Billionaires Don't Eat Cakes

7/21/2019 Billionaires Don't Eat Cakes

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Millionaires dont eat cakes,

they make them

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2/18

Confidence & Belief- The Basic to Finacial

Planning If I were to make statement that practically anyone of you can become a millionaire, first reaction

would be , YOU MUST B !I""I#$%&

Why?????? Because do not ha'e the belief in your abilities&

Because you think you don(t ha'e the resources to make millions&

Because you feel that money can be made mainly throu)h dishonest means& If you do not remain rich despite )ettin) )ood money or if you think low incomes constrain you to

only dream of becomin) rich, YOU #" TO $T YOU* B+SIS *I$-T i&e& you ha'e to learn

to mana)e your money.smartly&

To reali/e millionaire dreams, you don(t stop re)ular contribution to portfolio 0 willin) to be

patient

M!!"#$% '$!( )*)TMhoose the ri)ht 'ocation

Be the Best

1alue e'ery rupee spent

Make e'er

y rupee deli'er

Multi

ply by le'era)in)

+'oid a'oidi

n) risks

2ait.and.win


3/18

"ifference is in the focus, 2hile millionaire 3 aspirants focus on eatin) 0 spendin), Millionaires

focus on makin). 0 buildin) wealth&

You must first make cakes before you start eatin) them, you must first build wealth, before you

think of spendin)&

If the 4ocus is on eatin), then the fruits you ha'e will soon be o'er& 4ocus, howe'er on )rowin) a

tree and you could en5oy the fruits endlessly&

Three thin)s to )row a plant.&&

6 Inputs such as seed, water, sunli)ht, manure, etc&

6 $ardenin) skills and

6 Time, discipline 0 patience&

The same )oes with becomin) a millionaire too&

3

Where is the +ifference?

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4/18

Practical $roaches of FinancialPlanning & Wealth Management

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5/18

ncome is #"T Wealth

4ormula does test one(s patience and commitment& But assure you, it the only be)innin) that(s

difficult& 7ater the )rowth will be e8ponential, this is the ma)ic of compoundin)& "on(t stop your re)ular contributions to the portfolio and 2illin) to be patient

+*# 's& O2#9 Income is the money that you +*#&

2ealth is :+UMU7+TIO#( of money&

#*$Y 's& +SSTS9You )et :income money( by utili/in) #*$Y&

You )et :2ealth money( by utili/in) your +SSTS

WEALTH

OwnAssets

Controller

Keep

Continue

INCOME

Earn

Energy

Controlled

Make

Cease


6/18

O#T*O77" 's& O#T*O77*9SOMO# 7S is O#T*O77I#$ your financial well 3

bein)

M+! 's& !;9Income may :M+!( you rich, but may not :!;( you rich&

2ealth, howe'er, has the potential to !; YOU 9 ollect all incomes from 'arious sources&

Step ?9 4ilter out the 2ealth "issipaters

Step @9 Build protection a)ainst 2ealth "estroyers

Step A9 hanneli/e your income throu)h 2ealth reators and 2ealth preser'ers&

Step 9 *eap your 2ealth&

*o0 are the M$)T% of *"(% F#$#C$! destiny


7/18

Most people eCuate risk with loss&

If you prefer safety, you ha'e to compromise on returns&

Witho0t risk, theres going to 1e no riches

"ue to inflation in future, your purchasin) power may reduce, Therefore,there is no s0ch thing

as 2no risk or 23ero risk

*isks are of 'arious types& You must understand the nature of each risk and how to protect your

money so that such risks do not cause a ma5or loss to you&

Witho0t fire, theres going to 1e no delicio0s dishes

)ame goes 4ith risk too 50st as fire doesnt necessarily mean damage, risk doesnt

necessarily mean loss

$'"+ $'"+#6 %)7


8/18

T*P) "F %)7)

%ather (nderstand %isk

"efault

"o not )et assured return 0capital too

;*+USIO#S +$+I#ST "4+U7T

*IS!9

The moment some offers you returns which

are much hi)her as compared to those

offered by other banks or companies, youralarm bells should start rin)in)& The more

the difference the louder should be the rin)&

+nd beyond a point, it should be like a fire

alarm, warnin) you to run away.immediately

+sset 3 liability

Mismatch Mismatch in the timin) between when you need money and when the money

can be a'ailable to you

Interest *ate *ates are market determined Interest rates chan)e Cuite freCuently conomic Situations demand, rates can

be chan)ed in the interim too

1olatility

T-IS *O77* O+ST* *I" O4 T- M+*!TS +# BOT- B +

SOU* O4 ;*OS;*ITY +#"

