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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Three Power Steps to

Financial Success

SAVE INVEST PROTECT

COGNIZANT TECHNOLOGY SOLUTIONS | 28-SEPTEMBER 2007

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Success is Achieving Set Goals

Set Goals

Save Invest

Protect Achieve Goals

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

We are Here

• Fundamentals of Financial Planning – 1

• Fundamentals of Financial Planning – 2

• Income Tax Management

• The Way Forward

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Fundamentals of Financial Planning – 1

Dreams– Dreams give energy– Dreams are worth aspiring for– Dreams give a reason for Living– Dreams stimulate the Child in us.– Please fill the Worksheet for Dreams

Please fill the worksheet : Dreams

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Goals

– Goals are worth achieving

– Goals are worth the effort you put in

– Goals stimulate the Whole Body and Spirit

– Please fill the Worksheet for Goals

Please fill the worksheet : Goals

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Goal Setting

Goals remain Dreams

without Goal SettingGoals remain Dreams without

Goal Setting

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Understanding Where We Are Now

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Understanding Where We Are Now..

• Please take the Test on Assets

• What they actually mean– Asset – One that generates a POSITIVE Cash Flow– Liability – One that generate a NEGATIVE Cash Flow– Income – The Positive Cash Flows– Expenses – The Negative Cash Flows

* From the concepts of Robert Kiyosaki

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

The Cash Flow Concept

Asset Liability

Income

Expense

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

The Net Worth Chart

• The Net Worth is the Difference between the Total Assets and Total Liabilities

• Based on the concept of assets and liabilities, please fill in your Net Worth Chart

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

The Cash Flow Chart

• The Cash Flow Chart is given to you, please enter details as applicable to the present situation.

• What you have done now is prepare a Budget

• Have you also found how and where your savings are going?

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Cash is King

• Thinking about Personal Finance from the Businessman / Investor Point-of-View

– Why do you think Warren Buffet bought a used Rolls

Royce 6 months ago?

– Why do you think Tata Steel bought Corus rather than

build a company on its own?

– Why do you think Jet Airways leased its aircrafts

when it began its business?

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Successful Budgets Are...

• Well planned

• Realistic

• Flexible

• Clearly communicated

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

CONTROLLING YOUR SPENDING

• Budget and stick to it• Learn to say “NO”• Learn to go “Dutch” with friends• Don’t have too many credit cards• Use a line of credit not a loan• Stop impulse buying – Carry a shopping list• “Do you really need it?”• Don’t go shopping• Control dining out• Don’t carry cash• Pay down debt ASAP so you can do other things

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FINERVA Cognizant Technology Solutions 28 SEPT 2007

Take Away

• Concept of Assets & Liabilities based on

Cash Flow

• Personal Net Worth

• Present Budget