Mr. Econ’s with his wife and child resides in Pune city. His wife is

1.	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 annumHouse Tax - Rs. 16000/- per annumCar loan monthly EMI-7500/- per monthCar 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 monthInternet expenditure – Rs. 1500/- per monthUsing 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» Explanation: The word Oikus means houshold and nemein management. So this concept is about the household management mainly in terms of FINANCES. To adapt this approach, this first calls for IDENTIFICATION of all the fixed and variable costs. Then the next step is to identify the must to do and go to have expenses and what things can be cut down from investment when CURRENT resources are too scarce. Using this approach Mr ECON can reduce or manage his expenses

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 annumHouse Tax - Rs. 16000/- per annumCar loan monthly EMI-7500/- per monthCar 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 monthInternet expenditure – Rs. 1500/- per monthUsing 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»

Explanation:

The word Oikus means houshold and nemein management. So this concept is about the household management mainly in terms of FINANCES.

To adapt this approach, this first calls for IDENTIFICATION of all the fixed and variable costs. Then the next step is to identify the must to do and go to have expenses and what things can be cut down from investment when CURRENT resources are too scarce. Using this approach Mr ECON can reduce or manage his expenses

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