YOUR FINANCIAL FUTURE IS IN YOUR HANDS

Author of ‘Practical Steps to Financial Freedom and Independence’, USIERE UKO,writes about doing something today and every day to move you towards your financial goals

The main reason we don’t take action on our goals is either because we do not have clear goals or we believe we cannot do something about it now. We keep procrastinating, waiting for something to change. We keep giving excuses.

We seem to find it hard to believe that there is a decision we can take right now, followed by an action we can take today that will move us in a different direction. We seem to think that major changes come through major actions and steps. In life, it does not quite work that way. A massive jumbo jet is controlled by a rudder in the tail. Inside the rudder is a small mini rudder that controls the main rudder called the trim tab. It is the small movement of the trim tab that moves the rudder that ultimately moves the plane.

It is the tiny actions you take each and every day that sets the direction you are moving. You can decide that these changes today and you start doing something else, no matter how minor. Reading this article, a good book on personal finance, attending a seminar etc is an excellent step forward. That is part of the planning process. Planning is a crucial activity, but if it is not followed by action, you may get immobilized by analysis paralysis- motion without movement

A typical employee has something he wants to do someday. The arrival of that day is signified by putting together a certain amount of money. That amount of money is often undefined and there is no plan as to how the unnamed amount will come together. Many believe their financial future is in the hands of their bosses and employers. Negotiations for higher pay are at the core of employee union activities. Someone who has worked for 20 years in a company that reviews salaries once in two years has experienced 10 pay hikes in addition to the annual increase from performance appraisals and occasional promotions. What typically happens is that the employee becomes more affluent, moves up in rank in society but is still dependent financially on the employer. His local economy cannot survive without his salary.

The power of small wins

Whatever your goal or desire is, there is something you can do about it today. We all love big things. We dream big and want to take off with a bang. You have a business idea but you keep waiting until you can afford a shop, machinery, staff, start up capital etc. You want to start investing but you set a high entry level for yourself that will take years to get there. We raise the bar on ourselves in an area we have no experience, make mistakes and come crashing down.

You don’t need to wait for a future event or milestone to happen before you move. You can start today. No matter your goal or dream, there is something you can do about it today, something small enough or tiny enough for you to do. Nobody has stopped us from moving. We are the ones stopping ourselves, painting doomsday scenarios and allowing our fears rather than our brains to do the talking.

When I tell people they can invest risk free in treasury bills risk free for a start, the first response I get is that they do not have enough money. The simple truth is that they have not bothered to do a due diligence before coming to that conclusion. There are brokers that accept as little as N1,000, N10,000 etc. You don’t need to own a bakery before you start baking, or a full complement of equipment to start making cosmetics etc. You can improvise. You don’t need an office before you start a business. You need a business address. It can be your room, parlour, backyard etc. On the phone, you can be anything – receptionist, accountant, COO, CEO, you name it.

The secret is doing what you can, consistently. You can eat a whole elephant. All you need to do it to cut a chewable and keep chewing consistently, persistently at your own pace and you will be surprised how far you have gone after a while. That is the power of small wins.

What you need to do is to empty you bag of excuses and put on your thinking cap to figure out how to start with what you have today.

The Lean Start up

In the book “The Lean Start-up” Eric Ries outlines how today’s entrepreneurs start with next to nothing. They start small and test the waters first. We typically assume we know what the market wants. On the strength of that assumption, we mobilize all our resources, borrow some and dive in head first. If the assumption was wrong, we get our fingers burnt. Some never recover to make a second attempt. They scurry back to their paid jobs and conclude that entrepreneurs are born and not made.

Today’s entrepreneur tests his assumptions first. He produces a prototype, beta version or sample and puts it out there for people to test and give feedback. Based on the feedback, they make corrections and launch. As they go along, they keep getting feedback and keep getting better and better. If they discover the market does not need that product, they scrap it and start something needed.

The key is going in lean and taking minimum risk by testing. This is the main reason starting small is a wiser move than a grand unveiling of an untested idea. Whatever your grand idea is, create an inexpensive prototype and hit the market with it. Have friends, family, colleagues, neighbours etc test it and give their feedback. Do not assume you know what the customers want. Let them be the one to tell you.

Your financial future is in your hands

Ultimately, you financial future is in your hands and no one else’s. Hoping and praying will create an enabling environment, but do your work you must. There is no alternative to hard work. Work hard smartly. If two folks work smartly, the one working harder wins. If two equally talented people meet head to head, the one that practices more wins.

In the area of finances, working hard involves learning the skills required to manage your finances better, earn more and invest more skilfully. Making more is not enough if you cannot manage it or invest wisely. That is the reason some celebrity sportsmen and women drop off the wealth radar the moment their playing days are over.

Whatever your plan or dream is, you can do something about it today, no matter how tiny. Your financial future is in your hands. Take one tiny step today, then another. The secret to achieving a goal is to take a step towards it every day. Start saving today, no matter how small. Start investing today, no matter how little. Do something. Sometimes, tomorrow never comes.

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