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

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

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

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

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

!
Monday 26 October 2009 6

!
Monday 26 October 2009 7

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

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

CONCLUSIONS?
Monday 26 October 2009 10

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

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