OCTOBER 2023 A

BANKBAZAAR
PRIMER

THE PROSPERITY PLANNER

&
WORKBOOK
Map your personal finance journey

Savings
How much do you need
to save?
Pg 3

Secure
How much life &
health insurance do
you need?
Pg 5

Savour
How to safely use
credit
Pg 8

Strengthen
How to invest for
wealth creation
Pg 11

Serenity
How to become
debt-free
Pg 14 - 15

FILL OUT THE SELF-ASSESSMENT WORKBOOK

TO MEASURE YOUR PROGRESS
PAGE 1 THE PROSPERITY PLANNER & WORKBOOK

THE PATH TO
FINANCIAL SERENITY

Money.

It’s something we cannot do

without. While we may have the
skills to earn it, the real trick of
having money lies in how we
manage it. While money can’t
buy happiness, lack of money
sure keeps unhappiness closer.

Managing money is not too different. To do

so efficiently, we must fulfil some basic needs
like saving money, which enables us to take
care of higher needs like securing or
strengthening our finances. To explain how
this works, we emulated Maslow’s Hierarchy Next is securing your finances with
of Needs into ‘The BankBazaar 5S Pyramid’, insurance. Once you have saved and secured
which you can find in our book ‘The Bee, the your capital, it is time for you to savour it
Beetle, and the Money Bug’. with your loved ones.

Maslow’s ‘Hierarchy of Needs’ layers these
needs like a pyramid, with the most basic
physiological needs like food, water, and
shelter at the bottom, leading upwards to
safety, belongingness, self-esteem, and self-
fulfilment needs. Forming the base of the
BankBazaar 5S pyramid are savings a.k.a the
building blocks that enable you to embark on
your journey towards Serenity.
The next step towards reaching Serenity is
strengthening your finances with
investments and home ownership, both of
which foster a sense of achievement in your
financial life. And finally, Serenity is about
the fulfilment of your financial potential.
Now, the path to Serenity is not smooth, but
with the 5S Pyramid as your guide, the
journey can certainly be made easier.
PAGE 2 THE PROSPERITY PLANNER & WORKBOOK
FINANCIAL LITERACY IN INDIA:
MUCH SCOPE FOR IMPROVEMENT
Financial literacy in India leaves much to be
desired. A 2015 study conducted by Standard
& Poor suggested that barely 24% of the
Indian population is financially literate, a
dismal figure when compared to the global
average of 33% or the European Union
average of 52%. Another study conducted by
the National Centre for Financial Education
in 2019 echoed the results of the previous
study, and showed that financial literacy in
India is at a lowly 27%. In a country that
houses 20% of the global population, these
statistics are worrying, especially given that
India is a growing economy.
As mentioned before, managing money is an
art and a science. The better you get at it, the
easier you will find to manage and grow the
capital you already have. It’s just like
preparing for exams. Frequent revisions can
help you assess how you may be faring in
terms of your prep. Managing money is not
very different.
As you move forward on your financial
journey, it is crucial to review your progress
at every stage and course correct wherever
necessary. There is an assessment at the end
of each section of the 5S Pyramid that will
help you gauge where you stand financially.
There are five sections in all, and by the end
of it, you will have a clear picture of your
overall progress in achieving Serenity.
PAGE 3 THE PROSPERITY PLANNER & WORKBOOK

CHAPTER 1: SAVINGS
Why are savings important?
Saving money is not easy but is necessary for
financial growth and fulfilment. Much like
how the fulfilment of physiological needs
forms the basis of Maslow’s hierarchy,
savings enable us to grow our wealth, enjoy it,
and ultimately reach financial serenity. Only
if you have savings can you invest and grow
your wealth, insure yourself and your loved
ones against worldly perils, take a loan, buy a
house, educate your children, and save up for
your retirement.
How much should you save?
Now, there is no singular amount that
qualifies as adequate savings. How much you
want to save depends on the goals and
objectives you have set for yourself.
The saving strategy for each objective will be
different, so it is important that you are clear
on your objectives before you begin saving
for them.
Let’s take the example of an emergency fund,
which is one of the most basic forms of
saving. Your emergency fund should ideally
be 3 to 6 times of your monthly income and
can help you tide over sudden emergencies
like a job loss or a medical emergency. Let’s
take a look at the time it may take to create
an emergency fund for individuals with
varying incomes.
Assessment Exercise
Go to the next page and complete the
exercise. Give yourself five points for each
task completed.

