By Karthik Jhaveri, Expert, Financial Planning

Akshay Mehra, 45, is an executive with an MNC bank, and has just bought himself a brand new Mercedes.

He's thrilled about his new purchase and is now planning to buy a house in a new upcoming area of the city.

The cost of his proposed house a staggering 4.5 crores!

And he is going to get a princely 1,500 sq ft of built-up area which would translate to about 1,000-1,100 sq ft of carpet area.

Of course, he is paying a highly inflated price but he thinks he's a rich man, with lots of money. This is true to an extent.

But by the middle to end of the month he tones down quite a bit and waits for the next month's payment.

Take a look at his financial status, based on his own calculation:



Assets: (Rs in lakhs)

Proposed House: Rs 450 lakh

2 Cars: Rs 45 lakh

Home in native town: Rs 30 lakh

Paintings: Rs 100 lakh

Unsecured Loans: Rs 50 lakhs

Cash in Bank: Rs 10 lakhs (as on today)

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Total: Rs 685 lakh




Liabilities: (Rs in lakhs)



Proposed Home Loan: Rs. 350 lacs



(EMI will be about 3.5 - 4 lakh per month)

Photographs: Stock Xchange

Photographs are for representative purpose only.