Personal Finance MASTERCLASS | Complete Financial Planning For Beginners | MY STRATEGY #Finance

If you earn Rs. 20,000 per month, then Rs. 10,000 per month will be your expense. And the remaining Rs. 10,000 you must be saving. But what do you do after saving that Rs. 10,000 for 3 months? You buy a new mobile from it. Now again, you will save Rs. 2-3 months and pay the down payment of

the car. In this case, you feel that you are saving Rs. 10,000 per month but actually you are not saving anything. And if you are not saving anything, then no matter how hard you work, you will have to work all your life and you will never be able to generate wealth. If you want to be financially

free, then you have to do Financial Planning and that is what I am going to teach you in this CashNews.co. I know that most of the people will not take this CashNews.co seriously. But those who will take this CashNews.co seriously, they will be able to do something in life. So

let’s start and learn the first step of Financial Planning. But to explain this, I have a question for you. And that question is, If you don’t know where you have to go, will you be able to reach that place? Obviously, no matter how much you roam, you will not be able

to reach. So in Financial Planning, our first and most important step is to know where you have to go. That is, you should have a clear idea that why you are saving your hard-earned money. And if we talk about this in financial terms, then first of all, you have to do your goal

identification. So for this, our team has designed a worksheet, and with the help of this, you can practically identify your goal. So now you can see this worksheet on the screen. Now as per this worksheet, you basically have to write your future goals here. And you will have to divide these goals

into three categories. The first is short-term financial goals, which you basically want to achieve in 6 months to 3 years. For example, if you want to make an emergency fund, want to buy a car, or if you have a short-term Debt that you want to manage, then all these will be

included in your short-term financial goals. The second is mid-term goals, which you want to achieve in 3 years to 7 years. For example, if you want to buy a house, or if you have a long-term Debt that you want to manage, it is possible that you want to get married in the next 7

years, or if you want money for your children’s education, then these can be included in your mid-term goals. And the third is long-term goals. These will include goals that you want to achieve after 7 years. For example, if you want money for retirement, or if you want to generate wealth,

then all these can be included in your long-term goals. So, in this way, you have to divide your goals. But just by deciding the goals, nothing will happen. So, here you have to decide your target date on which you want your goals or plans to be fulfilled. For example, if your plan is to go on a

foreign trip at the end of 2026, then you can keep your target date as December 2026. And along with this, you can also write the number of months in the bracket, which according to this example is about 23 months. After this, here you can see another column of Prioritize. This means that here you

have to decide which goal is very important for you and which goal even if it is a little delayed, it will not have much effect on your life. So, for this, you can label your goals in Critical, Need, and Want. For example, if you have a short-term goal to build an emergency fund, which you have

shown in Critical, and you have another goal to buy a car, which you have shown in Want. So, in this way, if your budget is tight in any month, then now you know which goal you have to save your money for first. And here you can see two very important columns. One is Current Saving Per Month and

the other is Additional Saving Per Month, which you have to do to achieve your goal. So, for example, if you want to buy a house for your family in 2027, for which at that time you have to pay a down payment of 6 lakh rupees. We are just taking an example. So, let’s assume that if you have 2

lakh rupees now, then these 2 lakh rupees are your current Savings. And here your additional Savings will be 6 lakh minus 2 lakh is equal to 4 lakh rupees. So, you have to save these 4 lakh rupees which you have to save for about 36 months. So, if we divide 4 lakh

by 36, then it comes out to be 11,111 rupees. That is, you have to save this much money every month. So, you will put this in the column of Additional Saving Per Month and implement it. Now, if you want, you can reduce this amount and in the same time period you can achieve your goal. But for this,

you will not only have to save this money, but also have to invest it. In this case, the investment you will do should be such an investment which is not too risky and where you get good returns. So, for this, if you want, you can do SIP in Mutual Fund or if you want to run very safe, then you can

do FD. Similarly, if you want to invest, whether you do it in Mutual Fund or you want to do it in Stock Market, then for this, you need a Demat account. So, if you don’t have your Demat account, then I have given some good Demat account links in the description, so do check