Emergency Funds & How Long Will It Take to Create It

EMERGENCY FUND SIZE
MONTHLY TAKE- 20%
HOME INCOME SAVINGS 3X 6X 9X
INCOME INCOME INCOME

₹25,000 ₹5,000 ₹75,000 ₹150,000 ₹225,000

₹35,000 ₹7,000 ₹105,000 ₹210,000 ₹315,000

₹50,000 ₹10,000 ₹150,000 ₹300,000 ₹450,000

₹75,000 ₹15,000 ₹225,000 ₹450,000 ₹675,000

₹100,000 ₹20,000 ₹300,000 ₹600,000 ₹900,000

Time Needed To Create Fund* ~15 months ~28 months ~41 months

*Using a recurring deposit returning 5.5%. Income tax as applicable. Time required will be lower with a higher interest rate
and higher with a lower rate.
PAGE 4 THE PROSPERITY PLANNER & WORKBOOK

SELF-ASSESSMENT: SAVINGS
Give yourself 5 points each time you respond with a 'yes' to the following pointers.
Go step by step, adding up your points.
# QUESTION YES/NO POINTS
1 You save at least 10 per cent of your income before you spend it.

2 Give yourself 5 more points if you save 20%.

3 Give yourself 5 more points if you save 30% or more.

4 You have an emergency fund three times your current monthly income.

5 Give yourself 5 more points if the fund is 4-6 times your monthly income.

6 You understood how your interest income is taxed.

You split your savings in bank, deposits or liquid funds for better returns
7
and lower taxation.

8 You know your bank is safe, well-capitalised and can pay back your deposit.

9 You have created a monthly budget.

10 You have automated your bill payments on netbanking or a payment app.

TOTAL POINTS __/50

INTERPRET YOUR SCORE

0 to 20 Points
Your savings and money management
calls for some improvement. If you have
recently begun your career and manage
to save a portion of your income, kudos
to you! Begin by creating a budget and
allocating funds for necessities such as
food, shelter, and savings. Research and
find a bank that is well-capitalised and
reliable. Also familiarise yourself with
the different kinds of investments such
as deposits, liquid funds, etc., to begin
creating your emergency fund. Most
importantly, be consistent with your
savings. You’ll thank yourself later.
21 to 35 Points
You have made some progress on your
financial journey, but there’s still a long
way to go. You have taken steps to
strengthen your finances by beginning
to build your emergency fund and have
also gained a fair understanding of
important financial concepts such as
income tax. To strengthen your financial
position, consider increasing your
savings and enhancing your financial
knowledge. Also begin identifying your
financial goals and the investments that
would help you achieve those goals.
36 to 50 Points
A high score indicates that you have
robust saving and financial management
habits. You are well on your way to
achieving financial security. You already
manage to save a significant portion of
your income, have established an
emergency fund, and understand
important financial concepts. That said,
there’s always more you can do to
enhance your financial well-being.
Consider exploring more advanced
wealth-creation strategies, diversify
your investments, invest and save
consistently, and stay informed about
emerging financial trends.
PAGE 5 THE PROSPERITY PLANNER & WORKBOOK
CHAPTER 2: SECURE
Why do I need insurance & how does it
work?
Life sometimes tosses curveballs our way,
throwing us off our feet. The four D’s –
death, disease, disability, and disaster — can
deplete savings and lead to financial
instability. So, how can we, in the face of a
sudden crisis, get back on our feet? The
answer is insurance. Modern day insurance
policies offer protection against a variety of
crises.
Factors to consider when calculating life
insurance needs
Life insurance is your family’s armour and
will help them achieve their goals when
you’re not around. That said, calculating the
adequate amount of life insurance coverage
can be challenging. Some factors you must
keep in mind when assessing your insurance
needs are your age, current income, family’s
goals, income needs of your dependents,
inflation, and your current assets and
liabilities. You may consider buying
additional policies as you grow older and
your responsibilities increase.
How much health insurance do I need?
Like life insurance, health insurance, too, is
essential for your financial well-being. Many
factors, such as your family’s medical history
and past hospitalisation costs, medical
inflation, and your city of residence, come
into play when deciding the optimum
amount of health insurance coverage. As a
rule of thumb, you could begin with a health
cover that is at least 50% or more of your
annual income. Don’t simply rely on your
employer’s coverage for it could cease when
you switch jobs. If the need arises, you can
either hike your coverage or opt for a top-up
plan that provides you the necessary
coverage.
What we’ve covered above are a few aspects
that comprise securing your finances from
the vagaries of life. Let’s move on to the
assessment so you can find out how you’ve
fared in securing your finances so far.
Assessment Exercise
Go to the next page and complete the
exercise. Give yourself five points for each
task completed.
PAGE 6 THE PROSPERITY PLANNER & WORKBOOK

