During our academic life, we study diverse subjects. Some are basics others are complex. I distinctly remember studying William Shakespeare in school, great in content put poor in terms of learning modern English. Later I studied binomial mathematics and complex compound structures in Chemistry. Looking back, I sometimes wonder, the relevance of some of these topics in my daily life (maybe yours as well).
What about financial planning? It is perhaps the most relevant subject and just like basic mathematics, it is required in our daily life when we grow up. However, the ignorance around the subject is immense. It is not taught in the school curriculum. In my 2 decades of professional experience in this field, I have seen highly qualified and intellectually sound individuals, with great expertise in their domain, trembling when it comes to management of money. Whatever they know is based on hearsay, parental advice (right or wrong), ‘know them all’ spouses, tips from friends, insurance agent solicitations or banks pushy sales personnel.
So what’s the solution at school level? First is the acknowledgement of the deficit. Introduction of money management from the primary classes is essential. Wannabe doctors need to understand the money dissection well before they embark on specialization in medicine. Budding engineers need to have broad construct of saving/growth instruments well before they start building roads and bridges. That’s for our younger generation.
What about grownups who don’t have either time/inclination at their disposal to start afresh? Maybe, the answer lies in shedding a bit of their resistance as well as moolah. Seek advice from experts who understand the subject a little better. Unfortunately, the self-medicating Indians don’t go to the doctors easily. The novice still won’t go the money doctors. If you are wise, shed your inhibitions and call the expert.
Such individuals/organizations are called Registered Investment Advisers and are governed by Securities and Exchange Board of India (SEBI). In India there are roughly 1300 investment advisers. That’s not enough but surely not an excuse to not plan your hard earned, precious finances.
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