Financial plng n wealth Creation

860 views

Published on

Published in: Economy & Finance, Business
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
860
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Financial plng n wealth Creation

  1. 1. Financial Planning and Wealth Creation -Manish Suryawanshi 01/15/11 MANISH
  2. 2. 01/15/11 MANISH EVERY ONE WANTS TO WEALTHY: POOR WANTS –FINANCIAL SECURITY MIDIOCRE WANTS – FINANCIAL FREEDOM RICH PEOPLE WANTS TO GET RICHER EVERY ONE HAS DESIRE TO BE WEALTHY, BUT NOT EVERYBODY IS WEALTHY !!!! WHY ???
  3. 3. 01/15/11 MANISH The object of this session ….. My Object is NOT to give you Mechanical Financial aspect only… Any Financial Advisor will do that.. My object is much..much…much.. More than that
  4. 4. 01/15/11 MANISH ARE YOU READY TO WELCOME FINANCIAL ABUNDANCE INTO YOUR LIVES ??? MY OBJECTIVE HERE IS TO GIVE YOU CERTAIN IDEAS WHICH YOU CAN USE TO CREATE FINANCIAL ABUNDANCE IN TO YOUR LIFE
  5. 5. 01/15/11 MANISH I have studied and closely observed financially successfull people and I have read dozens of books on Psychology, philosophy, Spirituality, human behavior and on Finance. My conclusion: It is not the hard Work or The Knowledge of the Subject that make people wealthy.
  6. 6. 01/15/11 MANISH <ul><li>Wealthy People have </li></ul><ul><li>Prosperity Mindset </li></ul><ul><li>Certain personal Traits and Qualities </li></ul><ul><li>Spirituality </li></ul><ul><li>Character </li></ul><ul><li>Discipline </li></ul><ul><li>Persistence </li></ul><ul><li>Most importantly they have a habit of taking action on their ideas and they trust their intution. </li></ul>
  7. 7. I have divided this session in 3 segments. 1 st segment deals with how to develop a certain psychology and personal traits for financial success. How should you think, how to form belief system for success. 2 nd Segment deals with ways to manage your money, the power of compounding, asset allocation and various financial instruments. 3 rd Segment deals with how to manage your money for financial abundance. 01/15/11 MANISH
  8. 8. I shall begin here with the beliefs : Every human being is driven by two things. Need to avoid pain and Need to seek Pleasure As per psychological studies the need to avoid pain is much much much stronger. We humans will do anything to avoid pain. It is genetically coded in us 01/15/11 MANISH
  9. 9. Exercise : I want you to write down all your beliefs about money. You have 2 minutes to do this. 01/15/11 MANISH
  10. 10. 01/15/11 MANISH
  11. 11. 01/15/11 MANISH
  12. 12. JUSTIFICATION & RATIONALIZATION 01/15/11 MANISH
  13. 13. 01/15/11 MANISH
  14. 14. PROCRASTINATION OUT OF FEAR OF FAILURE 01/15/11 MANISH
  15. 15. 01/15/11 MANISH
  16. 16. 01/15/11 MANISH
  17. 17. FEAR AND SELF DOUBTS 01/15/11 MANISH
  18. 18. 01/15/11 MANISH
  19. 19. 01/15/11 MANISH
  20. 20. BE GRATEFUL FOR WHAT YOU ALREADY HAVE 01/15/11 MANISH
  21. 21. 01/15/11 MANISH
  22. 22. 01/15/11 MANISH
  23. 23. 01/15/11 MANISH
  24. 24. 01/15/11 MANISH
  25. 25. 01/15/11 MANISH
  26. 26. 01/15/11 MANISH
  27. 27. 01/15/11 MANISH
  28. 28. 01/15/11 MANISH
  29. 29. 01/15/11 MANISH
  30. 30. 01/15/11 MANISH
  31. 31. 01/15/11 MANISH
  32. 32. 01/15/11 MANISH
  33. 33. 01/15/11 MANISH
  34. 34. LOW SELF IMAGE 01/15/11 MANISH
  35. 35. 01/15/11 MANISH
  36. 36. 01/15/11 MANISH
  37. 37. 01/15/11 MANISH
  38. 38. 01/15/11 MANISH
  39. 39. YOU ARE WORTHY.. YOU ARE A MIRACLE .. YOU ARE A GENIUS.. YOU ARE NO WEAKER THAN ANYONE ELSE IN THIS WORLD.. RICH MEN ARE NO DIFFERENT THEN YOU THE ONLY DIFFERENCE IS THAT THEY USE THEIR MIND AND BODY IN A BETTER WAY. YOU CAN LEARN THAT TOO.. 01/15/11 MANISH
  40. 40. AS I said as a human being we are conditioned to avoid the pain. I want you to write down all the pains you will experience of not having financial abundance. You have 3 minutes to do that. 01/15/11 MANISH
  41. 41. E.g . I am not financially abundant hence I can not send my kids to good schools, give them quality education. There are people suffering in my family and I can’t help them. I want a nicer home, nicer car. Daughter’s marriage.. 01/15/11 MANISH