SELF-ASSESSMENT: SECURE
Give yourself 5 points each time you respond with a 'yes' to the following pointers.
Go step by step, adding up your points.
# QUESTION YES/NO POINTS

1 You have employer or group-provided health insurance.

2 You have boosted your health coverage by buying your own health policy.

3 Your personal health policy coverage is at least 50% of your current annual income.

4 Give yourself another five points if it is over 100% of your current annual income.

You have purchased a super top-up policy or critical illness policy to boost your
5
health coverage.

All your dependent family members, such as parents, spouse and children have health
6
insurance.

7 Every family member has health coverage of at least 50% of your annual income.

8 You have bought term coverage.

9 The term coverage is at least 10 times your annual income.

Give yourself another five points if the term coverage is at least 20 times your
10
income.

You have read and understood the terms and conditions, exclusions and waiting
11
periods of your life and health policy.

You have made all declarations correctly while filling your health and life insurance
12
application forms.

13 You have not mixed life insurance with investment.

14 If you have a personal vehicle, you have purchased third-party insurance.

You have home insurance for either structure, contents, fire, burglary, or natural
15
calamity.

TOTAL POINTS __/75

PAGE 7
INTERPRET YOUR SCORE
0 to 25
Chances are that you’re an Early Jobber
whose career has just started. If you
aren’t, then this is the time to re-
evaluate your insurance coverage. While
you may be saving a portion of your
income, you currently rely on your
employer’s insurance coverage, which is
not sufficient. Tweak your monthly
budget and eliminate or reduce
unnecessary expenses to buy insurance
coverage for yourself and your
dependents. If you are planning to buy a
vehicle, you will have to get it insured
mandatorily, so plan for that as well.
Remember, life and health insurance
premiums are significantly cheaper
when you apply at a young age,
compared to when you’re older. These
are essential gaps which you must fill to
secure your wealth and the financial
well-being of your loved ones.
THE PROSPERITY PLANNER & WORKBOOK
26 to 50
You have put in the work to secure your
finances. You have purchased a health
insurance policy in addition to the
coverage your employer provides, have a
basic term plan, and have insured your
vehicle. However, it may be time to
upgrade your insurance or buy an
adequate plan, especially if you are
planning to start a family or buy a house.
Research insurance providers and find
out the details of the plans they are
offering. If you haven’t already, identify
and purchase suitable health insurance
plans for your immediate family, such as
your parents or spouse. Additionally, as
you get older, consider upping your own
health insurance coverage.
51 to 75
You are well on your way to secure your
finances and have actively taken steps
to do so. You understand the importance
of insurance and have insured various
aspects of your life such as health,
property, life, vehicle, and even travel.
You have a fair understanding of how
insurance works. Remember to
periodically review your coverage and
adjust it based on your family’s changing
needs.
PAGE 8 THE PROSPERITY PLANNER & WORKBOOK
CHAPTER 3: SAVOUR
Understanding wants & needs
Wants are things we desire, but they may not
be necessary for our existence. But needs, are
critical and necessary in life. Let’s understand
the difference with an example. Having a cell
phone to stay in touch may be a need. But
wanting a cell phone of a particular brand
may be a want. At times, it may be
challenging to distinguish between wants and
needs. But making this distinction is
necessary for your financial health.
The MoSCoW Method, a prioritization
model devised by Dai Clegg, helps you list
wants and needs, thus simplifying business
decisions. It includes four categories – Must
Have, Should Have, Could Have, and Won't
Have. Let’s understand this with an example
of a home renovation project:
Must Have (Need): Repair the leaking
roof.
Should Have (Important want): Install
energy-efficient windows.
Could Have (Less important want):
Redesign the landscaping in the backyard.
Won't Have (Not a priority): Build a
swimming pool.
The importance of prioritising needs and
wants is to understand that you don’t have to
deny yourself things that are important to
you but also cut out what isn’t. In the grand
scheme of your financial life, the aim should
be to spend more on pursuits that strengthen
you financially while reducing spending on
things that weaken you financially.
Role of credit products in your finance
journey
Credit products like loans and credit cards
are products that allow us to enrich our
lifestyle and fulfil our wants and needs.
Borrowing, however, can be constructive or
destructive. If you take a loan to build your
business, it will help you become financially
stronger. But taking a high-value loan to buy
a car whose value will depreciate with time,
may not be a smart money move. Similarly,
credit cards, with their myriad discounts,
cashback, and rewards help you save on a
variety of expenses. But if you delay paying
the bill after using these benefits, the penalty
will negate the benefits and harm your
finances.
Now that we’ve covered the gist of what it
takes to savour your money, here is a self-
assessment for you to evaluate how you’ve
fared in terms of credit consumption in your
financial journey so far.
Assessment Exercise
Go to the next page and complete the
exercise. Give yourself five points for each
task completed.
PAGE 9 THE PROSPERITY PLANNER & WORKBOOK

SELF-ASSESSMENT: SAVOUR
Give yourself 5 points each time you respond with a 'yes' to the following pointers.
Go step by step, adding up your points.
# QUESTION YES/NO POINTS

