By Okello Okello
Some of the factors that determine our financial planning include; age, personality, education, experience, health and family status. But what exactly does it take to build a financial empire? The simple answer to investment success is strategic planning and discipline.
1. When planning, one needs to think of realistic goals.
Financial planning must have short term, intermediate and long term goals. This is where you ask yourself why you want to be financially stable and once that question is answered, you can build a pyramid of reasons of what to do with the invested money. It is always good to plan to spend otherwise use money to get money will be rendered a dysfunctional statement.
2. Reward comes at a greater risk.
All entrepreneurs know and believe that success is not for the faint heart but for the bold who are willing to take the bull by its horns. Business is about how well you can handle shock in the market and how you can cope with failures. People always think of financial risks at first but risks covered here extends to even individuals reputation. To paraphrase from Nicolo Machiaveli, “reputation must be guarded at all costs.” Risk in business according to my definition will be any attempt that leads to the kind of disgrace that could precipitate a fall from power.
3. Go for Value not quantity.
This is a great challenge to almost all consumers; often times we tend to skew our emotions and satisfaction towards abundance and forget about the value we get. Let me give an example with a daily stock trader who makes decision out of greedy and self centered-ness. His goal is to gain all at the end of the day but real investors go for value. Always remember never to trade stocks but to invest in companies.
4. Investment is a philosophy, study it.
Investment Philosophy is the critical study of the basic principles and concepts of appreciation in value and market knowledge, especially with a view to improving or reconstituting them. Investment therefore needs a thorough research, study and plan. To start-up businesses this process is covered in the business plan or in the marketing plans either knowingly or unknowingly.
5. God first.
Psalms 127:1 Unless the LORD builds the house, its builders labor in vain. Unless the LORD watches over the city, the watchmen stand guard in vain. It is easy to do our financial plans and work hard towards achieving our dream and forget about God in the equation. For a moral and ethical business, God plays a greater role in giving direction, a day of rest away from the busy work we do every week. Put God first, and start your financial plan today.
Please if you found this blog helpful, share it on your social media, follow, favorite and let other people learn from it too. That is the spirit of entrepreneurship. We are here to support each other. No one knows everything that is why we share, exchange and learn from one another. God bless you.