Vidyadhar Dayalan

Chapter: - 1
Principle #1:- Pay the Lord first, and then yourself
As Elder Marvin J. Ashton said Successful financial management in every home begins
with the payment of an honest tithe. Tithing should be the first priority for every family in lords
kingdom, every month the first bill should be of paying tithing. Only after paying tithing the rest
of things should be taken care, lord has promised families those who pay tithing can no more get
into debt. By paying tithing everyone prepares themselves by heart and mind to take care rest of
their family commitment.
Principle #2:- Collect interest
This is not that simple for the families, but everyone can make sure some part of the
earnings can be saved while they are working. This principle can save them from lot of
emergency needs while the family is in need of money. This will also help the family not going
into debt. Not only saving money can be a wise decision, but also need to put them for work and
can earn interest out of it. Earning interest on their money every month allows every family by
not only depend on salary.
Principle #3:- Prepare Financial Goals and Make Wise Financial Decisions
Preparing for financial goals could be of long term or short term period, short term could
be of sending childrens to study, buying a car, having short term investments. Long term could
be of buying a house, preparing for marriage, bringing family out of debt. All family should be
having financial goals in lives, only then they would be knowing where there money flow in
happening. Second making wise decisions, it is always to have control over our money and live
by our means. We owe our money, dont let money owe us.
Chapter: - 2
Principle #1:- Cash Flow Statement
Having cash flow statement can solve 25% of our problems and have a clear idea of
knowing where our expenses or cash flow is happening. Prepare a 12 month cash flow statement
to track all the variable expenses will allow us avoid unnecessary expenses and start using those
extra dollars for an different purposes. This will also allow the families to prepare for strong
budgeting and get them to a position where they no more have to depend on an extra income.
Principle #2:- Building a Strong Financial Position
Building a strong financial positon is of four categories 1. Saving money trying to have
some part of our income towards a long term saving can be of very good option, which can stop
us going into debt. 2. Paying of present debts with the part of income being saved can be first
used for getting rid of all our debts. 3. Avoiding additional debt this is a serious issue of getting
into any more debt and start living with whatever is available.

Principle #3:- Budgeting

Budgeting is also a fun thing that encourages everyone to have directions in handling our
monthly finances. Preparing a budget is the most important thing to achieving our goal into
financial independence. Allocating our budget will help everyone spend less than what we earn,
spending for what is needed rather than what is wanted, save the money for emergencies, major
expenditures, and investments.
Chapter: - 3/9
Principle #1:- Investment Alternatives
There are two type of investments we either be an owner or lender, owner is one who
holds stocks, real estate, or other appreciating assets. A lender who puts his/her money into
savings accounts or bonds. Owners have equity, while lenders hold debt. It is always wise in
having our money work for us, a beginner can start investing in a mutual funds. Once he/she is
clear about the process can start investing in any of stock markets with better knowledge.
Principle #2:- Stocks or Equity Investments
Having our investment in stocks means it could be of both ways, when a company growth
is increasing the stock holders value of their stocks will go up enormously. They even have
option of selling their stocks to anyone, everyone would be willing to buy one of these kind of
stocks. But when the same company goes under loss, the same stock holder can either sell his
stocks for a reasonably market price value or it could go below par value or he could hold on to
his stock till the value goes up.
Principle #3:- Mutual Funds
Mutual funds are for the beginners who like to start investing their money into
investments and will be having constant income on a monthly basis with minimum interest rate.
Mutual funds are government owned companies there is no option of losing the investment
amount. But also there would not be much of gain in this process, the positive thing about this
investment is everyone can learn the process and money invested would be returned back with
the same value.
Chapter: - 5
Principle #1:- Use Credit Wisely
Using credit card could either take us to debt or with wisdom and knowledge can take
care of our expenses with more careful manner. Even before using credit card in our lives it is
better to check for balance what we carry, instead regretting during the end of year when our
interest rate and debt balance keep increasing. There certain things where credit cards can be
used, for example during emergency situation when we run short of cash credit cards can be
used, but need to make sure everything cleared on time without paying any interest for that
money.
Principle #2:- Use Student Loans Wisely

Many students think students loan afforded by banks are free money, which can be repaid
at any point of life. But truth is when a student takes a loan from the bank, the start of interest
gaining on the browed will start immediately after certain period of time. If a student misses any
part of payment during his loan period the interest for the amount gets doubled, eventually the
when the calculation is done about how much payment is to be done for loan it does shocks
everyone. Because the repayment is more than the actual browed money.
Principle #3:- Saving Versus Borrowing
Many of our prophets keep emphasizing on their each talks given in our general
conference about borrowing money. Which means getting into bondage, it is always better to live
with our means of what we are having instead trying to look better in this society. When
someone borrows money for their unnecessary needs which can be avoided, they start paying
someone else to get benefitted from the income which was meant to take care of their own.
Everyone should start making budgeting and think before buying the products which are of not
worthy for daily living.
Chapter: - 6
Principle #1:- Critical Financial Decisions
This is about what we take decisions about our day to day transportation facility, it will
be a life changing financial makeover and an important one to make good decisions and wise
choices regarding how we manage our transportation costs. Like everyone we to may intend of
buying a car, but need to think about the later part of our financial status. How are we going to
make the monthly payments for car, because until we finish our payments we dont own our car
if at any point we miss the payment we could lose the car.