1 You pay your credit card bills and EMls on time.

2 You have not had a late payment in the last 12 months.

3 You have not had a late payment ever.

4 You know your credit score.

5 You check your credit score regularly.

6 Give yourself five more points if your credit score is over 700.

7 Give yourself five more points if your score is over 750.

8 Give yourself five more points if your score is over 800.

9 Give yourself five more points if your score is over 850.

10 You are aware of your credit card rewards.

11 You are using credit card rewards to cut down expenses.

12 You can pay your dues without borrowing for them.

13 You can remain under 30% of your credit card spending limits.

14 You pay your credit card dues in full every month.

15 You understand the difference between wants and needs.

TOTAL POINTS __/75

PAGE 10 THE PROSPERITY PLANNER & WORKBOOK

INTERPRET YOUR SCORE

0 to 25
How you currently manage and savour
your finances may need some
improvement. If you are facing
challenges with timely bill payments, set
reminders that will help you do so in
time. If your credit score is low, take
active steps to improve it, such as
paying your bills in full, on time and
using only up to 30% of your total
available credit limit. Find out about the
rewards that your credit card offers and
how you can utilise them to cut down on
expenses. The key to savouring your
finances is to use credit responsibly.
26 to 50
You are an experienced credit user and
have made efforts to manage your
finances effectively. You are disciplined
in your repayments, and utilise credit
responsibly which has helped you
maintain a healthy credit score.
However, when it comes to money
management, there’s always room for
improvement. You can further enhance
your credit utilisation by keeping your
credit utilisation low, understand the
difference between wants and needs,
and leverage the rewards available on
your credit card to save on expenses.
51 to 75
You are a seasoned credit card user who
is well-versed in responsible credit
usage. You are able to distinguish wants
from needs, and understand credit. As a
result, you have established a history of
timely payments and enjoy a healthy
credit score. You utilise the benefits and
features of your credit cards smartly
and make sure they add to your financial
well-being.
PAGE 11 THE PROSPERITY PLANNER & WORKBOOK
CHAPTER 4: STRENGTHEN
Importance of setting goals
So far, we’ve talked about savings and how
they help you build a solid foundation for
your financial life, about securing your
finances against life’s vagaries, and how to
savour and enrich your life with responsible
credit use. The next step on the climb to
Serenity is strengthening your finances, and
it is a tough one.
This phase of your financial journey is
crucial. You are likely at an age when you’re
looking to buy a house, raise your children,
and plan for retirement, all of which require
meticulous financial planning. Only after
you’ve identified your goals can you begin
planning on how to achieve them. That
planning entails many things – calculating
the cost and optimal time frame needed to
reach that goal while also accounting for
hurdles you might encounter on your way.
Investing for saving tax
Tax-planning and investment planning go
hand in hand. Taxes eat into your investment
returns and a good investment plan takes this
into account. Also, not all investment returns
are taxed the same way – some attract a
higher tax than others, while some don’t
attract tax at all. Your income level, too,
determines the tax you pay, with a higher
income attracting a higher tax. Tax
deductions help lower your total taxable
income, thus also reducing your tax liability.
So tax-saving investments take care of not
only tax saving but also investing.
Power of compounding
When investing, compounding is your best
friend. Compound interest allows you to earn
interest not just on your principal investment
but also on the returns it generates. Let’s
understand this with an example.
You invest Rs.10,000/month in an
investment plan that offers you 12% returns
for 10 years, making your principal
investment Rs.12 lakh. After 10 years at the
promised rate of return, you will have a
corpus of Rs.23.23 lakh. Now, if you ran this
investment for 20 years instead of 10 years,
how much do you think you’d accumulate? If
you guessed Rs.46.46 lakh, you’re wrong.
Thanks to compounding, your 20-year
investment would have generated Rs.99.91
lakh in returns. If you remain invested for
another 5 years, your returns would double
to Rs.1.82 crore, and in another 5 years, they
would double to Rs.3.52 crore. That’s the
magic of compounding!
So, strengthening your finances involves
many things. If whatever has been
mentioned so far resonates with where you
are in your financial journey, why not take a
break and check your progress. That way,
you can recalibrate your efforts towards areas
that still need work.
Assessment Exercise
Go to the next page and complete the
exercise. Give yourself five points for each
task completed.
PAGE 12 THE PROSPERITY PLANNER & WORKBOOK

SELF-ASSESSMENT: STRENGTHEN
Give yourself 5 points each time you respond with a 'yes' to the following pointers.
Go step by step, adding up your points.
# QUESTION YES/NO POINTS
1 Your investments have clearly defined goals.

