Life lessons you get as a finance major

Upon reaching my senior year of university, I was naturally tasked with the ordeal of selecting my major. While making the decision, I realised selecting a major is very much like committing to an arranged marriage — you barely know what you are getting into and you basically have to make the decision based on a vague idea of what might transpire.

When I took finance as my major, I was expecting a whole lot of number-crunching. But to my surprise, the numbers led to life lessons way deeper than I had ever fathomed. Here I present somewhat-pleasant-somewhat-harrowing and all very real philosophies you learn as a finance major.

LESSON 1: THINGS ARE VALUABLE ONLY WHEN WE BELIEVE THEY ARE

Money is the heart of all financial systems. Funnily enough, money can be anything from gold bars to your favourite cow. The sole reason a piece of paper or even something as materialistically non-existent as cryptocurrency has any value is because WE believe it is valuable. There is nothing inherently "valuable" about any of it.

This simple principal applies for everything else in our life as well, which we often tend to forget. We forgo intangible assets like goodwill, happiness, and peace of mind for tasks that generate more tangible assets since the societal norms dictate the latter as more valuable. But remember, you decide the value of objects and actions in your life. So, there is no need to indulge in antics that you do not value yourself. 

LESSON 2: EVERYTHING IS BUILT ON TRUST

Trust is the foundation of banking system. Unlike good old Monopoly, banks do not literally have all the money that they lend out. It is more of a promise of payment when required. Everything is fine and dandy as long as we put our trust in banks. The moment everyone stops trusting them, the entire system collapses.

Much like the banks, all our relationships are built on trust. Not everything is always perfect but we need to put our faith into it and trust that our significant ones will step up to the tasks when we require them to do so. Needless to say, both banks and relationships demand transparency in the first place in order for them to function properly.

LESSON 3: OUR EXPECTATIONS SHAPE THE OUTCOME

Expectation is the biggest determinant of all outcomes. For example, when the market expects a change in foreign exchange prices, they are better prepared for it and the consequent change does not affect the economy. However, when the expectation is not so, it causes a domino effect in the economy.

Similarly, what we expect from life determines whether we are satisfied with the outcome or not. If you are an England fan in the World Cup and expect them to make it to the finals or even semis, you will most likely be disappointed.

LESSON 4: INSURANCE OFFICERS DETERMINE OUR STATE OF BEING

There is a saying, "You are dead only when your insurance officer agrees that you are dead." I will leave you with that.

Nafis Imtiaz Onish believes grinning is the answer to everything and avidly loves art, astronomy & all things nerdy. Send him Carl Sagan fan art at nafisimtiaz17@gmail.com