Quote of the Week:

“Resolve to perform what you ought; Perform without fail what you resolve” Benjamin Franklin

“New year’s resolutions are cliché…” Certainly, many people will agree with that notion. Indeed, it makes sense to argue that if you want to get something done, you can do it at any time of the year. However, it is also right to argue that a new year offers a fresh start, in every sense of the word. It is a time where no precedence counts, because there is none. How things turn out for the rest of the year depends entirely on one’s own will power and direct effort.

We may not often think about it, but life is based on natural, recurring rhythms: Days, years and even our own lives have predictable cycles that allow us to navigate through time, and without which life would be too chaotic. Indeed, the turning of the calendar year is a reminder that people also need rhythm. When you think about it, the most successful undertakings are those that were planned for ahead of time. In other words planning is an essential ingredient of success.

With that said, what is your outlook for the new year? Based on last year’s successes and failures, one can be able to take the necessary measures to ensure that this year is the year of big achievements, both financially and otherwise. Refraining from referring to them as “New Year’s resolutions”, below are a few suggestions that may help you improve every aspect of your financial life, from overall security to specific saving and spending strategies.

 1. Focus on the "why" of your goals instead of the "how."
Planning exactly how you will reach a goal, such as saving more money, can actually make it harder to reach that goal, according to research. It is by focusing more on the motivation behind a goal instead of the specifics of how it will be achieved that can increase the likelihood of success. The rationale behind this is that
when one gets deeply motivated by the things that really matter to them, everything else will fall in place. A good idea would be to jot down a list of all your goals, then write down a brief statement that describes why you want to achieve that goal. Anything that is not driven by a deeper motivation is not worth the effort.

2. Visualize your future self.
According to research, people who feel connected to their future identities are more likely to delay gratification. This actually makes a lot of sense. What you want to be a few years down the line will dictate immensely how you act today in order to achieve this vision. This may be in form of working harder, advancing your education, forming positive relationships, among others. Whatever it is that needs to be done can only be done well if one can see how it will affect their future self.

3. Start from scratch.
A new budget, a new financial plan, a new investing strategy... Whatever it is that defines your personal finance blue print must be restructured to fit the New Year. Don’t fall into the trap of re-using last year’s structure to achieve this year’s goals. Your spending plan must also be tinkered with, focussing on your income
levels and availability of resources. It is important to note that it is this inclination to spend without consideration that is partially accountable for the high levels of consumer debt which has left many individuals facing a bleak financial future. By investing any additional disposable income into personal savings you are taking steps to becoming financially independent, and envisaging a future where you are not solely reliant on income from employment.

4. Develop a back-up plan.
In today's economy, no job or even business income is 100 percent secure. Create a list of steps you would take if you were to lose your job, even though you hope never to have to use it. Having a Plan B can give you peace of mind as well as a practical "to-do" list if you ever face the shock of an unexpected loss of your income sources.

The Bottom Line
With rays of light cutting through the financial gloom that surrounds the consumer, now is an ideal time to challenge your fiscal practice and build a vast resource of personal savings. By recognizing the need to change and taking practical steps to boost your disposable income, it is possible to invest in your future now and create the platform for financial independence.

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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