Finishing a good book is like leaving a good friend

'Finishing a good book is like leaving a good friend'

Toastmasters Speech 3: Get to the Point-- "Invest early Invest Properly"

EXECUTIVE SUMMARY:

Every speech must have a general and a specific purpose. A general purpose is to inform, to persuade, to entertain or to inspire. A specific purpose is what you want the audience to do after listening to your speech. Once you have estab­lished your general and specific purposes, you'll find it easy to organize your speech. You'll also have more confidence, which makes you more convincing, enthusiastic and sincere. Of course, the better organized the speech is, the more likely it is to achieve your purpose.

OBJECTIVES:

·       Select a speech topic and determine its general and specific purposes.

·       Organize the speech in a manner that best achieves those purposes,

·       Ensure the beginning, body and conclusion reinforce the purposes.

·       Project sincerity and conviction and control any nervousness you may feel.

·       Strive not to use notes.

Time: Five to seven minutes

Below is my Toastmaster's project 3 speech which I presented in TCS Maitree Toastmasters Club, Mumbai on 13 Jun 2014.

Invest early Invest Properly

When we look at our pay slip it’s obvious for net salary to hurt but it's tax component that devastates us.

Good morning dear toastmasters and dear guest. I am not going to talk about tax saving. I am going to inform you about Investment.

When we start earning and money starts pouring into our bank account .Fist mistake that we do is to indulge in unnecessary and unwanted expenses and then we start thinking about saving. Next we think about tax saving to increase our earning. When we think about tax saving then comes a highly inexperienced, naively overenthusiastic friend who suggests us to invest in some exotic investment product to save tax of which he himself has no idea how that investment product works. And what we do? We follow his suggestion and we invest. How we invest?  First year we invest in Jeevan rachha policy and next year we invest in jeevan surakchha policy.

I am happy with boys at least they make investment mistakes. But Girls excuse my ignorance and stop bothering your dad to manage your investments and stop forcing your husband to buy gold

Now question comes what should we do?

First understand what investment is? Investment is an asset purchased with the hope that it will generate income or appreciate in future. How it is different from saving? In saving objective is to keep your money safe but in investment you keep your money at risk to earn more money.

Saving is an activity but Investment is a process. I define investment process in three steps and I call it GPL process

G is for goal. First thing for any investment is to create a Goal. A real materialistic goal not spiritual or intangible goal; A monetary goal.

For example her goal can be that she wants to leave in 4 BHK apartment in Hiranandani tower,drive BMW,and   a vacation in bora bora island or goal can be like my goal to have a 1 BHK in kalyan, drive second hand nano and a vacation in Ali bagh . Important point is that we should  invest for some goal for future. Remember tax saving should not be the only objective of investment, it should be one of the objective.

The next step of GPL process is Plan. Once you have defined your goals you need to Plan your investment. Access your Income and expenses. Define you risk level.   Investment rule says more risk more reward. Based on your risk appetite and return expectation select investment product like PPF, fixed deposit , real state,  mutual fund, stocks  etc. Don’t procrastinate your investment decision. If you are investing for retirement planning invest now.

Third and most important step in GPL is to Learn. Learn about product that you are investing. Learn how that product works. Never ever  invest in a product that you do not understand how it work, How it generates return. Learning will save you from frauds and Ponzi schemes.  Be an informed investor.  Do not just follow others.

Next time when you invest for tax saving recall the GPL investment process i.e. goal plan and Learn.Ask yourself have you identified your goal of investment,have you planned your investment properly,and have you learnt about product in which you are going to invest? 

Before I end; as a good financial advisor it’s my duty to provide disclaimer:

All investments are subjected to market risk, read all scheme related document carefully before investing. Invest early invest properly.