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ManagingManaging personalpersonal financefinance – –
FocusFocus:: EngulfingEngulfing EconomicEconomic CrisisCrisis
-What Do I Do When I Feel That I Am Staring At
A Stressful Situation that challenges my
Personal Finance?
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Before we start…Before we start…
“Time fails – it is a bad news; good news isthat you are the pilot”- Old chineseproverb
“The greatest fantasy in life is reality…”- Oscar Wilde
“There is nothing called security in thisworld; only opportunity”- Helen Keller
“Do not say opportunity is nowhere;rethink the same as öpportunity is nowhere”-Winston Churchill
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Basic Doubt…Basic Doubt…
Is there a “Crisis” that I am facing in the
economic sense of the term?
If so, do I understand the nature of its
impact – Is it short term or long term?
Am I mentally strong to further think and
face this?
What are my personal “strengths”that Ican leverage on this situation?
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Do I know the components of Do I know the components of
personal financial planning?personal financial planning?
• Cash Flow Planning, moreparticularly expenditure
planning• Children Education
Planning
• Investment Planning
including tax andinvestment planning
Threemajor
components
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For these….For these….
Do I know that these are to be decidedwith other members in the family whoare concerned? Spouse, of course…
Do I already have a plan and does thesituation I am in today pose any challenge?
Is it on account of commitments alreadymade and if so, are there some
commitments I can redefine? Are there issues that I can postpone to a
later date in the future?
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Goal….Goal….
What is my immediate concern?
Is it “current income”?
Is it accretion to current income?
Is it revising my long term goals for financial planning?
Should I discuss things with some one in the family – may be elders who have gonethrough similar experiences in the past or those with whom I have comfort to share theanxieties and explore emergence of any fresh thought that could help me out?
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Immediate requirement….Immediate requirement….
How recently have you done an
assessment of your assets and liabilities
and classified them as short term andlong term?
Have you understood clearly the savings
that could be of support to you at this
juncture?
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More on assets….More on assets….
Which of those have a tendency foraccretion in value that can be capitalizedupon now? (How???)
Which of those are liquid and encashablewithout difficulty (and of course not much of a loss as compared to cost) and more thananything else, are you confident of replacing
them in the future in case you feel like youwould like to?
Which of these can be good “security” forraising short term capital?
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Spending….Spending….
This sounds “critical and vital” lifeline… Have I prioritised my spending – yes, on a
day to day basis?
Am I convinced that this is done more todiscipline myself and feel better ratherthan one done out of frustration?
Am I in this course, bringing anyinconvenience to the rest in the family? If so, is there something I can do to makethem feel better about this?
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Leveraging my strengths…Leveraging my strengths…
Given that I am a “knowledge worker” whatcan I do to leverage on the knowledge that I
possess? Is there a way to cash in on some
time that is available now due to slow downin work place, to help me generate some
financial resources….(of course, within the
framework permitted by the employer)
Have I thought on my “network”and made
an attempt to check on possible support at
this juncture?
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More than anything else…More than anything else…
Is there something that I must do andlook at to create more positive thought
and energy within?
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Finally…Finally…
All these boils down to only one
thing….Am I confident of myself? If yes, you are all set to be a success and
these slides are of no use to you…
You know things much better….
