The difference between the value of your assets and liabilities is your current net worth. If this is not positive, ring the alarm because your finances are in deep trouble.
A
Your own calculation
Rs 47 lakh R
Reasons for target: - Stable income - Stable expenses - Medium risk appetite - Income from accumulated investments
45%
4. Next 10 years (41-50 years) Target increase over current net worth:
-Maximum career growth -Minimal responsibility -High risk appetite -More time to supplement income
Reasons for target:
50%
1. First five years of your career: (25-30 years) Target increase over current net worth:
Rs 69 lakh
Net Amount
Rs 23 lakh
Net Amount
An example of how you can break-up the target net worth over your career span
- Prepayment of loans (decrease in liabilities) - Stable expenses - Peak in career - Low risk appetite
Reasons for target:
45%
3. Last 10 years (51-60 years) Target increase over current net worth:
- Medium risk appetite - High growth in income -Increase in loan consumption
Reasons for target:
50%
Alimony Others TOTAL: B
Rs 1 crore
Finishing Line
Rs 34 lakh
Text by Kamya Jaiswal, Graphic by Alankar
Hopefully, the beginning of a carefree retirement
- Peaking expenses - High-medium risk appetite - High loan consumption
Reasons for target:
40%
3. Third five years (36-40 years) Target increase over current net worth:
Pay up the small loans and outstanding bills from excess cash in your savings account Fix an appointment with your banker to discuss snowballing total EMIs (if they are from the same bank) Fix a repayment schedule of the advance from your employer Hunt for any investment documents you couldn’t find and hence did not include Invest in small repairs that will improve value of assets like a house
Net Amount
■
■
■
■
■
Quick 5 to improve the result
2. Second five years: (31-35 years) Target increase over current net worth:
FINANCIAL ROAD MAP
Net Amount
Rs 15 lakh
Starting point
B
A
The starting point: A-B
Resale value of cars* Value of antiques/heirlooms Furniture Electronic goods TOTAL: