The document outlines three steps to financial success: save, invest, and protect. It discusses setting goals and the fundamentals of financial planning. It defines wealth as the ability to sustain one's lifestyle without working. Small regular investments can grow significantly over time through compounding. Diversification reduces risk by spreading investments across different asset classes with low correlations. Common sense investing principles include understanding investments, reading prospectuses, balancing emotion with caution, and learning from mistakes.

1. Three Power Steps to Financial Success COGNIZANT TECHNOLOGY SOLUTIONS | 28-SEPTEMBER 2007 SAVE INVEST PROTECT

4. what is wealth?

5. Take 2 minutes. Close your eyes Write what you see. imagine a wealthy person.

6. A person's wealth is defined by how long a period of time he/she can sustain their lifestyle if they stop working.

7. The longer you can go on living your life without working another day, the richer you actually are.

16. Investment Pyramid Commodities Penny Stocks Options High risk Low risk Blue Chip Stocks Government Securities Corporate bonds Gold, Silver Money Market Savings Accounts Cash Rental property High Quality Stocks Mutual funds

19. Perfect Positive Correlation Time Return A B Mean 0

20. Perfect Negative Correlation Time Return A B Mean 0

21. Zero Correlation Time Return A B Mean 0

23. What happens when the number of assets in the portfolio, n, becomes large? deviation standard Portfolio Nonsystematic risk Systematic/Market risk Number of securities 5 10

29. If spending money brings you enjoyment, you will never be rich. However if making money brings you enjoyment, then your wealth is guaranteed.