Why financial education important?- Drashti Panjrolia

India's education was designed by Macaulay who wanted indians to be only mill worker and not rich. Thats why our schools generally dont teach us financially. The ultimate three things that can make u rich according to me are.

1. Saving and investing hand in hand

 - you must invest 10% of your investment in share market. As it will help to overcome inflation. Lets assume you invested rs. 100 in Savings account then after 1 year that 100 will remain 100 even after interest of 3% because the general inflation rate in india is 5% . But shares give u return as good as 15% . But it is not recommended to invest all your money in share market. 

2. Know what is asset and what is liability

- assets put money in pocket while liability put money out of pocket

 - in accounting car is an asset  but in real life car is a liability if bought on loan . 

- it takes money out of pocket and depreciates over time

 - remember if u cannot buy anything twice 

You cannot afford it. 

3 It is very important to know about power of compounding.Compound Interest is used in all investment methods: Stocks,Mutual Funds,etc, The longer you invest! The LARGER the returns .CI for 5 years < CI for 10 years < CI for 20 years < CI for 40 years

- Compounding effects will be discussed in detail in upcoming blogs .

- Drashti Panjrolia