  42. 42. AS I said as a human being we are also conditioned to seek the pleasure . I want you to write down all the pleasures you will experience of having financial abundance. You have 3 minutes to do that. 01/15/11 MANISH
  43. 43. <ul><li>Your wealth is determined by your Money Blueprint. </li></ul><ul><li>Your Money Blueprint is how you think and feel about the money. </li></ul><ul><li>You can only become wealthy if your money blueprint is set to high.. </li></ul><ul><li>This can be done through Prosperity consciousness. </li></ul>01/15/11 MANISH
  44. 44. <ul><li>Prosperity Consciousness is built by building a belief that you are already wealthy. </li></ul><ul><li>Have this in your mind firmly set that you are already wealthy. </li></ul><ul><li>All the national properties i.e. Railways, Airports, Highways, everything belongs to you. You pay the taxes. You choose the govt. you are the boss. How can you be poor ? You may pay to use the services railway, bus, etc. but they belong to you. </li></ul><ul><li>So, you are already very wealthy.. </li></ul>01/15/11 MANISH
  45. 45. Exercise : Find out very wealthy and successful person you know. Find out their what are their beliefs, model them, model their physiology, how they stand, how they walk, how they talk, how they dress, most importantly model their behavior and their beliefs. This act of modeling (copying) will bring miracles into your life. 01/15/11 MANISH
  46. 46. 01/15/11 MANISH
  47. 47. Law of Cause and Effect : Everything happens for a reason and there is a cause for every effect. This law says financial success is an effect. To get the positive effect find out what causes this effect and implement them in your activities and you will get the same effect (result). 01/15/11 MANISH
  48. 48. The Law of Belief : Whatever you truly believe with feelings becomes your reality. The best belief you can develop within yourself is that you are destined to be a big success financially. When you are absolutely convinced that you are a financial success in the making, you will engage in behaviors that will make it come true. 01/15/11 MANISH
  49. 49. The Law of Expectations : Whatever you expect , with confidence , becomes your own self fulfilling prophecy. When you confidently expect good things to happen, good things usually happen to you. If you expect something negative to happen, you are usually not disappointed. 01/15/11 MANISH
  50. 50. The Law of Attraction : You are a living magnet; you invariably attract into your life the people, the circumstances and the situations that are in harmony with your dominant thoughts . When you develop a burning desire for financial success and think about it all the time, you set up a force field of positive energy that attracts people, ideas and opportunities into you life to help you make your goals into realities. 01/15/11 MANISH
  51. 51. The Law of Capital : Your most valuable capital is your own physical and mental abilities. Use them well. 01/15/11 MANISH
  52. 52. The Law of Time Perspective : Delayed gratification is the key to financial success. Self discipline is the most important personal quality for assuring long term success. Whenever you want to buy LCD TV or Jewellery or expensive clothing or any luxury item delay your urge for a month think whether you really need it. If at the end of the month you still want to buy it then go ahead and buy it. On 90% occasions you won’t buy it. In such case invest this amount properly to create wealth. 01/15/11 MANISH
  53. 53. The Law of Saving : This habit alone will make you a millionaire. How? I will show you in the power of compounding. 01/15/11 MANISH
  54. 54. Parkinson’s Law : Expenses rise to meet income. This law says that, no matter how much money people earn they tend to spend the entire amount and a little bit more besides. Many people are earning today several times more than they were earning 10 years back. But no matter how much they make, there never seems to be enough. In order to become wealthy you have to beat this Parkinson’s Law. 01/15/11 MANISH
