Your financial checklist and score. Financial Literacy in India

Financial Literacy in India is very low. This blog post we are list 75 checklist to generate your financial knowledge score. If you answer for the question is “yes”, you score 1.  Read all the checklist and calculate your number of “YES”. If you score more than 60, you are literate financially. 50 to 60,  you have to improve. 30 to  50, you have to start you financial journey. Less than 30, you are illiterate. You have start learning and investing. Otherwise you can never become rich. Start your financially journey now.

1. You follow famous financial bloggers for financial literacy articles and news.
2. You think about the consequences and impact of any financial decisions you have made.
3. You realize any financial decisions you make during your youth will likely to be small. Start early to grow large.
4. You are conscious about spending now or saving to consume more later.
5. You appreciate the magical power of compounding.
6. You know your actions can mean the difference between retiring 10 years earlier, or 10 years later.
7. You know what “index fund” vs “active fund”.
8. You know how to diversify your investment.
9. You are aware of different investment strategies. Real estate, Gold, Stocks and mutual funds.
10. You lament the ridiculous and poor financial choices made by your parents.
11. You question your parents for not investing in properties during the real estate boom in the 90s.
12. You begin to calculate how many hours you need to work to buy that shiny Samsung or one plus
13. You have read “Rich Dad Poor Dad” and laugh when you realise it is more than 20 years old.
14. You know the equation Equity = Assets – Liabilities at the back of your hand.
15. You discover the tax advantages of starting a company instead of being an employee.
16. You realise “Your Money or Your Life” is the latest talked-about book instead of “Rich Dad Poor Dad”.
17. You speculate Robert Kiyosaki wasn’t rich until he wrote “Rich Dad Poor Dad”.
18. You become acute of “get-rich quick” schemes.
19. You know gold can be used as emergency fund as well as investment.
20. You know different between pledged loan vs unpledged loans.
21. You are aware that pledged loans(gold loans) are less interest compare to unpledged loans like personal loan.
22. You know the interest rate and late fees of credit cards when you are qualified to possess one.
23. You understand credit cards can turn against you if you are not careful.
24. You know how to generate the credit score statement for your PAN card
25. You invested in 2 index mutual funds. One for retirement and one for your children education.
26. You analyzed through your parents’ insurance policies, work out the return on investment ROI and realized how stupid the investment.
27. You are angry towards your parents for not purchasing a low cost insurance policy for you, if they have not.
28. You can differentiate the different policies – life insurance, term policy and investment.
29. You question your parents for putting their savings into fixed deposit accounts.
30. You avoid most Unit Linked Insurance Plan (ULIP).
31. You are aware of putting money into active mutual funds can be a bad idea.
32. You observe that you can save more if you handing it over to a consultant instead of you manage the money in case your income is more than 30 lakhs per annum from multiple sources.
33. You are aware the interest rate in saving account is less than inflation rate of India. It is huge loss if you keep money in saving account.
34. You are aware of P/E, PEG, Dividend, Price to Sales, book value term of the company listed in NSE/BSE.
    You start a trading account.
35. You subscribe to investment newsletters.
36. You start to idolize Warren Buffett instead of cinema personalities.
37. You become the “go-to” person in your family and friend circles for financial matters.
38. Your friends may stop inviting you to gatherings since you are only talking about mature topics.
39. You dream of becoming a millionaire.
40. You research ways to earn passive income.
41. You start working on passive income instead of wasting time.
42. You know of “Rule of 72”.
43. You “borrow” money from your mother to invest in stocks (that’s me).
44. You eat, drink and sleep about “Financial Freedom”.
45. You learn gold resides in information technology and start to learn about building website, internet marketing, search engine optimization.
46. You become keen in affiliate marketing.
47. You understand there is no substitute for hard work in getting wealthy.
48. You learn that interest rates affect the world’s economy.
49. You googled the term “second property”.
50. You start to evaluate your purchase decision in terms of pricing and durability.
51. You simply order the cheapest of what is available on the menu.
52. You are determined to still spend like a student into your adulthood.
53. You reconsider choosing Computer Science or Banking for your course as it offers one of the highest paying salary, despite hating both subjects.
54. You are aware of mileage and expense of getting your own car.
55. You say “OLA or Uber, not car”. It just makes more financial sense.
56. You see the beauty of paying a down payment for a home first before getting a car.
57. You learn that a house appreciates while a car depreciates the moment you drive out of a saleroom.
58. You see that big financial decisions like buying a house or a car or even getting married can easily make or break your entire life.
59. You know what is 80C in tax planning. How to invest in ELSS mutual funds, fixed deposit and post office saving to get tax benefits.
60. Despite having probably close to nothing to your name, you are keen to calculate your net worth.
61. You wait for better offer in Amazon and Flipkart to buy an expensive mobile.
62. You study 10 ways to make crore rupees.
63. You understand the time value of money.
64. You begin to look for 2nd-hand products instead of buying brand new goods.
65. You download financial apps to keep track of your expenses.
66. You back calculate how much money you need to generate enough passive income to cover your monthly expenses.
67. You begin to think and plan for retirement way ahead of your peers. Even before you start working.
68. You have already heard of “FIRE – Financial Independence, Retire Early”.
69. You are planning to “FIRE” before you even start working.
70. You figure that attaining a high savings rate is key to early retirement.
71. You dream of 40 hours work week.
72. You don’t want to be that rat in the race.
73. You realize career ladders are designed to keep rats within the race.
74. You recognize it is not easy for your parents to manage finances.
75. You realize that insurance never make you rich financially and mentally.

This is your financial checklist. Calculate your financial literary score and start your journey to rich. Happy Investing.

Credit card for Everyone. How to apply for credit card.

To Become Rich : Invest in 6 Mutual funds and increase 10% by each year.