;O1*TY&

-O; 2O#%T M+! YOU MO#Y 3

O#7Y YOU* +UM# 2I77 "O SO&

Unpredictable twists and turns of the Cuity markets from minute to minute

T-* #OT 2O*T-Y

;OI#TS.>& Must continue to in'est e'en

when the markets are )oin) down&

?& If the market keep risin), lump

sum in'estin) would deli'er

better returns&

@& If the market ne'er reco'ered,

you will lose in both cases but

SI; will usually be lesser&


9/18

ertain thin)s will slowly but surely eat into your income andDor wealth& Therefore, as time )oes

by, you will e8perience a )radual reduction in your wealth&

Wealth +issiaters

2ealth 2ealth

Unreal assets+ssets loose 'alue with time

2hile you own them, you ha'e to

spend money on them&

Inflation;urchasin) power of your money is

)radually eroded away by inflation,

so thin)s become e8pensi'e o'er time&

Imprudent -abits

"ifficult to control spendin) as

emotional 'alue attached&

Ta8es Ta8es are una'oidable

incon'enience and cost


10/18

SOME POINTERS.To live life happily

)P#+ M"#* "# *"(% #C))T)

+"#T F%TT% T $W$* "# *"(% 6"

*"(% C$%), 6$+6)T), TC $T M"#*

T/* $% #"T *"(% $))T)

B W$%* "F )!#T 7!!%#F!$T"#

F *"( $% B(*#6 T/#6) *"( +"#T #+

)""# *"( /$' T" )!! T/#6) *"( 6%$T!*#+


11/18

Wealth +estroyers

2ealth

2ealth

)hort term

Tradin) ;rediction M+#(S

4+SI+TIO#

2IT-

$+MB7I#$ IS

7$#"+*Y& Mar)in

;sycholo)y Short Sellin)

Calamities

#atural disasters suchas earthCuake, floods,

hurricanes or tsunamis& Man 3 related e'ents

such as fire, terrorism,

war or accidents& Medical ;roblems

such as stroke, cancer,

heart attack, etc&

Credit Card 8

Personal

!oans -i)h rates wash

away all your

income

!oans

-ome loans,ducation

loans are )ood,

enhance your

wealth& But

beware of cost

of borrowin) 0

mistake of

focusin) on the

present&

Bad +ecisions

7ack of *i)htknowled)e9

"I44*# BT2#

"ISISIO# $OI#$ B+"

+#" B+" "ISIO# 7ack of ri)ht attitude S*IOUS 7+! O4

S*IOUS +TTITU" lack of *i)ht record 7ack of *i)ht +pproach 7ack of *i)ht +d'isor&


12/18

Wealth Preser9ers

2ealth

Insurance

"ebt Mutual

4unds

4"s D Bonds D"ebentures

$old

omplete

protection

Medical

co'er

+ccident

co'erMort)a)e

co'er

-ousehold

co'er

7ife

o'er

;ure ;rotection ;rotection 3 cum 3 in'estment

Bank deposits $o'ernment D orporate bonds "ebentures ;ost Office Scheme

Senior iti/en Scheme

!eep aside for any e8i)encies Inflow for day 3 to 3 day needs to buy a house within E

months to > year If income is uncertain,

liabilities take care of

)hort . term income f0nds:in'est in short 3 dated instruments&

Floating rate f0nds:in'est in instruments with 'ariable rates

6ilt F0nds:In'est in )o'ernment securities

Fi;ed mat0rity lans:In'est in debt instruments of matchin) maturity profile

(ltra short . term f0nds:In'est in 'ery short 3 term instruments

Monthly income lans:In'est in both debt 0 eCuity

!ong . term ncome f0nds:In'est in 7on) 3 dated instruments&

physical 0 tan)ible asset It can not be destroyed It can be bou)ht 0 sold anywhere in the world $old acts as a store of 'alue&


13/18

#)(%$#C )/"(!+ B B"(6/T F"%

#)(%$#C "#!*, #"T F"% #')TM#T

6"!+ ) M"% $# #)(%$#C T/$# $# #')TM#T

F+s W!! #"T M$7 *"( %C/ %eal state: "ther financing otions

)Seller as your financer.)Buyer as your financer.)7essor as your financer.

1> M0t0al f0nds: B0ilding the right ortfolio

%e1alancing: $ eriodic e;ercise

*ebalancin) once in E months to > year&"on(t be )reedy and book your profits if the eCuity Market be )ood for you& 7ikewise, don(t be fearful

+nd make sure to buy eCuity e'en if the markets

ha'e treated you badly&


18/18

Thank *o0

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Billionaires Don't Eat Cakes

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