BMT1014

MANAGING PERSONAL
FINANCE

Dr. Madhumita Das

 BMT1014 –MANAGING PERSONAL
FINANCE (LTPJC:2-0-0-4-3)

 Course Objectives:
To understand decision making
To summarize and express views on
decision
 Student Learning Outcomes (SLO):

 To understand the need for financial planning.

 To acquire knowledge on various investments avenues in Indian
Financial market.
 To learn the precautionary tactics to be followed before making
investments.
 To develop investment strategies to achieve the financial goals.
 To learn and apply tax planning strategies to meet the goals.
 To develop clear understanding of the necessity of insurance
protection.
 To develop the needed skills in planning retired life.
 To understand the investor grievances redressal system.
SYLLABUS
SYLLABUS contd…
 Text books & Suggested readings
 Textbooks
 Personal Finance, Jeff Madura, Pearson,2020
 Personal Finance , Tycho Press, Recent Edition

 Reference books
 Personal Finance, Jack Kapoor, Les Dlabay, Robert J.
Huges,Recent Edition
 Other sources
 Websites of various regulatory bodies and financial institutions (IT
Dept.,IRDAI,SEBI,RBI,NSE and BSE etc.,)
 Research databases & portals (CMIE ,money control, etc.,)
 Insurance and Mutual fund Products info
 Business and Economics - daily news papers
 Assessments

CAT-1 & 2 (Refer Academic Calender)

QUIZ -1 & 2

DA -1 & 2

J-COMP R1,R2 & R3

 Assessment -QUIZ

 There will be 2 quizzes

 Quiz will be of MCQ /True or False
 Dates will be announced in class
 Absenteeism in QUIZ TEST will not be excused
 Assessment –DA 1 & 2

 There will be 2 Digital Assignments

 DA questions will be uploaded in VTOP from time to time.
 Timely upload of DA is very important
 Copying /reproduction of web content is not allowed
 Delayed submissions are NOT encouraged
 Rubrics for 10 marks

6 marks 2 marks 2 marks

Originality,
Content and clarity, Presentation format Timely submission
Critical insights
 J-Component Project

 Group of max 4 or 5 students

 Group formed for Group activity –to continue
 Review 1: 20 marks
 Review 2 : 30 marks
 Review 3: 50 marks
 Details, rubrics and instructions will be given
separately
Do you need a financial plan?
Lets have a look
Where is my MONEY?

 Over the period of my career salary is increasing

 D.A hike
 Increments
 Pay revision
 Promotion & higher scale

But still I end up with shortage

WHY????
How the MONEY goes

 Price level increase (inflation)

 Growing family size
 Changing Needs and wants
 Changes in lifestyle (house ,car etc.,)
 Children education (School  College)
 Son /Daughter’s marriage
The effect of inflation

Commodity 2001-02 2009-10 2017 2019 2020 % increase % increase

Rs. Rs. Rs. Rs. Rs. (2010 - 20) (2001 - 20)

Sugar (1 kg) 16.00 40.00 55.00 55.00 60.00 50.0 275.0

Cooking oil (5L) 290.00 500.00 700.00 850.00 850.00 70.0 193.1

Gold (10 gms) 4474.00 17138.00 27090.00 35500.00 54600.00 218.6 1120.4

Silver (1 kg) 7868.00 28345.00 40600.00 40575.00 71000.00 150.5 802.4

Rice (1 kg) 14.00 35.00 55.00 65.00 66.00 88.6 371.4

Wheat (1 kg) 10.00 30.00 35.00 46.00 53.00 53.3 360.0

Petrol ( 1 lit.) 33.46 48.83 66.77 77.39 84.96 58.5 131.3

Diesel ( 1 lit) 19.88 36.74 57.94 72.00 80.08 96.0 262.2

The Need for a PLAN

 By the age 60 or 65 we achieve obligations to

some level of satisfaction …….after that????
 Does anyone draw a roadmap or plan for all
these things in early stage of life ?
 90% don’t plan the financial aspects of life
 We go for LAST MINUTE PLANNING
 So we get STRESS, BP, Family problems etc.
MONEY- A ROOT CAUSE OF WORRY
SO CONTROL,HANDLE AND MANAGE
Personal Financial Planning

 The process of managing your money to achieve personal economic

satisfaction
 Daily financial activities involve
EARN-SPEND-SAVE-INVEST-GIFT-SHARE

Financial Planning is a planned set

of actions throughout LIFETIME
Personal finance is all about

 Goal setting (short term & long term)

 Money Management Strategy
 Investment planning (Risk and return)
 Insurance planning
 Credit planning (Loans & Cards)
 Housing decision (Rent or Buy)
 Tax planning
 Retirement planning
 Estate planning (Will ,transfer of property etc.)
Misconceptions

 One time exercise

 About tax planning
 To be done at retirement age
 For very rich people
 About investment only
 Is too costly
SMART Goals
THANK YOU