Personal finance young_adults

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Myths and Realities of Personal
Finance
The Finerva approach for Young Adults

What are your dreams?
DreamBIG
Dream in COLOURS
Dream with Smells
Dream how you Feel
Dream what you think
Dream about the peoplearound you

WRITE YOUR DREAMS IN THE
WORKSHEET

This workshop aims
• To help you Refine your
dreams
• To help you Achieve
your dreams

What has been your short term goal?
• Finish your Course
with good marks
• Get a good job
• Get a very good salary

What do you plan to do with your first salary?
Fill the Worksheet titled “My First Budget”

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.

Convert the Dreams to Goals
S - SPECIFIC
M - MEASURABLE
A - ACHIEVABLE
R – REALISTIC
T- TIME BOUND

Clarifications on Goals ???

Set Your Goals
• We are in this workshop
concerned with the financial side
of your goals.
• Convert your goals to financial
numbers.

Meditate

Use the worksheet
“ My SMART Goals”

Achieving the Goals
• Planning - Today
• Implementation - Today
• Reviewing
• Fine tuning
• Achieving

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

Break the Myths
• What are Assets?
• Please fill the worksheet
–“What are Assets?”

Myth: Any investment with an element of
risk is bad
• Other factors also to be considered while
investing
– Returns
– Liquidity
– Valuation Visibility
– Taxation

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

Calculate your Pension requirement using the
“Retirement Planner Worksheet”

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”

Myth: My house is my best asset
• Read the content
“My House – Rent
or Buy?”
–Cash flow diagram
–How can they be
assets?

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?”

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

…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.

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”

–Queries
–Feedback

Thank You

Personal finance young_adults

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