Question

Thus far in this course (Financial Management), you had been learning new concepts and principles. Reflect on the theories, concepts, and strategies presented in this course (Financial Management) and consider that you can apply them in your professional personal life.

write a reflection based on what you have learned in this course. Address the following in your reflection:

• Explain how your attitude about financial management has been affected by the information you gained in this course.
• Explain the knowledge/insights you think will be most useful in developing your own financial style and why.
• Explain how can you leverage the knowledge that you have learned in this course for positive social change.

Answer 1

These are subjective questions. Please feel free to modify my answers as per your own reflection. My suggestion will be to use these as backbone and develop your own answer:

Explain how your attitude about financial management has been affected by the information you gained in this course.

Prior to the course, I had been pretty ignorant about the modern tools and techniques of financial management. Since i lacked awareness about the financial management, my attitude had been quite casual. Based on the information i gained in the course, i can reflect upon following changes in my attitude:

• I now understand the importance of generating money, saving money and its importance in my life. The power of compounding learnt under this course helped me understand the importance of finance. I have now become more prudent and disciplined in my expenditures.
• FInancial management is an art and also a science. It's ultimately a judgemental call taken after mathematical analysis. It's like taking a calculated risk. It's like evaluating everything before choosing the best. So, my approach in life has become rigorous and analytical. But i still understand that judgements have significant role to play in life. However judgemental calls taken after analysis and rigour can minimize the risk.

Explain the knowledge/insights you think will be most useful in developing your own financial style and why.

Following knowledge and insights will remain with me throughout my life and hence will develop my financial style:

• The concept of Net Present Value, Present value, time value and future value of money. I have got insights into different ways of looking at the money.
• The power of compounding: How a small but consistent saving starting today can grow into an enormous kitty over a period of time.
• Concept of cost of capital - tomorrow if i start my own entrepreneurial venture, this will go a long way in shaping my decision and style of running the venture.
• Modgilani Miller hypothesis exposed me to the importance of leverage but at the same time made me understand the nuisances of excessive leverage. My financial style will be to ensure i am not over-levered at any point in time during my life. I will try not to spend more than what i can earn.

Explain how can you leverage the knowledge that you have learned in this course for positive social change.

• I had been thinking of setting up a small platform to support college education of needy students not belonging to affluent families. These are definitely the kids who want to go to college for higher education but are just not able to do so due to financial constraints.
• I can leverage the knowledge that i have gained in this course to figure out:
  • What could be the right size of this platform? That is how much should be my kitty so that i can sponsor say 4 to 5 kids for their higher education.
  • Subsequently, how much do i need to save from today onwards to get to that level.
  • Once i am there, how can i scale up. Who will provide me with more capital? What will be the sources of funds?
  • How to manage the funds and then make sure deserving kids get the benefit?

I hope this helps you.