Your SlideShare is downloading. ×
A brief introduction to personal finance for Indian audience
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

A brief introduction to personal finance for Indian audience

821
views

Published on

Raghav (Author of "Dusk to Dawn") outlines some of the effective components of personal finance in this brief presentation.

Raghav (Author of "Dusk to Dawn") outlines some of the effective components of personal finance in this brief presentation.

Published in: Business, Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
821
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Raghavendra P Hunasgi
  • 2. What is this Personal finance?• “Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.” - Wikipedia• “Set of rules you follow to improve your financial net worth” – Raghav• “Systematic ways to manage your money and grow rich” – Personal finance blogger Raghavendra P Hunasgi
  • 3. Why should I learn personal finance?• Personal finance awareness can return many financial rewards as well as provide you with more free time to pursue your interests and freed up money to invest.• It can help you achieve financial freedom* and improve your credit rating.• It can help you attain freedom from paycheque to paycheque** living.• Gives you the freedom and time to pursue your dreams full-time (like: Writing,Blogging….)• * & ** explained in http://pothi.com/pothi/book/raghavendra- hunasgi-dusk-dawn Raghavendra P Hunasgi
  • 4. Components of Personal Finance?• Broadly components of PF include: a personal budget, savings and investment planning, managing your income and outgoings resourcefully.Budgeting:• Working without a budget usually leaves you mystified as your paycheck seems to disappear; leaving you empty- handed by the time the end of the month rolls around and it’s time to pay the bills or put food on the table. In addition, when you create a budget, you begin to see a clear picture of how much money you have, what you spend it on, and how much, if any is left over. Raghavendra P Hunasgi
  • 5. Components of Personal Finance?InvestingTo be more efficient in dealing with personal finance basics, it isimportant to choose wisely when and how to invest your savings.Put your money to work earning interest in a savings account orreturns in a retirement fund or a mutual or index fund or buildequity in your home by paying down your mortgage. Better yet,increase your assets by investing in a few of these options, whilekeeping a liquid savings account for emergencies. Failing to takeadvantage of free money is a common personal finance mistakeamounting in money lost to inflation and missed opportunity. Becautious also of investments that promise a high return with littleor no risk. Raghavendra P Hunasgi
  • 6. Components of Personal Finance?Debt Management After creating a sound budget and cutting unnecessary expenses,you may still find yourself with remaining debt to get rid of.Mismanaging your debt through overspending, failing to budget orhigh interest rates can quickly send you in a downward spiral. Thebest way to handle debt is to stay out of it in the first place.Remember to stay away from temptation to "buy now, pay later"and only take loans for the essentials in life: education,transportation and habitation. As a general rule, do not financeanything for longer than its useful life. Keep your credit score highby keeping tabs on your credit report and paying your bills ontime. Raghavendra P Hunasgi
  • 7. Components of Personal FinanceEmergency FundAn emergency fund is a cash reserve that you keep in a safeplace and use only for emergencies. This cash reserve should beas liquid as possible (a high-yield online savings account is justabout perfect) and should contain at least $1,000 (at first) andeventually six to twelve months of your household’s take-homesalary (eventually). The only reason you ever tap into youremergency fund is if a situation arises that causes your monthlybudget to not balance. Raghavendra P Hunasgi
  • 8. Components of Personal FinanceInsuranceYouve definitely come a long way; there is one more importantaspect of your finances that you need to consider. Youve workedhard to build a firm financial footing for you and your family, so itneeds to be protected. Accidents and disasters can and dohappen and if you aren’t effectively insured it could leave you infinancial ruin. Everyone needs insurance to protect your life, yourability to earn income, and to keep a roof over your head.Medical insurance is one of the most ignored part of personalfinance in India and there is a need for awareness in Indianaudience. (If you have aging parents this should be your nextb’day or anniversary gift to them) Raghavendra P Hunasgi
  • 9. Need more information? This book is a series of activities that can enable anyone to improve their finances by centering the financial life on some of the basic yet powerful principals. Instead of supplying a bunch of budgeting sheets and asking you to commit yourself to a program, this book is about figuring out what you want out of life and reorganizing your finances so that you can have it. Buy online: http://pothi.com/pothi/book/raghavendra- hunasgi-dusk-dawn Raghavendra P Hunasgi