Everyone is busy with professional life and lacks time for personal finance. Decisions about personal finance are often made emotionally rather than professionally. Financial planning is a three-step process of evaluating one's current financial position, setting future goals, and finding ways to achieve those goals through proper cash flow management, risk assessment, insurance needs, and retirement planning. A paid financial plan that is client-centric rather than product-centric can help achieve goals more efficiently compared to free plans that may be influenced by commissions and fees.

2. Everyone is running out of time to manage their
Personal Finance

3. Everyone is Busy working hard Either to
impress or to sustain

4. Professional life eats up your time and leaves
nothing for Personal Finance

5. And This Happens

6. “Just” because friend told, investment is made into
Equity.

7. “Just” because a company was paying high interest
rate i.e. 18%, huge amount is invested.

8. “Just” because a Relative forced for Life Insurance,
Policy was taken

9. “Just” because Our company provided A health cover,
Didn’t opted for other

10. “Just” because a Product is named Ssmart Kkid, it was
bought

11. Decision in Professional life are taken professionally
But when it comes to Personal Finance why
Emotionally???????

12. Financial Planning is…
Financial Planning is a process of evaluating your current financial
position, set future goals and find ways and paths to achieve those
goals. You can think of it as three step process:
• Where am I?
• What I want to achieve?
• How to reach my goal?

13. Financial Planning !!!

14. Proper Management of Daily Cash Flows

15. Timely Achievement of Goals

16. Risk Appetite identified

17. Insurance need identified

18. Efficient Retirement Planning

19. Free Financial Plan
v/s
Paid Financial Plan
 Free Financial Plan is one where a
planner does not charge you for any
financial planning, but they earn through
product commission and fee.
 Whereas in case of Paid Financial
Planning recommendation and analysis is
independent of product, hence is Client
Centric & not product centric.

20. Cases
Mr. A
Particulars Before After
Annual Cash Flow Surplus Rs.4,69,096 Rs.5,83,696
Loan Payment Till year 2038 2024
Total Interest to be paid (Cumulative) Rs.48,30,950 Rs.13,21,412
Insurance Cover Rs.3,10,000 Rs.1,03,10,000
Investment Rs.15000/Month – Haywire Rs.37000/Month – Channelized to goals
Net worth stayed more or less same. Rs.1,65,21,569 Rs.1,56,91,569
 How happy would you be if your loan with interest rate of 18.25% gets repaid
and other loan with interest rate 15.5% falls to 10.5%.!!
 Investment with focused goal don’t let you flitter your funds and also doesn’t
create panicking situations when the need arises.

21. Cases
Mr. B
Particulars Before After
Annual Expenses Rs.9,71,832 Rs.8,50,000
Asset Allocation Debt & Property : 97% ; Equity : 3% Equity proportion increased accordingly
 Prioritizing goals is the issue with many individuals. He, 47, prioritized his
aspiration which could stress his finance ahead of his retirement.
 He had fixed deposit and simultaneously opted for personal loan. Though he
is well aware about it but somewhere ignorance or work load didn't let him
calculate and move ahead in proper direction.
 He had a endowment policy, premium digesting policy with minimal return,
which asked premium of Rs.2,62,744/annually even after 7years of retirement
when he wont be earning.
 He realized his expenses are skyrocketing year on year and reacted on it by
implementing saving habits soon after our first meet.

22. Cases
Mrs. C
Particulars Before After
Insurance Policies 5 Policies : Cover – Rs.4,75,000 3 Polices : Cover - Rs.1,01,50,000
 More than 75% for her total investment was into Fixed deposit of XYZ Company.
 She had aspirations, which everyone have, but if she would have been
continuing the way she was moving then probably some aspirations either had to
be compromised, which everyone do.
 76.14% of her net worth was because of property held for investment purpose
which seems to be very risky considering the fact that the same being very liquid.
 More than a years expenses were with Savings bank despite we can nearly
double interest in other liquid instrument.

23. Cases
 This is something more what we have seen when an individual is not
focused towards his goals and aspiration
 A Couple had 32 insurance policies with miniscule risk cover in each thinking
will keep receiving bonus, maturity amount, etc on a regular basis.
 An individual keeps on investing as and when someone recommends or when
he have additional surplus. This individual highly diversified into equity by having
103companies.
 An individual kept on investing in mutual fund in uneven way for his
retirement. He is holding 26 schemes which is over diversified which in turn
reduces your effective return may be below FD rate also.

24. Probable Opportunity Cost
OPPORTUNITY COST OF A 30-YEAR OLD DELAYING HIS FINANCIAL PLAN
No. Financial Goal Without a Financial Plan With a Financial Plan Opportunity Cost
Extra outflows for delay = Rs 20
1.) Retirement Fund = Rs 4.25 cr SIP of Rs 15,800 (if after 5 years) SIP of Rs 7,700 (if start now)
lakh
Child’s education = Rs 20 lakh (after SIP of Rs 14,000 (if in fixed deposits SIP of Rs 7,000 (if in Equity Extra outflows due to choosing
2.)
18 years) or Ulips) MFs/ ETFs/ Bluechip Stocks) wrong asset class= Rs 15 lakh
Extra inflows for investing =Rs 1.2
3.) Park Savings of Rs 4 lakh Let it lie in savings bank account Park in FD/CD earning 8%
lakh
Buy 6 ULIPS giving 8% (insurance Buy 1-2 term plans and invest Under insured inspite of high
4.) Adequate life insurance
cover = Rs 15 lakh) the rest premium outgo = Rs 60 lakh
EMI = Rs 10,700 (if going Invest Rs 8,800 a month and go Extra outflows for instant
5.) Foreign holiday (2) = Rs 3 lakh
immediately) 3 years later gratification = Rs 70,000

25. Process of Financial
Planning

26. Types of Plan
Financial
Planning
Comprehensive
UNIplan
Financial Planning
 Current Situation Analysis
 Insurance Planning
 Investment Planning
 Retirement Planning Any one
 Tax Planning
 Estate Planning
 Goal Planning

27. Get in Touch
TBNG Financial Consultants
17,Veer Mahal, Near ITC Grand Central Hotel,Opp Centre Point, Dr BA
Road,Lalbaug-Parel , Mumbai-12
Tarun@tbngconsultants.com
Click Here

28. Thank You