2. Agenda
Importance of learning about money
What is financial planning
SMART goals
Understanding net worth
Protecting wealth
Concepts of budgeting & saving
Investment
Some doโs and donโts
6. The financial planning process
Gather financial data
Identify goals and risk appetite
Identify gaps
Prepare a plan to bridge the gaps
Implement the plan
Review periodically
8. โข What is a Goal?
o Goals are statements about where we want to
end up
o They are what you want to achieve
9. โข Are all goals achieved
o No, Most of our Goals are not achieved
10. What prevents you?
โข Are these goals clearly defined ?
โข The goals seem to be vague
โข They need to be clearly defined
โข Convert them in to SMART goals
11.
12. Let us restate /revise your goals
1. __________________
2. __________________
3. __________________
4. __________________
5. __________________
13. Steps to Achieve Goals
1. Understand Current Networth
2. Protect Current Networth
3. Manage Regular Expenses
4. Generate Surplus to Invest
15. What is your current net worth ?
Networth = Assets - Liabilities
Assets : All those you own
Liabilities : All those you owe
1. List down all those things you own
2. List down all those things you owe
17. So, What is your net worth today ?
Remember, your net worth can
change every day, depending on the
value of your assets
18. Remember once again:
โฆ Net worth is your wealth
โฆ Net worth is the difference between your
assets and liabilities
19. Change in net worth
โฆ Change in value of assets
โฆ Change in liabilities
โฆ Savings / spendings
20. Protecting your wealth
โฆ Personal risks
Life
Health
Liability
โฆ Property
Home
Vehicles
โฆ Liability
21. Quick Recap
โข Importance of Setting Goals
โข Steps to Achieve Goals
โข Understanding net worth
โข Protecting the net worth to ensure that our net
worth is not eroded
26. Mantras for success
Prepare the budget
Stick to the budget
โฆ Check out of budget expenses
Ensure there is a surplus
โฆ If not, have a serious look at some of the
expenses.
29. Investment mantras
Understand the power of compounding
Diversify your investments
Do your own homework or hire wise
experts
Understand the fundamentals
In case of doubt, ask. Do not sign the
dotted line till you get satisfactory
answer
30. Understand power of compounding
โข If you save Rs 1000 a year for 10 years at a bank
which gives you interest at 8% per year, how
much money you will have at the end of 10
years?
31. Saving per year Rs. 1,000
Rate of return (per 8%
year)
No. of years 10
Wealth Rs. 14,487
accumulated
32. Understand power of compounding
โข If you save Rs 1000 a year for 10 years at a bank
which gives you interest at 8% per year, how
much money you will have at the end of 10
years?
โข If you save similar amount for 20 Years how much
it will be ?
33. Saving per year Rs. 1,000 Rs. 1,000
Rate of return (per 8% 8%
year)
No. of years 10 20
Wealth Rs. 14,487
accumulated
34. Saving per year Rs. 1,000 Rs. 1,000
Rate of return (per 8% 8%
year)
No. of years 10 20
Wealth Rs. 14,487 Rs. 45,762
accumulated
35. Understand power of compounding
โข What do we understand from this ?
โข Why is the difference between 10 Year investment
and 20 Year investment so much ?
37. Steps to Wealth Creation
Have a goal
Start today
Invest regularly
38. Be Careful before investing
โข Do not believe if someone promises high returns.
โข Do not get carried away by the commission agent promises
โข Identify a trusted advisor
โข Do reference check of the advisors
โข Do your own research about the product before you buy,
โข Learn Basics skills of Money Management
โข Know the costs
โข Only invest in regulated options through regulated
intermediaries.
39. Creating wealth is not difficult.
All you need is self discipline in your
spending and investing habits