Joe and Mary are aged $37,$ and have an eight$-$year$-$old child. Six years ago, they purchased a home on which they owe Rs$.1,10,00,000.$ They also owe Rs $6,00,000$ on their two$-$year$-$old automobile. All of their furniture is paid for, but they owe a total of Rs$.4,12,000$ on two credit cards. Joe is employed as an engineer and makes Rs$.60,00,000$ a year. Mary works a part time computer analyst and earns about Rs$.16,00,000$ a year. Their combined monthly income after deductions is Rs$.4,52,000.$

About six months ago, they had a financial meltdown. Their car's gearbox stopped working and they required Rs$.1,60,000$ to replace it$.$ They had Rs$.2,00,000$ in their savings account, earmarked for vacations, but now it had to be used to fix the car.

This was a wake$-$up call regarding the state of their finances. They realized that they don't have enough money to save for retirement or for their child's college education. Given the following monthly expenses, ansiver the following questions to help Joe and Mary.

Home mortgage, taxes, insurance

Automobile Insurance

Food

Water

Clothing

Personal Care

Credit card minimum payment

$89,000$

$1,000$

$68,000$

$3,500$

$23,000$

$15,000$

$80,000$

Automobile loan

Life Insurance Premium

Electricity

Telephone

Gasoline

Recreation

Gifting

$43,500$

$5,000$

$24,000$

$8,000$

$19,000$

$70,000$

$35,000$

Q$1.$ How should this family modify its spending pattern to save money, and how much can they save?