A very simple introduction to personal finance and investing comparing investments in stocks or mutual funds. Presented at BarCamp Delhi on October 25th 2009.

1. PERSONAL FINANCE FOR
BARCAMPERS
BarCamp Delhi
October 25th, 2009
Monday 26 October 2009 1

2. MAKE IT AND BURN IT
• what is your monthly income?
• what are your fixed costs (e.g.
rent, car payment, mortgage, etc.)?
• what are your variable costs (e.g.
eating out, telecommunications,
etc.)?
• how much are you burning?
• how much is left over every
month?
Monday 26 October 2009 2

3. START NOW!!
• make a simple spreadsheet of
monthly expenses and track it
• no income or expense is too large
or small to track
• start by understanding where your
money is and where it is going
• take steps to pull out a certain
percentage of income every month
for investing - 1%, 5%, 10%, 20% -
whatever you can start with
Monday 26 October 2009 3

4. DON’T SAVE - INVEST
• savings accounts paying interest
• fixed deposits (certificates of deposit)
• pension plans
• government bonds (short-term and long-term)
• life insurance
• health insurance
• annuities
• stocks/shares and mutual funds
• commodities - gold/silver/platinum
• derivatives - options/futures
• currencies (FX/FOREX)
• real estate
Monday 26 October 2009 4

5. THE STOCK MARKET
• it’s liquid, real-estate isn’t
• much more transparent than
other investments
• your options:
• self invest by picking stocks
• go on auto-pilot by picking
mutual funds
Monday 26 October 2009 5

6. !
Monday 26 October 2009 6

7. !
Monday 26 October 2009 7

8. Returns of Stocks & Mutual Funds Over 30 Years
₨300,000
₨270,000
₨240,000
₨210,000
₨180,000
₨150,000
₨120,000
₨90,000
₨60,000
₨30,000
Mutual FundStocks ₨0
Mutual Fund Stocks Mutual Fund Stocks Mutual Fund Stocks
2009 2019 2029 2039
Mutual Fund Stocks
Monday 26 October 2009 8

9. Mutual Fund Stock
!
300,000
270,000
240,000
210,000
180,000
150,000
120,000
90,000
2009 60,000
2019 30,000
2029 0
2039
Monday 26 October 2009 9

10. CONCLUSIONS?
Monday 26 October 2009 10

11. IMAGES
All CC licensed images or purchased stock photos
• money by Wen-Yan King - http://www.flickr.com/photos/medapt/
407745883/
• piggy bank by alancleaver_2000 - http://www.flickr.com/photos/
alancleaver/2638883650/sizes/m/
• start by zhurnaly - http://www.flickr.com/photos/zhurnaly/
196310475/sizes/m/
Monday 26 October 2009 11

12. pankaj jain <pjain@teknatus.com>
www.teknatus.com
Twitter: pjain
Blogs: blog.linosx.com / teknatus.com/blog / semblr.com/blog
This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/
3.0/us/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Monday 26 October 2009 12