Imagine living all of your life in financial distress; having to rely on bank credits or loans from friends to perform basic activities.
That would be terrifying for any adult individual, whether they have a steady flow of income or not.
Attaining financial independence is a sure way of emancipating one’s self from ‘financial ‘slavery’.
In order to reach that peak, however, managing your finances in order to grow your personal wealth is key.
Chief Executive Officer (CEO) of financial advisory firm, Crescendo Consult, Doris Ahiati believes “failing to think ahead, plan and take charge of your own finances is in itself an unconscious choice with devastating consequences”
She was speaking on the first day on the final week of Citi FM’s Effective Living Series on the topic, “Managing your personal finance for wealth creation.”
According to her, taking charge of your finances means aligning your financial actions and goals in order to attain financial independence for both the short and long term.
She said individuals are the products of their choices and as such, wealth would not come without effort.
In encouraging people to ensure stability in their financial lives, Doris Ahiati admonished individuals to assess their expenditures and stop taking loans to pay for things that might initially seem like assets but are ultimately liabilities due to maintenance costs.
She argued that such a lifestyle is clear indication that one has not taken charge of his or her own finances and a reflection of an unconscious choice to let one’s spending create adverse effects on their everyday life.
“Personal wealth as a goal must be approached with all the seriousness required for achieving big goals”, the financial advisor added.
Below are Doris Ahiati’s requirements for wealth creation:
- Discipline: Restrain yourself, pause and think about an action and its financial implications to determine their optimal value
- Commitment: Stick to the goals you set on wealth creation.
- Focus: A lot of things distract, but one needs to remain focused on his or her goals.
- Financial literacy: Learn and understand the financial industry and its components to safeguard yourself.
- Investment savviness: Understand investment and don’t equate investment to savings. Investments will help you grow your wealth.
- Develop a habit: Keep a habit of generating a to-do list or budget for all your spending decisions.
- Spend against your budget: Spend against allocated funds. Don’t spend more than 20 percent of allocated funds.
- Invest in assets: Invest in assets and not what will always make you part with money.
- Be financially curious: Be willing to ask questions, read and understand any new thing that comes on the market that promises high returns.
- Belief: If you are a believer of God, tithe. If you are not a believer of God, be philanthropic.
Citi FM’s Effective Living Series
The Effective Living Series airs from 9: 00am to 10: 00am on the Citi Breakfast Show from Monday to Friday throughout the month of January.
It seeks to empower people to be effective throughout the year in every aspect of their lives.
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By: Nii Larte Lartey: citinewsroom.com| Ghana| nlartelartey@gmail.com