Doesn’t the word Finance, bring to your mind, complicated transactions, and methods of money management? Do you think Finance is only important to people working with businesses or in economics? Should you worry about personal finance in your life?
Let us look at Finance from a different angle. Having a certain level of Financial literacy is extremely important as it helps us to take effective and sound decisions with the resources we have at hand, whether it’s at the age of 10 or even when you’re 50. One of our initial exposure with handling money comes during college, enjoying the freedom and ready to start a life for ourselves; by ourselves. When given “pocket money” for an entire month, most of us tend to spend it all within the first three weeks, and then pulling through the last week borrowing from friends. (Thereby providing the inspiration behind the term, 'broke millennial).
Unbalanced spending and constant borrowing does not make for a great lifestyle. With money that is sufficient for an entire month, irrational decisions owing to minimal budgeting lead nowhere. Most often we tend to dissociate ourselves from the Finance world, but in reality we couldn’t be more involved. Thus, being financially literate is the need of the hour more than ever!
Often linked to Banking, Debt, Investments, Capital Markets, etc, at its very core, Finance is all about taking control of your own money and personal expenses. Everyday we wake up to a world that revolves around money. Everything that we own does not come free and is to be paid for, from the food we eat to the education we receive. In the end, it bottles down to where you invest, when you invest and at what price you invest.
The choices we make in the present affect our financial stability in the future. The misconception that Finance is all about complicated numbers, prevents us from focusing on one key aspect of financing, that is Budgeting. Creating a plan to manage your expenses and ensuring that you always have a safety net in terms of enough money for the things you want to spend on is crucial.
Evaluate your current scenario, make a note of your needs, wants, lifestyle requirement and earnings. Strike a healthy balance between the two. Plan your future. Avoid debt, this silent killer can seem harmless at first but can come as major blow as responsibilities increase. Plan it right and give yourself the much needed head start in life, by taking the right call with your time & finances.
If Finance is as important as it is claimed to be, one might wonder where the gap lies. While one might be aware of the importance of the field, not knowing the avenues at hand and the way forward, can be disheartening. But do not worry, we have got your back and are here to help to find your way around this maze of information! Stay tuned!
Author : Dhruvi Gathani
Editors : Muskaan Shah & Bhargavi Siram
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