How can a student learn and apply financial planning in life?

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According to the results of a recent survey, many Indians have not made any retirement plans and, only 49% have financial plans in place. This data speaks volumes about the need for financial planning to have a secure and safe future in a world where expenses are ever-increasing, and to survive, one needs to invest and save.Moreover, other data shows that approximately only 24% of Indians are financially literate. It is of utmost importance to minimise this gap between financial literacy and financial planning so that Indians can have the knowledge and expertise of investing to secure their future. Butit is important to learn what financial literacy and financial planning are and learn how they are interrelated.

Definition of financial planning and financial literacy:

Financial planning involves the act of allocating a part of your income into investment plans. Strategizing expenses will help the investor to achieve their financial goals. Financial literacy,on the other hand, can be defined as the ability to apply knowledge and skills to properly manage financial resources for long-term financial well-being. It is the process through which one can obtain a better awareness of their financial status and learn how to improve it over time by developing financial habits like saving, budgeting, and planning, making the best financial decisions possible.However, as stated earlier, many people lack a fundamental understanding of personal finance. The dearth of information is not the problem, the lack of skill to comprehend it is the problem. A lot of people appear to be unaware of the future financial load they will face as a result of borrowing at exorbitant interest rates. It’s difficult to estimate how many people are making poor judgments without knowing all the details of each situation. There are grounds to be concerned, given that a substantial portion of the population lacks financial awareness which results in high rates of consumer bankruptcy and a large portion of the population is ill-prepared for retirement.To eradicate the issues of poor financial planning, people of all age groups must be educated about the pros and cons of financial planning and the right ways of doing so. So, it is better for people of all ages including students to learn about financial planning.

How can students learn and apply financial planning in life?

While financial planning may seem a heavy term at first, but, with time one can master the art of planning and save enough to have a stable life. Here is how a student can learn and apply the benefits of financial planning in your life:

  • Study and research the world of investing:

If you are planning to start investing and have no idea where to start, the first thing you need to do is to research the various forms of investing and ascertain which mode of investment suits all your needs. However, it is important to remember to read about investment options only from verified sources and experts who have years of experience in the investment space. While the internet may show innumerable answers to your investment-related queries, it is important that you only visit verified websites while seeking information.

  • Sign up for courses:

You can also discover new and latest courses designed and taught by financial experts on different financial portals which will help you gain insight into different areas of investment such as shares, crypto, SIPand many more. By signing up for a course, you can learn all aspects of investing with the help of detailed notes and video content.

  • Get in touch with an expert:

If you have specific queries and are seeking personalised help, you can visit online websites/apps wherein you can book a personal 1 on 1 session with a financial expert of your choice. Through the session, you can get a detailed personalised financial plan and guidance. This session may help you in creating an investment plan that has been evaluated by an expert and hence, will minimise the chances of making errors or incorrect investments with poor returns.

  • You can join financial groups:

Brainstorming your investment-related ideas amidst experts from the field can help you gain a better insight into your decisions. Apart from sessions with experts, you could also discover and be a part of personalised financial groups led by experts that help answer all your money-related queries. Such groups are present online on finance apps and other such platforms that disseminate financial/investment-related information. It will help you become a part of a community that can be your guiding force in all your investment-related decisions.

  • Start making investments:

While gaining knowledge of investment strategies and tactics is one thing, applying it is a different thing. Therefore, it is very important for you to take the first step by investing in areas where you see growth and security. While it is true that high risks lead to better returns, one must be very careful in making such decisions. One wrong move can also lead to major losses. While investment is necessary, it is equally important to invest wisely.

As stated earlier, learning the tactics of investment planning will help one to accumulate wealth over time.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.