As we start the New Year 2016, it is very important that we take stock of what has transpired during the year 2015. I like us to focus on Personal Financial Management during this year’s (2015) stock take.
Money - the root of all evil, or the source of happiness?
Try to examine the major crisis or challenges that have come your way during 2015 – I can bet that more that 50% revolve around money issues.
Personal Financial Management.
From a corporate perspective, Financial Management is a very important aspect. It provides various useful tools in evaluating investment decisions, operational issues financing and dividend decisions.
It is also true to say that Financial Management also provides vital tools and techniques that can help individuals manage their finances properly. Good Personal Financial Management leads to wealth maximization and happiness. Almost all the decisions that humans take have a financial consequence; it is therefore vital that personal financial management techniques are applied to personal decisions to prevent negative financial consequences (e.g. stress and relationship damage).
The following non exhaustive list of key personal finance issues are worth considering:
• Personal budgets – how much of your income is spent on what? What are your financial obligations – you need to know thyself financially.
• Savings – how much is saved and how is this savings done.
• Investments – are you tying cash in investments; are your capital assets producing revenues or gaining value as the years go by?
• How do you prepare for crisis in life: do you have an insurance policy or some funds saved for crisis management. Do you borrow out of desperation during crisis and suffer the negative consequences for a very long time in your life or do you anticipate and take proactive actions.
• Life is good and celebrations are a way of enjoying life – these celebrations come at a cost though. Do you plan financially for the wedding or the marriage? What percentage of your income goes to alcohol and enjoyment?
• How financially literate are you? Financially literate people hardly fall for scams.
• Who do you consult for financial advice?
One of the companies you can talk to for financial advice is 25-45 Business Consulting SA, a proudly Cameroonian company.
Written by Collins Mazu
Founder of 25-45 Business Consulting SA.
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