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Personal finance: why
- 2. Personal Finance –What it stands for? • Today’s Consumption Against Tomorrow's Cash Flow • Enjoying ‘Quality-life’ from day one
- 3. Personal Finance –Does it make Sense? • Perhaps, “Yes” • Helps manage inflation-risk • Helps Tax-Planning • Results in Compulsory savings • Imposes Financial-Discipline
- 4. Personal Finance: Isit that good? • Not always & not necessarily • Using credit to finance routine purchases or to splurge on extras is a sure sign of personal financial mismanagement • Climbing interest rates & Piling debt are no good
- 5. Personal Finance : Precincts •A ‘Certain’ stream of cash flow • Importance of the proposed expenditure • A known & budgeted expenditure • Willingness to stand by pre-planed expenditure • ‘Esteem’ & its fit in one’s personality
- 6. Personal Finance: Howto avail it? • Establish – Identity – Need for loan – Ability to service the debt – Ability to enhance credit- worthiness – Potential for down-payment
- 7. Personal Finance: HowBanks extend it? • Banks analyzes the ability to service the debt – Income level & its certainty – Current liabilities – Down payment – Repayment capacity – Credit enhancement measures • Quotations • Execution of documents • Direct Payment to suppliers • Insurance
- 8. How to choosea Bank? • More a personal choice – Nearness – Costs – Hidden costs – Quality of service – Concern for relationships – Repayment holiday/schedule offered
- 9. Personal finance- How muchis good? • Monthly payments should normally be not more than 20 percent of monthly disposable income OR • Total outstanding consumer debt should be less than one-third of annual disposable income.
- 10. Personal finance- How muchis good? • Monthly payments should normally be not more than 20 percent of monthly disposable income OR • Total outstanding consumer debt should be less than one-third of annual disposable income.