Losing hard earned money makes disappointing but why my investment making loss, because market would not responded as expected or I invested blindly without estimating facts and market trends. But if you have basic financial knowledge – where to invest? how much to invest, and how much to invest, result might be different. Here we are exploring why financial knowledge is you best investment, and how to get these basic financial knowledge.
S&P survey data shows Three-Fourth Indian adults not financially literate, 75% of Indian adults do not understand basic financial concepts and 80% of women are financially illiterate. Do you have enough knowledge about finance and investment? Do you know when to leverage yourself with debt and when it makes sense to pay off debt? Need others to make financial decisions for you?
Financial education is the ability to understand how money works including its management, investment, expenditure and how to make profitable financial decisions.
Knowledge is the key and solution to become financially sound. All you require is to put a little effort now for a better life later. Here is the list, how financial knowledge can increase your wealth.
Reason why you need financial knowledge
- Financial knowledge assists in being financially stable.
- Helps you to understand , where and how to invest.
- Financial literacy works like a tool and secure your wealth for uncertain future ahead.
- Financial knowledge saves you from fraudulent operations.
- Financial literacy helps you to differentiate between good and a bad investment.
- Being financially sound enables you to make choices on investments that can help you double your balance even if you are busy in professional or personal life.
- Financial literacy saves you from financial instability and helps you not to be dependent on anyone in future.
- Educates – how to live with financial in-dependency after retirement.
- It helps in creating an Inheritance for your Children.
- It teaches you to do a budget. Help to save money, check spending habits, keep a close watch on earning to spending ratio which is some of the important steps so that you don’t run out of money at the end of the month.
- It gives us an understanding of when to buy and hold and when to take the calculative risk.
- It helps to be your own investment advisor for your portfolio.
Financial Intelligence is the Single Investment you Never Lose. True Freedom and Independence comes when you manage your money yourself rather than depending upon someone else to manage your money. Lack of financial knowledge plays badly in your favour. and set you back a great Deal. Earning money and putting it in a savings account is not smart; you got to make money to make it work for you.
You need to find ways of utilizing your money and learn how to save or spend cautiously. Best is to be financially sound, gain knowledge to know what’s trending in the Market. It costs nothing and the rewards are huge. It’s the best investment to make; the sooner the better.
Read More: Major Steps to Follow for Getting Small Business Loan
How to gain financial knowledge?
Keep an eye on the financial market news: Don’t worry, no need to go through full market news and updates but just a basic headline view.
Discussion with friends and colleagues: One share his personal experience on particular investment with feedback can guide/motivate others to take right decision.
Watch the expert opinion and Interviews: Before making your final decision on investment, expert opinions, advice can help you taking effective decision.
Discussion with financial advisers: This adviser can feed you full details with benefits, you should cross question to clear your doubts.
Get connected: You can connect with companies social media pages, it will update you all market updates and trends.
Keep in touch with financial News: Whatever you prefer digital or hard copy. get all latest updates, market trends regularly.
Search the Internet: Everywhere, anywhere just type keywords and see the result.
You can’t be financially literate
overnight. It happens through educating yourself on each topic daily.
Every person should take little effort daily to make themselves financially literate. Knowledge is the key to financial literacy and nothing’s better than understanding your finances and making the right financial decisions.
Your goal should be to deposit every week into your financial intelligence just like your monthly deposits into your investment accounts. You should know to make your money work for you and not the other way around. So what are you waiting for? Make the right decision and grow your garden of financial knowledge.