AUGUST 2021 | VOL. 3
Leverage your FINANCIAL QUOTIENT
ORANGEBOOK
THE
FINANCIALFREEDOM
ResponsibleRajat@30s
MethodicalMeeta@40s
CheerfulChellam
@60s
TrendyTanya@20s
InspirationalIndranil@50s
Financial FreedomFor The 20’s:
The Insta-Gen
AUGUST 2021 | VOL. 3
My Financial
Freedom
Mantras
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1560Fans
485Posts
25 YO MBA, I sell soaps through stories.Fashion is my passion, Dance is my obsession,Love exploring unknown destinations.Living and thriving by myself in the big bad city and loving it !
Travel
I splurge on
I aim to
My 5-year plan
Latest gadgets
OTT pla�orm subscriptions
Stay updated :On the latest smartphone
The smartest gadgets
The trendiest clothes
And swankiest accessories
A career jump
Own my first car
Travelinternationally
Make amonthlybudget
and stick to it
Income -Savings =
Expenses i.e.save first,
then spend
Learn about the Power ofCompounding and use itto convert small savings
into huge corpus
Common mistakes to beavoided in the 20’s
How have I secured myfinancial freedom for my 20’s?
Not preparing a budget, making impulse purchases
Revolving credit, i.e. not paying the full Credit Card bill every month
Income = Expenses, i.e. not having an emergency fund or saving for the future
Not starting with investments and insurance early
Not discussing finances with parents and family, not being aware of legacy assets or liabilities
Used the EMI option for big purchases, and paid EMIs on time to ensure a good CIBIL score
Chose a Credit Card with the best deals & cashbacks, and used it carefully
Started monthly SIP to automaticallysave every month
Made investments in ELSS, Life Insurance, Health Insurance to save Income Tax u/s 80C & 80D and to pay less insurance premiums by starting early
Discussed with my parents about a succession plan
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rendy Tanya
AUGUST 2021 | VOL. 3
I splurge on
I aim to
Smart homeappliances
Top-endgadgets
My 10-year plan
Common mistakes to beavoided in the 30’s
How have I secured myfinancial freedom for my 30’s?
Holidays andweekends with myfamily and friends
Move into a home owned by me, from
a rental one
Start a corpusfor my child’s
future
Top managementJob
Get my childinto one of thebest schools
Get a goodsedan/SUV
Overlooking the Emergency Fund, i.e. not having a safety net of 6 months’ living expenses
Not saving for your kids’ higher education
Having inadequate Life and Health Insurance
Not anticipating liquidity needs in near future while taking loans with high EMIs
Opened a PPF Account &Fixed Deposits formy child’s future
Opened an NPS Accountfor retirement planning
Started monthly SIPs andequity investments for thelong term
Understood and started making use of the 8th wonder of the world - The Power of Compounding - to convert small savings into a large corpus
Create Goal based investments to leverage the power of compounding by staying invested for the tenure
of the goal
Get 360-degreeprotection for
the family through adequate insurance
Start creating assets early - it is never too early to buy a home
30 years
`3.07cr
`1.31cr
`79.70lakhs
`43.52lakhs
20 years 15 years 10 years At 7% returnson `25000,
Investment p.m
Open FD
Open NPS
esponsible Rajat
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363Fans
1240Posts
Financial FreedomFor The 30’s:
The Power Gen
Sr. Project Manager in India’s Silicon ValleyTech and innovation keep me charged up, my family helps me wind down.#ThrivingAtThirtyFive
My Financial
Freedom
Mantras
AUGUST 2021 | VOL. 3
I splurge on
I wish to
My 10-year plan
How have I securedfinancial freedom for my 40’s?
