Basics of Personal Finance - 2020

Understand the time value of money and the power of compounding, illustrated with a 1000 rupee investment at 50% over 20 years, and learn present and future value calculations.

Explore the concept of annuity as a series of periodic payments tied to the time value of money, including forward and backward elements and the rule of 72.

Track your inflow and outflow to manage personal finances. Identify money sources, monitor expenditures, and follow a data-driven planning cycle with apps for monthly reviews.

Plan your budget by classifying fixed, variable, essential, and unavoidable expenditures, and track weekly, monthly, and yearly inflows and outflows to balance income with savings and smart cuts.

Analyze the balance sheet to assess assets minus liabilities and your net worth, and review the income statement to track income versus expenses and net income or loss.

Learn how to manage and save tax by understanding India's progressive tax structure, tax slabs, and how investment decisions affect taxable income and overall tax liability.

Explore tax calculation by comparing old and new regimes, understanding tax slabs, exemptions, and deductions for investment planning.

Explore what risk means in personal finance, discuss risk management strategies, and examine how life, non-life, property, and health insurance help reduce or transfer risk.

Explore the fundamentals of life insurance, including term, endowment, money-back, and ULIP policies, and learn how premiums, coverage, and beneficiaries shape protection.

Evaluate life insurance needs with two methods: a rule-of-thumb around 59% of income, and a human life value approach using present value of future earnings minus assets and liabilities.

Learn how mutual funds pool investors' money to buy stocks, bonds, and money market instruments, delivering liquidity, diversification, and professional management for long-term goals.

Explore how mutual funds work through a four-step process: investors entrust funds to managers who invest in securities, money market funds, or debt instruments to earn returns.

Set concrete financial goals using smart criteria, listing three to five targets with long-, medium-, and short-term horizons, and align them with equity and debt funds.

Apply the 120-age principle to balance your portfolio by shifting from equity to debt as you age and review every six months.