  55. 55. Now let’s get down developing some personal traits to really become wealthy. Unless and until you develop these qualities in yourself you will never be wealthy. These are the qualities all self made millionaires possess. 01/15/11 MANISH
  56. 56. 7 QUALITIES OF SELF MADE MILLIONAIRE :- <ul><li>HONESTY : </li></ul><ul><li>SELF DISCIPLINE: </li></ul><ul><li>GETTING ALONG WELL WITH PEOPLE (LIKEABILITY) – </li></ul><ul><li>HAVING A SUPPORTIVE SPOUSE </li></ul><ul><li>HARD WORK – </li></ul><ul><li>THEY DO WHAT THEY LOVE TO DO :. </li></ul><ul><li>ABILITY TO SELL THEIR IDEAS/PRODUCTS/SERVICES :. </li></ul>01/15/11 MANISH
  57. 57. Now let’s see why People Don't Get Wealthy 01/15/11 MANISH
  58. 58. NO SPECIFIC WRITTEN GOALS. They never decide and really define, very specifically, what wealth means for them. The keyword here is ‘specifically ’ . Can you imagine how hard it would be to build a car or a Building or a Dam without making a blueprint or sketch drawings of it first? You have to know what your target is before you go chase it. 01/15/11 MANISH
  59. 59. THEY CHANGE THEIR GOALS FREQUENTLY .. They make wealth a moving target instead of a fixed one (this is related to point one above). Once you have your target, fix it. Don't change it until you reach it. You must accomplish each step, celebrate, and then set course for a new step, a new target. 01/15/11 MANISH
  60. 60. THEIR GOALS ARE NOT PROPERLY SET.. They define it in a way that seems unreachable. You only achieve what you believe. No more, no less. So you must make it believable for you. Set goals that will make you move forward and stretch, but not too high that even you yourself don't believe you can . Take the biggest step you believe you can, achieve it, then take the next biggest you believe you can. This will build positive reinforcement in your self-confidence as well. 01/15/11 MANISH
  61. 61. THEY NEVER ACT !! They never start . Ok, this is obvious. If you keep thinking about it forever, it will forever remain in the thought level. You have to act! Start somewhere, anywhere! Only after you start do you begin to get some feedback which will help you plot your course better. The aircraft has to first take off before it starts to adjust course for its destination. You must start, somewhere, anywhere, doesn't matter, just start! Act, Act, Act !!! 01/15/11 MANISH
  62. 62. They never make it a must . It means marshalling all your intent, your will, and your direction, into one singular flow that is directed towards your goal. All obstacles are viewed as challenges to be overcome. You will meet obstacles, and so expect it, but also expect to move forward anyways. Use your obstacles to develop strength and skills, don't run away. Find out how to go past them. Find out! There is always a way, always. And if your emotions are acting against your desire, embrace them, learn what they are, know yourself, but keep moving forward . Make it a must, and it will happen. Guaranteed. You don't know in how many steps it will take, but you know it will happen. 01/15/11 MANISH
  63. 63. They don't have a realistic plan . If you want to do something, find out how it is done from someone who has done it before . Make a realistic plan. But don't throw away your intuition. Your intuition is extremely powerful once you learn how to listen to it with practice. 01/15/11 MANISH
  64. 64. If they have a realistic plan, they never follow through on the plan. Well, if you don't follow the plan, who will? 01/15/11 MANISH
  65. 65. They give responsibility to others (&quot;experts&quot;) instead of to themselves . This way, they never really learn how to do it, and if there are failures they never learn why the failures happened and so they are bound to repeat them. It is a good idea to get advice, but do it yourself. At least understand it yourself even if you will delegate the actual doing. 01/15/11 MANISH
  66. 66. They give up when they face challenges . Going through the challenges is what has made people rich, not giving up. Look, there are always challenges. So get used to that. All challenges are opportunities dressed in work clothes . After the challenge is over, you will discover the amazing fruit it held for you. 01/15/11 MANISH
