This document discusses managing personal finances after receiving a first pay cheque. It provides tips on budgeting, saving for emergencies and life goals through tools like EPF, insurance, NPS, mutual funds and more. The key messages are that financial planning and discipline are essential to reach life goals and ensure financial security over the long run. Savings tools like EPF, NPS, ELSS funds offer tax benefits and can generate significant returns over time to fund retirement if contributions are made regularly from an early age.

1. PAY CHEQUE
Your first
6
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2. CONGRATULATIONS!!
LET'S TALK
ABOUT HOW YOU
MANAGE YOUR
MONEY
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3. will be determined by
WHETHER YOU WILL
REACH YOUR LIFE GOALS?
How much you earn?
How you spend?
How you save?
Where you invest?
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4. LIFE G ALS
Paying off your student loan
Starting your own business
Buying a car, your dream house
Going on a vacation
Your marriage, starting a family
Retirement, etc.
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5. Open an emergency savings bank account
Emergencies are unpredictable
Should cover at least 3 to 6 months of your
expenses
Set aside a small amount every month
Only use in case of an emergency.
Start rebuilding the fund immediately, if
used
Compulsory saving
EPF enables you to enjoy your retirement
12% of your salary and a matching
contribution from employer
Contribution has tax benefits
You can also open a PPF account
Emergency Savings Account
Employees Provident Fund
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6. AGE
MONTHLY BASIC SALARY
YOUR CONTRIBUTION (%)
EMPLOYER'S CONTRIBUTION (%)
AVERAGE ANNUAL INCREMENT (%)
RETIREMENT AGE
AVERAGE EPF INTEREST RATE (%)
25
Rs. 10,000
12
3.67
5
60
8
Approx. 78.5 lakh
EPF CASE STUDY
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7. LIFE AND HEALTH INSURANCE
insurance is a risk management tool
Don’t expect monetary returns and buy the
wrong policy
Never neglect health insurance
Your age is a major factor in calculation of
premium. Buy early.
Carefully consider all options before buying.
Buying these insurance has tax benefits
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8. HOW MUCHINSURANCE SHOULD YOU BUY?
One size fits all - does not apply
Life cover - At least 10 time your annual
gross salary
Health cover - 50% of your annual income
plus last 3 years expense on health
Important to increase cover amount based
on your income, health condition and
medical inflation
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9. KEY POINTS
Insurance is not investment
Buy term life insurance
Consider claim payout ratio
before buying
Buying online can save you
some premium amount
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10. AROUND 2% RETIREES ARE TRULY
FINANCIALLY FREE
WHERE DO YOU WANT TO BE?
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11. DON'T LET YOUR
LIFE BECOME A
STORY LIKE THIS
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12. NATIONAL PENSION SYSTEMNational Centre for Financial Education | 99

13. Eligible for all Indians (including NRIs)
Age group 18 to 60
Portable unique PRAN
Tax benefit u/s 80CCD upto 2 lakhs
Flexible investment options include equity,
corporate and government bonds
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14. Eligibility
PARTICULARS
Min annual contribution
Min amount per contribution
Liquidity
Tax benefit
TIER I ACCOUNT TIER II ACCOUNT
All Indians ( age 18 to 60)
Rs. 6000/-
Rs. 500/-
Conditional
Up to 2 lakhs u/s 80CCD
Members of Tier I
Rs. 1000/-
Rs. 250/-
Any time
No
NPS ACCOUNT DETAILS
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15. fullertonbotanic.com
Only 20% can be
withdrawn; rest 80% to
be used for buying an
annuity for monthly
pension.
Before 60 years
Can withdraw upto
60%; rest 40% to be
used for buying an
annuity for monthly
pension.
After 60 years
Nominee can withdraw
all the money at one go
or can continue with the
scheme.
In case of death
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17. CASE STUDY
Age (in years)
Monthly investment in NPS (in Rupees)
Retirement age (in years)
Return (last 5 years avg % return in scheme C)
Total corpus amount (in Rupees)
Amount for purchase of annuity at 40% (in Rupees)
Assumed annuity rate (in percentage)
Monthly pension amount (in Rupees)
Withdrawal on maturity at 60% (in Rupees)
25
60
5,000
11%
2,48,67,363
99,46,946
1,49,20,417
8%
66,313
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18. INVESTMENT IN
MUTUAL FUNDS
Equity Linked Savings
Scheme (ELSS)
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19. MUTUAL FUND
is a convenient way
through which we can invest
in most type of assets.
Stocks
Bonds
Gold
Real Estate
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20. Professional expertise: Investing requires knowledge and skills
Convenient: With bank a/c and pan card you are ready to invest
Diversification: Manages risk by investing in different companies/assets
Low cost: Advantage of economies of scale
Transparent: Regulated by Securities and Exchange Board of India
Liquidity: Getting in and out with relative ease
Affordable: Minimum investment requirement is as low as Rs. 500/-
Long term growth: Potential for higher return that beats inflation
Tax benefit: ELSS are tax saving mutual funds
BENEFITS
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21. SAVE TAX.
BUILD WEALTH.
EQUITY LINKED SAVINGS SCHEME
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22. Minimum 65%
allocation to
equity
Tax saving upto
1.5 lakh u/s
80C
Long term
wealth creation
Min investment
Rs. 500 and 3 yrs
lock-in
ELSS Even out market volatility through SIP
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23. PPF NSC INFLATION**ELSS*FD
7.9% 7.9% 7.7% 17.13% 7.16%
ELSS and other tax saving schemes
COMPARISON
*Crisil-AMFI ELSS fund performance index five year annualized return, Crisil Website
** 5 year average of annual Consumer Price Index (2012-16), RBI Website
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24. While you have much to look forward to,
your transition to post-college life...
...there is one key to reaching all your financial
and most of your life goals.
BUDGET
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25. thank you.
let's create a financially aware and empowered india.
Connect with us:
Facebook.com/ncfeindia | Twitter.com/ncfeindia
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