This document provides strategies for wealth creation and management. It discusses key concepts like assets, liabilities, growth, risk, and definitions of wealth. Specific investment options are outlined like equity, bank deposits, and mutual funds. The mantra emphasized is to start investing and taking advantage of compounding returns early. Wealth is defined as being able to sustain one's lifestyle without working through liquid assets and passive income exceeding monthly expenses.

1. Strategies for Wealth Creation & Management

2. The basics first Make a list of the following

3. The Basics again… What are Assets / Liabilities for Personal Wealth Creation? One that gives a POSITIVE CASH FLOW IS AN ASSET Others are Liabilities / Expenses.

4. What is growth / return? Time Value for Money Relative Growth Nominal Interest Rate Vs EffectiveInterest Rate

5. What is Risk? Actual Returns Vs Expected returns

6. What is Wealth?

7. Take 2 minutes. Close your eyes and imagine a wealthy person. Write what you see.

8. A person's wealth is defined by how long a period of time he/she can sustain their lifestyle if they stop working.

9. The longer you can go on living your life without working another day, the richer you actually are.

10. Your wealth is therefore defined by three things Your monthly expenses, Your liquid assets and Your passive income.

11. The Mantra TIME Start early Use the power of compounding

12. Where do I Invest? EQUITY Current Yield – Low Capital Appreciation – High Typical Returns - 19.25% as per SENSEX returns since 1979 Risk – High Marketability / Liquidity – High Tax Treatment - No long term capital gains tax after 365 days. Dividends received are tax free Convenience - High

13. Where do I Invest? BANK DEPOSITS Current Yield – Moderate Capital Appreciation – Nil Typical Returns - 8% Average Risk – Negligible Marketability / Liquidity – High Tax Treatment - Section 80C benefits for 5 year deposit. All interests are taxable Convenience - Very High

14. Where do I Invest? MUTUAL FUND - EQUITY Current Yield – Low Capital Appreciation – High Typical Returns - 39% Average over 3yrs Highest return - 69% Risk – High Marketability / Liquidity – High Tax Treatment - Section 80C benefits for Equity Linked Savings Schemes. No long term capital gains tax after 365 days. No tax on dividends received. Convenience - Very High

15. If spending money brings you enjoyment, you will never be rich.However if making money brings you enjoyment, then your wealth isguaranteed.