How financially proficient are you? OR Why do the majority of individuals fail to achieve financial success?
Money is not the solution. However, its absence causes numerous issues. Money can make life convenient and comfortable. Everyone desires financial success, but only a select few are able to achieve it. Earning money or achieving financial stability is a science that few of us have heard of, and even fewer have been able to fully grasp.
How would you respond if someone asked you whether or not you have a basic understanding of personal finance? The majority of the time, there is not going to be a response to this question since we have rarely considered the possibility that there could be something known as financial literacy.
What exactly does it mean to be financially literate?
Education about money is what's meant by "financial literacy." The capacity to comprehend and organise one's personal financial affairs is known as financial literacy. It involves having understanding of several financial concepts such as a financial statement, a budget, investment, debt management, cash flow management, a financial timeline, and many others.
Literacy in finance is essential because it equips individuals with the knowledge and skills necessary to make educated choices regarding their own finances and to construct a foundation for their long-term financial security.
Investing one's money wisely and in the correct places is another aspect of financial literacy, according to many people. Nevertheless, the phrase can refer to a great deal more than that. The correct counsel and education to achieve financial success has been developed by Sudhir Khot, who has simplified this word and made it possible for anyone to become aware of how to appropriately manage their own cash. According to him, the most important thing is not how much money you make but how effectively you handle the money that you have acquired.
An entrepreneur, educator, and investor named Sudhir Khot is on a mission to improve the level of financial literacy among the population of India. It is crucial to have a relationship with money that is not fraught with conflict, and Sudhir Khot teaches people how to develop and achieve this goal.
Sudhir Khot, who came from the city of Kolhapur in the Indian state of Maharashtra, saw his father go through repeated bouts of financial difficulty. As the owner of a foundry, he saw his company go through periods of recession every three to four years. As a result, his company was always focused on cash flow. The experiences of early infancy planted the seeds for a successful firm that can withstand economic downturns.
His Master of Business Administration degree from Sydenham Institute of Management, which is affiliated with Mumbai University, helped him advance in the business world. In 2001, he launched Ruralreach, which marked the beginning of his career as a true entrepreneur. During the course of his career as an entrepreneur, he has established successful businesses in the fields of agriculture, real estate, and financial coaching.
In order to meet his month-to-month financial obligations when he was in college, he planted the seeds for future entrepreneurial endeavours. In order for Sudhir Khot to make revenue for his regular monthly expenses, he launched his first seasonal business during the Diwali season, which consisted of selling crackers and garment material.
However, because he lacked the appropriate financial expertise, he made some irregular financial judgements, and as a result, by the year 2003, he was left with very little money. After conducting some introspective research, he came to the conclusion that his lack of financial literacy was the primary reason for his failure.
When I take a look around, I notice that the majority of people are paddling in the same direction, says Sudhir. The majority are suffering from stress related to money. He came to understand his error. His life took a different path after he read Mr. Robert Kiyosaki's book, "Rich Dad Poor Dad," which was a pivotal moment. His life began to become better the moment he began looking at his financial statements with the appropriate level of awareness. From this moment forward, Sudhir made a commitment to himself to assist others in enhancing their financial education and to bring them to the level of true literacy.
There is not a single class that covers economics. When thinking about money, people unwittingly create the incorrect cognitive pattern. This flawed way of thinking is keeping people in a constant state of anxiety regarding their financial situation. After that, he made the decision to help other individuals improve their financial situations by sharing his knowledge and expertise with money with them. In order to accomplish this, he launched a business under the name Financial Fitness.
Today, Financial Fitness is a community that includes more than 5000 active participants. In order to obtain more financial freedom, the members of this community collaborate to increase their level of financial literacy.
Robert Kiyosaki's student and qualified trainer and facilitator from the Blair Singer Training Academy in the United States of America, thinks that a person's thoughts operate as a magnet to attract money. He is a firm believer that achieving financial fitness requires both an understanding of the fundamentals of money management and the development of a constructive mindset regarding one's financial situation. In addition to this, it entails the formulation of methods for the management of one's financial resources, the formulation of objectives, and the formulation of a strategy for achieving those objectives.
Understanding how we think about money, how our ideas impact our behaviour, and how we may utilise this information to produce financial success are all part of the "psychology of wealth," which involves understanding how we think about money.
The most important factor in determining one's level of financial wellbeing is one's attitude towards monetary matters. Having a healthy mentality towards money enables us to make sound decisions regarding our finances and positions us well for long-term success.
When the mind is calm and devoid of uncertainty, positive financial outcomes are more likely to occur. But if it is hazy, then it will bring in unfavourable financial circumstances.
According to Sudhir Khot, an individual's level of achievement can be directly attributed to their level of financial literacy. A high level of financial literacy would assist someone kickstart their income, life, and achievement, all of which would be easier with that level of financial literacy.
Therefore, if you are also interested in attracting positive funds to make your life happier, you should enrol in one of Sudhir Khot's programmes that focuses on how to enhance one's financial literacy and how to take control of earned money. These programmes can be found on their website.
A person's ability to make sound financial judgements, enhance his or her skills in money management, build substantial financial security, and choose investments more wisely can all be improved with strong financial literacy. The greatest benefit of having strong financial literacy is the ability to become financially independent.
To help you feel more comfortable with your finances, Sudhir offers a variety of coaching sessions, both online and in-person. More than 5,000 people have benefited from the workshops on financial fitness, which provide knowledge on a variety of financial topics. He states it with great pride that we do not sell any financial products throughout the training. The psychology of money and success is the primary focus of these courses; the topic of investing is not covered.
Your financial statement serves as your report card in this imperfect and real reality. The status of your financial statement is the most important factor in determining your level of achievement. The following is an example of a secret formula that can predict your future financial situation.
Examine your income statement and balance sheet. Check your expense column in detail. If you find that more and more of your spending are shifting towards liabilities, then your future finances are in jeopardy. If the majority of your expenses are going towards investments that develop assets, then your future finances are in good shape.