Workshop Intro

Measure. Manage. Make your Rupee Work & Grow 60 Minutes Introduction

About Me

19 Years Work experience in the Financial Services Industry.

Blogger, Publisher, Software Creator

Passionate about changing how Indians manage their money.

http://ranjanvarma.com , http://rupeemanager.com

Structure

Lights:

What’s the problem?

Iceberg Theory

Camera:

Rupee Cost Averaging

Magic of Compounding

The four parameters

Action:

Questions to be answered

3 Day content.

The Five Monkeys http://ranjanvarma.com , http://rupeemanager.com The Story

Problem: The Macros

Huge Information Asymmetry in Financial Services

Uninformed Financial Decisions by Educated people

No Measurement tool to guide the management of Money

Lack of authoritative resources & books in the Indian context

Information overload on the Internet

http://ranjanvarma.com , http://rupeemanager.com Skills Knowledge Profile Attitude Motives/Goals The Ice Berg Model of a Competency Visible Hidden

A few questions to ponder

Why do we generally avoid personal finance?

How is buying a Car different from buying an Insurance product?

Camera: Focusing on the methodology

Rupee Cost Averaging

The four parameters

Cost of Credit

Investing Regularly

Investing regularly can fetch you more shares of a stock through rupee cost averaging . In the example, when investing in lumpsum, the share price was Rs 20 -- meaning, you end up buying 500 shares.

Instead, if one were to invest Rs 1,000 every month for 10 months, the total number of shares purchased adds up to 520, since these were bought at different price levels and the average cost of each share comes down to Rs 19.6.

http://ranjanvarma.com , http://rupeemanager.com Timing the markets? It’s pure BS!!

http://ranjanvarma.com , http://rupeemanager.com How it pans out Time (mths) Fixed amount invested (Rs) Price per share (Rs) Shares purchased 1 1000 20 50 2 1000 21 48 3 1000 24 42 4 1000 19 53 5 1000 16 63 6 1000 17 59 7 1000 16 63 8 1000 23 43 9 1000 18 56 10 1000 22 45 Total 10,000 19.6 520

Starting with Rs 1000 and by investing Rs 1000 every month compounded at 10% amounts works out to Rs 78171 after 5 years.

In 10 years it more than doubles to Rs 202457.

The figures at the end of 15, 20, 25, 30 40, 50 years are

Rs 402621,

Rs 724986,

Rs 1244159,

Rs 2080292,

Rs 5595607,

Rs 1,47,13,428!!

Investing Options

Four Parameters of Investing

Growth

Liquidity

Security

Expenses

Cost of Credit

If you take a loan for Rs. 10,00,000.00 for 240 months @ 10%, it will cost you Rs 9650 a month. In taking out this loan, you'll pay a total of Rs. 13,16,000 in interest. The total cost of this loan is Rs. 23,16,000.

Charges:

Interest Charges

Attractive Initial Rates for Personal Loans

Late Charges

Processing Fees (0% EMI, IRR >10%)

Action: Taking concrete decisions

How do I analyse my money management, my risk profile, etc?

Where do I start from?

How can you pay the lowest taxes?

Should you invest directly in shares or buy Mutual Funds?

How much Insurance should I have?

Should you take a Home Loan to buy a house now, or later?

Content

Understanding Money

Principles of Money Management

Playing with Numbers

Getting started with Budgets.

Asset Allocation Principles

Setting up a customized spending plan

Knowledge on Mutual Funds, Stocks, Insurance, ETF, Fixed Income Bonds.

Activity based decision making on Investments

Answers to your personal finance questions.

And More…

Rich Dad vs. Poor Dad http://ranjanvarma.com , http://rupeemanager.com Source: http://richdad.com Focused only on academic literacy. Focused on financial literacy as well as academic literacy. Thought that making more money would solve his financial problem Knew that financial education was the answer to his financial problems: "It's not how much money you make that's important – it's how much money you keep and how long you keep it." "I'm not interested in money.“ "Money is power." "When it comes to money, play it safe - don't take risks." "Learn how to manage risk."

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