The 9 roadblocks to overcome on the road to Financial Freedom. The slides are part of a seminar that was given to employees of Reliance Industries (RIL) at Reliance Corporate Park (RCP). The 2 hour presentation has become a monthly event at RCP.

1. The Road to
Financial Freedom
[ 9 roadblocks to overcome ]
Manish Jain
Co-founder, MProfit
April 23, 2011

2. Welcome
Time Duration Description
11:00am -
45 min. Introduction and first half
11:45am
11:45am -
15 min. Break
12:00pm
12:00pm -
45 min. Second half
12:45pm
12:45pm -
15 min. Q&A and wrap-up
1:00pm
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3. What is Financial Freedom?
“having enough money
to make decisions or choices
that YOU want to make”
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4. What Is Not Covered
“Have any
good stock tips”
“Is Bajaj Auto
a good buy at Rs. 1600”
!"#$%&'$!"#$(")$*+,-./%
0,,-$1,+$2'3
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5. 1. Overcome Your Fear
• People are afraid to talk about their
personal finances because they don’t
know where to begin
“Take a deep
breath”
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6. 2. Prepare a Financial Inventory
• Compile a list of all your assets and
liabilities
Insurance Policies
Bonds FDs Gold Loans
Investments
Property
Credit Cards
Equities
PPF/EPF
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7. 3. Reaching Your Goals
• Short term >> Specific Event
• Long term >> Retirement Planning
House Education
Wedding Flat
Car Vacation
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8. Your Money Map
10%
Salary* PF
90% * for simplicity I
Savings have ignored
5% - SIPs
40% Bank taxes,
mediclaim, etc...
5% - Education
10% - Emergency
Account
10% - Housing
10% - Wedding 60%
Credit Misc.
EMIs
Cards Bills
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9. 4. Insurance
• Protect your wealth
• Auto
• Health
• Home
• Life
Tip
Don’t mix products (hybrids):
Equity + Insurance = ULIPs
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10. 5. Asset Allocation
• Maximizing your returns and minimizing
the risk
Alt. Investments Tip
7%
Cash Guideline for equities,
Equity
13% (100 - your age) = the
35%
amount in equities
Real Estate
14%
Fixed Income
31%
* Model Asset Allocation: Merrill Lynch Wealth Management, World Wealth Report 2010
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11. Investments
• Are you a risk taker?
More
Risk
Private
Equity
Equities Tip
Equity Risk Level:
Risk Bonds Level 1 = Index Funds
Real
Estate Level 2 = Mutual Funds
Gold Level 3 = Direct Equities
FDs PPF
Higher
Returns
Returns
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12. 6. Control Your Debt
• Payo loans and/or credit cards that
have the highest interest rates
Tip
Carrying a credit card balance
is VERY expensive. A better
option is a debit card.
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13. 7. Monitor Your Money
Short Term Long Term
[ expense tracker ] [ portfolio manager ]
Create a Track your
budget investments
to track on a monthly
your daily Financial or quarterly
Dashboard
expenses basis
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14. Use Technology
Free Paid
Artha Intuit
Excel
Short Term Money MM Perfios
[ expense tracker ] Pen &
Paper
Money
MProfit
Control RupeeX Perfios
Long Term
[ portfolio manager ] EasyLife
Artha
Money InvestPlus
Value
Reseach
Data Security - Web vs. Desktop
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15. 8. Review Your Progress
• Review your expenses
and portfolio on a
regular basis
• Hiring a financial
advisor is a good idea
if you don’t have the Tip
discipline
If you need a financial advisor,
select someone that is a Certified
Financial Planner (CFP)
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16. 9. Read Magazines, Papers & Blogs
Read 1-2 hours
every month
Capital Mind
http://CapitalMind.in
Jago Investor
http://JagoInvestor.com
The Financial Literates
http://TFLindia.in
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17. http://www.mprofit.in
Manish Jain
mjain@mprofit.in
MProfit Software Pvt. Ltd.
108-B, Mittal Tower
B Wing, 10th Floor
Nariman Point
Mumbai 400 021
(022) 4002-4149
MProfit Software Pvt. Ltd. © 2011