2 You have taken stock of your tax-deductible expenses.

3 You have optimized your 80C tax-saving investments for returns, risks and liquidity.

4 You know exactly when you need to liquidate any investment.

5 You understand the power of compounding.

6 You have calculated the right degree of risk for your investments.

7 Your long-term investments are performing at least as well as Nifty50 and Sensex.

8 Your long-term investments are performing better than Nifty50 and Sensex.

9 You have optimized commissions for better returns.

10 You have optimized your gold allocation.

11 You are investing in gold bonds, ETFs or mutual funds.

12 You are saving for home ownership.

13 Give yourself five points if you already own a home.

14 Your interest rate is optimal for your loan, income source and credit score.

15 Give yourself five points if you have paid off your home loan.

TOTAL POINTS __/75

PAGE 13 THE PROSPERITY PLANNER & WORKBOOK
INTERPRET YOUR SCORE
0 to 25
Your score suggests that there is
substantial room for improvement in
your financial management. You may not
have clearly defined financial goals and
lack knowledge about tax strategies.
This has a direct bearing on your
investment planning, which may not be
optimised. Begin by setting short and
long term financial goals and learn about
different investments which can help
you reach those goals. Familiarise
yourself with tax-saving strategies so
you can plan your taxes efficiently. If
necessary, consult a financial advisor
who can help you create a structured
financial plan based on your future goals
and risk tolerance.
26 to 50
Your score indicates that you have taken
measures to strengthen your finances.
To begin with, you have defined your
financial goals and have identified basic
investments and tax-planning strategies
that will help you achieve those goals.
Moving forward, your focus should be on
refining your investment strategy to
align with your goals and risk tolerance.
You must also build your understanding
of the tax-saving options and
deductions available to you. Identify
suitable instruments that can help you
diversify your portfolio and also yield
better returns. Review and adjust your
financial plan regularly based on your
situation.
51 to 75
Your score indicates that you’ve made
significant progress in strengthening
your finances. You have clearly defined
your financial goals and have picked
suitable investments that will help you
achieve those goals. Your knowledge of
investment concepts such as
compounding and tax strategies has
allowed you to make sound financial
decisions. As you move forward,
continue reviewing and fine-tuning your
portfolio in terms of performance.
Optimise your tax strategies for
maximum benefits. You can explore
