This document provides information on tools and strategies for creating wealth. It discusses cash flow, balancing return and risk, calculating needs through financial planning and insurance, creating a budget, and defining wealth as a function of expenses, liquid assets, and passive income. Myths about money and wealth are debunked. Mantras for wealth emphasize allowing time for investments to grow, spending less than you earn, and investing with clear goals.

1. Creating and Growing Wealth

2. FinervaFinerva = Finance + Minerva (Roman Goddess for Wisdom)IntroductionFinervaIndia’s First Company dedicated to Personal Finance Education

3. 3 core values:Simplifying Personal FinanceMake MeaningCreate Value

4. Tools to Create Wealth

5. Basics of Cash Flow

6. Is there a difference between assets for Companies and Individuals?

7. Asset Vs Liability Chart

8. Mark the table in your workbook appropriatelyTools to Create WealthCash Flow ChartApplying Cash Flow to Our LivesExchange of phonesApplying Cash Flow to Our LivesBike with high resale valueApplying Cash Flow to Our LivesHaving assets and heavy loansApplying Cash Flow to Our LivesHouse that we live inApplying Cash Flow to Our LivesVehicle loansApplying Cash Flow to Our LivesBorrowing for tax saving investmentTools to Create Wealth…BalancingReturn & Risk

10. RISK ?What is risk?

11. Any deviation from expectation is risk

12. Which has higher risk?

13. When I expected 10 % I got 9%.

14. I expected 35% I got 31.5%

15. I expected 100% I got 90%Which decision is better?An army general has 250,000 soldiers.Which decision is better?If he fights: The probability to lose 37,500 persons is 50%

16. The probability to lose 43,750 persons is 25%

17. The probability to lose 31,250 persons is 25%Which decision is better?If he retreats he will lose only 15% of his army.

18. Which decision will reduce the loss of lives?Risk…Is there zero risk?

19. No. That is why Countries are rated too.

20. Sometimes the sovereign rating can be lesser than some companies in the country. …Tools to Create Wealth

21. …Tools to Create WealthTools to meet my requirement

22. Comparision chart for different investments

23. Increase the sources of IncomeSources of Income Myth to break: Salary has to be my main source of income.Types of People – Employed, Self Employed, Businessman, Investor Be an Businessman / Investor Leverage OPM, OPTLeverage Technology

24. Calculating My Needs

25. Calculating My NeedsFinancial Planning Includes: Protecting our FamilyPlanning for our MilestonesPlanning for EmergenciesPlanning for RetirementPlanning for Estate

26. Protecting My Family

27. Protecting My FamilyDo I need Insurance?How much Insurance do I need?

28. Planning for My Milestones & RetirementHave I planned for My Children’s Education?My House?My Car?My Parents?My Business?My Retirement?

29. Milestone Planner Retirement Planner

30. Where is the money?I know I need to save. But where is the money?This month my in-laws were in townThe TV / Washing Machine / Fridge failed this month

31. Where is the money?Surprise hospital expense came upChild’s School Term Fees had to be paid

32. Where is the money?Soft Loan had to be repaidSurprise Trip from Company. Claim will take one month for reimbursement.Aadi Month / Deepavali / Ramzan / Chirstmas / Pongal / New Year / School Holiday Purchases

33. Budget – Myths And RealityWhat ever I plan does not work? So why plan?Budget – Myths And RealityA plan does not ensure that the goal is achieved.

34. Plan is required to first set a goal and then to remind you to reach it

35. And alert you when there is a deviation

36. A company has become big because they have a budget…Budget is for big companies.Any company has become big because it functioned on a budgetBudget Myths & RealityAnything on sale can be bought

37. A sale is profit for the sales guy

38. Is the thing on sale what you want?

39. Buy anything based on a list of needs and excess cash.There is not enough money for everyone to be richMoney is not a limited quantity commodity (at least at our level)

40. The more value you create for your company and others, the more money you have.That guy is filthy rich! He should have done some criminal activity some time in life.This is a statement out of guilt and jealousy / envy

41. Sometimes used to protect our image in front of our children.

42. “Money is not evil after all – in good hands” – Swami Vivekananda

43. “Jealousy is the root of all evil, and a most difficult thing to conquer” – Swami Vivekananda

44. My Present BudgetFill in your Budget Worksheetbudget worksheet

45. Creating a Surplus for My GoalsCan you see where your goals are being SPENT?????

46. Identify expenses which can be reduced

47. Identify loans which need to be closed immediately

48. Identify investments that need to be started immediatelyNet WorthThe Net Worth Sheet summarises our assets and liabilities.Symbols of Social Status Vs WealthWealth is generally associated with the ownership of social status symbols such as Huge Cars, Palatial Houses, Servants, Jewels, Silk Sarees, etc.Symbols of Social Status Vs WealthSocial status symbols are more often, than thought, liabilities.liabilities

49. Wealth Defined

50. Wealth DefinedWealth is defined not in quantum of cash but in TIMEWealth DefinedA person's wealth is defined by how long a period of time one can sustain one’s lifestyle if he/she stops working. Wealth DefinedThe longer you can go on living your life without working another day, the wealthier you actually are.Your wealth is therefore defined by three thingsYour monthly expenses

51. Your liquid assets and

52. Your passive income.Myths SummarisedSafest option in life is to get a secure job and stay there alwaysOnly doctors make a lot of moneySale! Sale! I buy always when there is a saleI will never understand how investing worksThey have a big house, they must be rich…There is not enough money for everyone to be richPeople who make mistakes are stupidFixed deposits are safer than stocksI will never be rich…Investing in stocks is gambling. Only crooks become crorepathis

53. Mantras for Wealth

54. Mantra 1Time The largest of treesstart from the small seeds. Allow time and nurture yourinvestments.