dear viewers welcome to yet another episode of your life your money you would have heard about review of your investment but there is something else you need to be doing when you are setting out to do your financial plan that aspect is checking the Financial Health of yours Financial Health has nothing to do with the investment that you make it has a different purpose it has a different process what is its importance how you have to do what is the outcome that you get from this financial checkup I will discuss all these final points in
this part of the video everything that I discuss in this video has a bearing on maintaining good Financial Health therefore please stay till the end of this video and make sure that you are on the right course this is an Ary clinic for you and I Dr Chandra khanbat your financial guide for a happy [Music] living NRI money Clinic no hype just the right advice Financial Health checkup is the starting process of financial planning unless you do that you do not know where you are standing it is making things clear for you are you financially
healthy are there shortcomings are there anything which you need to work on before you set out to reach your life goals what is the opinion of a financial planner when he sees this particular data which takes me to another topic that to do the financial Health checkup is just not that you work on it now you definitely need the services of a financial planner when you do it yourself you will not know what is actually needs to be done what are the things that you should focus on for that an experience is required therefore the
services of a financial planner becomes Paramount in going ahead with the Financial Health checkup if you have a financial planner you can take their services if you're looking out for the services of a financial planner you can always make use of services provided by nrm man CL we have team of experts who can do all these things and they can help you reach any of the life goals if you have an intention to engage a financial planner all that you have to do is reach out to us through the numbers that we have given here
in the description box below to make things easier we have just provided a link over there click on that link it takes you to the WhatsApp send us the exploratory message and our team of experts are ever ready to help you why delay send that message right now now let's look at the certain specifics of what is that you have to do when it comes to question of doing your Financial Health checkup number one how often you should do it and when is the first time you have to do your Financial Health checkup it's just
not sufficient that you do Financial checkup once how do you do when it comes to question of your physical health you do it at regular intervals of time depending on whether it's once in a year once in 3 years once in 5 years at what stage of Life Journey you are in likewise the Financial Health checkup has to be conducted at regular intervals of time the first time that you have to do is either when you start working in the beginning once or you missed that point you are in the middle of the career today
is the time you start checking for your Financial Health where do you stand you have to repeat it every 5 years if you start doing a Financial Health checkup today the next Financial Health checkup should happen 5 years later and it should be repeated at every 5 years period of time if you're a person who is looking at retirement in the near future which is 10 to 15 years from now the First Financial Health checkup should start at age 45 years of age you must do a health checkup if you are looking at the retirement
you repeat it again 45 50 55 60 that is when you retire and as in when required post that retirement age every time you are going through a major life event that is the time you have to do your financial checkup for example if there is a change of job what impact it will do if you are buying a house or if you are moving to another country let's say your son or daughter is going to college and it involves certain amount of money and you want to reevaluate your options what's changing what might happen
so every major life event prior to that you have to do Financial checkup to summarize first time when you start your job and those of you who are tuned in now in the middle of your career One Financial checkup today and 5 years Gap you have to constantly do it people who are looking for retirement First Health checkup 45 50 55 60 years with every major event please do the financial checkup dear viewers again I stress here Financial Health checkup has nothing to do with the investment that you're are going to do so it has
nothing to do with mutual funds direct regular whatever it is it is just about evaluating your financial position as things stand today now let's look at what all the things that you have to do when you go through the Financial Health checkup for those of you who are doing the first time Health checkup you should start from the scratch that means what is the salary I'm getting what is my income that is there what is my other sources of income what are the life goals that I have to go through let's say that you have
got a new job today you are a fresher in the market the first thing that you have to evaluate is how much salary I'm going to get where the salary should go don't go with an idea that I have to buy a car and kind of I think those things can come later but things like you have borrowed money from your parents how do you intend to give it back or you have an education loan how do you intend to clear this uh you need a vehicle to move around it could be a two- wheeler
a car whatever it is how do you intend to do that so list all the life goals which you need to achieve in the next 5 years because you are a youngster today I will not take you through the long-term life goals of retirement and other things at least what do you want to do it in the the next 5 years those things have to be tabulated make a list of them and find out how much money you need to achieve that and for those of you who are in the middle of the career and
you are doing your Financial Health checkup for the first time today you evaluate your current situation what are your resources that you have right now you would have saved some money and it could have been parked in the bank FD you could have perchased a house you may have some parcels of land uh you would have invested in plan a BC so list all the things where your current resources are likewise also check how much money is coming in how much money is going out do a budgeting this is what I get this is what
I need to spend upon your living expenses your payment of emis paying to school fees of children whatever it could be and find out whether there is a equilibrium between these two that means you are earning more you are spending less and you have more savings or less saving or you are just breaking even this aspect has to be known likewise you should also check what might change in next one year you could be paying the emis for some of your personal loan vehicle loan or whatever the liabilities you are carrying you see what changes
