Who is HNI and Solution for regarding HNI

2. Safety of my clients’ investment comes first,
always and every time

3. My team member’s welfare and training
comes next

4. My own ease and comfort comes last,
always and every time

5. Real Estate
Investments
Olive Green Realty

6. Olive Green Realty
LIQUIDITY IS
Learning Objective
OF
WEALTH CREATION
ENEMY
No. 1

7. Olive Green Realty
1. What is Liquidity?
a. Forms of Liquidity?
b. Its Perils
Understanding Liquidity
2. Insecurities – undefined emergencies
3. False sense of comfort – Lack of discipline

8. Olive Green Realty
Time = Most Finite Resource
Understanding Liquidity
Successful people:
• Are time illiquid
a. Do not wait for events to happen
b. Do not wait for structures to be provided
c. Commit time
• Schedule as much in advance as possible
• Plan for contingencies by keeping some cushion
• Do not have free time – even leisure time is scheduled
• Borrow other people’s time (employees) to add to their
time and productivity

9. Olive Green Realty
Similarly,
Understanding Liquidity
Rich people:
• Are cash illiquid (do not have liquid money)
• Commit their money to:
a. Assets – make their money work
b. Long term compounding (by putting
it to productive work)
c. Borrow money (based on financial
strength) to commit to assets

10. Olive Green Realty
HIERARCHY OF LIQUIDITY
Understanding Liquidity
Cash in Hand
Savings/Current
Bank Accounts
Fixed Deposits
Liquid Mutual Funds
Equity shares
Mutual Funds
Real Estate

11. Olive Green RealtyFinancial Insecurities
Are you insecure about financial emergencies?
What constitute these emergencies?
• Death of primary bread earner
• Medical emergencies in the family
• Loss of employment / downsides in business

12. Olive Green RealtyFinancial Insecurities
You can cater for these financial emergencies by:
Taking a Term Plan with adequate life
insurance to cover for life
Taking a Family floater medical insurance to cover
for health
Maintaining cash reserves for 6-12 months in
near liquid assets such as FDs /Liquid MFs to cater
for loss of running income(s)

13. Olive Green RealtyFinancial Insecurities
What cannot be labelled as Emergencies :
Higher education
expenses
Schooling expenses Buying a vehicle
Buying a home Taking foreign
vacations

14. Olive Green RealtyWealth Creation
How does one create Wealth?
• Crave illiquidity
• Commit money to wealth creation tasks such as:
• Start a Recurring Deposit
• Start a long term S.I.P
• Start paying EMI of a home loan

15. Olive Green RealtyWealth Creation
Illiquid Life : taking forward the analogy of time / successful people
• Imagine a day that starts at 0700 and ends at 2300
• Imagine a week packed with such days
• Imagine a month packed with such weeks
• Image a year made up of such weeks
• Imagine a decade made up of such packed years
• Imagine 03 such decades

16. Olive Green RealtyWealth Creation
What do you see?
• An accomplished individual who :
• Has achieved professional success
• Is well respected
• Is an authority in his/her chosen vocation
• Is busy progressing /achieving, and has no time for negativity
• Someone who :
• Has worked very hard
• Has denied self-comforts and/or relaxation
• Has shown respect for time and not indulged in wasteful activities
• Is used to pushing boundaries
AND ALSO

17. Olive Green RealtyWealth Creation
Financially Illiquid Life - Process
Annual Term Insurance Premium
(increased each year)
Annual Health Insurance Premium
(increased each year)
Recurring Deposit
(to cater for cash exigencies)
Paid an SIP / EMI of starting home loan
Paid an SIP / EMI of another home loan
Paid an SIP / EMI of yet another home loan

18. Olive Green RealtyWealth Creation
Financially Illiquid Life - Result
• A financially well-off individual
• A financially independent individual
• A financially responsible individual
• An individual who has grown from strength to strength
• Someone who has for a long time :
• Not indulged in splurging money
• Used older / less fancy cars
• Had not taken exotic holidays
• Has been called conservative (bordering on miser)
AND ALSO

19. Olive Green RealtyConclusion
LIQUIDITY ILLIQUIDITY
Poor Mindset Rich Mindset
Indiscipline Discipline
Irresponsible Responsible
Immediate Gratification Delayed Gratification
Short Term View Long Term View
Wealth Destroyer Wealth Creator
Feels Good Feels Bad for a Long time
Comfort Zone Hard work - Discomfort

20. Gives
Builders»
Armed Forces Network»
MDI Alumni»
Olive Green Realty

21. Safety of my clients’ investment comes first,
always and every time
Olive Green Realty
www.olivegreenrealty.in