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(Precious) Words of Wisdom : "The art is not in making money, but in keeping it." ~ Proverb

Don't Underestimate The Power Of Financial Literacy

There's no denying the importance of knowledge in today's information age.

There's no denying the importance of money in today's consumption age.

Combining the two, there's no denying the importance of 'knowledge about money' i.e. financial literacy.

Three massive trends have made it almost mandatory for us to be 'fully' aware of our day-to-day money matters. Ignorance could prove to be extremely fatal for our future financial well-being.

Trend No.1: Market-linked investments
The days of guaranteed and assured-return investment options are a history. The present and the future belongs to the multitude of market-linked investment opportunities.

Equity was always market-linked.

Mutual funds, the best investment mysteriously ignored by most Indians, too are market linked.

Even the Govt.'s Post Office Schemes such as PPF, NSC, POMIS, KVP, Sukanya Samriddihi etc. are now market-linked. Their interest rates are linked to the prevailing Gsec rates and reset every quarter

And banks too change their Fixed Deposit interest rates quite frequently. So much so that, some banks even offer attractive interest rates on the Savings Account.

Hence, you can no longer invest and forget. You have to be financially literate so that you can...
... make your investment decisions after understanding all the pros and cons, and
... periodically review and restructure your portfolio.

financial-literate
Take your lessons in financial literacy very very seriously.

Trend No.2: Consumption Boom
Consumption too has seen a phenomenal explosion.

On one hand, we see many new models, variations, and varieties within the existing product range.

On the other hand, multiple innovative products are being introduced into the markets quite regularly.

Moreover, nowadays you don't even have to step out of your home. You can buy practically anything under the sun, just by clicking a few links on your smartphone or laptop. That's not all. The product is (often) delivered 'free' at your doorstep. 

This has made shopping so enjoyable and convenient that it's very easy to go overboard and splurge. Beware! This can be very dangerous. If you are not spending within limits, you are putting your personal finances to grave risk. Exposed: The Great Indian Vanishing Money Trick

Again, you have to be financially literate so that you can...
... budget and plan your purchases, and
... make room for savings, which is so essential for a financially secure future.

Warning: Here are the 7 (Surefire) Ways To Remain Poor.

Trend No.3: Easy Finance
Availability of finance also has not lagged behind.

Getting loans at your doorstep may appear normal to today's younger generation. However, their parents only know how difficult — rather practically impossible — it was to get money from banks to finance even the critical needs. Loan for desires like a foreign vacation or electronic gadgets was out of the question!

In fact, the word 'loan' was not only unheard of but also a sacrilege. It was considered as bad as committing a sin. However, today the attitudes have changed. So much so that borrowing money is considered quite everyday and normal activity.

In addition to 'access', both cost and repayment are quite 'affordable' and 'comfortable'. (If), you have borrowed within limits, you won't even feel the pinch of paying EMIs every month.

Yes, the operative word is IF. You can't let ready availability, reasonable interest rates and ease of repayment take you overboard with your total borrowings. Think Of Debt Consolidation (When Drowning In Debt).

Again, you have to be financially literate so that you can...
... borrow for the right purpose,
... borrow the right amount, and
... borrow at the right rate of interest.

Please spend five minutes to check whether you should become a borrower.

In short, this whole host of investment, borrowing and spending avenues have turned the world of personal finance into a virtual mine-field. One right move and you could multiply your money. But one wrong move and you could end up in a deep financial mess.

Therefore, knowledge has become critical to both successful wealth creation and its management. You have to work on your financial literacy to become more adept and financially savvy.

In other words, in addition to IQ (Intelligence Quotient) and EQ (Emotional Quotient), you need to work upon your FQ (Financial Quotient) too.

As Benjamin Franklin aptly stated, "An investment in knowledge pays the best interest".

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

101 Classic Tips Money Gyaan

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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... Three VALUABLE Tips ...

1. Why Did The Beggar Refuse A Rs.2000 Note?
Mutual Funds or Beggar?
Do you keep your eyes closed to new investment styles and remain a beggar?

 


2. Refinance Home Loan In Early Years (For Maximum Gains)
Loan Refinancing
Think before you make your move to refinance your loan.

 


3. Prediction is Impossible. Here's The Best Way To Invest In Equity.
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Therefore, the best way to make money in the future is Protection.