- Uday invested Rs. 25,000 annually from ages 25-30, totaling Rs. 1.5 lakh. This amount grew to Rs. 54.2 lakh by age 65. - Rajesh invested Rs. 25,000 annually from ages 35-65, totaling Rs. 7.5 lakh. This amount grew to Rs. 45.23 lakh by age 65. - Starting investments earlier allows more time for compounding returns to take effect, leading to higher overall returns by retirement age.

2. Cash inflows
Salary 27,000
Interest on deposits 0
Dividend income 0
Less income tax 2000
Total cash inflows 25,000
Cash outflows
Travelling expenses 3000
Mobile telephone 1000
Household expenses
5000
Parents’ gift 2500
Recreation
(tea/coffee)
3000
Total cash outflows 14,500

3. Thrice asNice
How it works: You’ll need three bank
accounts—two checking and one
savings. First,decidehowmuchofevery
paycheck you want to put toward savings
and have that amount automatically sent
to your savingsaccount.Viadirect
deposit,send the rest of your paycheck
to checking account No. 1. From this
account, you’ll pay all monthly fixed
expenses, like rent, car payments and
utilities.
Withthe moneyleft over after paying your
fixedexpenses,dividebyfourandsetupa
weeklyautomatictransfer of that amount
to checking account No. 2. Use this
account for all variable expenses like
groceries, entertainment, clothes and
eating out.
Refrain from transferring more money
or using credit cards.
• Use the Envelope System
• How it works: Grab some
envelopes and write the
name of each category in
your spending plan on a
separate envelope. Then
place the monthly amount of
cash you plan to spend on
that category inside. Forget
your checks and plastic
cards, use these envelopes
instead.
• Once the cash in each
envelope is gone, there’s no
more spending until next pay
period. One word of
caution—be careful if you
implement this plan. If your
cash gets lost or stolen,
there’s no replacing your
money.
Trim It Down
How it works: Grab your
bank and credit card
statements and make a list
of recurring expenses and
the amount spent. Instead
of cutting your overall
spending by a certain
percentage, choose one or
two large expenses and
cut those. Maybe it’s cable
television, the second car
or your gym membership.
Whatever it may be, cut it
loose and add those extra
funds toward your savings
goals.

6. Why investment at an early age?
• Let us understand with the example of Uday
and Rajesh. They both entered the job market at
the age of 23. Uday decides to keep aside `.
25,000 every year from the age of 25 until he
turned 30, that is, for a period of five years. After
30, he did not touch his investment that is he
neither added nor withdrew anything from his
capital till he turned 60. Rajesh, on the other hand
decided to start saving only when he turned 35.
From then on till he turned 65, that is, for the next
30 years, he kept aside `. 25,000 every year. Guess
who saved more? At 65,
• Uday’s investment of `. 1.5 lakh was equivalent
to `. 54.2 lakh, while Rajesh’s savings of `. 7.5 lakh
yielded `. 45.23 lakh.

7. Discuss
• RAJ RATHOR, a student
of SEM 1, B.COM has been
asked to advise his
Grandfather aged 65 to
put his savings for 3 years
in SBI. What is current rate
of interest ?

8. Discuss
• Devanshi studying in first
year graduation wishes to
do M.B.A. she inquired
and found that 3 years of
M.B.A cost her around
Rs.1,25,000, she is still in
first year and she wants to
finance her study by
herself only what do you
suggest?

9. Discuss
Renuka and her husband sell
vegetables on the roadside.
They are able to save about `.
400 per day after meeting all
the expenses of running the
vegetable shop. They wish to
put their savings in post office.
They asked you to find return
on it?

10. Discuss
Govind (age 30)has Rs.
1,00,000 spare in his
saving, he doesn’t require
this amount for next five
years and he wants to
invest in secured
instrument. Advice him
and find return.

11. Discuss
Suraiya has been asked by
her elder sister who
recently bestowed with
baby girl, she wish to
invest Rs. 2000 per month
and wanted to know about
govt scheme to protect girl
child’s future. Advice her

12. Discuss
Dev, businessman wish to
buy a home costing Rs.
50,00,000, he can manage
50% amount by himself,
and for remaining he
wants to take a home loan
for 7 years. He wants you
to calculate EMI.

13. Discuss
Dev’s on hand salary is
Rs.50,000
Any suggestions?
Dev said he can afford
EMI of Rs,12,000 only
Any suggestions?

14. Discuss
Naresh was told by
banker for Home Loan,
he has to pay EMI of
Rs.20,000 for loan of
Rs.10,00,000 for 7 years.
He wants to know Rate
of Interest?

15. Discuss
Dinesh wanted to open
PPF (Public Provident
Fund) account, he wants
to deposit Rs.5,000
every month till 15
years.
Calculate how much ll he
receive at the end?

16. Discuss
Kishan age 22 wants to
secure his future after
retirement. He is in
private sector and wants
safe and fix amount as
pension, Give your
suggestions.

17. Discuss
Disha wanted to make
SIP of rs. 6,000 every
month till next 7 years.
He expects return of
10%. He wants you to
calculate return for him?

18. Discuss
Trisha’s father has just
got retired, he wants to
invest Rs.4,00,000 as
such that he will be able
to receive some monthly
fix income in the form of
interest for next 5
years…Guide her

19. Discuss
Kismat (age 27) is a truck
driver often feels risk of
accident while driving he
wants to insure himself
against any mishap.
Guide him.

20. Discuss
DEVIKA want to
purchase a gold, he
wants to keep it safe.
Suggest her a better
scheme.