advanced investments such as stocks or
bonds. To strengthen your financial
stability, try to pay off outstanding debt.
Explore strategies such as prepayment
or balance transfer to lower your debt
burden.
 PAGE 14 THE PROSPERITY PLANNER & WORKBOOK

CHPTER 5: SERENITY
Key to lasting financial security
At last, we have reached the last stage in our
financial journey. But, to finally reach
Serenity, a few things still need tending to.
First, take stock of your finances. As you pass
through various life stages, your needs and
responsibilities evolve. You must ensure that
your financial plan is up to date. This
includes reviewing and adjusting your
emergency fund, life, and health insurance,
asset allocation, as well as your retirement
corpus to align with your changing needs.
Becoming debt free
Homeownership is perhaps the biggest
expense you may likely bear in your lifetime.
But to truly achieve Serenity, it is important
that you get out of debt, and fast. There are
two ways you can do that.
The 5 Percent Method
First is the 5 Percent Method, a systematic
pre-payment plan that lets you maximise the
impact of pre-payment at optimal pre-
payment costs, while also helping you get out
of debt.

Saving Ratio Pre-

Loan
Total No. Average over of payments
Pre-payment Tenure Interest
Plan Pre- of Pre- Pre- Original Loan as Ratio of
Amount in Paid
payment payments payment Loan Prepaid Interest
months
Interest (in %) Saved (in %)

No-
₹0 ₹0 0 ₹0 240 ₹4,303,587 - - -
Prepayment

One ₹38,765
₹659,004 17 ₹38,765 203 ₹3,521,578 ₹782,009 13 84
Extra EMI

5% of Loan ₹250,000 ₹2,500,000 10 ₹250,000 111 ₹1,777,683 ₹2,525,904 50 99

5% of Loan ₹38,765 -
₹1,666,002 12 ₹138,333 140 ₹2,085,613 ₹2,217,974 33 75
Balance ₹250,000
₹500,000
10% of Loan ₹3,272,215 7 ₹467,459 73 ₹1,102,056 ₹3,201,531 65 102

10% of Loan ₹38,765 -

₹2,333,278 9 ₹259,253 105 ₹1,395,109 ₹2,908,478 47 80
Balance ₹500,000

Loan: ₹50 lakh at 7 per cent for 20 years. Every prepayment happens at the start of each loan year. Pre-payment amounts are
theoretical; minimum payment rules apply. Simple interest and prepayment charges as applicable and not accounted for in the above
calculations. Pre-payment charges vary from one loan to another.
PAGE 15 THE PROSPERITY PLANNER & WORKBOOK

The BankBazaar Switch Hit
The Switch Hit is a modern cricket shot where
the batsman switches their grip from right to
left or vice versa to improve their shot. You
may be surprised to know that this strategy is
just as effective debt management, as
mentioned in our book ‘The Bee, the Beetle, and
the Money Bug. We call it the ‘The BankBazaar
Switch Hit’, which entails refinancing to a
lower rate but keeping up the higher EMI to
become debt-free faster. Let’s understand this
with a simple illustration.

