A Bharadhwaj Investsmart Story - Single Parent Financial Plan

 

From Worry to Wealth

A Single Mom’s Financial Gameplan

It was a calm Wednesday morning at Bharadhwaj Investsmart. The usual rhythm of keyboards and muted phone conversations was broken when Kavita walked in. A single mother of two – a bright-eyed 12-year-old son and a confident 14-year-old daughter – Kavita had recently been promoted in her job as a school administrator. Yet, financial worries clouded her mind.

She was warmly welcomed by Vaidy, the firm’s founder and seasoned financial advisor.

“Take a seat, Kavita. Let’s walk through your priorities,” Vaidy said with his usual reassuring smile.

“I want to ensure my daughter’s college education is taken care of, start preparing for my son’s future, and also think about my own retirement. Being the only earning member, I can’t afford any missteps,” Kavita confessed.

Vaidy nodded, and began, “We’ll build a plan that gives you clarity and peace of mind. Let's start with a simple foundation – a detailed budget.”

He pulled out a worksheet. “List all your sources of income – salary, any child support – and classify your expenses: must-haves like groceries, insurance, etc … and then the discretionary ones. Every rupee has to have a job. You’d be surprised how empowering this is.”

Kavita nodded thoughtfully.

Just then, Srini, Vaidy’s elder brother and a CA who handled taxation joined them. “Hope I’m not interrupting. I just overheard the words ‘college and retirement’. Thought I’d add a few cents”.

Vaidy welcomed him in. “Srini, I was just about to bring up emergency planning.”

Srini continued, “Kavita, have you set aside an emergency fund yet?”

“Only about a month’s worth of expenses,” she admitted.

“You should aim for at least three to six months of living expenses in a liquid savings account. It’s your cushion against job loss, health issues, or even unexpected education costs.”

Kavita nodded again, writing things down.

“And for the long-term,” Srini added, “we must not ignore life insurance. Not just to cover liabilities, but to protect your kids’ future. A term policy with adequate coverage can make sure that even in your absence, their dreams aren’t cut short.”

Kavita’s expression showed a mix of relief and growing confidence.

“And for education,” Vaidy chimed in, “we’ll start SIPs in a balanced mutual fund for both kids. Even ₹5,000 a month can grow significantly over the next 5 - 7 years. We’ll track and adjust annually.”

After an hour of discussion, plans were set: a new monthly budget, revised insurance coverage, fresh SIPs for education, and a goal to build emergency reserves in the next 12 months. Kavita’s face now carried a different expression - clarity had replaced anxiety.

As she stood up to leave, she smiled and said, “I came in with questions and worries. I’m leaving with a plan. Thank you both!”

Vaidy smiled back, “That’s why we’re here. You’re not alone in this.”

The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation. 

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