Is 30% of my income enough to achieve goals?

Beating inflation, for both education, which tends to be higher than consumer price inflation, as well as for living expenses for retirement is crucial.

- Vishal Dhawan

I earn ₹92,000 per month after income tax and provident fund (PF) deductions. I invest about 45% of my salary, or ₹44,000, currently every month. This includes ₹21,000 in mutual funds through a systematic investment plan (SIP), ₹4,500 in voluntary provident fund (VPF), ₹2,000 in public provident fund (PPF), ₹6,000 in national pension scheme (NPS), ₹9,000 in saving insurance plan, ₹1,000 in term insurance of ₹50 lakh, and ₹1,000 in health insurance of ₹30 lakh cover. I don’t intend to cut down or increase my investments but would like to limit my investments to 30% of my income when my salary increases in the future. Do I need to make any changes to my portfolio to beat inflation and secure my child’s education and retirement plan?

—Name withheld on request

It is ideal to save at least 20%-30% of your earnings and invest the same in different asset classes basis your needs. It is also suggested that you enhance your savings each year, as salary increases take place. In addition, beating inflation, for both education, which tends to be higher than consumer price inflation, as well as for living expenses for retirement is crucial.