Are you financially educated


A few months back I was working in my office. While sitting in front of my desktop I was analyzing my financials over the past 9 years. And I have found that I am not a financially educated person. As I have spent so much unnecessarily in those years. Then, I read an eye-opening quote over the internet by Alan Greenspan

“The number one problem in today’s generation & economy is the lack of financial literacy”

This quote gives me food for thought to reanalyze myself to take care of my financials for my future. If we want to improve our financials we have to start our young minds to teach in schools.

I was surfing over the internet and found some eye-opening facts. Almost 75% of Indian adults are not able to make their decision on finances. Even more, 80% of women are not financially educated. These numbers scared me a lot. Actually, making good decisions on your finances is an art to understand how money works.

In India, the majority are middle-class peoples. Their finances are not good, as they depend upon only one source of income.

There is a true fact, if you don’t have any financial education you don’t have money for your retirement.

In this article, I will tell you a story of three friends – Arun, Varun & Tarun. Their story will help us to understand their financials, cash flow patterns, and their mentality. As well as you can relate yourself to check are you financially educated?

Story of financially educated peoples

All three are very good friends and working in a same company.


Arun is married, having two children and a salary of 50k per month. Arun is doing some side hustle at home after his office working hours. He has responsibilities towards his family and he understands well. He knows with this salary (50k) he cannot run his home. So, he started his own side business after office. The money generated due to his side hustle he put that money to buy assets. He purchased some shares over the stock market. Even he also tries to buy some land. Furthermore, he also put his money into his business whenever investment is required. Arun is financially educated. Arun knows the importance of money and how it works.

“That man is richest whose pleasures are cheapest” – Henry David Thoreau.


Varun is also married, having a child, and taking a salary of 80k per month. Varun does nothing after his office hours. He does his regular job from 9-5 only. Every weekend, Varun enjoyed with friends, family, and partying regularly. Varun is very happy with his job. Even he put some amount of his money into bank saving account and fixed deposits. Every month he does the same thing with his salary. Varun knows a little bit about financials but never focuses on it as his salary completes his desires. He buys an expensive phone, loan EMI for his brand new expensive car.


On the other hand, Tarun is junior to his friends in the office. He is single and getting a very good salary of about 40k every month. Tarun has no responsibility for his family. He spends most of the time with Varun. He also gets involved in parties with Varun and friends. Tarun buys expensive clothes, expensive phone and pretend himself rich. But Tarun was very upset and complains every time. He complains his salary is very much less as compared to others and drains too quickly. So, he struggles every end of the month and in his hard times as well. Tarun knows the importance of money, but don’t know how it works. He has some debt as well. Tarun is not a financially educated person. [Check – If Debt Good or Bad?]


Tarun is not a financially educated person. His cash flow pattern clearly stated that his salary completely went into expenses. Also, he has no assets which add income to his income tub. His cash flow pattern shows a poor person mentality.

Non Financially educated Tarun Cash FLow

Whereas, Varun has some sort of savings. In his cash flow pattern, he adds some savings to his asset tub which is a lump sum amount only. This cash flow pattern shows a middle-class person mentality.

Non Financial Varun Cash Flow

If we closely look and understand the cash flow pattern of Arun, he filled his asset tub fully by purchasing land, shares, and investment in the business. The value of shares he purchased is now into lacs. He also added a good area of land into his name. The side hustle converted into part-time business but he still doing his job. His part-time business which gave him very good extra income equivalent to his job salary. [Read How to make money work for you?]

Financially educated Arun cash flow


Company’s Financial Trouble

Now, the company where Arun, Varun, and Tarun were working comes under financial trouble. Company’s annual reports showing a loss, because they do not even generate enough revenue. Now, to reduce down company loss, the management takes a decision of attrition for some employees.

All three removed from the company along with other employees.

Tarun Financials

Tarun was very sad and upset as this job is the only source of his income. Even Tarun doesn’t have any assets into his asset tub which helps him to survive in this tuff situation. Tarun has no time to sit at home; he has to run after for any source of income. Not financially educated, leads him very depressed and tense.

Non financially educated Tarun after job
Varun Financials

On the other side, Varun saves some of his salaries to bank saving account and fixed deposits. Varun’s situation is better than Tarun’s. He also has to find his new source of income to run his day to day living. He can sit at home until his savings are with him. Once his savings are over he is equivalent to Tarun. Unfocused view also not financially educated, Varun leading himself to poverty.

Non financially educated varun after job
Arun Financials

Above all, Arun who was working after office hours, having land and shares value in Lacs; has no impact on this situation. In fact, Arun converts his part-time business into a full-time business. He is living his life happily even more after his job and become financially independent. His financial education leads him into a rich category even taking the average salary from his job.

Also Read:

Financially educated Arun after job

I hope you understood this small story of Arun, Varun, and Tarun.

Hence, their financial knowledge leads to their life. 

Many of us can relate to these three characters. These three peoples taught us very well how we should manage our personal finance.

Let me tell you another fact, 1/3rd of Indians are willing to take loans for consumer durable items such as phone, TV, and refrigerators.

Furthermore, 34% of peoples said they rely on friends for advice while taking loans, followed by the family which is 31.8% and colleagues at 25.4%.


It doesn’t matter whatever you are earning either 80k, 50k, or 40k; what matters is how you manage your financials. Building an asset or a passive source of income helps you to achieve financial independence. Money in hand boost your confidence & shows automatically in your actions as well.  Always note, to be financially educated means having the ability to not let money from your hands easily. Spend where it is necessary only.

Suggested Reading:

Save your personal life by getting financial education.


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