Financial Discipline
In today’s fast developing world of socializing, business and profits have become the mantras of life. If social drinking and casting couch can act as a catalyst in this regard, then why morally criminalize it?
But somewhere within the moral ambit of the society, a voice echoes saying that drinking, smoking, casual sex and other illegitimate activities are paralyzing the state by eroding its value. The prime age for such activities to seep into our habit is the early adulthood between 20- 25. This is when the working youth are very ambitious, yet very stressful. They accidently slip into these activities to counter the latter emotion.
What if they were introduced to the economic concept of ‘opportunity cost’? Opportunity cost is the cost of the next best alternative. The value of the forgone opportunity.
An average working youth spends around Rs. 50 each day on cigarettes. If he was taught about the multiplier effect of money (how a single rupee multiplies after it passes one expenditure cycle) or of the future value of money (the fact that money invested today compounds to an increased value after some years, at a fixed rate of interest, if it were invested as deposits).
Share markets and their functioning have always been far off topics that are ignored after being spoken about. If one really knew the functioning of the share markets, no one would dare waste a single rupee smoking or drinking. For a person well acquainted with the functioning of money and markets, would know that spending for smoking or drinking are wasteful outflows of funds. The same funds, if invested in mutual funds or in share could make us a very different person in a few years. Since markets deal with money, it increases our concentration and awareness, as what is gambled is our hard earned money.
In this growing age of digital adoption, the data usage had surged to a very high level. Most of this is for entertainment purpose, such as games or videos. This entertainment doesn’t come free of cost. We do pay for it, but do we recover the cost? Given the fact that internet has the potential to generate returns for us, by us just making smart choices. Videos which feed information on money handling, smart business, investing advisory and news are just being over looked by us. We won’t be paid for watching such videos but the content will equip us to generate money in many prospective ways.
Entertainment and stress busters are necessary, but when one realizes that our choices can generate money as well as compound it, he/she is at peace and the very need for entertainment or stress busting disappears.
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