the description and do open your Demat account from there because whenever you want to invest, you will definitely need a Demat account. So, in this way, you can prioritize your short-term, mid-term and long-term goals and get your monthly financial goal. So, your roadmap is ready and now you know

where you have to go. But to go, you need a good car and that good car is Budget. From Budget, basically we will know that what is coming to us i.e. what is our Income and what is going away from us i.e. what are our expenses. Along with this, we will also try to know that what is

going away from us and what is important and what is not so important. Because only after Budgeting, what will be left with us, we will be able to save it, so this is also very important. Now to make your budget, either you can make your budget from our website or online You can

also do your Budgeting there. But we have seen that those websites are very complicated, so we are using our worksheet whose link I will give you in the description, so you can download it from there. Now next, which is very important and without it, it is possible that all your

planning will go wrong. Let’s take an example to understand this. Suppose your goal is to buy a house by 2026 and for that you had to save 6 lakh rupees by 2026 and by the end of 2025 you had saved 5 lakh rupees but an unexpected accident happens due to which you or any of your family members

have to be hospitalized and there is a bill of 8 lakh rupees. So now all your Savings will go there and it is possible that you have to take a Loan from above. So in this case, all your plans will fail but it can be controlled and for that you have to take

Insurance and here too you do not only have to take health Insurance, you also have to take life Insurance because health Insurance will save you from hospital expenses but in case the person who earns something happens to him,

then what will happen to his family and what will happen to his family goals. So that’s why you should take Insurance of both health and term and the link to buy this Insurance is given in the description of this CashNews.co which is basically our referral

link but here you will not have to pay any additional cost and if you want to take Insurance of both health and term then the link is also given in the description Now the last component which will be in your goal is retirement corpus Now making a retirement fund for yourself is a

long term goal because when you retire, you still need money so that you can enjoy your life after retirement so retirement planning is a long term goal but the sooner you can start it the sooner you should do it so here you not only have to think about the present but also about the future so to

make an effective and right retirement fund, we have to keep some futuristic values in mind so here the first thing you should see is that how many years are left for you to retire or how many years do you want to retire for example if you want to retire at the age of 60 then you have to plan your

retirement fund accordingly the second thing you have to keep in mind is that how many years will you live after retirement and what is the life expectancy according to you now according to India, the life expectancy here can be 80-90 years so if you retire at the age of 60 then you will need money

for the next 20-30 years and the third thing you have to keep in mind is Inflation you know that Inflation is increasing the Inflation rate in India is around 6-7% so Inflation is increasing every year so if the

Inflation rate is 7% so if you buy something at the time of retirement it means that after one year you will get that item for Rs. 1070 so when you are making your retirement fund at that time you have to keep in mind the Inflation rate and along with that you have

to adjust the Inflation rate in your interest rate so now in this worksheet we can see two types of expenses the first one is fixed expenses these are basically the expenses that fulfill your basic needs like paying rent, recharging your phone, buying groceries, or any other

medical treatment where you have to spend money so these are fixed expenses which you cannot avoid so these will be your fixed expenses and the second type of expenses are non-necessary expenses which we also call discretionary expenses these are the expenses which we can avoid at an individual

level like if you want to buy branded clothes electronic items or a car these are the things which come under luxuries and if you want you can avoid them and the main motive of making a budget is to avoid these discretionary expenses control these expenses and at least monitor them. So now you know

your fixed expenses you know your discretionary expenses so now what you have to do is deduct these expenses from your Income. And after deducting the remaining Income that you have, you can invest it in your long term, mid term or short term goals. But while

deducting, keep in mind that the discretionary items that you can avoid you don’t have to deduct them. That means you have to try to save as much money as possible so that you can invest that money according to your priority for your goals. So these two steps in which the first was to

identify the goal and the second is to do Budgeting. By doing these two, in 2024 we will make a 99% effective plan for the future but to make it 100% there are some important points which you have to keep in mind while Budgeting. And this is because in 2023, we

