Question

Mr. Econ’s with his wife and child resides in Pune city. His wife is a housemaker. He owns a 2BHK flat since 2012 when his income was 60000/-. In 2012, Mr. Econ was 42 years old. His current monthly income is approx. 90000/-.

Home loan monthly EMI – 24000/- (15 years)
Society Maintenance - 25000/- per annum
House Tax - Rs. 16000/- per annum
Car loan monthly EMI-7500/- per month
Car zero depreciation insurance – Rs. 17000/- per annum.
Car yearly servicing – Rs. 8000-10000/-
LIC monthly premium for a Policy – Rs. 2000/-
LIC yearly premium for another policy – Rs. 12000/-
Medical Insurance - Rs. 25000/- per annum.
Monthly grocery, vegetables, electricity, petrol other miscellaneous - Rs. 15000-18000/- per month.
Mutual Funds monthly allocation- Rs. 5000/-
Education expenditure yearly fees – 1,00,000/-
Entertainment Expenditure – Rs. 2500/- per month
Internet expenditure – Rs. 1500/- per month

Using the logic of Oikus and nemein, you are supposed to suggest Mr. Econ a better approach to allocate the scare resources (income). How he can maximize his satisfaction and live a happy and content life till and after retirement?

Answer 1

Explanation:

Car yearly servicing - Rs. 8000-10000/

LIC monthly premium for a Policy – Rs. 2000/

LIC yearly premium for another policy - Rs. 12000/

Medical Insurance - Rs. 25000/- per annum.

Monthly grocery, vegetables, electricity, petrol other miscellaneous - Rs. 15000-18000/- per month.

Mutual Funds monthly allocation- Rs. 5000/ Education expenditure yearly fees - 1,00,000/- Entertainment Expenditure - Rs. 2500/- per month

Internet expenditure - Rs. 1500/- per month

Using the logic of Oikus and nemein, you are supposed to suggest Mr. Econ better approach to allocate the scare resources (income). How he can maximize his satisfaction and live a happy