  67. 67. They fail to conduct their lives as a business ; they never ensure that they make a profit year by year. You need to have budgets and cash flow statements for your personal finances and your businesses. If you don't keep records and track, you wont know when you are making or losing money until it is embarrassingly too late. 01/15/11 MANISH
  68. 68. They allow other people's ideas to affect their decisions unreasonably. There will always be people who don't believe in your way, or who are pessimistic, who try to pull you down. And they will sometimes be your closest friends and family. You cannot change that - they have a right to be who they are. It is OK. Allow them their thoughts, don't judge them for that, but don't feel obligated to accept their thoughts of following their way. Don't allow other people, now or from the past, unreasonably affect your decisions. Allow them their way, and you live your way. 01/15/11 MANISH
  69. 69. They don't get quality coaching You need to keep learning . The most successful people attend seminars, read books, join mastermind groups and clubs, and find mentors, network, and even hire expensive personal coaches to make sure they succeed. 01/15/11 MANISH
  70. 70. Now, our 1 st Segment is over. Let’s get down to our 2 nd Segment as ways to managing money . 01/15/11 MANISH
  71. 71. Let Me Tell You That The Key To Financial Success Is The Ability To Manage Properly Whatever Money You Have. 01/15/11 MANISH
  72. 72. Anyone can be Millionaire!! 01/15/11 MANISH
  73. 73. Anyone and everyone can be millionaire, if they start early enough through the Power of compounding . 01/15/11 MANISH
  74. 74. If you invest Rs. 1000/- p.m. @12% for 35 years the amount you will get at the end of 35 th year is staggering Rs. 64 lacs!!! 01/15/11 MANISH
  75. 75. This is how the Power of compounding . Chart looks 01/15/11 MANISH
  76. 76. Now my personal Money Management System Let’s say you earn Rs. 10000/- p.m. Here is a break up A 10% FFA B 10% EDUC-ATION C 5% EMERG. FUND D 10% CHARITY E 10% PLAY A/C F 55% NECESSITY 1000/- 1000/- 500/- 1000/- 1000/- 5500/- 01/15/11 MANISH
  77. 77. <ul><li>Now lets see them one by one : </li></ul><ul><li>10% FFA (Financial Freedom Account) you are not allowed to touch this account. This is the account for Financial Freedom (long term). 0nce amount goes into this, this account is locked. </li></ul>01/15/11 MANISH
  78. 78. <ul><li>10% EDUCATION : I am very adamant on this point. This is universal law that you either grow or die. You should spend 10% on honing your skills. Acquire new skills, read more books, learn. Your financial , spiritual and mental growth depends on your skills . Spend on books, trainings, seminars and commit to perpetual learning. Your income will increase beyond any limits. Continuous education is must. </li></ul>01/15/11 MANISH
  79. 79. 5% EMERGENCY FUND : 5% of your income should go into this. This amount is to be withdrawn only in case of extreme emergency 01/15/11 MANISH
  80. 80. 10% CHARITY FUND : 10% of your income should go into charity. You are here for a purpose. As a rule whatever you give comes back to you multiplied. So commit yourself to charity for a noble cause. 01/15/11 MANISH
  81. 81. 10% PLAY ACCOUNT : Life is enjoyment. You are allowed to blow away this amount in whatever manner you like. Movies, vacations, outings, hoteling whatever manner you like. But make sure that you blow away the entire amount in the same month. No savings on this one. 01/15/11 MANISH
  82. 82. 55% on your necessities : This amount should cover all your necessary expenditure. Your grocery bill, electricity bill, telephone, mobile bill, necessary clothing, school fees all necessary expenditure. If you cannot manage your expenditure within this limit, simplify your life, but never let your necessary expenditure go beyond 55% of your income. 01/15/11 MANISH
  83. 83. Now let me explain the point (A) FINANCIAL FREEDOM ACCOUNT – 10% i.e. Rs. 1000/-. Let’s divide it into 3 parts:- 01/15/11 MANISH
  84. 84. 01/15/11 MANISH
  85. 85. 01/15/11 MANISH
  86. 86. 01/15/11 MANISH