Home Refinancing Options With Switch Hit

Refinance To New
Ongoing Refinance At 7% Refinance To 6.8%
Particulars Lender
Loan With Same Lender With New Lender
With Switch Hit

Loan Left ₹4,500,000 ₹4,500,000 ₹4,500,000 ₹4,500,000

Tenure Left (Months) 156 156 156 144

Rate (in %) 7.8 7.0 6.8 6.8

EMI ₹45,987 ₹44,013 ₹43,527 ₹43,527

Interest ₹2,674,047 ₹2,366,080 ₹2,290,241 ₹2,080,387

EMI Saving - 1,974 2,460 0

Refinance Costs - ₹5,000 ₹25,000 ₹25,000

Interest Savings after

- ₹302,967 ₹358,806 ₹568,660
Costs

Net Monthly Savings - ₹1,942 ₹2,300 ₹3,645

Protecting your legacy – Will & Nomination
Before we reach the top of the personal
finance summit i.e. Serenity, there’s one last
topic that must be addressed. Among other
things, Serenity is also about knowing that
your loved ones will be safe once you are no
longer around. The first step to doing that is
to keep your immediate family members
informed about your financial affairs. You can
have one or multiple nominees for your
accounts, and also decide the percentage of
your assets that each nominee will receive. In
your absence, it is imperative that your next
of kin – be it your spouse, children, or parents
know how to access your funds, insurance
policies and investments.
Financial matters are often prone to conflict,
for various reasons. To simplify matters for
your loved ones after you’re no longer
around, you need to untangle them while
you’re alive. One of the best ways to minimise
conflict regarding your finances
posthumously, is by drawing up a will, a
document that clearly states how you wish for
your assets and liabilities to be distributed and
managed after your death. The more detailed
it is, the better.
PAGE 16 THE PROSPERITY PLANNER & WORKBOOK
Also, you can amend your will as many times
as you want, but the last will drawn up by you
will be the one upheld legally. You will also
need to appoint an executor whose job is to
ensure that your assets go to the chosen heirs
and meet the end you intended for them.
However, when a will is not drawn up,
religious laws of succession come into play,
which is when hiring a lawyer may be wise.
After all, your family is counting on you.
The road to Serenity is not easy. At times, the
going may get very tough and mistakes will be
made. The trick, though, is to not give up. Let
the goals you have set for yourself fuel your
efforts to build the future you have
envisioned for yourself and your family.
The last, and perhaps, the most heartening
aspect that makes up Serenity is giving back.
Find a cause that you would like to support
and step up in a capacity you are comfortable
with – volunteer, provide monetary aid or
professional expertise, it is entirely up to you.
Now that we’ve covered all aspects of attaining
financial fulfilment, let’s recap on the last one
– Serenity and check our progress with a self-
assessment exercise.
Assessment Exercise
Go to the next page and complete the
exercise. Give yourself five points for each
task completed.
PAGE 17 THE PROSPERITY PLANNER & WORKBOOK

SELF-ASSESSMENT: SERENITY
Give yourself 5 points each time you respond with a 'yes' to the following pointers.
Go step by step, adding up your points.
# QUESTION YES/NO POINTS
You have reviewed your savings, insurance coverage and investment needs at least
1
once in the last year.

2 You have worked on an asset allocation plan for better risk-reward management.

3 You have a retirement age in mind.

4 You have calculated your retirement fund requirement.

5 Your current savings are on track to reach your retirement fund goal on time.

6 You have an idea about how you are going to draw a pension in retirement.

7 Your financial data is secure.

8 You have safely disposed of printed documents such as bank statements.

You have changed the passwords of your most sensitive accounts at least once in the
9
last 12 months.

10 You file your tax returns on time.

11 You understand which tax regime works best for you.

12 You have a plan to pay off your current loans before time.

13 You have pre-paid a loan.

14 You have pre-closed a loan.

15 All your financial accounts are nominated.

Your next of kin know how to access your accounts in case you were incapacitated
16
or dead.

