The document emphasizes the importance of starting early on the path to financial independence by establishing clear investment objectives and employing effective strategies. It highlights the impact of inflation on real income and the benefits of compound interest, illustrating that starting savings at a younger age can lead to significantly greater wealth accumulation. The overall message is to plan in advance and make informed investment choices to achieve financial goals.

1. First Steps towards
Financial
Independence
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2. Financial Independence
Financial Goal - I
● Start Early
● Establish clear investment objectives
● Identify your needs at different times of your life
●
Prepare an effective investment strategy for each
objective
● Decide on how much you can save regularly
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3. Financial Independence
Financial Goal - II
● Understand your risk taking capacity
● Don't put all your eggs in one basket
● Invest regularly
●
Monitor your Investment performance
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4. Financial Independence
Understand your Investment Objectives
● Capital Growth
●
Capital Preservation
●
Regular Income
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5. Financial Independence
Making the Right Choice
- Understanding the Basics
●
Inflation – and how does it impact returns?
● Nominal Income Vs Real Income
● The Power of Compounding
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6. Financial Independence
Inflation – its impact on you
Bread that used to cost Rs 7 in year 2000
costs Rs 13 in 2012
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7. Financial Independence
Nominal Income Vs Real Income
Nominal Income is your Return on Investment.
It is impacted both by Inflation & Taxes.
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8. Financial Independence
Real Rate of Returns from Investments
16 15
14
12
10 9
8
6 4.5
4
1.5
2
0
Return Inflation Tax Real Income
Nominal Return is 15% but the Real Return
due to the impact of Inflation & Tax is 1.5%
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*Assuming CAGR at 15%
(Compound Annual Growth Rate).

9. Financial Independence
Savings - Start Early
● Let the Power of Compounding work for you
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10. Financial Independence
Benefits of Starting Early- I
Savings Maya Max
Start age 25 yrs 30 yrs
Per month Rs 1,000/-
Wealth at age 60* Rs 14,86,08,456/- Rs 7,0,09,821/-
By starting early Maya is able to save double of Max's
Wealth.
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*Assuming CAGR at 15%
(Compound Annual Growth Rate).

11. Financial Independence
Benefits of Starting Early- II
Savings Maya Max
Per month Rs 2,000 Rs 9,000
From age 22-37 yrs 37-60 yrs
Amount at age 60* Rs 3,36,96,218 Rs 2,17,48,931
The benefits of starting early combined with the
Power of Compounding leads to more wealth in
the long run. Max saves more for a longer period
and yet accumulates less wealth.
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*Assuming CAGR at 15%
(Compound Annual Growth Rate)

12. Financial Independence
It's Your Decision
Plan in advance rather than leave it to chance.
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13. AbunDanze is enrolled as an AMFI Registered
Mutual Fund Advisor (ARMFA)
Under AMFI Registration No.: ARN-13377
Copyright August 2011:
Abundanze Wealth Management LLP.
All rights reserved.
Website:
abundanze.com
Email:
smile@abundanze.com
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