Personal Money Management

Presentation Transcript

1. Personal Money Management

   By Shubha Ganesh Founder Member
2. A Survey Global Credit Card firm Visa recently conducted a “International financial Literacy Study” and started a Global Financial Literacy Barometer” that measures 28 countries across the globe Countries in the list include Lebanon, UAE, Saudi Arabia, Thailand, China, Pakistan, Brazil. Unites States, Canada, Australia and Egypt India is one of the countries in that list
3. About India….. Indians are among the least financially literate people across the globe with youngsters and women struggling most with their finance knowledge due to lack of discussions within the families on money management issues
4. Times are changing Incomes are increasing Aspirations are growing Inflation is high Jobs are not guaranteed From save today buy tomorrow "buy today, pay tomorrow" habit
5. Times are changing… Life Expectancy of an Indian man stood at 63 years An Indian woman lived for 66 years Nuclear families No social security You are on your own Makes financial planning more pertinent
6. Miles to Go Urgent need to understand financial literacy Unique paradox Rural India lacks access to knowledge Urban India is suffering from overdose!!! Lots of bits and pieces from newspapers and T.V
7. Learn Systematically Financial independence is a result of understanding the complete financial planning process and following it with discipline Online courses, off line courses, books websites www.nseindia.com SEBI’s Financial literacy programs MCA’s sponsored financially literacy programs
8. About Shiksha Shiksha is a platform floated with other like minded people for investor education To facilitate greater understanding of investing, investments and financial markets among investors of all ages Objective  is to increase investors' knowledge and understanding of investing Shiksha has  conducted seminars / workshops about how to invest in stock markets and financial planning
9. Personal money management Personal money management involves application of the principles of finance to the monetary decisions of an individual or a family It addresses how an individual can obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events
10. Personal Financial Planning Process A key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and re-evaluation.
11. Five steps Assessment Goal setting Creating a plan Execution Monitoring and assessment
12. Key focus areas Financial position Adequate protection Investment and accumulation goals Tax planning Estate planning
13. Goal setting 7 key areas:- career Money Physical fitness Family Wealth Recreation legacy
14. Subject to..... Your current financial situation Your risk profile
15. Risk Vs. Return Taking on more risk means you are increasing your chances of realizing a loss on investments, as well as creating the opportunity of greater profits. However, volatile investments don't always make investors money.
16. Premium for inflation risk interest rate risk business failure risk market risk
17. Asset classes The asset class can be anything from stock to bonds to real estate A security represents a financial claim on asset and any future cash flows the asset may generate.
18. Risk Tolerance Most people want to grow their portfolio to increase wealth. But there remains one major consideration - risk. How much, or how little, of it can you take?
19. Now.... We have goals We have investment choices We have determined our risk taking ability Now we have to out it all together
20. Total happiness in one's life comes from four quadrants- Spiritual, Mental, Physical and Financial well-being
21. Thank You