Some Home Truth
Today our nation’s financial system is continually evolving, resulting in more choice—yet also posing new challenges. Indians increasingly are being required to understand and adapt to a changing financial landscape, and to take greater responsibility for their financial well-being.
While most people are aware that saving, investing, and planning for their future are essential to their quality of life and financial security, many do not know what to do about it.
To equip individuals to deal with a complex financial world, financial education is a priority. Effective financial education and awareness should equip individuals to understand financial risks and products and thus take decisions better adopted to their personal circumstances.
Financial literate individual also contribute to more efficient, transparent and competitive practices by financial institutions. Better educated citizens can escape become victims of buying inappropriate financial products. Consumer education and consumer protection are both vital, for in the analysis, a well-informed consumer alone can be an effective bulwark against wrong doing.
it is the grounded belief that regardless of background or income level, financially informed individuals are better able to:
- Take control of their circumstances,
- Improve their quality of life, and
- Ensure a stable future for themselves and their families.
Some handful tips for homespun entrepreneurs
- If consumer education in finance is one side of the coin, financial discipline is the other.
- Getting rich is no crime but the desire to get rich too soon by hook or crook promotes myopic & arrogance, & hence miscalculation which results in distress & even bankruptcy.
- Heady entrepreneur end up facing headwinds.
- Borrowing, servicing debt & de-risking go hand in hand. Prioritizing & channeling capital in the right place & in a disciplined manner is the key.
- Short term borrowing for long term use is a commercial folly & financial suicide.
- Performance & delivery cannot be substituted by promises & platitudes.
- Business without a regular cashflow is like a ship without a rudder.
- Businessman ought to build capital in good times to provide a buffer in bad times.
- Expenditure decisions must focus on value of money rather than when valuations are over the top which is a “show off” spending.
- Fixed cost is a permanent nail in the coffin, keep it slender.
- Cash is king, financial discipline, my tycoon!
- People get aligned; if inspired; they get alienated, if exploited.
- Treat people with respect, wise man!
- Participative decision making may be more sound than intuitive whim.
- Off the cuff response and adhocracy do not work for long in business.
- Maneuvering & manipulating are moral devices, customer are uncanny, win their trust before targeting their pocket. my homespun entrepreneur!.
- Credit worthiness works better than credit, it endures longer.
- Treat money with respect, my man!
- Smart entrepreneur is a delight, street smart is a pain.
There are some extensive observations at your disposal.