Personal finance young_adults
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Transcript of Personal finance young_adults
www.finerva.com | [email protected] | +91-9787-11-11-66
Myths and Realities of Personal Finance
The Finerva approach for Young Adults
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What are your dreams?
Dream BIGDream in COLOURS
Dream with Smells Dream how you Feel
Dream what you think
Dream about the people around you
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WRITE YOUR DREAMS IN THE WORKSHEET
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This workshop aims
• To help you Refine your
dreams
• To help you Achieve
your dreams
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What has been your short term goal?
• Finish your Course
with good marks
• Get a good job
• Get a very good salary
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What do you plan to do with your first salary?
Fill the Worksheet titled “My First Budget”
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The way forward…
• Check if your first salary has contributed in any way towards your dreams
• Don’t let even one day pass without doing something to make your dreams come true.
• Many dreams have remained just that for the lack of direction and action.
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Convert the Dreams to Goals
S - SPECIFICM - MEASURABLEA - ACHIEVABLE
R – REALISTICT- TIME BOUND
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Clarifications on Goals ???
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Set Your Goals
• We are in this workshop
concerned with the financial side
of your goals.
• Convert your goals to financial
numbers.
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Meditate
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Use the worksheet “ My SMART Goals”
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Achieving the Goals
• Planning - Today• Implementation - Today• Reviewing• Fine tuning• Achieving
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Planning
• Know your beliefs– Safest option in life is to get a secure job and stay – Only doctors make a lot of money– Sale! Sale! I buy always when there is a sale– I will never understand how investing works– They have a big house, they must be rich…– There is not enough money for everyone to be rich– People who make mistakes are stupid– Fixed deposits are safer than stocks– I will never be rich…– Investing in stocks is gambling. – Only crooks become crorepathis
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Break the Myths• What are Assets?• Please fill the worksheet
– “What are Assets?”
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Myth: Any investment with an element of risk is bad
• Other factors also to be considered while investing – Returns– Liquidity– Valuation Visibility– Taxation
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Myth: I will get pension when I retire I am too young – I don’t need retirement
planning.
• Expenses at the time of retirement• Skill set for retirement• Power of Compounding
• Please see the content – “Retirement Planning – The earlier the better
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Calculate your Pension requirement using the “Retirement Planner Worksheet”
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Belief: I don’t believe in Insurance
• Do you love your family members?
• Is it only till you are alive or till
they are alive
• Please use the worksheet “Insurance Requirement Planner”
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Myth: My house is my best asset
• Read the content “My House – Rent or Buy?” – Cash flow diagram – How can they be
assets?
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Myth: Gold jewels are an investment
• Cost of procurement, cost of disposal
• Growth in value only covers inflation
• Read the content “Is Gold Really an Investment?”
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Implementing • Pay Yourself First• Love money – Be a Money Magnet• Take care of your health• Decide based on Cash Flow
• Why do you think Warren Buffet bought a used Rolls Royce 6 months ago?
• Why do you think Tata Steel bought Corus rather than build a company on its own?
• Why do you think Jet Airways leased its aircrafts when it began its business?
• RememberIncome – Investment = Expenses
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…Implementation• Wealth
– Is not what you earn– It is not the place that you live in– It is not the way you spend–It is the time period for which you
can maintain a given life style, without a salary.
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Prepare a Revised Budget
– Enter your expenses based on your priorities for goals
– Make a list of tasks / cost items which you are postponing for latter.
• Use the worksheet “My Revised Budget”
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–Queries–Feedback
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Thank You
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