Principle #2:- Transportation Alternatives

Spending on transportation could be easily cut short, we could easily spend more than
50,000$ on our car which is not done with cost. Every month interest has to be paid for the car, it
may be 5-6 miles drive to our office every day which gas need to be filled for the travel.
Altogether which is not worth of spending the money just to reach the office on time and get
back home. Instead everyone can make wise decisions of using public transportation which is
meant for public and lot safer when compared to the self-driving. Which also saves lot of money
and risk while travelling alone in a car.
Principle #3:- Purchasing New Versus Used Vehicles
After making a decision of owning a car for self-driving, it is important to make a wise
decision of buying a car or having a used vehicle. Buying a car cannot be wise decisions reason
cars always a depreciating assets, which would not remain the same value or increase the value.
It depreciates day to day, according to statistics many dont remain with same car for not more
than 1year. So its always wise to buy an used one for our day to life transport and use it for an
while, when the time comes to sell for the best price and go for the next one.

Chapter: - 7
Principle #1:- Renting Versus Home Ownership
Renting could be sometime a good option for a family, because it gives an
option of changing their location whenever thing are not prettier. It could be of rent
related, or even the location, renting gives more flexibility. But serious issues were
many families dont realize is that about renting is end of the month whatever the
reason the rent amount has to set apart. When compared to own a house, it is
difficult to make a decision of owning a house which takes lots of sacrifice and time.
The result could be happier when we are done with payment, we have a place of our
won.
Principle #2:- What Can You Afford?
What can we afford for a home, it may be for renting or owning a new one.
According to statistics we should not spend more than 25 to 30 percent of our
income. This could lead many families in to debt easily, when they dont have
knowledge about the money they are spending on their living place. It is always
better option to run the numbers formula and calculate what is the best option for
an spending on rented house or owning a house.
Principle #3:- Selecting a Home
After making a decision about what can be afforded for home, next option
would be selecting an house which could compromise with everything what we are
looking for. There are some essential elements while choosing a house, like location
which is the main part of selection to make sure it is close enough for everyone in
family which also determines value while both buying and selling. Second would be
the condition of the house to be determined by professional whether it is worth the
money.
Chapter: - 8
Principle #1:- Health Insurance
Health Insurance has to be made mandatory in all parts of the world. No one
can know what happens to anyone at any point of life, everyone in this society are
not in a position to pay the bills when someone is admitted in the hospital. So
instead regretting latter in period of paying the money, everyone should be advised
of having health insurance in advance which can come in handy during the
emergency time. Also will helps us not going in to debt by browsing money for the
hospital.
Principle #2:- Life Insurance
Like health insurance life insurance to hold key role in life, there are two type
of insurance one is life insurance which planned for retirement when we live longer.
Second death insurance that we face we might die too soon. The risk of dying too
soon can be transferred to any of our dependence which could help clear all debts

or even give monthly certain amount for living for example education purpose for
childrens and for the spouse until she gets job.
Principle #3:- Home and Property Insurance
Everyone who owns a property of their own need to make sure the property is
insured because they among the major assets in the checklist. House owner covers
the damages and any loss it may be manmade or natural calamity. The insurance
also covers the living expenses while the property is damaged, the owner can stay
somewhere else until the property is repaired.
Chapter: - 10
Principle #1:- Ultimate Financial Independence
Ultimate financial independence works for those who have planned well in
advance, it may be while studying or starting during their employment time. We do
have option of stop going to work after certain period of time in life, its not
mandatory that everyone needs to work for entire 60 or 65 years of life. A person is
considered to be financially independent when he or she has accumulated enough
fund for their rest of lives.
Principle #2:- Personal Retirement Plans
Everyone should plan for their personal retirement plan at the right age of
their time which could lead them to lot of peaceful life once the retirement age
comes. Which ultimately savings what they have in their account would take care of
rest of their lives including with dependents. There is also penalty for skipping or
postponing the savings for the retirement life, everyone should the run numbers to
check what balance they could be having when they start the savings.
Principle #3:- Other Retirement Assets
Final part of life that everyone has to think about is having investing into
other kinds of assets, not only having retirement savings in bank account would
lead to a peaceful life. There should be investments like having an own house to live
during the last end of the life. Investing in stocks are to advised which can be a
partial income to take care, last option would be having our money work for us till
we die.