Is ‘Finance’ only for Professional?

When it comes to finance, majority of us hold view that it hardly has to do with their profession! That is half – way correct! There are many occupations that has nothing/very little to do with finance directly. For instance, person engaged in any job or business (except direct exposure to financial market) has only limited exposure to the finance such as salary/ profit. Again, if we consider the scenario of home – maker women and children again there would be limited exposure in the ocean of finance.

All the various kind of individuals discussed above are having exposure to the finance only for their concern area. For instance, Salaried people would learn finance only for budgeting purpose i.e. earned salary –> paid utility and other bills –> saved few bucks for emergency and then waiting for next month pay cheque. Typical business person would be getting exposed only to production costing, inventory costing, transport costing, taxation and lastly the profit. Similarly home maker would consider to cope up all the expenses within a preset budget and students or children would be relying on pocket money they receive.

All these are the calculation aspects and is far away from the core finance yet much nearer to comprehend and apply that core finance in our day – to – day life!

Figure 1: Chart denoting the movement of income and services between households and firms

We all are required to understand that till we are the part of any economy finance is applicable and connected with us. Business earned the profit because of excellence in demand vs supply co- relation, salaried earned salary because the business houses pay taxes to the government at same time hire an employee that contribute towards business. And that’s one of the reasons we should by now be clear that ‘Finance’ is not mere any specialization/subject but globally persisting economy that included all our short term and long-term requirements.

As we have seen how finance is relatable to each and everyone of us, in our next post we would see why the financial literacy is important key to climb financial success. Stay tuned…

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