A Developer's
Guide To
Wealth
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ADNAN A M
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WHAT IS GOING TO BE COVERED?
Today's
Agenda
Hello World
Understanding Your Salary & Taxes
Inflation
Being Wealthy
Compound Interest
Budgeting
& 99 others.....
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Hello
World
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Salary &
Taxes
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Gross Salary
Net Salary
Taxes
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Salary Components
Gross Salary
Total salary before tax deductions
Professional Tax
Tax levied by state govt for
practising your profession
Net Salary
Take home salary after taxes &
other deductions
Income Tax
Amount owed to the govt based
on tax bracket
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What is Inflation &
why should you care?
Because it affects you!
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Cost
Inflation
Index
Average growth of 7% YOY
CII is used to calculate indexation benefits
& is proportional to Consumer Price Index
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0 25 50 75 100 125
2015
2016
2017
2018
2019
2020
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How
Inflation
Affects You
Items you could buy for ₹100/- in
2015, you would spend ₹140/- today
(2020) for the same items.
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2015 2016 2017 2018 2019 2020
150
100
50
0
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If your hike was less
than 7%(YOY) on avg in
the last 5 years you are
making lesser than
before!
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Avg rate of interest from various banks
4.5%
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So if you kept your money
in the bank, you would
roughly lose 2.5% of the
value every year
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Being
Wealthy?
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Would you rather have
$1M today or a penny
doubled everyday for
30days?
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Power of
compounding
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How
To Be
Wealthy?
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Wants vs Needs
Buy Stuff At Fair Value
Control Expenditure
Delayed Gratification
Avoid deprecating assets & liabilities
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50/20/30
Budgeting & Expense Planning
Essentials
50%
Personal
30%
Savings
20%
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Financial Plan
Emergency Fund
3-6 months worth of
expenses
Invest
Grow your money while idle
Expense
Planning
Annual expense planning
Charity/Donations
Giving back to the society
Goal Setting
Define long term & short
term goals
Debt Payoff
Pay off outstanding debts
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Investing
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16 Goal Based
Investing
A smarter way to invest
Invest to achieve your goals,
not because your friend asked
you to.
Goal based investing lets you
take a methodical approach to
tying your real life goals to
investments & funding them.
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Investment Options
Real Estate
Residential/Commercial spaces
Mutual Funds
Managed stock investments
Fixed Deposits
Fixed term deposits
Stocks, Cryptocurrencies
Direct equity, exposure to market &
volatility
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Real Estate - Rental returns
3-5%
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Across various cities &
locations. Doesn't
generate enough to beat
inflation.
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Fixed Deposits
6-8%
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This beats inflation just
marginally.
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Mutual Funds - Avg Returns
8-15%
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Beats inflation but comes
with a risk trade off
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Stocks, Cryptocurrencies - Avg Returns
?? %
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Highly volatile, hard to
estimate returns but
generally tend to beat
inflation easily
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A few things about building
wealth
Get Rich Slowly Goal Setting Helps
Accountable
Setting goals will help you track
progress.
Time Is King
Growth
The more time you allow you
investment to grow, the more you
will gain.
Patience
Most of your wealth will be built over
time & with not much happening.