Take Charge of Your Financial Life Today

Since 1999, we have been dedicated to financial management, and over these many years, we've noticed specific patterns in how people handle their finances before they seek our guidance:

1. Passivity After Earning: Most individuals become passive or casual about managing their finances once they have earned their money.
2. Limited Financial Education: Education, regardless of the field—engineering, medicine, or business—typically imparts only one skill related to money management.
3. Self-Managed Finances: Many people attempt to manage their finances independently, despite lacking substantial knowledge or experience.

Let's delve into these points further.

Point #1: Passivity After Earning

Consider an employee in a factory. If this employee diligently works for an entire month but receives payment for only ten days without a valid explanation, he would likely become very upset, and frustrated, and might even argue with the responsible authority. This reaction indicates that the employee is highly vigilant and serious about earning money, tracking every rupee meticulously.

The same level of seriousness is observed in self-employed individuals and business owners regarding earning money. However, once their earnings are deposited in their bank accounts, these same people often neglect to actively manage their money for growth, especially beyond the inflation rate.

Consider this data: a person works 50 to 60 hours per week to earn their income. For instance, earning Rs. 20,000 by working 50 hours at their job. How much time does this person spend thinking, "What should I do with this money to live the life I love?" Our experience shows that people spend less than an hour per week on this crucial aspect of money management. Often, their money sits idle in savings accounts or is invested in "safe" investments like bank FDs or PPFs, which do not outpace inflation.

In India, fewer than 5% of people seek financial advice from experts, leading to a situation where their money does not work hard for them, and they end up working hard instead.

Point #2: Limited Financial Education

Most individuals spend approximately 15 to 18 years in the education system—10 years in school, 2 years in junior college, 3 to 4 years in graduation, and 2 years in post-graduation. Many parents believe that a good education will secure their children good jobs, which will lead to financial prosperity. While there are no guarantees, over 99% of people rely on this approach.

Regardless of the profession—engineer, doctor, or lawyer—the system provides minimal knowledge about money management. Despite one of education's main objectives being to enable individuals to earn well, the system only teaches one aspect of money: how to make it. The method it offers is straightforward: work to earn money. However, earning a good income does not guarantee a good life.

There is another crucial aspect of financial well-being that the education system neglects: what to do with the money after earning it to ensure a fulfilling life. Conditioned to work for money, people continue doing so for years without learning how to make their money work for them. This brings us to our third observation.

Point #3 - The 'Do It Yourself' Method

Our third observation is that most people manage their finances independently, following a 'Do it yourself' approach. This mentality stems from their confidence in their earning abilities. They believe that if they can earn money, they can manage it too. However, they fail to recognize that the skill set for earning money is different from the skill set for making money work for them.

When facing health issues, people consult doctors; for legal issues, they consult advocates. Similarly, management of finance requires consultation with an expert in the field. Unfortunately, in India, only about 3% to 4% of people seek advice from financial experts, while the rest continue experimenting with their wealth.

Imagine applying the 'do it yourself' model to your health. Most wouldn't dare, yet they do so with their finances. The immediate impact of health experiments discourages such practices, while the delayed impact of financial experiments makes people less serious about managing money compared to their health.

Given these observations, let's discuss why it's crucial to take charge of your financial life early on.

Why Take Charge of Your Financial Life Early

Reason #1: Self-Reliance in Old Age

The days of government support for old age needs are over. In the age of nuclear families, there's no guarantee that your children will support you in old age. As the saying goes, 'Jab tak aapke paas paise hai, log puchhenge aap kaise hai.' So sufficient money to have is essential for all of us.

Reason #2: The Market of Financial Product Sellers

The market is full of sellers eager to sell products without considering your needs. These sellers range from credit card promoters in malls to bank cashiers pushing mutual funds, and insurance agents with the 'best policy.' Often, these sellers are close acquaintances, making it hard to avoid them. It's necessary to differentiate between a seller and a counselor. A seller's goal is to sell their product, while a good counselor tailors a solution for you, allowing you to choose what's best for you.

Reason #3: Increased Longevity

Due to medical advancements, people are living longer.

As people live longer, financial planning becomes even more critical. Early in their careers, people often take loans and pay EMIs, leading to liquidity crises. As they reach middle age, they focus on promotions and career progression, often spending more time at work or pursuing additional education.

Later, the urge for freedom and entrepreneurship arises, but the path to successful entrepreneurship is fraught with challenges, leading to a high failure rate for small businesses. Eventually, people start wondering if the money they've accumulated will last a lifetime. This uncertainty underscores the importance of early financial planning.

People are busy earning money &  neglecting financial management. Although they recognize its importance, it is often not urgent. However, living with the regret of unmade financial decisions is a dire situation. So, it's time to think about your money management.

Ask yourself by heart& mind: Are you exerting most of your energy earning more and more money? Who is looking after your finances? Do they have the required expertise with experience or not? Have you analyzed your own financial goals? Have you strategic plans to achieve these goals? Reflect on your confidence level in living an abundant life and the life you love.

It is a serious matter, so act now before it's too late.