I had the opportunity to work with around 12000 Pharma people. Most of them from sales.My observation is that barring 10-20% people, many people in Pharma sales are financial illiterates. Few exceptions could be seen in Gujrat or few other places.

Ask any Pharma Sales guy the following questions:
• What is the difference between debit card and credit card in terms of rate of interest?
• Have you done sufficient investment to get the best I.T benefits? How much?
• Do you maintain a file /note book to keep track of your investment?
• What is the difference between SB and CA of Banks ?
• What is your CIBIL score?
• How much interest are you paying on your housing loan?
• What is the difference between PPF and FD of banks in terms of interest?
• What is the difference between debt fund and equity fund ?
• Do you have any personal or family Mediclaim policy? How much?
• Do you have emergency fund equalto 6-9 months’ salary?
• What is your net asset value ?
• If you die suddenly, how will your spouse manage next nine months?
• What happens to your house that your family stays, if you die suddenly?
• Do you have any book at home which keeps track of your assets and finance?

Are you satisfied with the answers?

WHAT IS FINANCIAL LITERACY?

Just because someone is a graduate, it does not mean that you are a financial literate person.
You can be Phd or MBA , still be a financial illiterate person.

Financial literacy means acquiring FIVE COMPETENCIES as above:
*Ability to earn multiple sources of income
*Maximising ability to save regularly, while investing in assets which can create wealth over long period of time and planning retirement income properly.
*Ability to spend wisely and through better purchasing techniques.
*Understanding the difference between “GOOD DEBT and BAD DEBT and getting best deals while borrowing.
*Protecting self and family for all kinds of emergencies.

What are the negative impacts of finance illiteracy?
• People remain poor even though there is a clear opportunity to come out of poverty
• People get into series of debts all through life leading miserable life
• People lose their earnings by investing into assets or investments which give low return or negative returns
• Families go through serious crisis white being sick and end up getting no treatment or mediocre medical treatment
• Leading old age in poverty and misery.
• People spend lot of their time in police stations and courts, fighting finance related cases which may not have a happy ending
• People lose out houses, properties and savings, grabbed by crooks or Banks
• Leading an entire life of poor quality with hardly any good thing in life -houses, furnishings, vehicles, great white goods and holidays/picnics.
• Life of frustration, complaint, anxiety and tension

What does it mean by financial literacy?
-Ability to forecast personal income and expenses accurately.
-Maximum saving by various saving strategies.
-Investing in asset classes which will give maximum returns
-Taking care of family healthcare and emergencies like losing job.
-Planning home buying at the best place by spending least
-Ensuring the best of children’s education and daughters’marriage by planning.
-Investing most appropriately to not only save taxes but also get maximum returns in 20-25 years period.
-taking most appropriate life cover and other insurance.
– Planning retirement by having the best planning etc

It is sad to see that a lot of them are living on” hand to mouth”. They wait for disbursement of expense statement to buy essential stuff at home.I have also seen that many do not go on tours after 25 th because all money is exhausted. It is not uncommon to see false reporting only because they have no money to go on tour, not because they are inherently dishonest.

Large % of the Pharma guys have not shown any place other than 200 kms radius to their family.How many ASMs based in UP have visited Bangalore or Kerala? Or for that matter how many TN based ASMs have seen Himalyas ?
Not seeing other parts of India are due to two reasons. First is not saving enough.Second is working for a “closing fever” Company which will never sanction leave beyond 7 days.

Very sad state of affairs, am I right?

WHAT NEEDS TO BE DONE?

-All Pharma sales guys must read my book titled ALL ABOUT MONEY, BECOME MONEY SMART Or any other books on personal Finance.
-Attend online or offline personal finance training sessions.
-Keep track of Income and expenses every month.
-Design a most appropriate tax saving strategy to maximise returns.
-Take making life cover on self as he is on travel every day.PROTECT FAMILY.
-Take a floater healthcare policy for family including parents in keeping with age profile
-Maintain an emergency fund to meet eventuality like loss of job.
-Planning for each life gaols like retirement, children’s education, daughter’s marriage etc
-Lead a debt free life with dignity.
-Create right kind of will and nominees in all records.
Friends, remember:

Your Company is under no obligation to look after you or your family. If you do not plan and if you do not take care, no one else will. Be sure of that.
Look at the faces of your family members and decide!
BECOME A FINACIAL LITERATEPERSON!
Best wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com