Episode 32 - Financial Education

Episode 32 - Financial Education

Jul 29, 2022

Why "Financial Education" is most important Skill to Learn?

In August 2020, RBI (Central bank of India) released the "National Strategy for Financial Education 2020-2025"

RBI wants people to develop knowledge, skills, attitude and behaviour which are needed to manage their money better and to plan for their future.

According to the Survey

1. 75% of Indian adults do not adequately understand basic financial concepts.

2. More than 80% of women are financially illiterate.

What is Financial Literacy?

It's a combination of financial awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions.

This is How I save money?

1. I divide my salary into 3 portions.

A. 50% - Savings (Such as Time Deposits and Recurring Deposits with HDFC and State Bank of India)

B. 30% - Investments in the Capital Market as a Retail Investor (Such as Stocks/shares, mutual funds and equity) and crypto.

C. 20% - My Expenses ( Rent, food etc.)

Note - I am 27, so for me, it's very easy to save almost 80% of my income. Because I have zero liabilities such as (education loans)

2. What is Fiscal Consolidation?

A. Instead of taking an Uber, Choose Public Transport.

B. Go out only on alternate Weekends.

C. Consume Fast food only once a week.

( Recent studies have found that a person can survive without Starbucks coffee)

D. Delete all the Shopping apps.

(You don't need a sneaker collection unless you sell them for business, you don't need extra clothes to look smart, instead buy a book)

E. Instead of having multiple subscriptions (such as Amazon Prime, Netflix and Disney plus )

Just pick one. Period.

F. Learn to Cook, it will save you a fortune.

G. Instead of going to a Gym, adopt running it's much better.

It's the best exercise to stay fit. Period. Why?

1. In the Gym you have to make multiple decisions every day on the other hand in running you have to make only one.

2. Gym comes with extra costs (such as subscription, protein, diet etc..) is running all you need is Shoes.

3. Try to walk as much as possible, avoid vehicles.

4. If you run 5 days a week or 3 days a week not only it will save you a fortune but also you will never have the diseases related to fat. Period.

F. Buy your toiletries and daily needs wholesale.

G. Never lend money to your friends that's the worst investment ever. Period.

H. Never Invest your parents, friends, relatives or your sibling's money in the Capital Market. Period.

I. If you are a millennial then don't buy a car. period.

These all look tiny right now let me end with this example.

Netflix mobile subscription is 200 Rupees per month. (Minimum)

(1$ = 77 Rupees)

1 Year = 2400

10 years = 24,000

50 years = 1,20,000

"It's not how much you earn but how much you save that defines your financial wisdom and prudence"

Enjoy this post?

Buy Thakur Ajay a coffee

More from Thakur Ajay