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Finance and investment By Isaiah Opiyo By Carol Ngura DO YOU KNOW YOUR MONEY PERSONALITY? How our money personalities affect our decisions We all have our distinct way of thinking when it comes to how we interact and deal with money. Our spending and saving is not simply based on logic and rationale as we may want to assume, it often has a habits, attitudes, emotions and values component. Unfortunately, not understanding our different money personalities often creates tension and unnecessary disagreements among our spheres. A day rarely passes without the need to make a decision about money…. A new watch or money for school fees, lunch out or packed lunch. Consciously or unconsciously, our money personalities affect each of these decisions. Therefore, understanding our money personality is very important in our day to day living. It helps us in the following ways: 1) Financial planning and investing 2) Personal money management 3) Budgeting and asset building 22 MAY - JUNE 2018
Finance and investment 4) Interpersonal development 5) Relationships and communications skills 6) Career advancement and workplace dynamics 7) Entrepreneurship 8) Gives a sense of emotional intelligence Several money personalities speaking to the psychology of money exist to help one examine and evaluate their habits, understand what their likes or dislikes are, what their characters and challenges are and know how best to manage their finances. These money personalities are: 1.Risk Takers- They are thrilled by risks. Whether the risk does not yield or costs them everything, they keep following the rush for a new risk. Some of the characteristics of risk takers include: • Conceptual thinker; they are not worried about details, they do not get stuck on the ‘how’ of an idea. When they get an idea of something whether a business opportunity or an investment option, they go for it fast. • Listen to their gut feeling; if an idea feels right, they will trust their intuition and go for it. They do not just rely on their intellectual capability or conventional wisdom but more on their gut feeling. • Decisive; when it comes to money, they do not waste time researching or doing a background check, they decide and decide fast. • Love finding new adventures; for them, no risk is too big or idea too far out. Their sense of adventure overrides and they want it. • Easily excited by possibility; For risk takers, the idea of something excites them more than the thing itself. Challenges of risk takers; • Impatient; their decisiveness leads them to lose patience with people who do not quickly buy in to their big ideas. They make decisions without consulting even those the decision may affect since they have no time to wait for their input. • Insensitive; When they get an idea, they go ahead irrespective of other people’s feelings or opinions. This may result in relational fallouts with their family, friends or workmates. • Easily resented; The quick decisions and leveraging of assets can cause a rift and result in resentment from the people involved especially if the idea does not pay off as expected. • Blinded by possibility; their idea to do something prevails beyond reason, attention to detail or long-term planning. Nothing matters except implementing it. • Vulnerable; Most end up as victims of cons. The thrill of taking the risk and desire for making money makes them easy targets. 2. Security Seeker; Security seekers like to know that their money matters are settled and safe. They are more inclined to lowrisk investments, quality purchases, hefty insurance and secure retirement funds. Characteristics of risk takers; • They do their background check thoroughly; They will always want to see the property before investing, get a detailed prospectus from the developer and a resume from every other investor involved. They will go the extra mile to check the legality of the property. • Willing to sacrifice; they will only spend after they have put away some money for retirement, insurance and every necessary investment. They would rather suffer today but secure their future. • Trustworthy; when it comes to dealing with money, you can trust them. They are careful planners and have a steady approach to money. They will not divert moneys meant for life insurance to any other unnecessary want. They are very strict with how they spend. • Planners; they are always ready for whatever financial eventuality. They rarely find themselves in a financial crisis because they always have a plan B. Like any other personality, the security seekers also face challenges. Which include; • Overly negative; They avoid risks and get edgy about any decision involving financial risks. They seek to be sure about every investment they make which is impossible in reality. • Analysis paralysis; They can spend all their time making sure an opportunity is foolproof while doing little to implement it. They therefore end up losing so many viable opportunities. • Stifle creativity; over time, the need for MAY - JUNE 2018 23
Page 1 and 2: LEARN • EXPLORE • SHARE MAY - J
Page 3 and 4: TABLE OF CONTENTS 10 BUSINESS AND P
Page 5 and 6: EDITORIAL Dear Reader, It appears f
Page 7 and 8: Financial Reporting and Assurance G
Page 9 and 10: Financial Reporting and Assurance I
Page 11 and 12: Financial Reporting and Assurance t
Page 13 and 14: BUSINESS AND PRACTICE DEVELOPMENT W
Page 15 and 16: BUSINESS AND PRACTICE DEVELOPMENT B
Page 17 and 18: BUSINESS AND PRACTICE DEVELOPMENT I
Page 19 and 20: Available to let CPA CENTRE 50% Let
Page 21 and 22: Finance and investment partnerships
Page 23: Finance and investment By repaying
Page 27 and 28: Finance and investment challenges.
Page 29 and 30: COVER STORY banks appear to have go
Page 31 and 32: COVER STORY report put the ROE of K
Page 33 and 34: Economy financial obligations among
Page 35 and 36: MAY - JUNE 2018 33
Page 37 and 38: Governance 2010, Public Finance Man
Page 39 and 40: Governance Active participation by
Page 41 and 42: SOCIETY organizations for a period;
Page 43 and 44: WORK PLACE As a facilitator I often
Page 45 and 46: INFORMATION TECHNOLOGY financial re
Page 47 and 48: Society making and how to practical
Page 49 and 50: INSPIRATION It is a beautiful thing
Page 51 and 52: INSPIRATION Joel Scott Osteen, the
Page 53 and 54: ENVIRONMENT for example that when s
Page 55 and 56: ENVIRONMENT times less acidic than
Page 57 and 58: HEALTH It is easy, if not well mana
Page 59 and 60: HEALTH cool water (ensure you use m
Page 61 and 62: TID BITS Why Angola Hasn’t Featur
Page 63 and 64: MEMORABLE QUOTES “Fortunately, st
Page 65 and 66: INSTITUTE NEWS Inaugural ICPAK Yout
Page 67 and 68: TRAVEL Republic, all of whom recomm
Page 69 and 70: TRAVEL Riuki kikuyu traditional cul
Page 71 and 72: THE CPA CENTRE HOTEL Set in a seren
Page 73 and 74: pEN OFF THE REPORT OF THE DIRECTORS
Page 75 and 76:
@your desktop CPD EXAMS CPD CALENDA
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