Checking Your Financial Health
-
Upload
franklin-templeton-india -
Category
Education
-
view
213 -
download
0
Transcript of Checking Your Financial Health
![Page 1: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/1.jpg)
Checking your Financial Health
An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund
![Page 2: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/2.jpg)
2
Are you aware about your cash flows?i.e. Your cash inflows and outflows
![Page 3: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/3.jpg)
3
Are your finances getting better or worse every year?
![Page 4: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/4.jpg)
4
If your personal finances are getting…Better,You are getting financially healthy!
![Page 5: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/5.jpg)
5
But if your personal finances are getting…WorseYou should seriously start worrying
… Why?
![Page 6: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/6.jpg)
6
Can you pay for your regular expenses without having any income?
So if your monthly expense is Rs 50,000/-
Your Contingency Reserve = Rs 50,000/- X 6* Months
(*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile )
It’s Time you built a ‘Contingency Reserve’
= Rs 3,00,000/-
![Page 7: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/7.jpg)
7
Know the extent of your liabilities...
Do you have any loan?
If your monthly income is Rs 1,00,000/-
Ideally, Your EMI should not exceed 40%* of Rs 1,00,000/-
(*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile )
= Rs 40,000/-
![Page 8: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/8.jpg)
8
• Increase in Interest Rates can increase* your EMI
• High monthly expense will lead to low savings
• If you choose to increase the loan tenure by keeping your EMI the same
*In case you have opted for a floating rate loan
What Can Lead To Financial Risks?
![Page 9: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/9.jpg)
9
Is Your Investment Portfolio Well Diversified?
![Page 10: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/10.jpg)
10
Are You Overexposed To Equities?
Investment in Equity (%) = 100 – Your Age
The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile
Your Age = 25 years
Investment in Equity (%) = 100 – 25
= 75%
![Page 11: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/11.jpg)
11
Do You Have Enough Insurance Cover?
Your Life Insurance Requirement = Your Monthly Income X 12 Months X 10 times
The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile
Do you have enough Health Insurance for you and your family?
If your monthly income is Rs 1 Lac
Your Insurance Requirement = Rs 1,00,000 X 12 X 10
= Rs 1.2 crore
![Page 12: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/12.jpg)
12
How Do You Invest?
Lump sum or via Systematic Investment Plan (SIP)
![Page 13: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/13.jpg)
13
Do You Monitor Your Investments Regularly
![Page 14: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/14.jpg)
14
Some Key Takeaway Points
• Know your cash flows and avoid making unnecessary expenses
• Create a contingency reserve of minimum 6 months and preferably 12 months
• EMI should not comprise more than 35-40% of your monthly income
• Diversify your investments
• Invest via Systematic Investment Plan vis-a-vis lump sum investment in equity
![Page 15: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/15.jpg)
15
Some Key Takeaway Points
• Monitor your investments regularly
• Have an adequate life insurance cover to financially protect your family
• Have an adequate health insurance cover for you and your family.
• Taking care of these small things with your finances can help keep you financially healthy
![Page 16: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/16.jpg)
16
Thank You For Participating!
![Page 17: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/17.jpg)
17
Mutual Fund Investments Are Subject To Market Risks, Read All Scheme
Related Documents Carefully.
![Page 18: Checking Your Financial Health](https://reader035.fdocuments.net/reader035/viewer/2022070522/58ef03541a28abde208b45e5/html5/thumbnails/18.jpg)
© 2014 Franklin Templeton Investments. All rights reserved.
Franklin Templeton Asset Management (India) Pvt. Ltd.Indiabulls Finance Centre, Tower 2,12th and 13th floor, Senapati Bapat Marg, Elphinstone (W)Mumbai 400013Tel (91-22) 6751 9100Fax (91-22) 6639 1281http://www.franklintempletonindia.com