Mr. Dewin Kothari graduated in 2011 and now he is a corporate trainer, life coach, and an independent financial advisor. He is here to give us some insights on financial literacy. Mr. Kothari has trained innumerable industry and professionals as well as young Indian minds and he wants to help different organizations in enriching their communication and interpersonal skills. He has been a financial planner for the past 7 years. He is a zone trainer in JCI India and a secretary of JITO.

Fun facts: Mr. Dewin is fond of playing drum and he was a part of a rock band. But today he loves training people with financial literacy. He aims to influence and coach at least 5 lac people in 2020 about financial literacy. He dreams of visiting Switzerland and the USA. Two of his favorite books include 1) Rich Dad and Poor Dad 2) The Secret.

What is financial literacy?

Mr. Kothari says that financial literacy is not that hard as many of us think today. He says that the process is simple and easy. It is about investing a part of your income in different assets and zones. However, in India saving starts at an early age and that is a practice in our country.

Financial literacy is about having knowledge of all the investments that you are doing to increase your principal amount. It is a simple savings formula to obtain benefits in the future.

Low-risk segments

FDs as it begins with smaller amounts and it gives stable return

PPF and Kisan Vikas Patra are a long term investment.

Mutual funds are good if planning is done correctly. If you calculate the risk correctly and make an investment in Mutual Fund then it will give you better benefits. If you invest at an early age here for a long time then it benefits you at the right time.

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High risk

Share market is risky if you randomly jump into it. Loss and profit go parallel to one another. One must select asset classes carefully and with complete knowledge. Invest a smaller amount in the share market to avoid larger risks.

He says that from the total money that you have; you should save first rather than spend first. It is because if you spend first then most of the money goes into unnecessary things.

His tip is to segregate the income in different assets. One must allocate money properly and not put everything in one place only.

You should remain prepared for any unseen situation in terms of money. To do that, you must have 6 months’ salary as your emergency fund reserved.

If you save early and systematically then you get the maximum return out of it. Plan your investment according to your need and not as per your friend/relative’s suggestion.

How do you plan your personal finance being a financial advisor?

He started his saving at the age of 22 which he thinks is late. It is when he joined his father; he understood the worth of saving and saved nearly 3000 a month. Mr. Dewin believes in saving first and then spending to ensure that he is saving.

As he is the only bread earning member; he has insured himself. Therefore, to secure his family in case something goes wrong; he has taken this decision to see that his family does not suffer.

What tips would you give to students in terms of finance and savings?

  • A student should save any small amount out of whatever they are getting. You don’t need a big amount to save.
  • Numbers do not make a difference but saving at an early age is possible
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Do you prefer monetary investment in Nationalize banks for private banks?

Mr. Dewin says that it is upon us to decide which one to choose because it does not really make a big difference. Nationalize banks have a Government back and so do Private Banks. However, private banks have a low backup from the government as compared to Nationalize banks. For your mental peace, you can deposit money in Post Office too, Nationalize banks like SBI or any others. It is the situation that makes the banks do things that they do. Otherwise, all banks are good.

How one can save money for future education and utilize it at the right time?

It is difficult to plan for higher education fees in a short time. Therefore, one should plan much in advance the money that you will need for higher education. One will need at least 7-10 years to plan the future education of your child.

Please tell us something about SIP

Many people think that SIP and Mutual Funds are different but it is not so. It is a systematic investment planning whereby a small amount is deducted from the account to purchase units as per the cost of per unit in the market. As the price/value of the company grows; the price of your unit will go higher. Hence, investment in SIP is good.

Considering the time of the pandemic, we all are facing recession and inflation, so what should be our 1st line of defense financially?

We should stop spending on unnecessary things and cut off expenditure on leisure.

Many people are getting greedy about investing in the stock market. He says that one may end up losing money as the market is not stable in this situation. We have no idea how long this situation will prevail. One must keep all the luring offers away and keep a hold of your money to yourself.

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As a student where should we invest – FD or Mutual Funds?

He suggests dividing the amount equally between FD and Mutual funds. FD is secured and gives interest whereas Mutual fund gives benefit in the long run. For short term goals one must invest in FD and if the goals are long term then invest in Mutual Funds.

As a parent, what plan should we take up for kids? I mean, what should be the strategy?

Certain things are not planned for kids but certain events will definitely happen in their life like marriage, higher education, etc. so depending upon your earning, invest some small amount in their name. Especially for kids, Mr. Kothari suggests investing in Mutual Funds as the time horizon is quite big. You can start investing early for your kids and then keep that money untouched.

We had some of the wonderful advice and too good insights from Mr. Kothari. His advice is helpful and he has tried solving our queries in the best way. Collegebol brings such experts on its platform to spread a word of awareness in different areas. You can visit our social media page and website to get more information.

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