I have nothing to save after paying EMIs, household expenses. How should I manage my financial concerns?

I earn Rs 28,000 per month. My mother, a government employee, has Rs 20 lakh saved in FDs. She is repaying my car loan EMI of Rs 14,500 per month. I pay rent of Rs 15,000 and after contributing Rs 10,000 towards household expenses, I have nothing to save. How I can manage my financial concerns?

Prableen Bajpai, Founder, Managing Partner, FinFix Research & Analytics says, "You have not mentioned your age, years before your mother’s retirement, or if there is any ancestral property you or your mother would inherit, among other things. Currently, your rent and expenses are eating away the bulk of your income. Household and other expenses will only rise and I recommend you start investing RS 2,000 each month. Invest Rs 1,000 in the public provident fund (PPF) each month and the other Rs 1,000 into a mutual fund scheme via SIPs. Ensure this sum is not redeemed for a medium-term goal. This will help you create a retirement corpus; a small sum of Rs 2,000 can build a corpus of Rs 44.8 lakh in the next 30 years considering 10% CAGR. Top-up your investments with every increment in salary. You are paying a huge car loan which should have been avoided at this stage. Your mother has decent savings; keep the same parked in fixed deposits of reputed banks. Together with your mother, cater to three essentials: a term insurance plan for yourself, a health cover for the family and a corpus equivalent to six months’ of expenses (includes EMI) for meeting any emergencies so that the FD amount is not consumed for any medical emergency or other short-term requirements."

I am 40. I want to build a retirement corpus of Rs 1 crore. Where and how much should I invest to achieve this goal? Also, will Rs 1 crore be enough for retirement?

Adhil Shetty, CEO, BankBazaar says, "A corpus of Rs 1 crore at an annual inflation rate of 6% after 20 years will have the same purchasing power as Rs 32 lakh today. Calculate if this amount would be sufficient as a retirement corpus based on current expenses and inflation. Your corpus should be sufficient for you to draw on for 20 years. Now, you have 20 years to build the corpus. Assuming 10% CAGR, you will have to invest Rs 15,000 per month for the next 20 years. High quality equity investments options such as Aditya Birla SL Frontline Equity, ICICI Prudential Bluechip Fund or SBI Bluechip Fund can help you reach this milestone. Diversify your holdings across asset classes by investing in both debt and equity. If you need a higher corpus, invest a higher amount every month. It is advisable to increase your monthly investment instead of opting for riskier avenues."