heard a lot of news about job layoffs and even India was at number 2 where there were a lot of IT companies which did layoffs. So if someone loses their job then in such a situation, it is very difficult to keep your #1a73e8; text-decoration: none;">Finances stable. And this was just an example there can be more such situations where you have unexpected expenses. So that’s why in your short term goals, the first priority is to keep emergency funds so that if there is any unexpected situation

then you can continue your daily expenses and whatever you are saving. That means you have to make an emergency fund but the question arises that how much money should be there in your emergency fund. So see, according to thumb rule, you should have at least 6 to 8 months of money so that in case

your regular Income stops, then there should not be any problem in your life and this thing should not affect you mentally. So if your salary is Rs 30,000 per month then in this case, your emergency fund should be Rs 30,000 x 6 which is Rs 1,80,000 to Rs 2,40,000 and you have to

keep this in a critical category Now after this, the second and one of the most important tip is to manage your Debt. Debt is basically an instrument that you have to take like in some cases, you take home Loan, education Loan,

business Loan or personal Loan so if you don’t manage these Loans properly then you will never be financially stable so first of all, manage this. So if you have any Loan then this should also be in your short term or mid

term goal so that you can clear it as soon as possible. Now in some cases, you may have more than 2 Loans so in this, where you have to pay the most interest then you should clear that Loan first so that you have to pay the least amount of interest So now

let’s calculate from an online retirement calculator that how much money you will need during retirement so here I am using hypothetical situations suppose my current age is 27 years I want to retire at the age of 60 so here I write 60 and then we have to click on next. Now here we have to

write how much is our annual Income. So for example I will write 6 lakh rupees that is 50,000 rupees per month now see your Income will not always be the same it will increase. So what do you think your Income will increase at what rate every year?

So if you think that your Income will increase at 8% rate then you have to select 8% similarly, the bar below, you can adjust it according to that bar also. So we have selected 8% here. Now after this, let’s click on next so as soon as you click on next, you will be asked

that how much money do you have for retirement fund it is clearly written that your child education, marriage don’t include those goals here tell me how much you have saved for retirement so let’s assume that I have not saved any money. So I have written 0 rupees now after this, it is

being asked that where will you invest you will do fixed deposit, mutual fund and Stock Market. If you do it on fixed deposit then your money will be safe, but there will be more risk in mutual fund, there will be some risk in long term but you can get more returns and in

Stock Market there will be more risk but you can get more returns so for example, let’s select mutual fund now after this, it is being asked that how much is your monthly expenses so I have told my salary of 50,000 rupees per month so I do my monthly expenses of 30,000 rupees

per month here if you want, you can select your expenses category wise so here I have put category wise expenses now let’s click on next and at last we have to decide how much Inflation will be there, so I think it will be around 7% and next we have to tell how much interest

rate will be there so I think if I invest in mutual fund then I can get 11% interest rate so I have selected 11% so according to this, I will need 8.39 crore rupees for my retirement and here it is being told that for this, you have to save 58,000 rupees every month for next 33 years now you will

say that we have shown salary of 50,000 rupees per month and we have to save 58,000 rupees per month, so how is this practically possible so see, pay attention to one thing, we have told there that our salary will grow by 8% every year so this is telling you the average so in this way, you can

calculate your retirement amount now it is possible that you are finding this amount big because according to our expenses, they have told this amount if we reduce our expenses then this amount will reduce and along with this, pay attention to one more thing that after 30 years,

Inflation will have increased so much that actually you will need this much money so in this way, you can do Financial Planning here pay attention to one thing that you have to review your plan every year you have to see that whatever you have planned whether it is

going on properly or not and if there is a big change in your life, like if your Income increases or if a new member is added in your family due to which your expenses increase so all these things you have to add or change in your financial plan so whatever worksheets are used here

we have given their link in the description, so do check the description along with this, do get your Insurance done this is very important, its link is also given in the description if you want to invest, then open a Demat account if you liked the CashNews.co, then do like it and

if you want to know about health Insurance, then you can see the CashNews.co here and if you want to know about term Insurance, then you can see the CashNews.co here so do watch this CashNews.co, thank you!