subject: Mbas! Let Your Knowledge Work For You First Or Developing Common Finance Sense [print this page] "The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective."
Warren Buffett
Isn"t it ironic that some learned MBAs/PGDMs know a lot about finance and business but have their own personal finances in a mess or they don"t think that what ever they learn is also applicable to their own personal finances as well. The reason behind this is that most of the students don"t apply the knowledge gained in classrooms in their day-to-day financial matters.The Top MBA colleges are also focusing on taking a practical approach while delivering this subject. Following four simple steps in this area can help you not only as a finance student but also as a person who wants to manage his/her finances better.
Read a Basics of Finance Book Throughly
To get deeper knowledge about finance and business, there is no choice but to read "real" finance, business books and news paper. By "real" here I mean something that uses those jargons business people talk about in their conversations about business.
Fortunately, there are books that can help you get there in a relatively short time. It is always good to know the basics of taxation also.
Have your own saving & De-mat Account
It is always good to have your investment account at an early age (It is more effective than any other capial market game). It develops a habit of saving as well as improves your spending habits. Quite frankly if you begin investing at a young age, history tells us that you will end up with far more than those who invest later in life. The power of compounding works here even if you start with a low investment. So, it is recommended that you start at an early age while studying MBA in order to be able to allocate less amount of money and increase your chances to achieve your financial goal until you reach retirement. You can even try with stock market directly as you can start trading with small investment also. This will help you in developing good long-term investing skills before venturing into the realms of "sophisticated investors" or capitalists.
Have an open mind in learning about investing from any possible source.
Every lesson can"t be learnt in a class room. Consulting & learning from the people around you may also help. Have an open mind and don"t leave a single chance to talk and learn from the experienced people as it has wisely said by Robert T. Kiyosaki (Author of "Rich Dad Poor Dad") - "There are powers in this world that are much smarter than we are. You can get there on your own, but it"s easier with the help of the powers that be. All you need to be is generous with what you have, and the powers will be generous with you."
Subscribe to a personal finance discussion forum/blog/club
Subscribing to a finance blog will help you as an MBA student or a pgdm executive to apply the principles of personal finance in your daily life. It will remind you of the principles you have been taught, help you learn new principles, and most importantly help you put those principles into practice.
