Personal finance young_adults

465 views

Published on

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

No Downloads
Views
Total views
465
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
15
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Personal finance young_adults

  1. 1. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Myths and Realities of Personal Finance The Finerva approach for Young Adults
  2. 2. www.finerva.com | support@finerva.com | +91-9787-11-11-66 What are your dreams? DreamBIG Dream in COLOURS Dream with Smells Dream how you Feel Dream what you think Dream about the peoplearound you
  3. 3. www.finerva.com | support@finerva.com | +91-9787-11-11-66 WRITE YOUR DREAMS IN THE WORKSHEET
  4. 4. www.finerva.com | support@finerva.com | +91-9787-11-11-66 This workshop aims • To help you Refine your dreams • To help you Achieve your dreams
  5. 5. www.finerva.com | support@finerva.com | +91-9787-11-11-66 What has been your short term goal? • Finish your Course with good marks • Get a good job • Get a very good salary
  6. 6. www.finerva.com | support@finerva.com | +91-9787-11-11-66 What do you plan to do with your first salary? Fill the Worksheet titled “My First Budget”
  7. 7. www.finerva.com | support@finerva.com | +91-9787-11-11-66 The way forward… • Check if your first salary has contributed in any way towards your dreams • Don’t let even one day pass without doing something to make your dreams come true. • Many dreams have remained just that for the lack of direction and action.
  8. 8. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Convert the Dreams to Goals S - SPECIFIC M - MEASURABLE A - ACHIEVABLE R – REALISTIC T- TIME BOUND
  9. 9. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Clarifications on Goals ???
  10. 10. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Set Your Goals • We are in this workshop concerned with the financial side of your goals. • Convert your goals to financial numbers.
  11. 11. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Meditate
  12. 12. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Use the worksheet “ My SMART Goals”
  13. 13. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Achieving the Goals • Planning - Today • Implementation - Today • Reviewing • Fine tuning • Achieving
  14. 14. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Planning • Know your beliefs – Safest option in life is to get a secure job and stay – Only doctors make a lot of money – Sale! Sale! I buy always when there is a sale – I will never understand how investing works – They have a big house, they must be rich… – There is not enough money for everyone to be rich – People who make mistakes are stupid – Fixed deposits are safer than stocks – I will never be rich… – Investing in stocks is gambling. – Only crooks become crorepathis
  15. 15. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Break the Myths • What are Assets? • Please fill the worksheet –“What are Assets?”
  16. 16. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Myth: Any investment with an element of risk is bad • Other factors also to be considered while investing – Returns – Liquidity – Valuation Visibility – Taxation
  17. 17. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Myth: I will get pension when I retire I am too young – I don’t need retirement planning. • Expenses at the time of retirement • Skill set for retirement • Power of Compounding • Please see the content – “Retirement Planning – The earlier the better
  18. 18. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Calculate your Pension requirement using the “Retirement Planner Worksheet”
  19. 19. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Belief: I don’t believe in Insurance • Do you love your family members? • Is it only till you are alive or till they are alive • Please use the worksheet “Insurance Requirement Planner”
  20. 20. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Myth: My house is my best asset • Read the content “My House – Rent or Buy?” –Cash flow diagram –How can they be assets?
  21. 21. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Myth: Gold jewels are an investment • Cost of procurement, cost of disposal • Growth in value only covers inflation • Read the content “Is Gold Really an Investment?”
  22. 22. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Implementing • Pay Yourself First • Love money – Be a Money Magnet • Take care of your health • Decide based on Cash Flow • Why do you think Warren Buffet bought a used Rolls Royce 6 months ago? • Why do you think Tata Steel bought Corus rather than build a company on its own? • Why do you think Jet Airways leased its aircrafts when it began its business? • Remember Income – Investment = Expenses
  23. 23. www.finerva.com | support@finerva.com | +91-9787-11-11-66 …Implementation • Wealth –Is not what you earn –It is not the place that you live in –It is not the way you spend –It is the time period for which you can maintain a given life style, without a salary.
  24. 24. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Prepare a Revised Budget – Enter your expenses based on your priorities for goals – Make a list of tasks / cost items which you are postponing for latter. • Use the worksheet “My Revised Budget”
  25. 25. www.finerva.com | support@finerva.com | +91-9787-11-11-66 –Queries –Feedback
  26. 26. www.finerva.com | support@finerva.com | +91-9787-11-11-66 Thank You
  27. 27. www.finerva.com | support@finerva.com | +91-9787-11-11-66

×