Develop your Financial IQ

Develop your Financial IQ

This weekend I was invited to speak at a Men’s breakfast meeting on ‘developing the financial IQ from a Christian perspective’. It was meant to be an interactive and practical session where I would share from my experiences as an entrepreneur, senior manager, leader and business school graduate. I am not a financial fundi or guru but the session was quite a success and many men walked out with a shifted paradigm on how they are going to make their financial decisions.

The man on top of the mountain did not just drop there!

I do not subscribe to the commercialized gospel or the gospel that promises to turn everyone that believes into an instant millionaire or a financial success story. I believe that we have a much higher calling than a calling to own jets and Ferraris. On the same note, I also believe that the fact that we have a higher calling does not exonerate us from developing a financial commonsense; the financial commonsense that will help you focus on more important things in life because the basics are well taken care of. I believe in success through diligence, commitment and focus. If that success results in material wealth, Praise the Lord, and be a good steward of the wealth. One of the chapters in my book, ‘Destined to Succeed’ is dedicated to explain that success in any dimension does not come at the press of a button. The man on the top of the mountain did not just drop there, he worked his way up. The same old formula of success through hard-work still works.

Money is not the root of all evil!

Developing your financial commonsense begins with a change in mindset on how you view money. Financial commonsense will help you manage the money that you have and the money that you make in order to give you financial freedom. The bible says, ‘for the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows’ (1 Timothy 6 v 10). It’s not the money which is the root of all evil but the love thereof. Solomon understood this and hence he said, ‘but money answers all things’ (Ecclesiastes 10 v 19). Money is like fire; if harnessed it creates the necessary warmth but if abused its completely destructive and can cause you to err from the faith and pierce you with many sorrows. It’s a needed resource. The lack thereof can limit how far you can go even in accomplishing your higher calling.

Be willing to Learn

You can never develop unless you have a teachable spirit. Be willing to learn. ‘My people are destroyed for lack of knowledge’ (Hosea 4 v 6). For many of us in Africa money is a new concept. We still have to understand how it works. We grew up in lack and our parents did not have any cash except the very little they earned which was barely sufficient to sustain them and finance our education. There was very little or no room for savings and investment. We are only the first or second generation to handle meaningful cash. But our lack of understanding on how money works is seen in our financial decisions. Most of our financial decisions are very myopic, short-sighted and are driven by the motive to show-off. Hence, the first thing on our mind when we get our first paycheck is to buy an expensive automobile and upgrade the vehicle with each promotion. There are many poor men driving expensive cars. Real material wealth is not measured but what you wear or what you drive but by how long you will survive after you come out of your current job. Learn how money works in order to develop your financial commonsense.

Live below your means

Learn to live below your means so that you can release excess resources to take advantage of opportunities around you. Don’t be quick to borrow. Debt is the greatest thief to financial freedom. It has a crippling effect. The world around us has made it easy for people to spend the money they don’t have. Debt can have long-term devastating effects. The man of God in 2 Kings 4 ended his life in debt and his sons were going to be auctioned as slaves in order to re-pay the debt. ‘Now there cried a certain woman of the wives of the sons of the prophets unto Elisha, saying, thy servant, my husband is dead, and you know that your servant did fear the Lord; and the creditor is come to take unto him my two sons to be slaves’ (2 Kings 4 v 1). You must develop a debt averse mentality. Stay away, unless if it’s for an appreciable asset or within your calculated means. Don’t live your life to impress others; mind your own business! Don’t have an external locus of control where your financial decisions are influenced by other people or by external circumstances but develop an internal locus of control where your decisions are influenced by your vision, ambition, objectives and goals. An external locus of control will push you to live beyond your means; which in turn will sink you deeper into debt. Take control of your life and your financial affairs.

Don’t take it for granted

Financial freedom and commonsense does not come overnight. You have to work at it and develop it. The begin point is a sense of purpose, and purpose it in your heart that you are going to take deliberate steps to manage the resources which the Lord entrusted you with. Financial commonsense is not common and obvious; don’t take it for granted. Sit back, take stock and see whether you are where you ought to be. There is still enough time to make a u-turn and take control of your finances.

Calvary love

P.M.