Youth and use of money
Today many of youngsters get good education and start with a good
corporate job with high CTC.
They maintain good lifestyle and spend on luxury – having a house, cars,
vacations are regular – also they keep on updating the same on FB and
are happy to see the Likes.
As similar are the aspirations of hundreds of students who pass out every
year – even if one cant afford – the easy way to get them is EMI
So we have credit cards and loans being offered by several banks and
How many of them understand financial literacy – difference between
spending and overspending
Today youth don’t have the finance knowledge and are often bewilder or
misguided on these financial plans and offers – but as these young less
price conscious group are not bothered and keep on piling their
outstanding without realizing the importance of saving and Investing.
One Life – Spend on luxury and
style is mantra today
Both men and women work today, both get high salary – less
commitment to family and more towards friends.
As they feel successful, want to spend and indulge in large
house, swanky cars good clothing and maintain their lifestyle
and status in society.
They need huge cash – it may come from salary or rented
property or Loan doesn’t matter to this generation as their
mantra is One Life – spend and live in style and splurge on
things sometimes they don’t need.
Once this lifestyle is set – its very difficult to shed and one
keep on working harder to meet the expectations.
Invest in self
Our parents went to school and got an excellent education, so they
could get a high-paying job, but we have seen them struggling for
money as they didn’t understand how to grow money.
For them saving is in bank account which is safe and secure.
Although everyone knows that mere working will not help them to earn
saving as per his desires, still they keep on doing as they want to keep
paying their bills.
Invest in self rather expensive clothes and jewelery and electronic
gadgets this can be bought later – but investing in what you like (career
courses, sports, music) can help you build your another network in
Money can buy everything, but for money to get attracted, either one
should know where to invest and enter and exit or be skilled so you get
offers and organization are wiling to hire your talent (remember they
hire your talent and attitude towards work - so its important to upgrade
your skills relevant to your role and function)
Saving & Investing
Income Tax returns
Google for advice
These are regular activity one does when any financial issues arises
We generally consult CA, tax houses so they can guide us to plan our
The reason is during the school and higher education finance was
never a compulsory subject so we have learnt the art of saving and not
investing – we acquired knowledge over experience after they reached
40+, whereas they have wasted 15yrs if they could have started by age
Its all about our culture and upbringing which talked more of saving and
less of investing – most of us still don’t know about 8th wonder of world
– power of compounding.
So don’t just save - Invest
Education is the foundation of
career and success
Today every child gets more education – enrolls in various curricular
activities and their parents happily pay for the courses.
One can learn the skills relevant to their area of interest but as academic
skills are important so are basic finance skills. Most of the basic finance
skills can be taught at home but very few put efforts to do so and educate
their children in this financial world.
Todays education system teaches the young on how to get more money by
studying hard and acquiring degree and certifications, but less exposure is
given on how to be independent and take risk.
Why take careers of Doctors, Lawyers and Engineers which have been
prevailing since decades – with google, now basic information is available to
every user so one in every profession need to be updated about technology,
alternatively there are various career options which can be provided to child
where they can prosper so why limit to certain areas only.
As professional skills are important so are financial skills – if you can acquire
them great, else connect with an smart financial advisor (as identifying a
good doctor, lawyer is important so is for a good financial advisor)
Lets not play it safe
We all tend to live all our life playing it safe, doing the right
things, not indulging into controversy and fights avoiding the
troubles and stress that may arise.
Most of us try to be pally and happy go lucky and smile with
everyone in the society and your friends like you.
But the truth is, the more you push yourself the more tough you
become and you take risk.
Higher the risk – higher are returns (sometimes financial else
personal gains) – once you taste one win - you like to have
another and one more & you tend to push yourself as you start
Fear is the biggest enemy of self – remove fear and then all
remains is ear to listen for best advice and go ahead.
Working for money or should money work
When it comes to money, most people want to play it safe and
not to invest in various financial instruments which is indeed true
as why would anyone invest hard earned money in non rated
The truth is we are unaware of the finance terms, returns and
risk hence we try to avoid them and do not want to get
influenced by sales talk.
As we were never taught about how to manage money – how to
grow money – multiply and the financial products available as
your own friends are not familiar with them – they too follow
what their parents use to do – investing safe – as they fear and
are worried about their money.
Don’t get afraid quickly and think too much as everyone has to
die oneday – but if there was no risk taken – there was no life
How much money will you
Money - Its not about earning, its about keeping it for self and
So its not about saving, its about investing and diversifying it in
various asset classes and not in one basket.
As my father invested in property (real estate) or in Insurance I
will continue to do so – that period is past.
Also are gone are the pension which the govt. used to provide
post retirement, now we have to manage ourself during the
earning and non earning years
Dream Big as Entrepreneur
To set up a business requires idea
So list down your short, mid and long term dream and ideas to
make it possible.
Small ideas don't get takers. Think big and focus on your goals
Even if its painting or music – you can take support of Internet
and charge per download
Meet people and discuss about your idea / dream and see what
is the outcome and you will surprise yourself
Once you start your own – you tend to develop your own
connects (again the Big ones) so they share how can you save
taxes and increase profitability – but your mentor will only help
you if they observe that you are passionate about your own
Also the more tax if being imposed on your type of business –
you tend to find ways to avoid it (which if you being employee
were limited and tied up)
Few benefits can be your personal vacations are considered as
meeting and your personal vehicle purchase or meals at
restaurant can be official expenses.
Focus on your goals
Focus is very important whether in academic or career
Once mind is focused, thoughts begin to follow and once
thoughts are clear – action takes place to give you desired
Hence goals are of prime importance – there should be 100%
conviction in your own self and idea – just jot them down once
you decide and then follow them on regular basis.
Focus can be also adopted from old thoughts and ideas and see
the future of ecommerce, mobile access and technology
advancements – if you cant develop them – invest in them