What I’m Saving For (And What I’m Not): My Plan for Our Family’s Finances

A note from the author: This is the first article in a series where I aim to share my personal financial journey and the decision-making framework I use. I am not a financial advisor, and these are reflections on my own choices, values, and rationale, not recommendations for others. I hope that by sharing my thought process, I might offer a different viewpoint or spark useful reflection and discussion for those navigating similar paths. I welcome alternative, including contradictory, perspectives. If you find any factual errors in this article, I would appreciate it if you could point them out.

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One of the most significant financial considerations for many parents is planning for their children’s future, particularly their education. It’s a topic that often comes with a lot of societal pressure and a wide array of opinions. Here’s a look into my personal philosophy and approach to this specific goal, as well as my broader financial plan.

What I Am Saving For

I believe it’s reasonable for me to save for my children’s higher education within India. My current working estimate for this is approximately ₹20-30 lakhs, in today’s terms. This figure is based on the general costs I’ve heard associated with undergraduate and Master’s degree programs at reputable private institutions in the country.

My decision to focus on education within India is primarily a practical one at this stage, driven by the significantly higher costs – often running into ₹1 crore or more – associated with pursuing similar degrees in countries like the US or UK.

What I Am Not Prioritizing For Now

Consequently, I’ve made a conscious decision not to make saving for potential foreign degrees or future wedding expenses (which can also amount to ₹50 lakhs or more) a primary driver of my current financial planning.

This is purely a financial prioritisation for me at this stage, due to the sheer scale of these potential expenses. It isn’t a judgment on the value of these experiences, nor does it mean I would be unwilling to contribute towards them if, when the time comes, my overall financial situation comfortably allows for it without derailing other essential life goals. My current focus is on building a solid educational foundation for my children without overextending our family’s finances for these high-cost items.

My Broader Savings Philosophy and Other Considerations

Beyond the specific goal of my children’s education within India, you might wonder about my approach to other common long-term financial objectives, like retirement or housing. My plan here is also guided by the principles I’ve outlined.

Presently, our household income comfortably exceeds our expenses. This financial situation allows me to ensure we save the difference without imposing undue strain on our lifestyle. While these accumulated savings will naturally support us in later years, I don’t personally have a specific, targeted retirement sum I’m chasing. In fact, the conventional idea of ‘retirement’ isn’t a primary driver in my financial planning; I envision continuing to engage in meaningful work or projects well into my old age, if I stay alive. Therefore, the savings I build are geared towards overall financial resilience and freedom, rather than a fixed retirement date or a specific monetary target.

Similarly, when it comes to our home, I am content. We moved to our current 200 sq. yard house in 2019 – a significant improvement from the 60 sq. yard home where I grew up. This home meets our family’s needs comfortably, and I have no current aspiration to seek a larger one. This contentment reflects my priority of fostering an emotionally rich home environment over pursuing continuous material expansion.

To be clear, it’s not that I lack the desire for, say, an even bigger house or a lavish car; those desires certainly exist within me. However, I find that my desire to live peacefully, engage in meaningful work, and maintain a life free from undue financial stress or aggressive goal-chasing is significantly stronger. In my view, actively pursuing those larger material desires right now would likely come at the expense of these more fundamental aspirations for peace and purpose. That being said, if such material comforts were to come our way without compromising our primary values or current peace, I would certainly welcome them and likely be happier! But they are not the active pursuits dictating my financial plan.

My Reasoning: The Principles Guiding Me

My approach to financial planning, especially concerning my children, is guided by a few core principles that I’ve found essential for our family’s overall well-being:

1. Prioritizing Our Family’s Present Well-being: I firmly believe that if saving aggressively for my children’s future comes at the cost of my own happiness, mental peace, or the quality of our family life today, then everyone ultimately loses. A parent who is constantly stressed, overworked, and unhappy cannot create the emotionally healthy and supportive environment that children thrive in.
2. Valuing an Emotionally Rich Home Over Sheer Material Comfort: I would rather my children grow up in a modestly comfortable but emotionally rich, secure, and happy environment than in a materially abundant home that is fraught with financial stress or emotional strain. The quality of our daily life and interactions holds more value for me.
3. Aiming to Break Intergenerational Cycles of Undue Sacrifice: I don’t want my children to feel an unspoken pressure that they, in turn, must sacrifice their own joy and well-being for their children someday. By modeling more balanced financial priorities, I hope to show them that taking care of oneself and one’s present happiness is not selfish but a necessary foundation for a fulfilling life.
4. Setting Achievable Goals and Financial Boundaries: The ₹20-30 lakhs education fund feels achievable for me without imposing significant strain on our current lifestyle or my work-life balance. If even this amount required me to work much harder than I want to, or sacrifice elements of our life that are crucial for my happiness, I would adjust this goal as well.

The Bottom Line

My financial planning philosophy is relatively straightforward: to create a reasonably comfortable life and a secure future for my family without sacrificing our present happiness and well-being. I believe that teaching my children this sense of balance, and modeling a thoughtful approach to life’s financial decisions, is ultimately more valuable than any specific sum I could save for them.

This is the balance that works for me and my family. I share my thought process with the hope that it offers a perspective and perhaps sparks useful reflection or constructive discussion for others considering their own financial paths.

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What’s Coming Next

In the articles to come, I will delve deeper into the specific choices that stem from this philosophy. We will explore my core principle of investing only in what I genuinely understand.

I’ll also share my detailed journey into equity investing, from my initial self-assessment to my decision to use mutual funds and my eventual shift to a fund house that deeply resonated with my personal values.

Later in the series, I will share candid case studies from my own experience, including a look at my investment in Airtel stock and a story about a capital gains tax dilemma that highlights the importance of focusing on process over outcome.

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