That might sound a bit confusing but is the state of affairs for most people when it comes to personal finance and managing money.
Over the course of various corporate workshops at Finqa, we realised that most people weren’t getting the need for Financial Planning or how it would make a difference to their lives. They had a fixed notion about investing, pre conceived fears and a lot of ignorance on various other topics (e.g. what’s the point of taking a term insurance if you don’t get any money back at the end of the term !! )
It was during one of our review meetings, when we realised that we need to have a service which would help people get financially aware and literate, in an easy to use manner. After a lot of ‘brainstorming’ we came up with Fin10.
The concept of Fin10 is simple:
- You signup
- Get one lesson everyday on a particular topic, delivered directly to your mailbox
- Spending just 10 mins daily, you learn something new about Personal Finance at your leisure (e.g. while taking a break at work)
- Interactive in nature – You can ask questions and discuss more on the topics you need more information on.
- After 3 months, you have a greater awareness of various topics on personal finance which will hold you in good stead when you need to make decisions.
Who is this for ?
This is for anyone who earns money, and would like to learn how to invest and manage money better. Age, income, sex etc etc no bar.
I already know about Personal Finance and managing money ?
Take a look at some of the questions which this course will answer. If you are sure you know everything about everything, then this course is probably not for you.
However, if you have doubts but don’t have the patience to read a book or google 10 million pages, this easy to understand, structured course might just be what the Financial doctor ordered.
And it costs just Rs 1000 for a 3 month period – or roughly about 10 bucks a day.
Think of it as a small investment in knowledge that will help you financially. Click here Signup.
Do let us know if you have any feedback / questions.
Updated on 31st May, 6:00 pm.
As suggested by Alok, here is a sample lesson –
How to create a savings fund of Rs 12+ crs ?
Satya, 25 years old, is a software developer and earns Rs 50,000 per month after taxes. He is wondering what he should be saving on a monthly basis to create a huge corpus. This email will help people like Satya answer a pertinent question HOW MUCH SHOULD I SAVE and what can I expect in return?
Yes, there are legal and safe ways to get rich over a period of time.
Let’s say you are a 25 yr old who earns Rs 50,000 per month after taxes. If your salary grows at 10% a year, you save 20% of your income, and your savings grow at 10% per annum, you can have a corpus of Rs 12 crores when you retire after 35 years (See illustration below to see how your money will grow over time.
However, its not as easy as it sounds else everyone would have been a millionaire by the time they retired. The good news is that with a bit of planning, it is achievable.
So what are the key challenges:
- Saving 20% of your salary year on year
- Achieving an average annual growth of 10% per annum.
You will need to plan your expenses in such a way that you can continue to save 20% of your income every year.
Secondly, your savings need to be invested in such a way that they provide you with a return of atleast 10% per annum.
The key is to start early as the power of compounding also helps you. (A person who starts saving 5 years later ends up losing almost 2 crores )
Current
|
Salary
|
Rs 6,00,000
|
| Salary | Increment | 10% |
| Growth | in Savings | 10% |
| Saving | Rate | 20% |
| 25 year | ||
Age
|
Salary
|
Savings
|
| 25 | 600,000 | 120,000 |
| 26 | 660,000 | 264,000 |
| 27 | 726,000 | 435,600 |
| 28 | 798,600 | 638,880 |
| 29 | 878,460 | 878,460 |
| 30 | 966,306 | 1,159,567 |
| 31 | 1,062,937 | 1,488,111 |
| 32 | 1,169,230 | 1,870,768 |
| 33 | 1,286,153 | 2,315,076 |
| 34 | 1,414,769 | 2,829,537 |
| 35 | 1,556,245 | 3,423,740 |
| 36 | 1,711,870 | 4,108,488 |
| 37 | 1,883,057 | 4,895,948 |
| 38 | 2,071,363 | 5,799,816 |
| 39 | 2,278,499 | 6,835,497 |
| 40 | 2,506,349 | 8,020,316 |
| 41 | 2,756,984 | 9,373,745 |
| 42 | 3,032,682 | 10,917,656 |
| 43 | 3,335,950 | 12,676,611 |
| 44 | 3,669,545 | 14,678,182 |
| 45 | 4,036,500 | 16,953,300 |
| 46 | 4,440,150 | 19,536,660 |
| 47 | 4,884,165 | 22,467,159 |
| 48 | 5,372,581 | 25,788,391 |
| 49 | 5,909,840 | 29,549,198 |
| 50 | 6,500,824 | 33,804,283 |
| 51 | 7,150,906 | 38,614,892 |
| 52 | 7,865,997 | 44,049,580 |
| 53 | 8,652,596 | 50,185,058 |
| 54 | 9,517,856 | 57,107,135 |
| 55 | 10,469,641 | 64,911,776 |
| 56 | 11,516,605 | 73,706,275 |
| 57 | 12,668,266 | 83,610,556 |
| 58 | 13,935,093 | 94,758,630 |
| 59 | 15,328,602 | 107,300,213 |
| 60 | 16,861,462 |
12,14,02,527
|
There are two key points to achieving this plan:
-
Creating a custom plan based on your earnings and how much you can save .
-
Identifying those investments which will give you atleast 10% net returns every year (A FD will give you a net return of 6.3% at current rates )
These are some of the things you will learn as part of the 3 month Fin10 course on Personal Finance.
If you wish to signup, please click here.
