Rashmi Shenoy D’Souza, a Chartered Accountant from Mumbai, has had an inspiring journey towards financial independence and a fulfilling family life. Her story is about smart financial planning and disciplined investing.
Rashmi began her career in 2005 as an intern at E&Y. By 2008, she had qualified as a Chartered Accountant and joined KPMG, specialising in operational risk management and consulting. She later moved to Lloyds Banking Group, AXA, and HSBC, accumulating 16 years of work experience.
Starting the Investment Journey
Rashmi’s interest in investments was inspired by her father, who was into equity. She began her investment journey in 2012-2013, focusing on tax-saving instruments and equity investments. Her goal was clear: build a corpus that would allow her to take a long sabbatical or shift careers.
“I started investing seriously in equity and direct stocks around 2013 with the goal of building a corpus to take a long sabbatical and shift careers,” Rashmi says.
Achieving Financial Stability
By 2021, Rashmi had built a substantial corpus that allowed her to take a break from the 9-5 job. She decided to go on a sabbatical, having planned meticulously for it. Her investments in private equity, specifically in convertible debentures, became a significant source of passive income. These investments pay around 15% interest per annum, yielding Rs 1 lakh per quarter.
“A major part of my passive income comes from convertible debentures in the private equity space which pay around 15% interest per annum (Rs 1 lakh per quarter),” she explains.
“It is a joy to see your portfolio grow, be able to manage and optimise investment choices, do tax planning, and also sometimes end up paying direct taxes (capital gain taxes) without an active income
It’s also amusing to end up paying direct taxes without active income.” she added.
Financial Discipline
Rashmi’s financial discipline played a crucial role in her journey. She saved and invested 60-65% of her take-home pay, especially after reaching a managerial position with a substantial salary. This disciplined approach ensured she had enough savings to support herself and her family during her sabbatical.
“I’ve continuously tracked my savings for investments to be at least 60-65% of my take-home pay,” Rashmi notes.
Family Support and Lifestyle
Rashmi was always planning for a sabbatical and in 2020, the corpus started to look enough, the final leap was hard for her as she worked all her adult life. “We were planning a family and my last promotion came through at work, it felt like now or never as I hadn’t aspired for anything more professionally, and it made sense to take a break before figuring out my second innings. Luckily for me, I got pregnant even before my notice period was over and life took its happy turns.”
“My husband got on board quickly, having known my plans and having seen my confidence around my investments. My mom was happy for me but my dad was a bit sceptical as expected of Dad,” she says.
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Rashmi’s sabbatical allowed her to focus on being a full-time mom, which she cherishes deeply. “Taking this sabbatical has helped me focus on being a parent and I am glad I thought ahead to carve this time out for myself,” she expresses.
Also, Rashmi and her husband planned and managed their finances efficiently. They haven’t made any significant spends like buying a house, and they split their expenses based on convenience and card offers.
“As a couple, other than holidays, we haven’t made any big spends like buying a house etc. so far. My husband had some furniture and appliances that we have not had to change or upgrade so far. We both spend and save individually and do not have any joint accounts. Soon after our marriage, I saved and invested more whereas he took on the rental expenses. The rest was split based on convenience, card offers, etc. We used to take turns with spending on holidays,” Rashmi explains.
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Reflections on Financial Stability
Rashmi’s financial stability has brought her immense joy and flexibility. It has allowed her to spend quality time with her family and travel frequently. However, she acknowledges the challenges of not having a full-time job and emphasizes the importance of having faith in one’s plans.
“It has been refreshing and exhilarating at the same time. The flexibility has given me many opportunities to travel back home and for my baby to spend great quality time with my parents. In the last year, we too have begun our travels as a family and managed a good number of trips very well. It is not always fun; there are times it gets hard not having colleagues to work with. It is important to find like-minded people and networks. Also, not everyone is understanding and there is always the looming question of why I don’t work full-time. It is important to have faith in your own plans and goals as a family in such times and not get swayed by self-doubt,” she reflects.
Advice for Others
Rashmi has valuable advice for women considering a similar path. She stresses the importance of learning to manage one’s money, being disciplined in saving and investing, and starting early.
“Learning to manage your own money is an important skill to master when you start earning. Discipline and consistency in saving and investing are core parts of the corpus building journey. It is equally important to keep an eye on spending, lifestyle inflation and actively defining/reviewing your financial goals. My sincere belief from my own journey is that understanding your ability to take risks and identifying the right investment products comes with experience. Therefore it is crucial to not overthink and start early, start small so as to experiment and find what suits you best, in time for bigger goals and when you have higher disposable income,” Rashmi says.
A Simple Lifestyle
Rashmi’s lifestyle is simple and efficient. She made a significant purchase in 2015—a car bought fully in cash, which she still uses today. This decision reflects her pragmatic approach to finances and living within means.
Rashmi’s story is an example of how thoughtful planning, disciplined investing, and a supportive family can help achieve financial stability and a fulfilling personal life. Her journey is an inspiration for women looking to balance financial independence with family priorities.
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Disclaimer: The above content is based on the information provided by Rashmi Shenoy D’Souza. The 1% News doesn’t independently verify non-public data reported by interviewees.
