Financial planning- story of mr x 7 Money

Story of Mr. X and Money

Wednesday 12 April 2023 www.nirajnanal.com 2

Story of Generation X

“How do you look at Personal Financial Planning?”

Yes, I have done it. My Father manages my finances. I have a

good CA who guides me about investments. I think I know everything about it.


“Mr. X, What are your goals in life?”“Three years from now, what do you think you would have achieved?

Goals

Mr. X had very general answer and seemed very confused!”

• Are you really sure about your Life Goals?• Have you quantified your Financial Goals?• Do you have Clarity, Direction and Confidence about your

Financial Life?

Hmm getting good return, saving taxes, buying a property, buying an insurance policy, children's

education, buying a farm house


Mr. X Current Financial Situation• Lack of Clarity about Life Goals.

• No control over Inflow and Outflow of money.

• Lot of Insurance Policies but Inadequate Insurance Cover.

• Ad-hoc Investments.

• Majority of Investment in Real Estate.

• Too Many Loans.

• No Clarity, Direction and Confidence about the Financial

Situation.


Risk of having a Casual Approach• Cash flow problem – Your income is

coming one way and going from the

other side when you consider EMIs,

Taxes, and overall expenses.

• Creating more liabilities rather than

assets?

• If something happens to Mr. X, his

family will be in tremendous Financial

Stress.

• Putting your goal in danger.


Prevention is Better than CureThen why don’t people follow this saying when it

comes to their Money Management?

1. Short Sightedness - Inability to take a holistic perspective.

2. Instant Gratification.

3. Fear of Failure

4. Lack of Self- Discipline.

5. Unable to find a Good and Qualified Financial Planner.


Money Beliefs

• Instant Gratification– Many times we don't want to do anything which

gives us the guarantee of instant results.

– Managing your Money or Financial Management

is a Process and you can not expect immediate

results.


Money Beliefs

• Fear of Failure– We all fear failure; so even if sometimes we initiate the

process of taking control of our financial life, but our fear

of failure holds us back.


Money Beliefs

• Lack of Self Discipline – Self Discipline is required in any walk of life and particularly in

achieving financial well being.

– Still many people hold on to the idea that you can easily avoid facing

many difficulties and self responsibilities and still lead a

highly fulfilling existence.

– This idea dis-ease them at the time of taking

action towards taking control of their financial life.


Action Plan for Mr. X

1. Select a Qualified Financial Advisor (Preferably a CFP, CWM)

2. Identify your Financial Goals

3. Build a Holistic Approach towards your Goals

4. Simplify your Financial Life!

5. Manage your Emotions!

6. Have a documented Financial Plan


Money and Emotions!

• Mr. X needs to realize that money has no Emotions but it has the capacity to create powerful negative emotions such as Anxiety, Confusion, Anger, Depression, etc. in you.

• Take control of your Financial Life before its too late.

Financial planning- story of mr x 7 Money

Economy & Finance

Transcript of Financial planning- story of mr x 7 Money