7/21/2019 Billionaires Don't Eat Cakes
1/18
Millionaires dont eat cakes,
they make them
1
7/21/2019 Billionaires Don't Eat Cakes
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
7/21/2019 Billionaires Don't Eat Cakes
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?
3
7/21/2019 Billionaires Don't Eat Cakes
4/18
Practical $roaches of FinancialPlanning & Wealth Management
4
7/21/2019 Billionaires Don't Eat Cakes
5/18
ncome is #"T Wealth
4ormula does test one(s patience and commitment& But assure you, it the only be)innin) that(s
difficult& 7ater the )rowth will be e8ponential, this is the ma)ic of compoundin)& "on(t stop your re)ular contributions to the portfolio and 2illin) to be patient
+*# 's& O2#9 Income is the money that you +*#&
2ealth is :+UMU7+TIO#( of money&
#*$Y 's& +SSTS9You )et :income money( by utili/in) #*$Y&
You )et :2ealth money( by utili/in) your +SSTS
WEALTH
OwnAssets
Controller
Keep
Continue
INCOME
Earn
Energy
Controlled
Make
Cease
7/21/2019 Billionaires Don't Eat Cakes
6/18
O#T*O77" 's& O#T*O77*9SOMO# 7S is O#T*O77I#$ 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
7/21/2019 Billionaires Don't Eat Cakes
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
$'"+ $'"+#6 %)7
7/21/2019 Billionaires Don't Eat Cakes
8/18
T*P) "F %)7)
%ather (nderstand %isk
"efault
"o not )et assured return 0capital too
;*+USIO#S +$+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&
7/21/2019 Billionaires Don't Eat Cakes
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
7/21/2019 Billionaires Don't Eat Cakes
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!*#+
7/21/2019 Billionaires Don't Eat Cakes
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&
7/21/2019 Billionaires Don't Eat Cakes
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 $old acts as a store of 'alue&
7/21/2019 Billionaires Don't Eat Cakes
13/18
#)(%$#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&
7/21/2019 Billionaires Don't Eat Cakes
18/18
Thank *o0
18
Top Related