The best things in life are free. But most things we value cost money. So while money is only a means to an end, we all agree that it’s important. Yet the curriculum in most schools and colleges does not include sessions on how to manage our money, save and invest it and make it grow. There is no course for people of all professions that tells them how to raise money when needed and service this debt efficiently. This simple but epic book tries to make up for that lacuna and more.Beyond Saving and Investing basics, it introduces readers without a formal background in finance to a range of relevant concepts such as the Fundamentals of Financial Statements, Income and Expense statements, Assets and Liabilities, what Ratios and how do they help track Wealth Creation, etc. Presented in simple, everyday language and topped with practical examples and self assessment exercises, this book could veritably become your bible to the world of finance and your road map to creating sustainable wealth for yourself and your loved ones.


Table of Contents:
1. The Focus - About the Book 2. About the Author 3. Preface 4. A Non Finance Person’s Perspective 5. Step 1 - Knowing Your Finances - What do I Need to Know as a Non - Finance Person Where does Money Come From? Where does the Money Go? How to Read My Own Profit and Loss Statement? How to Read My Own Balance Sheet? 6. Step 2 - Savings-do they Really Create Wealth in Today’s Times? Is Saving Necessary? Where to Invest? Where to Get Money to Invest? Rule of 72 7. Step 3 - Borrowings - How to Raise Money When Needed? Why Home Loan Should Never be Pre-paid? Car Loan – You Must Take if You Own a Business How Can You Quickly Get Out of Personal Loan? Understanding Interest Rates 08 Step 4: Investments – Trees Where Money Will Grow : Story of a Sofa Maker in a village Near a Metro City A Training Participant with a Drinking Problem An Admin Assistant Loans Money to a Builder An Old Taxi Driver Living Next to Asia’s Most Expensive Real Estate 09 Step 5: Fundamentals of Financial Statements Financial Decisions – Financial Intelligence – Financial Knowledge Seven Pillars of Financial Statements Why are the Financial Statements prepared? How do They Look Like? 10 Step 6: Income & Expense Statement Total Income – Total Expense = Profit Reading My Own Income Statement Analysing a Company’s Income Statement Understanding Different Types of Profits 11 Step 7: What are Assets? Types of Assets My Own Asset Side of the Balance Sheet Analysing a company’s Asset Side of the Balance Sheet Getting familiar with Operating Cycle 12 Step 8: What are Liabilities? Types of Liabilities My Own Liability Side of Balance Sheet Analysing a company’s Liability Side of the Balance Sheet Long Term Funding Logic 13 Step 9: What are Ratios and How do They Help Track Wealth Creation Liquidity – Solvency – Efficiency – Profitability Liquidity – Current Ratio, Quick Ratio and Acid Test Ratio Solvency – Debt to Equity, Debt to Assets and Interest Coverage Ratio Efficiency – Inventory T/O, Debtors T/O, Creditors T/O, Current Asset T/O, Working Capital T/O and Capital T/O Profitability – ROA, ROE, ROCE, OPM, PBIT and PAT Margin 14. Step 10: What are Cash Flows & They are most critical in Wealth Creation? Relationship between Income and Liability & Asset and Expenditure Operating Activities Investing Activities Financing Activities 15. Practical Exercises 16. Practical Exercises Solution 17. Keys to Self Assessment Questions 18. Glossaries of Select Financial Terms