FINANCIAL INTELLIGENCE

What it is and why we need it!

1. The right time to save is after spending on my needs

and wants- True or False?

2. You cannot be rich working for someone else-

statement of fact or fallacy?

3. You are in a race. If you overtake the second person,

what position are you in?

A FEW BRAIN TEASERS…

ANSWER TO QUESTION 3

EXPECTED LEARNING OUTCOMES

Practical understanding of what financial planningis all about

See at once the wisdom in being financially savvyand the consequences of not planning

Take immediate action/steps to apply provensuccess strategies to enhance our net worth andimprove our material well being

WHAT THEN IS FINANCIAL INTELLIGENCE?

It refers to the ability to manage our finances

and convert our earnings into lasting wealth

WHY DO WE NEED TO BE FINANCIALLY SAVVY?

Economic uncertainties, turbulence and

change that could be disruptive without careful

planning

Many of today’s jobs are not pensionable

Job security is fast becoming a thing of the past

To take advantage of emerging opportunities

while also mitigating potential losses on our

investments

EARNED INCOME VERSUS PASSIVE & PORTFOLIO INCOME

The middle and low-income (working) classes

focus on earned income (wages & salaries)

The upper class emphasizes wealth over

income

WEALTH- WHAT IT IS

The abundance of valuable material resources-mostlyincome-earning assets

The number of days a person can live the same lifestylewithout having to work anymore- Robert Kiyosaki

Net Worth = Your assets less your liabilities.

WHY SEEK TO BE WEALTHY?

He teaches our hands to make wealth- Deut 8:18

Wealth confers on us peace of mind and the

capacity to attain our full potentials

It provides a safety net against the vicissitudes of

life

THAT LITTLE THING! 1 KINGS 17:13-16

Whether in paid employment (what are the

transferable skills you can develop while

there?) OR

As owner-manager (self-employed)

PAID EMPLOYMENT

Intrapreneurship-Think and act like a businessowner

Volunteer to work in project teams

Accept higher responsibilities without increasedpay, without grudges!

Self develop personally, professionally,continually

Develop entrepreneurial skills and buildadditional income-earning assets

SELF EMPLOYMENT (ENTREPRENEURSHIP)

Have a knack for discerning opportunities

Emphasize consistent value creation- money

will follow naturally!

The concept of USP and the need to

differentiate your business from the

competition. Avoid me-too strategies.

Be adept at Execution

Manage your working capital- Cash is King!

STILL ON ENTREPRENEURSHIP-PROFIT VERSUS CASH FLOW

What’s the difference?

How can a business be profitable yet illiquid?

RAISING YOUR FINANCIAL “PQ” (PRODUCTIVITY QUOTIENT)

Develop a strong work ethic- go the extra mile, stay on top of your game

Everything else can wait???- DStv

Cut down on TV/ leisure time (sports, movies and entertainment generally)

Shun mediocrity

Investment! Investment!! Investment!!! -From earned to passive and/orportfolio income

SOME PROVEN INVESTMENT OR MONEY VEHICLES

Business/entrepreneurship

Stock (equities) & fixed-income securities

(bonds, risk-free or govt. + other securities)

Real Estate

IN A TURBULENT ENVIRONMENT…

“The greatest danger…is to act withyesterday’s logic”

- Peter F. Drucker

The implication of this is that we must learnto let go.

LETTING GO

Ego

Consumerism

Same old-same old yesterday’s logic and bread

winners

BIBLICAL SUPPORT

He gives us power to make wealth- Deut 8:18

He commands us to provide for our families- 1

Timothy 5:8

Prosperity is God’s gift- Deut 29:9, Proverbs 8:

17-18

Help to expand the kingdom work- Mark 16:15

THANK YOU FOR LISTENING

QUESTIONS & COMMENTS