Nikhil and Arpita share the details of their expenses before discussing their current financial strategy.

They do not have a house of their own, so they are living in a rented home. This sets them back by Rs 7,500 every month.

Their other household expenses total to Rs 25,000. This would include their credit card bills, entertainment, household expenses and other utility bills. It also includes their premium on general insurance

You read that right. We are not talking of life insurance or medical insurance. The two of them have insured all their household goods -- television, DVD player, refrigerator, washing machine and air conditioner for a total of Rs 2,00,000.

What's good is that both are averse to being in debt. Despite Nikhil using his card a lot, he clears his bills regularly and does not incur any credit card debt. 

The only loan he is servicing is an education loan of Rs 2,85,000. The Equated Monthly Installment is Rs 6,300 for five years and started in October, 2005.