will happen in next 1 2 3 years or next 5 years when the Financial Health checkup becomes due likewise find out what is the events that you have to attend to when I say events it's not the family event it's your life events like marriage education of your children buying a house what might happen in the next 3 4 5 years period of time and what effect it will have on your cash flows will it create a drain or will it add to your cash flows these events so you have to figure out how you
are going to do that now during the process of this evaluation you should identify the points of risk our points of risk could be that you perceive uh certain things could be risky going forward for example uh if your son or daughter has to go to college in one year from now and there is a turmoil in the job market and you feel that you might lose your job those points have to be identified likewise you would have put certain money in funding the child's education you could have kept some money there but the current
expenses of Education are far higher but the amount of money that you have is lesser that should show up when you do the financial Health checkup then you should have a mental plan or you should seek professional advice how will I fund this particular Gap should I take an education loan should I take a personal loan how will I bridge this particular money or if you have got certain assets can I liquidate that asset so all these possibilities will become clear to you when you take you through the health checkup one another thing that you
have to look at is what is my financial assets versus what is my physical assets many people feel very confident that my net worth is so much whereas over 90% of their asset could be held in the land or buildings and that's not available for you to liquidate at the time of when you need money so you have to find out how much of my money is logged in physical assets and how much of money is logged in my financial assets if your money is in financial assets you should also check up is it that
I have invested in something which is close-ended which I cannot take out the money or if that money is available to me whenever I need it or not or when those major events are happening that also has to be checked up so when the event happens whatever that could be event you should be ready with the required amount of money and this Financial Health checkup should give you confidence that I will TI over this particular situation when you're doing this health checkup one more thing that you have to identify is I said that you are
you know what's your assets your physical assets versus your financial assets you should also identify what are your nonperforming assets and non-performing asset is an idle pool of money uh which does nothing for you it could be you have just parked in a savings bank account that could be one of the thing you could have just pged it in liquid fund you don't need this money for next 5 10 years that could be I would consider it as a non-performing asset or you could have parked a huge amount of money in the bank fixed deposit
that can also be categorized to certain extent as a non-performing asset there are a lot of people who put money in land Parcels buildings they don't generate required amount of returns for you identify all these non-performing assets which can be redeployed to reach your life goals now look at the periodical Financial Health checkup now you are doing it for the second time or n number of times after that what is that you have to do during that particular period of time now you have a basis to do this now you have done a health checkup
prayer it has thrown certain results and you have written down your life goals the available cash how do you intend to do it what you're going to do all these things are there from your First Financial he checkup now what you have to do is review it and you have made certain hypothesis on that day you have made certain observations you have taken certain decisions based on your First Financial Health checkup now you review now the review will tell you one thing are you disciplined with whatever the outcome that came on that day and you
decided to take certain actions have you followed it with a proper discipline to setrite the anomalies or to place your funds in such a way that you will reach life goal if your answer is no I have not been very disciplined and it has been wavering I did not follow it up correctly I didn't pay my uh premiums contributions whatever it is correctly then you are on a dangerous path this indiscipline can be the point of risk for you going forward if you are somebody who is a do to yourself investor and you are following
it up without proper discipline I have no hesitation to say You must seek the advice of just not the profession financial planners somebody who can put pressure on you follow up with you get things done make things happen and they'll be working in your best interest that is required but if you are a do it to yourself investor you have used the services of a financial planner once you stick to the discipline you are perfect you can still continue with your own path but review becomes very important now from the time you have done the
First Financial Health checkup 5 years before a lot of things would have changed number one inflation has changed interest rate have changed your personal circumstances could have changed for example you could be working in Bangalore 5 years before today you could be working in Dubai or you would have been working in us on a on-site job and you would have come back to India you didn't have a house at that point of time today you may have a house at your disposal you could have changed the jobs you could have changed the sector you could
have given up employment and thought of starting your own startup so many changes could have happened during this particular phase so find out what has changed from the time you did Financial Health checkup and what impact it might have from here onwards one of the things which is likely to happen between two Financial Health checkups is the change of cash flow it is obvious that there will be change to cash flows you could have moved up the ladder you could have been promoted or you could have got a raise you could have changed the job
it will have an impact on increased earnings in most of the cases likewise in case of people who had liabilities in the first place during The Last 5 Years you could have cleared those liabilities and you may have more cash at your disposable at this point of time now based on your First Financial Health checkup which you did five years before you identified a lot of life goals and it resulted in a situation where it says that yes you have got a lot of life goals but the current situation will not allow me to work
on many of them I'll choose one or two one of them and when time permits or whenever the suitable time I will work on life goals now because the cash flow situation has changed and if it is a positive cash flow which is coming in today you should attempt other life goals at this point of time evaluate your cash flow if you see a change in cash flow which is positive outcome then you should feel happy and you are on course and you can take to work on other life goals at this time the other
