Its Personal | Introduction to Personal Finance | Episode 1 | Kotak Securities | flipitmoney

”The best thing money can buy is financial freedom” said Rob Berger. If you want to be financially free at the earliest, learn the art of Financial Planning in our first episode of the #ItsPersonal – The personal finance series, presented by #KotakSecurities and #flipitmoney. In this episode, Mr. Kalpesh Ashar, Certified Financial Planner, explains the concept of personal financial planning, the 5 major pillars of financial planning, and cash flow. Watch this episode and the entire series to learn Financial Planning. And remember, you can’t ignore it…because ‘It’s Personal”.

Hello friends welcome to this brand new first edition of its personal series presented by cortex securities and flipped money personal finances like budgeting insurance investment planning retirement planning tax planning and much more now these heavy words and so many factors involved financial planning can sometimes to manage our income and expenses to fulfill

Our dreams to protect our future and to make money works for us and that’s why we have taken this initiative it’s personal so let’s start the first session of its personal series we have with us mr kalpesh asha a very warm welcome to its personal series presented by kotek securities and flipit money this topic personal finance is really important for all of

Us however we always try to ignore it because we don’t understand it so to begin with can you please simplify the term financial planning to our viewers hello friends and thanks a lot for having me here to speak on a very subject close to my heart and a very cherished uh you know topic which is nothing but uh personal financial planning and uh when we talk

About personal financial planning it’s a huge uh you know uh area which we have to cover but let’s start from the start you know so let’s talk about the simple two terms we keep on using which is nothing but money and wealth and we use these two terms in our day-to-day life quite abundantly so let’s understand what is money and what is wealth first so money is

Something which we make on a day-to-day basis we earn it on our income and we also spend it but wealth is something which we create over a period of time and this process of making money and creating wealth is possible genuinely by a very simple process called personal financial planning so without wasting much time let’s understand that what is personal


Financial planning now when we say personal financial planning it is not a great you know a technical term or a science or some great match it is very simple basics of life which we just apply to our finances in our day-to-day activities so if we were to go by the definition of what is personal financial planning we can have basically enumerated into five

Different things and we call those five things as the pillars of financial planning now before we go into the pillars of financial planning let’s see what is the platform you know what should be our mindset when we get into the zone of personal financial planning and there are just two things friends we need to keep ourselves abreast of so we can easily adapt to

That process which is nothing but first and foremost is the awareness we should be aware of our internal financial situation and also partially aware of the external financial situation and second is choosing the right path because in finance i personally believe that rather than doing the things right what is more important is avoiding the wrong things so that

Right path is necessary rather than doing things right what is more important is first and foremost is nothing but your cash flow your personal budget and for us financial planners especially for me this is the nerve center without understanding the cash flow or the personal budget i don’t think you can get into the nitty-gritty or the details of anybody’s

Personal financial plan the second one is the net worth estimation which is again understanding your financial assets and also understanding your liabilities so your assets minus your liabilities gives you your personal net worth third is your heart which is your heart of financial planning which is investment linked goal planning you have to understand that

Both of them are interwoven so your goals are very important in financial planning need short-term goals long-term goals and they have to be backed by a super concrete investment plan the fourth is managing your risks it is a risk management and that is done through a perfect insurance guideline insurance advisory and the final one which is unavoidable is nothing

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But your personal taxation so we’ll touch all these topics as we move forward about the pillars of financial planning culpasia as you said the first pillar that is cash flow is the nerve center of financial planning could you please tell us what is this cash flow is all about and what is the first step to managing it so as i mentioned earlier explaining the five

Pillars of personal financial planning and the first one which are called the nerve center the most important one is your cash flow this is your personal budget and what is it it’s not that difficult friends it is something you know we would have seen your mother or your wife uh you know write down in a small diary all the expenses which you know she would have

Incurred on buying groceries and all the household stuff this is a larger platform or a larger you know a projection of your income and expenses not only your expenses so how do we start in understanding what is the cash flow so say for example a household brings in a certain amount of income wide a monthly salary or the professional brings in amounts which

Are variable on a on a monthly or an annual basis that is the amount which the bread earners get in hand on a monthly basis now that could also include apart from this your investments which fetch you you know interest or dividend and all ultimately what counts is how much money comes into your hand or in your bank account at the end of every month that is the

Income part now coming to the expenses part now when the expenses are need are you know articulated or are accounted for every expense as far as possible needs to be accounted from so i’m talking about your groceries paying your household help paying your school children’s fees their expenses their extracurricular activities your lifestyle expenses your medical

Expenses your insurance premiums which either go on a monthly quarterly basis then even going for your travel expenses how much do you budget once you do that you at least come closer to estimating how much are your monthly expenses now once you do that you know that your income should obviously be more than your expenses but we find out and so does the client

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Who does the cash flow it’s an eye-opening experience for him when he sits down and writes his cash flow that many a times he finds his expenses moving up then his income how is that possible but it’s happening he’s still living a normal lifestyle which means there is a leakage somewhere in the ship which means that something is not right so which could uh you know

Add up to him having uh you know unwanted expenses him taking a loan to you know furnish some expenses or breaking investments interim which are meant for a different goal to furnish your day-to-day lifestyle so understanding this is very important and on the other hand there’s a good side to it as well so you might be spending much much lesser than your income

On an honest basis so that could mean that you are not investing that amount as well for a proper financial goal which you could easily do because you never done that exercise to make out that that much surplus you are on the contrary invest saving per month so a cash flow is the the most important i would say uh stool in the in the whole process of financial

Planning and that is the first stepping stone which we as advisors make our clients do that’s great so cash flow and personal budgeting are the stepping stones in financial planning now what’s next thanks a lot for joining us hope you guys have liked the show and i am sure in the next episode we are going to learn different aspects of financial planning like in

Next episode anastasia play do subscribe to our co-tech securities youtube channel if you have any doubts or questions please leave them in the comment section we will get back to you you can also catch us on all our social media platforms description box always remember we can’t ignore it because it’s personal investments in securities market are subject to

Market risks read all the related documents carefully before investing

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It's Personal | Introduction to Personal Finance | Episode 1 | Kotak Securities | flipitmoney By Kotak Securities