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Personal finance young_adults


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Personal finance young_adults

  1. 1. Myths and Realities of Personal Finance<br />The Finerva approach for Young Adults<br />
  2. 2. What are your dreams?<br />DreamBIG<br />Dream inCOLOURS<br />Dream withSmells<br />Dream how youFeel<br />Dream what youthink<br />Dream about thepeoplearound you<br />
  4. 4. This workshop aims<br />To help you Refine your dreams<br />To help you Achieve your dreams<br />
  5. 5. What has been your short term goal?<br />Finish your Course with good marks<br />Get a good job<br />Get a very good salary<br />
  6. 6. What do you plan to do with your first salary?<br />Fill the Worksheet titled “My First Budget”<br />
  7. 7. The way forward…<br />Check if your first salary has contributed in any way towards your dreams<br />Don’t let even one day pass without doing something to make your dreams come true.<br />Many dreams have remained just that for the lack of direction and action.<br />
  8. 8. Convert the Dreams to Goals <br />S - SPECIFIC<br />M - MEASURABLE<br />A - ACHIEVABLE<br />R – REALISTIC<br />T- TIME BOUND<br />SMART<br />
  9. 9. Clarifications on Goals ???<br />
  10. 10. Set Your Goals <br />We are in this workshop concerned with the financial side of your goals.<br />Convert your goals to financial numbers.<br />
  11. 11. Meditate<br />
  12. 12. Use the worksheet <br />“ My SMART Goals”<br />
  13. 13. Achieving the Goals<br />Planning - Today<br />Implementation - Today<br />Reviewing<br />Fine tuning<br />Achieving<br />
  14. 14. Planning<br />Know your beliefs<br />Safest option in life is to get a secure job and stay <br />Only doctors make a lot of money<br />Sale! Sale! I buy always when there is a sale<br />I will never understand how investing works<br />They have a big house, they must be rich…<br />There is not enough money for everyone to be rich<br />People who make mistakes are stupid<br />Fixed deposits are safer than stocks<br />I will never be rich…<br />Investing in stocks is gambling. <br />Only crooks become crorepathis<br />
  15. 15. Break the Myths<br />What are Assets?<br />Please fill the worksheet<br />“What are Assets?”<br />
  16. 16. Myth: Any investment with an element of risk is bad<br />Other factors also to be considered while investing <br />Returns<br />Liquidity<br />Valuation Visibility<br />Taxation<br />
  17. 17. Myth: I will get pension when I retire I am too young – I don’t need retirement planning.<br />Expenses at the time of retirement<br />Skill set for retirement<br />Power of Compounding<br />Please see the content – “Retirement Planning – The earlier the better<br />
  18. 18. Calculate your Pension requirement using the“Retirement Planner Worksheet”<br />
  19. 19. Belief: I don’t believe in Insurance<br />Do you love your family members?<br />Is it only till you are alive or till they are alive<br />Please use the worksheet “Insurance Requirement Planner”<br />
  20. 20. Myth: My house is my best asset<br />Read the content “My House – Rent or Buy?” <br />Cash flow diagram <br />How can they be assets?<br />
  21. 21. Myth: Gold jewels are an investment<br />Cost of procurement, cost of disposal<br />Growth in value only covers inflation<br />Read the content “Is Gold Really an Investment?”<br />
  22. 22. Implementing <br />Pay Yourself First<br />Love money – Be a Money Magnet<br />Take care of your health<br />Decide based on Cash Flow<br />Why do you think Warren Buffet bought a used Rolls Royce 6 months ago? <br />Why do you think Tata Steel bought Corus rather than build a company on its own?<br />Why do you think Jet Airways leased its aircrafts when it began its business?<br />Remember<br />Income – Investment = Expenses<br />
  23. 23. …Implementation<br />Wealth <br />Is not what you earn<br />It is not the place that you live in<br />It is not the way you spend<br />It is the time period for which you can maintain a given life style, without a salary.<br />
  24. 24. Prepare a Revised Budget<br />Enter your expenses based on your priorities for goals<br />Make a list of tasks / cost items which you are postponing for latter.<br />Use the worksheet “My Revised Budget” <br />
  25. 25. Queries<br />Feedback<br />
  26. 26. Thank You<br />