  87. 87. Let us analyse all of them one by one: INSURANCE Many people view insurance policies as protection against worst case scenarios . Others may see them as protectors of assets , incomes and private wealth from loss, damage or liability from litigation. But insurance can also play an important role as an active method of investment , possibly providing both capital growth and future income . It also has a very important role to play in retirement and estate planning . 01/15/11 MANISH
  88. 88. Advantages of Insurance: Coverage of Risk on the life Creation of Estate immediately. Capital Growth Future Income Children’s Education and marriage. Tax Planning Specific goals, such as your children's education, can be pursued through the payments received from a life endowment plan, or ensured in the event of the death of a parent by a term or whole life policy. 01/15/11 MANISH
  89. 89. TYPES OF INSURANCE Life insurance, Health insurance, Car insurance, Building insurance, Home content insurance, Travel insurance and even disaster insurance of all kinds. The main types of insurance are explained below: 01/15/11 MANISH
  90. 90. TYPES OF INSURANCE 01/15/11 MANISH LIFE INSURANCE NON LIFE INSUR ANCE -INDIVIDUAL INSURANCE -GROUP INSURANCE
  91. 91. 01/15/11 MANISH INDIVIDUAL INSURANCE Insurance covering risk of unfortunate /early death. Insurance covering cost of medical treatment (Health Insurance) Insurance covering risk of living too long (Annuities)
  92. 92. <ul><li>Insurance covering risk of premature death ……. </li></ul><ul><li>Pure risk called term insurance </li></ul><ul><li>Risk cover + Investment + Savings (with profit policy) </li></ul><ul><li>Risk cover + Savings (without profit policy). </li></ul>0n the basis of term Life Insurance can be divided into: 01/15/11 MANISH ON THE BASIS OF TERM/PERIOD ENDOWMENT WHOLE LIFE
  93. 93. 01/15/11 MANISH ENDOWMENT WHOLE LIOFE These policies have fixed maturity date . Premiums are to be paid for certain no. of years. These policies can be with profit (i.e. eligible for bonus) or without profit policy (not eligible for bonus). However, maturity amount is fixed. This type of policy is very suitable for low risk investment plus insurance. In these policies the amount is payable on death only . Premiums however, are to be paid for certain no. of years. Such policies are more suitable for creating estate for the family.
  94. 94. Risk cover + Investment + Savings (with profit policy) In such policies the policyholder is paid Bonus for each year of policy term. Risk cover + Savings (without profit policy). In such policies Bonus is not payable however sum assured is payable at the end of the term or in the event of Death w.e.is earlier. 01/15/11 MANISH
  95. 95. Insurance covering cost of medical treatment (Health Insurance ) Health Insurance : In this type of policy cost of medical treatment will be borne by the Insurance company. The amount of medical benefit will depend on the coverage opted for. If your employer does not provide for medical benefit such type of insurance policy is a must for you and your family. Never… never… never ignore this … 01/15/11 MANISH
  96. 96. Insurance covering risk of living too long (Annuities) These policies cover the risk of living too long. With the advancements of Medical technology and better standard of living life span has increased considerably. On an average people live atleast 15 -20 years after retirement. These policies cover the financial needs of these people. 01/15/11 MANISH
  97. 97. These policies come in two variants: 01/15/11 MANISH Immediate Annuity Deferred Annuity. Under Immediate Annuity a lump sum amount is to be deposited and the annuity is payable immediately from the next month, quarter, half-year or Year as per option chosen. It comes under various benefit options In this type the amount may be paid in lump sum or at periodic intervals, however Annuity vests after certain no. of years. For e.g. my Age is 35. If I take Deferred annuity with deferment period 10 years I will pay premium for 10 years and then policy will vest and annuity will commence after the 10 th year. I may pay amount in one lump sum however, annuity will commence after the 10 th year only.
