Case Based Learning - Episode 3 - Single Mom, Double Goals – College and Retirement on One Income

Meet Nandita Rao, a 38-year-old schoolteacher and single mother from Pune. With a stable income of ₹65,000 per month and a 10-year-old daughter, she carried the weight of two major financial responsibilities:

1. Her daughter’s higher education

2. Her own retirement by 58

Her goal? Empower her daughter and herself, with no compromise on either.

The Monthly Reality Check:

• Net Income - ₹65,000

• Rent + Utilities - ₹18,000

• Daughter’s School Fees - ₹8,000

• Household + Essentials - ₹20,000

• Emergency SIP - ₹3,000

• Available for Wealth Creation - ₹16,000

Despite the limited room, Nandita had clarity and discipline, and that made all the difference.

> “I may not earn in lakhs, but I plan like a pro.”

The Dual-Goal Strategy

Goal 1: Daughter’s Higher Education – ₹25L in 8 Years

She opened:

• Sukanya Samriddhi Yojana: ₹5,000/month (8.2% tax-free interest)

• Equity Mutual Fund SIP: ₹5,000/month in a Large & Mid Cap Fund

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Expected Corpus at 8 years (assuming 10% avg return):

Approx. ₹20–22L (including SSY + SIP)

Goal 2: Retirement at 58 – Target ₹1.2 Cr

Started:

• PPF: ₹1,500/month (for 20 years with 7.1% returns, tax-free)

• NPS Tier 1: ₹2,500/month (tax benefits + long-term compounding)

• Small-cap Fund SIP: ₹2,000/month (long horizon growth booster)

The Safety Net:

She didn’t stop at wealth creation she secured her journey:

• Term Insurance: ₹50L sum assured (₹420/month)

• Health Insurance: ₹10L family floater (₹9,000/year)

• Emergency Fund: ₹1.5L in a liquid mutual fund (built over 2 years)

6 Years Later – Her Progress:

• Sukanya + SIP - ₹15.8L

• PPF + NPS + Equity SIP's - ₹13.2L

• Emergency Fund - ₹2.2L

• Total Invested - ₹8.6L

• Current Portfolio Value - ₹31.2L

Her daughter is now ready to apply for universities and Nandita has the freedom to support her, without loans.

> “Money has never scared me. Lack of planning did, until I changed that.”