Week Ended 14^th October 2011

Quote of the Week: "Knowing others is intelligence; knowing yourself is true wisdom. Mastering others is strength; mastering yourself is true
power. " Lao Tzu

 Many people would like to have a clear picture of what their financial goals are. A fundamental step towards attaining financial goals and a
most important tenet will always be to “know thyself”. Expressed differently if you want to create success, you need to make sure that you know yourself. That is the surest path to success, whether financially or in other endeavors in life. This is especially true if you want to cultivate the behaviour that will lead to financial freedom. Even before thinking about asset allocation, estate planning, or retirement planning, you must first identify what is important to you, and how wealth relates to those aspects of your life. Here are some things to consider about yourself to help you achieve your financial goals:

 What are Your Strengths?
One of the best things you can do is to acknowledge your strengths. Figure out what you are good at. Consider your strengths as they relate to money. Do you have skills that others are willing to pay for? Can you create something with your hands that others are willing to buy? Do you research well? Do you have good self-discipline? Recognize your strong points, and find ways to apply them to your financial life. You WIll be able to accomplish more, and do it faster, if you can create a financial plan that plays to your strengths.

What are Your Weaknesses?
It is fun to acknowledge your strengths. It is an exercise in feeling good about yourself, and recognizing what you do well. Your weaknesses, on the other hand, are not as fun to acknowledge. But it needs to be done. Take a look at where you could use some work. Are you negligent when it comes to tracking your spending? Do you have a hard time saving up for your goals? Ar e you too generous when it comes to requests for giving money to friends and relatives? Instead of developing your talents or your mind, do you spend too much time in less productive activities, like computer games and television? The important thing is to take a look at some of your weak points, and create an action plan to change the way you do things so that your weaknesses gradually become strengths.

What Do You Want to Accomplish?
Now that you have an idea of your strengths and weaknesses, it is time to determine what you want to accomplish. It really does help to have a plan for your money. Carefully consider your values and your goals. You can use this as inspiration as you work towards financial freedom. Knowing what you want to accomplish, especially if it is important to you, will help you stay focused.

What are Your Triggers?
Most of us have triggers that can lead to undesirable financial behaviour. For instance, if you know that you spend money when you are upset, it might be a good idea to stay away from shopping centres, or online shopping sites, when you are feeling upset. If you feel excited on pay day and feel the urge to go spend the money, it may be a good idea to sign up for a direct deposit program that automatically remits your contributions into a savings product. That way you will have less immediate income at your disposal, and therefore be in a better position to achieve financial freedom.

Bottom Line
Understanding yourself and the way you interact with money is an important part of financial success. Ultimately, the financial self discovery process would not be viable without paying attention to the following issues:

• Setting financial goals that are aligned with personal or family values
• Prioritizing financial concerns
• Defining the role of wealth
• Assessing progress towards objectives
• Identifying how life events could affect financial strategies.

Knowing yourself is not enough. What you do with the knowledge is what matters, and is the very thing that distinguishes goal achievers from those who fail in the same. Therefore, take time to know your true self; only then will you be on the road to financial greatness.

You can send your comments or questions to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or visit our offices at Ecobank towers, 7th floor, Muindi Mbingu street. You can also follow us on our facebook page- Zimele Asset Management ( Kenya)

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