  98. 98. Post office Recurring Deposit Account (RDA) The scheme is meant for investors Who want to deposit a fixed amount every month , in order to get a lump sum after five years. The scheme, a systematic way for long term savings, is one of the best investment option for the low income Groups.  01/15/11 MANISH
  99. 99. Post Office Monthly Income Scheme   The post-office monthly income scheme (MIS) provides for monthly payment of interest income to investors. It is meant for investors who want to invest a sum amount initially and earn interest on a monthly basis for their livelihood.  The MIS is not suitable for an increase in your investment . It is meant to provide a source of regular income on a long term basis. The scheme is, therefore, more beneficial for retired persons .  01/15/11 MANISH
  100. 100. Public Provident Fund : This is also one of the safest investments. PPF account can be opened with SBI or any of it’s Subsidiary or post office or any other office authorized by the Central Govt. You can invest not less than Rs.500/- and not more than Rs.70000/- in any financial year. Fixed interest is paid on the Investment. 01/15/11 MANISH
  101. 101. Bank savings: Savings account Current Account Fixed Deposit Account 01/15/11 MANISH
  102. 102. BONDS AND MONEY MARKET INSTRUMENTS A bond is a form of loan taken out by a government or a company . A money market instrument is also a loan to be repaid, with the difference being that a bond is a debt outstanding for a longer period than a money market instrument. A bond is also a kind of binding pledge or promise . 01/15/11 MANISH
  103. 103. Bonds are issued for a set period of time before they 'mature', or fall due for repayment. Bonds usually have a set interest rate (although a few have a 'floating rate' which changes with market interest rates) and thus most will pay out an easily calculated amount at regular intervals, usually twice per year. Although bonds have a 'face value', which represents the amount which is to be paid back to the investor at the end of the period, bonds trade at different prices than the face value. The difference results, in part, from changes in market interest rates and changes in the perceived risk that the company - or even a government – will 'default' on the bond, refusing to pay back the amount owed. 01/15/11 MANISH
  104. 104. ROLE OF BONDS They pay out a regular income Lower risk than shares Conservative or income-focused portfolio of investments. They are considered as 'fixed income' instruments , since the interest rate is fixed and paid out on a regular basis. Bonds are not fixed in price, however. Prices can go up or down over the life of a bond, due to factors related to the company (risk) and markets (primarily ^interest rates). The price of a bond traded in the market can thus provide capital gain or loss as market interest rates go up and down, just like shares in a company. 01/15/11 MANISH
  105. 105. TYPES OF BONDS Sovereign bonds : One of the biggest bond markets is the government bond market. These are seen as the safest investment around and pay a relatively low interest rate.   Municipal and other government bonds : The next category of bonds, which traditionally carry more risk than central government bonds are municipal bonds.   Corporate bonds : The corporate bond market provides long term finance to corporations, usually large ones, who wish to avoid the costs, fees and confining terms of a bank loan.   Junk bonds : Technically known as 'non-investment grade' bonds, junk bonds are high risk, pay high interest rates and have relatively little security. 01/15/11 MANISH
  106. 106. Zero coupon bonds : Zero coupon bonds do not pay interest either, but work on an interest-based calculation. A zero coupon bond is sold at a big discount to its face value and hence grows in value until maturity, at which time the issuing company will pay back the owner of the bond a lot more than it received from the investor when the bond was sold. The increase in value replaces interest as a form of payment for the loan. For example, a long-term zero coupon bond with a future value of Rs.100 could be sold today for Rs.50. The owner would not receive any interest payments the Rs. 50 would turn into Rs.100 over time and the owner would be paid in one big chunk at the end instead of lots of little payments along the way and a smaller lump sum at the end. Since there are no interim payments, the 'coupon' is zero and hence the name of 'zero coupon' bond 01/15/11 MANISH
  107. 107. Convertible bonds : Bonds can carry other additional features. Some can be redeemed at any time; others can be converted at a set rate into ordinary shares of a business. These are called 'convertible bonds' since they receive interest like a bond and can also be converted into shares when the bondholder chooses. RATINGS Safest :AAA Safe:AA Etc. 01/15/11 MANISH
