Nagpur : Financial Planning is an art that only a few can master, especially in a country like India where managing daily finance is never talked about in schools or colleges. An individual is left to self-learn this skill and mostly is too late once he realises the steps he/she could have taken to be financially independent. This leads to a salary trap, which is filled with depression, torment and a lack of will to work, where the individual lives paycheck to paycheck.
Passion Vs Needs
In an ideal world an individual would work towards their passion, which would lead them to be focused in their work and put extra efforts to get the job done, while being content and happy at the same time. Work pressure would feel like opportunities to succeed and learning would never stop.
However, most people are stuck in their job they dislike as they need to fulfill their daily needs of food, loan repayments, medical expenses and many others. Consumed by them, the dream of a dream job is always an imagination.
The Financial Management Problem
The major cause of this is mismanagement of finances. Taking debt whose EMI is more than 10% of the total salary, not investing with the help of an expert and having no emergency funds are some of the basic mistakes that one does to almost always stay broke. This eventually leads to depending solely on salary for money. The salary dries out at the end of every month leaving the individual either taking more loans or cutting their basic needs such as food and hampering their health.
For a country such as ours, where the youth are the backbone of the economy, financial literacy is of the utmost importance. Universities and workplaces can take the initiative and arrange vocational classes where basic finance management can be taught so that an individual can avoid getting themselves trapped in the never ending spiral of living one pay day at a time. An expert can also be hired by these institutions to guide people so that they can derive a financial goal.
Clear understanding of financial needs and a sound investment portfolio, overseen by an expert, can help every person become financially independent, pursue their choice of work and be the Abhimanyu to their Salary Chakravyuh.
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