Reading brings you closer to the realities of the world, and educates you of the benefits of using finances wisely
Aren’t books the quietest and most constant of companions? Aren’t they the most accessible and wisest of counsellors, and the most patient of teachers? Undoubtedly, everybody will agree, because reading has always been considered one of the most powerful tools to gain knowledge. According to a National Statistical Office (NSO) survey, the overall literacy rate of India is around 77.7 per cent. However, it is alarming to know that only 24 per cent of the Indian adult population is financially literate, according to the report conducted by the Global Financial Literacy Excellence Centre. This clearly reflects where our nation stands in terms of understanding the importance of financial literacy.
The Importance of Financial Literacy
Today, India is, perhaps, the greatest market for various organisations. Its huge populace is viewed as an amazing resource by multinational corporations. There has been a consistent expansion in globalisation as well, and numerous Indian companies have expanded their businesses to different countries. We have even developed in terms of technology, yet the majority of Indian organisations come up short due to monetary bungles. Wonder why? It’s only because here people thoroughly lack financial knowledge. Monetary education is important in light of the fact that it equips us with the information and abilities that we need to manage money effectively. Without it, our financial choices and the moves we make — or don’t make — fall short of a strong establishment for progress. It is becoming a priority for most of the world as it is directly proportional to the economic growth of any nation.
The Role of Books
Being monetarily educated means having the information and certainty to efficiently and effectively manage, save and invest money for you as well as your family. Hence, it is very important to follow the correct path, and what better way to gain proper knowledge other than reading finance books? Right from managing your personal finances, budgeting, deciphering the stock market, insurance, investments, retirement planning to getting out of debts and estate planning, books incorporate everything. Reading can bring you one step closer to the brutal realities of the world, and educate you as per the benefits of utilising finances wisely, along with the disadvantages of wasting wealth and the associated aftermaths that could eventually put your very existence and future at risk. Reading real accounts and practices will enable you to understand the criticality of finance management and will prompt you to execute them in the present so as to have a secured future.
Learning doesn’t happen overnight, nor can be accomplished by reading just one book; rather, it is a process that happens gradually through education, practical experience, and life lessons. There are numerous self-help books and workbooks that teach finance and personal money management. You can begin with reading one topic at a time. Start with the one you are most interested in learning and you’ll slowly but surely set up a solid foundation of financial understanding. Since this is something that is not taught in traditional classrooms, reading finance books can be your best resort.
No matter what your level of financial literacy is, it is very important to keep your knowledge base growing. Any step that you take towards getting a better hand on your monetary situation is a step in the right direction. The key is to take that first step. Knowledge is power, and can help you make wiser financial decisions. Money probably doesn’t tackle all the issues of life but it certainly does tackle a majority of it!
The author is an entrepreneur and writer
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.