times when you have to do Financial Health checkup is irrespective of when you have got done whether it's first time periodic whatever it is whenever you pass through a major life event it should be preceded by a Financial Health checkup what are the major life events that requires a Financial Health checkup number one marriage of your children which could be closer to your retirement days or post the retirement purchase of an house moving from one place to another place it could be within India it could be outside India it could be between two countries that's
fine you are getting into a major investment it could be a startup it could be investing in a friend's company whatever it is if it a major event your Financial Health checkup has to be done you should weigh the pros and cons of going ahead with this and when you get confident that I can handle this that is the time you should move ahead so do not Venture any major life events without a prior Financial Health checkup even in case of marriages of self or in case of educ ation funding of your children a lot
of things have changed over a period of time let's say that you have a child today and the child goes to college 17 years later so you would have anticipated that the fee could be like this you could have anticipated that your child will study a particular course that could have changed you thought that your child will study in a place A or B that could have changed so it calls for a Financial Health checkup whenever you pass through these major life events likewise retirement is a super major life event in case of retirement I
was very perplexed when we did recently the retirement planning seminar we were overwhelmed by the number of people who asked to be participant we are sorry we could not on board all of you we we could plan only 500 people and there was an overwhelming response and we had to say no to a lot of people who came in after the first 500 registration nevertheless we will do one more seminar very soon uh stay tuned with our videos and we'll announce soon when are we going to hold the next retirement planning seminar those of you
who have missed at that point of time please register and have a good retired life and benefit from this particular seminar retirement day is a major life event and the preparations have to start much earlier therefore you should constantly keep checking your financial health and you will pass through a major phase of Life your children are growing you are in the peak of your career you could be doing mistake it can lead to midlife financial crisis and instead of from a winning position you might create losing position by certain mistakes that you might do therefore
I strongly recommend for those people who are in those band of 45 to 60 years to do constant Financial Health checkup every 5 years starting from 45 years 45 50 55 60 years what is that you should look at uh you should look at what is the impact it might create on your retirement cash flow that changes in the interest rate cycle what happens if the inflation goes through the roof how you are prepared for this do you have adequate amount of money or not where is that you have invested your money where is that
retirement Corpus is going to come from or where is that you're going to leave do you have a house or not so many of the things uh that you discovered during this financial Health checkup cannot be repaired in one day or one year or two years therefore if you start at 45 years of your uh age it gives ample time for you as well as well as your financial planner to apply the correctives and create a beautiful retired life for you therefore do not neglect this your physical health checkup is very important equally important is
your Financial Health checkup and take the retirement uh very seriously retirement is a time where you are lonely your children are out you don't have a job you don't have the comfort of getting the salary in your bank account month after month and you can't create that at the age 60 the preparation should start much earlier when you take you through this Financial Health checkup what is the outcome of that it will show you that whether you are earning sufficient enough or not are you at a point of risk it will show you whether you
are able to save sufficient enough or not are you expenses overpowering you or you still have good amount of savings are you wasting your resources is there a possibility that you can reduce your expense and increase savings all these things will show up during your financial heal checkup and it becomes easier for you to apply the correctives when you take you through this Financial Health checkup and finally what is the result we reach to there are three possible scenarios one you may feel that I have adequate income and I am able to provide for all
the life goal I have certain amount of income I have certain amount of expense and I have to provide for so much of money for reaching my life goal I'm able to break you that's one possibility the other possibility could be I have a super income I can go ahead with all the expenses I have more savings I can allocate for all the life goals still I'm left with more money that means more than adequate the other case could be that I have an inadequate position as far as my cash requirement is that means I
have more expenses I have to provide more more money for reaching my life goal whereas my income that I have the resources that I have is not adequate for me if you come to know it ahead of time all that you have to do is apply the correctives what is the corrective that you have to apply you have to reduce your expenses if you can reduce all those wasteful expenses and you and your spouse have to sit together and see how you can create that additional income also you can also upskill yourself you can consider
change of place change of job anything that helps you to increase your income to reach all these life goals you can start working on that but if you're somebody who is the unfortunate one who has an expense for whatever the reason and you can't do anything to increase your income what is the recourse that you have very simple downsize Your Dreams live within your means that's the only option that is there in front of you if you don't listen to this voice then what happens is you become a laughing stock in front of people so
you have to live within your means if you feel that you don't have adequate income either increase your income or reduce or downsize your dreams dear viewers hope the video that I've done today helped you to understand the importance of carrying out periodical Financial Health checkup it's important what results it will throw and how it is a meaningful and effective step in creating a nice Financial life in all of you if it helped you to go through this uh process please do give me a thumbs up if you are somebody who is yet to subscribe
for the Channel please do hit that subscribe button and press the Bell icon do not forget to share these videos with your near and dear ones friends and relatives and all the WhatsApp groups on which you are connected with thank you very much for watching this episode on nrm money Clinic I shall be back with you with yet another episode of your life your money next Friday till then stay safe J press the Bell icon for more details and subscribe our Channel [Music]