Excessive splurging on the finer things in life
Having inadequate Life and Health Insurance
Absence of an Emergency Fund and therefore dependence on credit
Not paying off a significant chunk of loans
Taking investment decisions based on returns only; ignoring the risks involved
Elite clubmemberships
Luxury travel,2 holidaysevery year
Upkeep of my home,
to make it look at its best
Ensure myparents andin laws arewell looked
a�er
Send mykids abroadfor highereducation
Retain currentlifestyle postretirement
Opt for an early retirement and
start my consultancy
A lavish destinationwedding for my children
Topped up my insurance coverage
Monitored my retirement goals with an expert advisor
Diversified my investmentsoptimally across
equity fixedincome
Kept high-ticket impulsepurchasesunder control
Paid offsignificant partsof my loansconsistently
Use the 40’s as a mid-point in life to take stock of goals
and readjust the plan
Pay off pending
loans
Have adequateLife and Health
Insurance
Create an Independence Fund
to reduce dependence on salary and start
on one’s own
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527Fans
743Posts
Senior Vice President @ABC Lifesciences, MumbaiA seasoned investment professional with 20+ years of experience. My strength lies in identifying the next big opportunity before it becomes big and using it to steer my organisation onwards and upwards.
Financial FreedomFor The 40’s:
The Achievers Gen
ethodical Meeta
My Financial
Freedom
Mantras
Common Mistakes to beavoided in the 40’s
AUGUST 2021 | VOL. 3
I splurge on
I aim to
My 10-year plan
Common Mistakes to beavoided in the 50’s
How have I secured myfinancial freedom for my 50’s?
Failure to consolidate assets, sca�ered investments, including some in risky institutions
Dipping into retirement ki�y for emotion-driven reasons, e.g. funding kids’ education abroad, dream wedding for kids, buying a holiday home
Not realigning one’s por�olio from equity-heavy to a more balanced one
Inadequate income replacement corpus for post-retirement years
Delay in succession planning, preparing a will, omission in registering nominees
Personalisedluxury holidays
My kids,studyingabroad
Provide a destinationwedding for my kids
Sustain my currentlifestyle even a�erretirement
Smooth transitionto post-retirementlife and occupation
Align investments to generate a steady income a�er retirement
Consolidated my assets &investments with financial institutions of high standing, that have a strong digital presence and trusted advisory
Exercised discretion in emotional / lifestyle expenses, kept my retirement corpus intact
Realigned my por�olio by increasing allocation to long term, high-rated debt instruments
Prepared my will and ensurednominee registration in all my assets & investments
Introspect.Calibrate.
Consolidate.
Predictability trumps profitability, i.e. opt for certainty of cashflows
over fluctuating market-linked cashflows.
Tough Love is True Love. My retirement
corpus is sacrosanct.
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964Fans
325Posts
Financial FreedomFor The 50’s:The Wise Gen
54, General Manager at a Multi-National Pharma CompanyMarried to @SugandhaGupte, Father to@Rudra and @ReevaStudied at Mumbai UniversitySpeaks English, Hindi, Bengali
nspirational Indranil
My Financial
Freedom
Mantras
AUGUST 2021 | VOL. 3
My wish
I aim to
My 10-year plan
Live my passion,while conservingmy money
Travelling with my wifeis my only indulgence
Keep myself meaningfullyand pleasantly occupied
Give back to society,through volunteership
Stay healthy, withproper diet and exercise
A�er having accumulatedfor so long, reorient mysavings to generate asustainable long termregular income
Create a nest egg formy grandkids, forwhen they grow up
Common mistakes to beavoided in the 60’s
How have I secured myfinancial freedom formy 60’s and beyond?
Being too trusting, especially of online ‘prizes’ and ‘lucky draws’
Being gullible when someone seeks confidential information like passwords& OTPs
Ge�ing lured by high and unrealistic guaranteed returns
Rearview thinking when it comes to investments - one o�en tends to invest in something that has done well rather than what may do well
Overspending today, thinking that one’s children shall take care of expenses in the future
Planned my cash flowspost retirement,with the help of an experienced &trustworthy advisor
Continued with Health Insurancefor me and my wife
Get iLocker
Take a 360-degree view while investing and consider
aspects like historical performance and popular trends like IPOs, but not get
swept by any one point.
Regularly assess the suitability of investment choices such that they
match my needs, ideally with the help of an
experienced advisor / trustworthy Banker.
Make a will, all nominations in
various investments should be ideally
aligned withthe will.
Inventorise all assets and periodicallyupdate all willed
beneficiaries/nominees. You can use iLocker for
the same.
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327Fans
1028Posts
heerful Chellam
Financial FreedomFor The 60’s:
The Golden Gen
63 by age, 36 by heart !Shining through my golden years. Celebrating the best years of my life.
My Financial
Freedom
Mantras
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JULY 2021 | VOL. 2
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