Is financial awareness important?

Do you know your money? Or put it another way, can you manage your finances? In this inflationary day and age, everyone is running the rat race to earn more than others, despite knowing that there will always be a bigger fish. The million-dollar question that arises is why this is the case for many and is financial literacy imperative?

The majority of individuals blame their fate for their condition although they all could come out of the situation by changing their mindset and ideology they follow.

In India many students believe that if they migrate to a developed nation, take the US for instance, they will not be in any financial crisis, which undoubtedly is a wrong assumption, because poverty level is also evident there.

The key areas one must emphasis are as follows:-

Investing has become so easy nowadays that everyone has been investing in several asset classes which they are not confident enough about and just because of FOMO; however, this scenario can be avoided if you know the in and out of investment.

Risk management is another aspect younglings ignore, the importance of this is realised once things go against their interest. More than half of new investors might not know what to do if their investments go down, say 30-40%. The answer can vary from one person to person but one should always have an answer.

Last but not least, tax planning can be an immense help for countries like India and the US which practically have double taxation that can be overcome if one knows tricks that can be easily learned from myriad resources.