Chota Bheem's bada ideas...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 


Chota Bheem's bada ideas for financial planning...

Ever since Chota Bheem was launched in 2008, he has been captivating audiences across the age group... Right from toddlers to the grannies...

Chota Bheem's character offers variety of insights on Management, Leadership, People skills etc etc in his own ways and methods. It would be interesting to borrow his insights on personal financial planning for individuals.



 1. Keep it simple: 

 

Chota Bheem loves to keep things simple. Financial planning is all about keeping it straight and simple. A simple plan can take care of your financial planning for life long. Financial planning is no rocket science and keeping it simple becomes imperative for better financial future. Keep it simple is the key mantra...
 

2. Age doesn't matter (for financial planning):

Age doesn't matter to CB, for him age is just a number. Financial planning is a must for people of all age groups. One need not equate financial planning in terms of a specific age. Some one who has just finished college, or someone who has got a job or some one who is on the verge of retiring, can still have a viable financial planning. In the times of uncertain economic conditions, financial planning becomes important across all age groups...


3. Have clear (financial) goals: 

Chota Bheem works on specific goals to achieve and achieves them in his own style. Financial planning is all about having specific goals and a plan to reach those goals in a time bound manner. With great clarity, one can attain the financial goals in a seamless manner.



4. Plan Well

Planning well for one's financial goals is an important task for a successful financial planning process. World we live in is getting complex by the day. We face risks on all fronts, professional and personal. Financial risk is a key risk we run these days. And we live longer after our retirement, which means we need earn, save and earn on that saving to make our longer retirement life more enjoyable and independent. Having a plan works wonders in life.
 
5. Involve everyone:

 Involving everyone connected with us is the  best way to manage the financial planning. Each member will have their goals and aspirations, and not always can those be honoured. Its best to involve everyone to make the financial planning process more meaningful. This also means to get a specialist financial planner who can do that job.
 

6. Take reasonable risks:

Chota bheem loves taking risks. After all, life is all about taking reasonable risks. We are in the age of high inflation or cost of living with lesser avenues for better financial returns. With returns from financial products on the diminishing trends, its important to take few meaningful risks on the financial planning. A good financial planner will help you to do that.

7. Celebrate life:

 Life is all about having the right mix. Chota Bheem loves to celebrate his life with his favourite laddoos on every success and on every mission. Financial planning is all about having the right mix. And that helps to carefully manage the finances which helps to focus on goals and enjoy the life too. Celebrate life with careful financial planning...



(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)


 

Power of Compounding and its magic...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com) 

Power of Compounding works on your money... But do you?

Power of compounding works like a magic... Of course, only if you allow it to work... Want to look at some numbers??

Story of three friends:

Mr. Smart
Mr. Responsible
Mr. Fun

Generally its assumed that people take higher risks in the early stages of life and reduce the risk levels as they grow old. Same is assumed here...

Each invest Rs 1 lac in the following ways:

Mr. Smart           - at the age of 30 @ 18% PA
Mr. Responsible - at the age of 35 @ 15% PA
Mr. Fun              - at the age of 40 @ 12% PA

At the age 50, lets see how they have done....

• Mr Smart invested Rs 1 lac at the age 30 @ 18% PA and accumulated a mind boggling,

Rs 27.40 Lacs

• Mr Responsible invested Rs 1 lac at the age 35 @ 15% PA and accumulated just about

Rs 8.14 Lacs

• Mr Fun invested Rs 1 lac at the age 40 @ 12% PA and accumulated a meager

Rs 3.11 Lacs

The winner was Mr. Smart because of 3 important reasons:

1. He did not just save..
2. He started investing early on..
3. He got efficient returns..

And look at the difference in the numbers each one made...And it was possible only because of the power of compounding which worked very well in Mr. Smart's favour... And of course he did his home work to take the advantage of the POC..

For the other two, their cases were double edged swords... They not only started late and but also invested in low yields...Though the difference in % returns is not very big, but the difference is too huge in actual returns because of starting early and efficiently...

Moral of the story:

• It's wise to start saving...
• It's wiser to start investing early on..
• It's wisest to invest investing early on with efficient returns...

Only then the power of compounding will be extremely beneficial to your money... An efficient financial planner will be able to guide you to realize the power of compounding for your investments...

If you have missed it...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers   i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)