17 You have started working on a will.

18 You have a will.

19 You have donated to charitable causes in the last 12 months.

20 You optimize your donations for tax deductions.

TOTAL POINTS __/100

PAGE 18
INTERPRET YOUR SCORE
0 to 25 Points
Your score indicates that you may need
to put in some work to improve and
secure your finances. While you do have
basic financial awareness, you need to
work on other key aspects of your
financial planning such as planning for
retirement, managing your loans, and
planning your legacy. Begin by reviewing
your current financial plans and fill any
gaps there might be. Your primary focus
must be on debt management before
you move on to other aspects such as
drafting your will or creating a plan to
safeguard your assets. Educate yourself
on tax optimisation strategies and fine
tune your overall financial plan.
51 to 75
Your score indicates that you have made
considerable progress in managing and
securing your finances. You have set
clear financial goals for your future,
which include planning for retirement,
debt management, and optimising your
investments based on changing
circumstances. You are disciplined in
filing your tax returns and have a good
grasp of tax strategies. You also actively
work to keep your financial data safe.
Moving forward, you could continue
refining your financial strategies to
ensure you are on track to meet your
retirement goals. If you are paying off a
loan, focus on strategies such as
prepayment and balance transfer to
lower your debt faster. Consult a
financial planning expert who can help
you with estate planning. To give back to
the community, you could explore
donating to charities that align with your
beliefs.
THE PROSPERITY PLANNER & WORKBOOK
26 to 50
Your score indicates that you
understand the importance of financial
planning and have taken steps to ensure
financial security and serenity. You are
managing your debts and likely have a
retirement plan in mind. You are also
aware of the different tax regimes, and
have a basic idea of how you want to
plan your legacy. But there’s more to be
done. You must actively work towards
reducing your debt faster and refine
your retirement plan. Optimise your
taxes and consider drafting a will. You
can also explore options for charitable
donations for tax deductions.
76 to 100
You are likely an ace at managing your
finances. You have clearly defined
About This Test
financial goals which you are on track to
This self-assessment workbook is
achieve. You have finalised your
adapted from the No. 1 Amazon bestseller,
retirement plan and are disciplined in
The Bee, The Beetle and the Money Bug, a
your tax filing. You regularly review your
simplified guide to personal finance co-
investments, insurance and savings to
authored by Adhil Shetty and AR Hemant
ensure they align with your changing
and published by Rupa Publications.
needs. You understand the importance
of having a will and have a fair idea of
how you would like to manage your
legacy. Your discipline held you in good
stead in your financial journey, and you
should maintain that. Stay updated on
changes in tax laws and explore
investment options that align with your
changing needs.
Author
Malvika Singhal
Manager, Communications
malvika.singhal@bankbazaar.com
Editor
AR Hemant
AVP, Communications
arhemant@bankbazaar.com
About Us
BankBazaar.com is India’s largest fintech co-
branded credit card issuer and online
platform for free credit score. It has a base of
56 million registered users who use the
platform for free credit score tracking and in-
depth personal finance content and
comparison tools.
Its range of co-branded credit cards with
India’s leading banks is driving the platform's
rapid growth with more than half its
customers now opting for BankBazaar's own
co-branded products. The company is on
track to facilitate one million active
BankBazaar co-branded credit cards in force.
© 2022 A & A Dukaan Financial Services Pvt. Ltd.
All rights reserved.
Supported by global investors such as
Experian, Eight Roads, Peak XV Partners,
WSV, and Amazon, BankBazaar has been at
the forefront of democratising finance by
providing Indians with frictionless access to
credit.
The company exited FY2022 with an audited
revenue ₹1596 crore, growing 66% year-on-
year with EBITDA profitability on a monthly
basis attributed to its co-brand model.
Adhil Shetty, CEO, BankBazaar.com, said:
“BankBazaar has been focussed on three
things: great technology, customer focus, and
the bottom-line. I am proud to say that we are
one of the few fintechs in the world to be
growing rapidly and profitably.
BankBazaar is well positioned to accelerate
this revenue growth rate further in FY24
while targeting full year EBITDA profitability.
This strategy for profitable and sustainable
growth has been in the works for over three
years. We’ve built a co-branded portfolio of
digital products with proven customer
traction, which has created sustainable
revenue while improving margins.”