currently earning money, so $5 million. Her 66-year-old father is retired, and her 50-year-old mother runs a small babysitting business from home.
Angane works as a marketer during the day and tutors French from 7pm to 9pm. She also takes French classes on the weekends.
Her dual income is divided as follows: Around 25% goes towards paying monthly household expenses, 21% towards paying education loan EMIs, 45% towards investing in mutual funds and 9% is kept in a bank savings account.
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french factor
Angane has been studying French since the 11th grade. She began teaching French while completing a graduate degree in International Business and Entrepreneurship. She completed her graduation in 2018. I was making good money from French tuition. I didn’t want to just stick to that. But I didn’t really know what to do next after graduating,” Angane recalls.
After a one-year hiatus, he moved to France in 2018 to study French at the B1 level, which is an intermediate level.
While in France, Angane also considered higher education options. She found that there are several advantages to pursuing an international degree in France. This includes the French government giving international students a 30-50% rent subsidy, visa preferential treatment when they look for work, and more opportunities for part-time work because she speaks French. Masu.
“I told my parents that I wanted to go back to India and pursue a master’s degree in France,” she recalls.
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“It took some convincing, but eventually my parents agreed. We started looking into options for education loans. It was a bit difficult to get an education loan. My father We had a decent income, but just short of the income threshold. However, we had enough savings and one of the banks even considered it for a loan on our property. I put it up as collateral,” says Angane. Approximately 80% of the cost was financed by a bank, and the remaining amount was paid with his father’s savings.
double punch
Angane was last on a plane to France in 2019. However, as luck would have it, I had to return to India in March 2020 due to the coronavirus outbreak.
“However, France also quickly reopened from its lockdown restrictions. By October 2020, it had started accepting international students to campus. I also found a part-time job at an Indian restaurant to support my daily living expenses. Ta.”
However, a medical emergency forced her to return to India. “Around June 2021, I started experiencing severe pain in my left arm. By November, the pain was so bad that I could no longer feel my left hand. I moved to Paris from Burgundy in search of a better internship opportunity. I had an MRI done in Paris. They suggested a biopsy there. But my family asked me to go back to India for further tests,” she recalls.
Her roommate took her to the airport. By December 2021, Angane had returned to India three days before submitting her final thesis.
Loan EMI
Despite her medical problems, Angane was able to attend French classes most of the time. “Even in France, I used my laptop to teach classes to Indian students whenever I had the energy. I would rest in bed with my laptop propped up on my stomach,” she says. .
By the end of 2021, Angane was diagnosed with a rare infection in her spine. And her treatment began in India. “My body responded quickly to the medication and within a month I started regaining some mobility. I was able to sit, walk, do things,” she says.
“She started receiving a portion of her tuition again in 2022, so some income continued to come in,” she added. “Education loan EMIs were also scheduled to start from 2022, but we requested the banks to postpone it due to the medical situation. They agreed to it,” she says.
By 2023, after a year of treatment, he had fully recovered and started looking for work in India. During her treatment, she was advised to take extreme care and avoid stressful jobs. During her recovery, she completed and submitted her dissertation online, earning her master’s degree by July 2022.
However, education and medical expenses abroad affected the family’s savings, which needed to be replaced.
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It’s being rebuilt
Angane has fully recovered and now teaches French classes to 40 students. She said she earns a good amount from tuition fees alongside her day job as a marketing executive, which she took up work after completing treatment in 2023.
“We are repaying our education loan EMIs regularly starting in 2023. In fact, some lump sum repayments have also been made. So far we have repaid 20% of the loan and the interest rate is 10.5%,” she says.
Mr. Angane wants to book a profit from his equity investment and close the loan as soon as possible. Shivam Pathak, a Mumbai-based mutual fund distributor and certified financial planner, says he wants to book profits from his stock investments when the stock market soars. “Current tax rules allow for tax exemption on long-term capital gains. INR1.25 million and held for more than a year,” Pathak said.
He added that during the initial discussions, she was consulted on whether she should remain in India or return to France. “When we crunched the numbers, given the high cost of living and good employment opportunities in India, it made more economic sense to stay in India than to return to France. Moreover, she was already here We were offering classes,” says Pathak, founder of Asset Elixir.
“I have now gotten a job here in India in a very supportive office, my tuition is going well, and my family is here too. It was a wise decision for me,” Angane added.
Knowing how medical emergencies can derail finances, Angane wants to buy her own medical insurance at a guaranteed price. INRFirst of all, 50,000. For her elderly parents, she wants to buy a super top-up that covers: INR1 million.
For now, she has created a small emergency corpus with the help of a mutual fund distributor. “I now have three months worth of expenses,” she says.
Also, at some point we would like to create a corpus that parents can use to withdraw funds for personal expenses. “Ideally, we want parents to feel the freedom and flexibility to use the funds directly as they wish,” she says.
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