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What is Financial Learning?

Financial learning is knowing how to make Money Work for You.

People spend years in school learning to put self at work and earn money but they learn nothing about putting money at work. So they struggle financially.

As people have learnt to work for money, but never learnt to have money work for them they are stuck in the RAT RACE (for 80% of their life) working for money. And this continues generation after generation.

Make your hard-earned money work hard for you to create Financial Freedom for yourself and generations to come.

Financial Learning gives you the power to effectively use the right instruments which will enable you to fulfill all the goals in your life and still keep your money growing.

Why is Financial Learning Necessary?

a)To Achieve Financial Freedom
Financial Freedom is the stage in your life where after taking care of the desired lifestyle expenses your MONEY is still growing.

Financial learning is to transform yourself from the World of “NOT ENOUGH” to Financial Freedom.

By not learning you are paying a huge price of not having enough wealth in your life or not maximizing your current wealth.

b) To Plan your income:

Learning is very necessary to know how to plan your income.

For most people, Income-Expenses=Investment.

It is like preparing your food, having it lavishly and leaving the leftovers for the dog.

This is how we save,

Work hard to earn, live lavishly and leave the leftovers for Investment.

So what we get in return is these leftovers.

In order to live a planned life it is necessary to be equipped with the basics,

Income-Investment=Expenses.

Pay yourself (invest) first to make yourself rich.

Pay others (spend) to make others rich.

C) To Create Passive income.

Active Income= Man At Work

Passive Income= Money At Work.

When it comes to earning money people think that it is only possible by putting self at work doing more sales, promotions and risking self.

Financial Learning gives an opportunity to look at creating Passive income sources whereby Money is working and Man is free.

Financial Learning is a process to alter your mindset from “Working for Money” to “Money working for you”.

Eg: If you can create Rs. 7 crore in your lifetime, just Rs.1500 can do the same (if invested for 35 years and returns of 36% p.a.)

d) To Deal with Risk
Risk is unavoidable. There is Risk in making a decision and even in not making a decision.

People assume that investing or trading is a very risky thing to do and notions have been created that only high risk can give high returns. This is a widespread MYTH.

If that was true, all Businesses which make huge profits would carry big risk.

Pharma and IT Businesses have great profit margins, that does not mean they are very RISKY.

Similarly, a competent investor or trader won’t find investing or trading to be a risky thing to do. While there is always some inherent risk involved, the magnitude of risk is relative to a person’s knowledge, understanding, experience and competence.

Financial Learning will enable you with risk mitigation techniques. It will help you understand the difference between perceived risk and actual risk and empower you with confidence in taking result oriented decisions.

e) Living a Desired Life

More than 80% of or life is around the question Money.

Ask yourself how much time is spent of the daily activity just for the question Money.

There are many more areas in our life which deserve equal focus and which are neglected in pursuit of money.

Like following your passion, time for family, going for vacations, etc.

Financial Learning will give you the courage to do so.

f) Taking charge of your Financial Life.

If your investment decisions aren’t based on knowledge then what are they based on – salesman’s charisma, speaker’s charm, media sound-bites, trust, or blind faith? None of these are a reliable prescription for investor success. There is no substitute for knowledge.

Nothing can stop your investments from growing. Not even Recessions. Infact Recession can be the best times to make money if you can learn to deal with leveraged instruments. There are techniques to create wealth in all Market situations, but you can avail this only if you are ready to take responsibility of your financial life.

There is no point in blaming the advisor, the market and the economy. Take charge of your financial life and take decisions which in the longer run are in your favor and not in favor of the advisor.

g) Tax planning.

Plan your income and investments which give best results post tax. It is necessary to ensure that you are not avoiding earning opportunities which are coming along with taxation.

Post tax analysis gives a clearer picture.

What are the disadvantages?

Why doesn’t everyone master these essential skills of investing and developing financial literacy?

It is because it requires effort and time, and people are busy or lazy. That’s it. There are no other disadvantages except these mere excuses of not having time, being busy and inability to understand finances. By doing this they are just avoiding being responsible towards their financial life.

But there are people who take responsibility of Financial Learning and create Financial Freedom in their life.

Financial learning is one of the great bargains in life: it costs little and returns huge rewards. It is the best investment you can make.