AUGUST 2021 | VOL. 3 ORANGE BOOK

THE

ORANGE BOOK

Leverage your FINANCIAL QUOTIENT

AUGUST 2021 | VOL. 3

Cheerful Chellam

@60s

Responsible Rajat @30s

Trendy Tanya @20s

Inspirational Indranil @50s

Methodical Meeta @40s

FINANCIAL FREEDOM

rendy Tanya

1560 485

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I splurge on

Latest gadgets OTT pla orm subscriptions Travel

I aim to

Stay updated : On the latest smartphone

The smartest gadgets The trendiest clothes And swankiest accessories

My 5-year plan

A career jump Own my first car

Travel internationally

Financial Freedom For The 20's: The Insta-Gen

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 !

Common mistakes to be avoided in the 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

How have I secured my financial freedom for my 20's?

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 Know More

Started monthly SIP to automatically

save every month Know More

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

MyFMrFeianenadtnorcmaisal

Make a monthly budget and stick to it

Income Savings = Expenses i.e. save first, then spend

Learn about the Power of Compounding and use it to convert small savings

into huge corpus

AUGUST 2021 | VOL. 3

esponsible Rajat

Financial Freedom For The 30's: The Power Gen

363 1240

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Sr. Project Manager in India's Silicon Valley Tech and innovation keep me charged up, my family helps me wind down. #ThrivingAtThirtyFive

I splurge on

Top-end gadgets

Smart home appliances

Holidays and weekends with my family and friends

I aim to

Move into a home Get my child

owned by me, from into one of the

a rental one

best schools

Start a corpus for my child's

future

Get a good sedan/SUV

My 10-year plan

Top management Job

Common mistakes to be avoided in the 30's

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

How have I secured my financial freedom for my 30's?

Opened a PPF Account & Fixed Deposits for

my child's future Open FD

Opened an NPS Account

for retirement planning Open NPS

Started monthly SIPs and equity investments for the

long 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

30 years `3.07 cr

20 years `1.31 cr

15 years `79.70 lakhs

10 years `43.52 lakhs

At 7% returns on `25000, Investment p.m

MyFMrFeianenadtnorcmaisal

Create Goal based investments to leverage the power of compounding by staying invested for the tenure of the goal

Get 360-degree protection for the family through adequate insurance

Start creating assets early - it is never too early to buy a home

AUGUST 2021 | VOL. 3

ethodical Meeta

Financial Freedom For The 40's:

The Achievers Gen

527 743

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I splurge on

Elite club memberships

I wish to

Luxury travel, 2 holidays every year

Upkeep of my home, to make it look at its best

Retain current lifestyle post retirement

Send my kids abroad for higher education

My 10-year plan

Ensure my parents and in laws are well looked

a er

A lavish destination Opt for an early

wedding for

retirement and

my children

start my consultancy

Common Mistakes to be avoided in the 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 o a significant chunk of loans

Taking investment decisions based on returns only; ignoring the risks involved

Senior Vice President @ABC Lifesciences, Mumbai A 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.

How have I secured financial freedom for my 40's?

Topped up my

insurance coverage

Monitored my

retirement goals

with an expert advisor

Diversified my investments optimally across

equity fixed income

Kept high-ticket impulse purchases

under control

Paid o

significant parts of my loans

consistently

MyFMrFeianenadtnorcmaisal

Use the 40's as a mid-point in life to take stock of goals and readjust the plan

Pay o pending

loans

Have adequate Life and Health

Insurance

Create an Independence Fund to reduce dependence on salary and start

on one's own

AUGUST 2021 | VOL. 3

nspirational Indranil

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Financial Freedom For The 50's: The Wise Gen

54, General Manager at a Multi-National Pharma Company Married to @SugandhaGupte, Father to @Rudra and @Reeva Studied at Mumbai University Speaks English, Hindi, Bengali

I splurge on

Personalised luxury holidays

My kids, studying abroad

I aim to

Provide a destination wedding for my kids

Sustain my current lifestyle even a er retirement

My 10-year plan

Smooth transition to post-retirement life and occupation

Align investments to generate a steady income a er retirement

Common Mistakes to be avoided in the 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

How have I secured my financial freedom for my 50's?

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 Know More

Realigned my por olio by increasing

allocation to long term, high-rated debt instruments

Prepared my will and ensured

nominee registration in all

my assets & investments

MyFMrFeianenadtnorcmaisal

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.

AUGUST 2021 | VOL. 3

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