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  • 1. Creating and Growing Wealth
  • 2. Finerva
    • Finerva = Finance + Minerva (Roman Goddess for Wisdom)
  • Introduction
    Finerva
    • India’s First Company dedicated to Personal Finance Education
    • 3. 3 core values:
    Simplifying Personal Finance
    Make Meaning
    Create Value
  • 4. Tools to Create Wealth
  • 5.
    • Basics of Cash Flow
    • 6. Is there a difference between assets for Companies and Individuals?
    • 7. Asset Vs Liability Chart
    • 8. Mark the table in your workbook appropriately
  • Tools to Create Wealth
    • Cash Flow Chart
  • Applying Cash Flow to Our Lives
    • Exchange of phones
  • Applying Cash Flow to Our Lives
    • Bike with high resale value
  • Applying Cash Flow to Our Lives
    • Having assets and heavy loans
  • Applying Cash Flow to Our Lives
    • House that we live in
  • Applying Cash Flow to Our Lives
    • Vehicle loans
  • Applying Cash Flow to Our Lives
    • Borrowing for tax saving investment
  • Tools to Create Wealth…
    Balancing
    Return
    & Risk
  • 9.
  • 10. RISK ?
    • What is risk?
    • 11. Any deviation from expectation is risk
    • 12. Which has higher risk?
    • 13. When I expected 10 % I got 9%.
    • 14. I expected 35% I got 31.5%
    • 15. I expected 100% I got 90%
  • Which decision is better?
    • An army general has 250,000 soldiers.
  • Which decision is better?
    If he fights:
    • The probability to lose 37,500 persons is 50%
    • 16. The probability to lose 43,750 persons is 25%
    • 17. The probability to lose 31,250 persons is 25%
  • Which decision is better?
    • If he retreats he will lose only 15% of his army.
    • 18. Which decision will reduce the loss of lives?
  • Risk…
    • Is there zero risk?
    • 19. No. That is why Countries are rated too.
    • 20. Sometimes the sovereign rating can be lesser than some companies in the country.
  • …Tools to Create Wealth
  • 21. …Tools to Create Wealth
    • Tools to meet my requirement
    • 22. Comparision chart for different investments
    • 23. Increase the sources of Income
  • Sources of Income
    Myth to break: Salary has to be my main source of income.
    Types of People – Employed, Self Employed, Businessman, Investor
    Be an Businessman / Investor
    Leverage OPM, OPT
    Leverage Technology
  • 24. Calculating My Needs
  • 25. Calculating My Needs
    Financial Planning Includes:
    Protecting our Family
    Planning for our Milestones
    Planning for Emergencies
    Planning for Retirement
    Planning for Estate
  • 26. Protecting My Family
  • 27. Protecting My Family
    Do I need Insurance?
    How much Insurance do I need?
  • 28. Planning for My Milestones & Retirement
    Have I planned for
    My Children’s Education?
    My House?
    My Car?
    My Parents?
    My Business?
    My Retirement?
  • 29. Milestone Planner Retirement Planner
  • 30. Where is the money?
    I know I need to save. But where is the money?
    This month my in-laws were in town
    The TV / Washing Machine / Fridge failed this month
  • 31. Where is the money?
    Surprise hospital expense came up
    Child’s School Term Fees had to be paid
  • 32. Where is the money?
    Soft Loan had to be repaid
    Surprise Trip from Company. Claim will take one month for reimbursement.
    Aadi Month / Deepavali / Ramzan / Chirstmas / Pongal / New Year / School Holiday Purchases
  • 33. Budget – Myths And Reality
    • What ever I plan does not work? So why plan?
  • Budget – Myths And Reality
    • A plan does not ensure that the goal is achieved.
    • 34. Plan is required to first set a goal and then to remind you to reach it
    • 35. And alert you when there is a deviation
    • 36. A company has become big because they have a budget…
  • Budget is for big companies.
    • Any company has become big because it functioned on a budget
  • Budget Myths & Reality
    • Anything on sale can be bought
    • 37. A sale is profit for the sales guy
    • 38. Is the thing on sale what you want?
    • 39. Buy anything based on a list of needs and excess cash.
  • There is not enough money for everyone to be rich
    • Money is not a limited quantity commodity (at least at our level)
    • 40. The more value you create for your company and others, the more money you have.
  • That guy is filthy rich! He should have done some criminal activity some time in life.
    • This is a statement out of guilt and jealousy / envy
    • 41. Sometimes used to protect our image in front of our children.
    • 42. “Money is not evil after all – in good hands” – Swami Vivekananda
    • 43. “Jealousy is the root of all evil, and a most difficult thing to conquer” – Swami Vivekananda
  • 44. My Present Budget
    Fill in your Budget Worksheet
    budget worksheet
  • 45. Creating a Surplus for My Goals
    • Can you see where your goals are being SPENT?????
    • 46. Identify expenses which can be reduced
    • 47. Identify loans which need to be closed immediately
    • 48. Identify investments that need to be started immediately
  • Net Worth
    • The Net Worth Sheet summarises our assets and liabilities.
  • Symbols of Social Status Vs Wealth
    • Wealth is generally associated with the ownership of social status symbols such as Huge Cars, Palatial Houses, Servants, Jewels, Silk Sarees, etc.
  • Symbols of Social Status Vs Wealth
    • Social status symbols are more often, than thought, liabilities.
    liabilities
  • 49. Wealth Defined
  • 50. Wealth Defined
    • Wealth is defined not in quantum of cash but in TIME
  • Wealth Defined
    • A person's wealth is defined by how long a period of time one can sustain one’s lifestyle if he/she stops working.
  • Wealth Defined
    • The longer you can go on living your life without working another day, the wealthier you actually are.
  • Your wealth is therefore defined by three things
    • Your monthly expenses
    • 51. Your liquid assets and
    • 52. Your passive income.
  • Myths Summarised
    Safest option in life is to get a secure job and stay there always
    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
  • 53. Mantras for Wealth
  • 54. Mantra 1
    Time  
    The largest of trees
    start from the small
    seeds. Allow time and
    nurture your
    investments.
     
  • 55. Mantra 2
    Income – Investment = Expenses
     
    If spending money brings you enjoyment, you will never be rich.
    However if making money brings you enjoyment, then your wealth is guaranteed.
    Make list based purchases
    Given a choice – see what the excess amount could be
     
  • 56. Invest with a Goal and Make Goal Based Investments
    If your goal was 10% gain sell once you get
    it. Don’t get Greedy.
     Life Goals give clarity for the quantum and
    term of investment.
    A purpose will ensure money is not used
    otherwise or spent.