This presentation analyzes why our expenses are spiraling sharply and then suggests a few ideas to tame the beast called EXPENSES.

1. 1
Training program organized by JCI Neyveli on 15-6-2013.
Faculty: Jc V Sreekant, B.E, MBA, CFPCM

2. Expenses
Needs Wants
2

3. Needs
(essential)
Food
Clothes
Medicines
Education
Insurance
Wants
(optional)
Vacation
Watch
Dinner
Gizmos
Getting cheated
?
Car
Air conditioner
Interest
3

4. 4

5. Inflation
5

6. Improving lifestyle.
6

7. WantA
Correct
Essential itemB NeedD
MustC

8. 8

9. Save Spend
Financial
Discipline
9

10. Easy accessibility of money.
10

11. Option 2A
Correct
Option 1B I do not careD
Both are sameC
1 2

12. A petrol car
gives 12 km/l.
What is the
cost/km of
OWNING the
car? Assume
petrol Rs.60/ltr.
12

13. It is Rs.16 per km
considering
cost, interest, depr
eciation, insurance,
maintenance etc.
We need to calculate total cost of ownership
13

14. 14

15. Peer pressure.
15

16. Bjorn Borg Jerry Lewis Abraham
Lincoln
Marion
Jones
M C
Hammer
Michael
Jackson
Kim
Basinger
Mike Tyson
16

17. Mental accounting.
17

18. Preference for instant
gratification.
18

19. Wealth effect.
19

20. 20

21. To save for the future.
21

22. To afford
critical
expenses.
22

23. Wealth effectA
Correct
Instant gratificationB EntitlementD
Mental accountingC

24. 24

25. 25

26. 0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
5 years 10 years 15 years 20 years 25 years 30 years
40,294
105,187
209,698
378,015
649,091
1,085,661What you can achieve if you save
Rs.500/month and invest @ 10% p.a
26

27. 27

28. Go ahead with
the expense
Yes
No
No
No
Does it improve
earning capacity
No
Yes
Yes
Yes
Yes
28
Does your
survival depend
on it
Does it ease
performance
of tasks
Does it improve
family health
Does it enhance
family security

29. BorrowingA
Correct
WastingB SavingD
SpendingC

30. 30

31. 31

32. Approx retirement fund
required by a 45 year old
spending Rs.15k monthly
presently.
32

33. Insurance
premium,
loan EMI
etc.
Put away
some
money for
the future.
Spend the
balance
sensibly.
Commitments Savings Expenses
1 2 3
40% max 30% min 30% max
33

34. Plan
Budget
Record
Review
34

35. 18%A
Correct
0%B 7%D
12%C

36. 36

37. 37
Prepared and presented by:
Jc V Sreekant, B.E, MBA, CFPCM
CERTIFIED FINANCIAL PLANNERCM
Freelance Author & Trainer
Founder and Financial Planner,
MoneyCare Solutions, Neyveli.
www.moneycaresolutions.in