  108. 108. MONEY MARKETS Although similar in many other ways to bond markets, money markets offer short-term financial instruments in which you can invest. Money market products have names like 'treasury bills' and 'commercial paper'. Treasury bills are government IOUs with a less than one year maturity. Commercial paper mature in less than nine months (270 days), reflecting the length of maturity at which debt issuers need to register their securities with the Securities and Exchange Commission. 01/15/11 MANISH
  109. 109. So if you forgot we were talking about our first bucket FFA( Financial freedom Account) Security Bucket. The amount invested here is safe investment however returns are lower. Now that we have security in place . Let go in for high return Growth Investment. Because our objective is not be financially sufficient but to be financially abundant 01/15/11 MANISH
  110. 110. 01/15/11 MANISH
  111. 111. This is the Second bucket of the FFA. THE amount to be put in this bucket depends on your age group your family liabilities your current financial condition etc. The investment here is bit risky but the returns you will get is high. 01/15/11 MANISH
  112. 112. 1 st is Investing in Stocks . Stock market is risky place let me tell you this. 99% of the retail investors are losers in the stock market. But there are certain reasons why they lose. If you can learn the game of the stock market this market can give you tremendous returns. 01/15/11 MANISH
  113. 113. Don’t take speculative positions in the stock market. This is the single most reason why people lose money in the stock market. You are not speculators. You are investors. 01/15/11 MANISH
  114. 114. Take quality advice.. But do it yourself. No one bothers about your money than you do. Know what you are doing. 01/15/11 MANISH
  115. 115. To me stock market is not risky any longer. Let me tell you why ? 01/15/11 MANISH
  116. 116. 01/15/11 MANISH
  117. 117. 01/15/11 MANISH
  118. 118. The above charts indicate that if you stay invested long enough in the stock market and do not get scared away you can make in excess of 15 % p.a. which over a period of 15 to 20 years covert into massive wealth. Trading in Derivatives, Forex, and commodities require special skill hence retail investors should avoid it. 01/15/11 MANISH
  119. 119. Another tool is investing systematically in Mutual funds. Let me tell you in brief about the Mutual Funds: MUTUAL FUNDS A mutual fund or unit trust is a collective investment approach whereby a fund manager buys a portfolio of shares with a common theme on behalf of investors. The difference between a mutual fund and a unit trust is purely a legal difference - one is legally a fund and the other a trust – but they operate the same way from an investor's perspective. 01/15/11 MANISH
  120. 120. Once the mutual fund (or unit trust) is set up, investors are free to buy and sell shares in the mutual fund as they go along, thus preserving liquidity (the ability to sell an investment on short notice and realise cash) and, historically, providing less risk (because of a more diverse set of holdings), a common investment theme (for example by investing only in small cap growth companies) and superior returns over time when compared to savings accounts or money market certificates. Although most mutual fund shares can be sold for cash with little notice, this form of investment is riskier than savings. You can lose some of the value of your capital if the market drops or if the mutual fund you select does not choose its portfolio of shares wisely. 01/15/11 MANISH
  121. 121. HOW DOES A MUTUAL FUND WORK? When you buy shares in a mutual fund or unit trust, you are actually buying a tiny percentage of the full range of shares owned by that particular fund or unit trust. Mutual funds and unit trusts are run by professional managers who define a theme for each portfolio and then select appropriate shares to fit that theme. This allows you to focus on a professionally selected group of shares with a common theme, requiring only a small investment and relatively little effort on your part. By participating in a portfolio of shares with a common theme, you are able to invest in line with a specific investment goal - for example capital growth or high income – without having to analyse a wide range of individual shares. In addition to making life easier on the analytical front, mutual funds allow you to reduce your risk through a more diversified holding than you would be likely to achieve on your own. 01/15/11 MANISH
  122. 122. There are three main groups of mutual funds: Equity funds, Bond funds and Money market funds, plus numerous subcategories under each heading. 01/15/11 MANISH
  123. 123. HOW SHOULD I CHOOSE THE BEST FUND? Purchase through a reputed fund manager: Go to a trusted financial adviser or broker: Check the ratings: 01/15/11 MANISH
  124. 124. YOU MAY ALSO CONSIDER INVESTYING IN REAL ESTATE AND GOLD THEY ALSO PROVIDE GOOD OPPORTUNITIES OF GROWTH OF CAPITAL . BUT DO IT WITH CAUTION. 01/15/11 MANISH
  125. 125. 30% 30% You must be wondering why that 3 rd bucket is ________ So let me explain you: 01/15/11 MANISH SECURITY INSURANCE BONDS PPF BANK DEPOSITS DEBT FUNDS FIXED INCOME SECURITIES GROWTH STOCKS FOREX COMMODITY MUTUAL FUNDS REAL ESTATE DREAM /GOALS Cars Expensive Clothings All luxury items A.C. LCD TV etc.
