India has the 3rd largest startup ecosystem in the world and is expected to witness a consistent annual growth of 12-15 percent. Every day, around two to three tech startups are born.
While these are impressive figures, statistics also suggest that around 80% to 90% of these startups have to close down within the first five years. Some of the main reasons why most small and medium businesses fail to grow exponentially or even survive are lack of innovation, funds, focus, leadership, and to some extent, failure to set streamlined processes.
Viraj Patil, a fintech entrepreneur and performance consultant, talks about how he upgraded his financial skills and used them to fund his entrepreneurial dream.
Financial literacy is an understanding of financial components and skills such as budgeting, investing, borrowing, taxation, and personal financial management. Financial education allows a person to be better prepared for financial roadblocks and, furthermore, helps them in achieving their financial goals sooner. This education helps a person to learn better about the various instruments and products of financial investment and align them with their long-term and short-term financial goals to achieve financial freedom.
A fintech professional, amongst many other roles, Viraj understood the value of being financially educated early on and took it upon himself to spread the word, especially amongst youth, by emphasizing the importance of skillset development and being futuristic in their approach. Coming from a middle-class background himself, he understood the importance of being able to earn money and has been inspiring and mentoring thousands of people around the world to get financially educated and have a side hustle to have more than one source of income.
Viraj shares that "Financial literacy helped him explore and understand multiple new futuristic financial products and earn a planned income by investing in these products. Education about risk management and planning as per financial goals helped him start multiple entrepreneurial ventures and invest in other companies too"
Today, more than 80% of people are living from paycheck to paycheck. People who own credit cards are paying high interest due to a lack of proper knowledge of using them properly and hence credit card debt levels have been increasing. Loans such as personal loans, student loans etc., are making things even worse. These statistics are reason enough for anyone to invest in upgrading their financial skills. Financial literacy has the power to literally uplift lives, better the standard of living and supports your future financial goals. If being an entrepreneur is your dream, financial literacy can help you make the funds to kickstart your entrepreneurial journey.
Updating your financial skillset lets, you have a life of less anxiety and ensures financial solidity and stimulates a secure financial freedom in future. In Viraj's words - "The key to your future is in your present. You'll have to constantly re-invent yourself with the right skillsets to be able to find it."
First Published: IST