  126. 126. Whatever profit you earn in your growth investment transfer 30% of it in your security bucket, the amount here grows slowly but surely. 30% of profit to be transferred to your dream bucket. This bucket contains only the amount transferred from your growth bucket. This amount is to be utilized for fulfilling your dream projects. E.g. cars, clothes, watches, dream home, jewellery etc. That was all about our FFA bucket. 01/15/11 MANISH
  127. 127. The second bucket that we have is education bucket . Spend 10% of your income on self improvement, spend on books buy books and do not keep in the book self read them, apply them, acquire new skills get quality coaching and your wealth and your life will explode beyond your wildest imagination. The third bucket that we have is emergency bucket . Set aside 5 % of your income for emergencies. Do not touch the amount unless you have exhausted all your resources. 01/15/11 MANISH
  128. 128. The fourth bucket is your Charity Bucket . Spend 10% of your income for a Nobel cause. This will bring miracles in your life, whatever you give comes back to you many times, apart from that, and you will have peace of mind and a sense of satisfaction and fulfillment. The fifth bucket is your Play account . Blow away 10% of your income on anything you like, clothes, movies, hoteling vacations etc. make sure you spend the entire amount. Blowing away this account is must to reprogram your subconscious mind for attracting abundance. So blow this away.. Blow ..blow.. Blow… 01/15/11 MANISH
  129. 129. Your Sixth bucket is your necessities bucket . 55% of your income belongs to this bucket. No more no less, all your necessary expenditure should come from this. Groceries, bills, fees, necessary clothing’s, etc. If the amount is not sufficient to cover your necessities simplify your life. You are not allowed to spend a penny more than 55%. 01/15/11 MANISH
  130. 130. That’s all about creating financial wealth, but friends let me tell you that financial wealth is one kind of wealth out of five kinds of wealth. If you have only the financial wealth and any of the other kinds of wealth are missing from your life you are Rich only but not wealthy in true sense. 01/15/11 MANISH
  131. 131. So, here are our five kinds of wealth. Economic/Financial Wealth - This we have already discussed in this session. Relational Wealth- This is the second kind of wealth. If you don’t have good relations with other people money is of very little value. To increase this wealth try improving your relations with other people. Treat people with love, kindness and respect. Try to understand their point of view. 01/15/11 MANISH
  132. 132. Health - Third form of wealth is your health. You have lot of money but if you are not in good health, you cannot enjoy your wealth. Work on improving your health. Exercise daily, do yoga and pranayama, go for a walk, have peace of mind, think good thoughts. Eat good foods, eat more of a hydrated foods, avoid three white poisons (Sugar, salt and White flour). Eat more of the alkaline food. Wheat grass juice, green tea, figs raisins eat them in plenty 01/15/11 MANISH
  133. 133. Adventure : Have fun, listen to music, play with your kids, do something new, enjoy the life, be childish at times. Wake up early. Do mediation. Travel and do things you are afraid of doing. Contributional wealth - We are here for a purpose. Make some contribution to the world, to your community, to your organization, to your family and to your friends. Volunteer for a noble cause. 01/15/11 MANISH
  134. 134. You are wealthy in truest sense when you have all the five forms of wealth. I am sure applying these principles you will attract financial abundance in your lives. 01/15/11 MANISH
  135. 135. Thank you, Best luck.. Manish.. 01/15/11 MANISH

×