Take charge of your finances!

The biggest gift you can give yourself is to take 100 per cent responsibility for your life and circumstances.

Too often, people blame others for their circumstances. Money is no different. There is always someone to blame.

When we blame others we are under a strange spell that makes us believe that someone else should do something for us in order to fix whatever challenges we are going through. This is equivalent to blaming a teacher for failing you in an exam that you did not study for. It is your fault that you failed the exam.

You did not study. It really cannot be the teacher’s fault that you failed the exam.

The same principle applies with your money. It is not the government’s fault. It is not your employer’s fault. It is not the bank’s fault. It is not your client’s fault. It is really your fault. Whatever you like about your finances and whatever you do not like, it is you who has created that situation.

You were a very active participant in the process and therefore it is your fault.

This is a very bitter pill to swallow, especially the first time. But every time you get tempted to blame someone else for your situation, keep telling yourself it is your fault. It is very disempowering to think someone else needs to do something to make your life better.

For how long are you going to be held hostage by your perception of what others should or should not do?

This way of thinking is what is commonly referred to as ‘victim mentality’. When you truly accept it is your fault, you are taking responsibility.

This is really empowering because you start to understand that it is you who can actually do something about it.

You do not have to wait for anybody else to understand or change. From my experience in teaching about money, these are some of the common areas that people seem to want to blame others or falsely believe they do not have a choice.

 What can you do?

You think you should be earning more. You blame your employer for not paying you more. Once again, let us stop believing it is the employer’s fault: It is ours. What can you do about it?

What are you doing at work this year that will justify you earning more next year?

You cannot do the same thing over and over and expect a different result. This is the definition of madness.

You cannot expect your income to be increased simply because life is more expensive.

You take control of your earning power when you take responsibility for your performance.

What are you going to achieve at work to justify earning more? Many people do not like looking at it this way because they have to play a part in doing the work.

Even if your current employer chooses not to recognise your performance, you have created value in yourself. Because of being performance oriented, you are more likely to get a job in the kind of environment you think you would thrive in.

You have debts that have overwhelmed you.

You don’t know how to get out. First, accept that no one put a gun to your head and told you to borrow. You are not a victim. You are where you are because of your choices. Similarly, you can get out if you make different choices. Be willing to cut down on your lifestyle spend to eliminate this debt.

I have worked with many people who were struggling with debt but still paying for monthly subscriptions for cable TV. If you are not willing to make these kind of choices, please do not blame the bank for the high interest rates, and stop lamenting your situation.

You may have items you can sell to get rid if this debt. I worked with a client who sold off her excess shoes and clothes to pay down debt. For you it may be your phone or TV. You can also think of ways of generating additional income. What are you doing with your free time? Maybe you know how to cook or bake and can take pastries to work to sell.

These are all options available to you to get out of debilitating debt.

You don’t have enough money to invest. You don’t know where to invest.

First, there is no amount that is too little to invest. Not starting with what you have today is usually just an excuse to delay investing and staying in a comfort zone. As illustrated in the examples above, you can manage your expenses and free up money to invest. You can decide to make more money and earn more to invest. You can invest even that Sh3, 000 you were going to spend on entertainment this weekend.

You don’t know where to invest because you have not taken the time to understand investments. Instead of watching TV with all your free time, do some research.

Drive around to understand property. Take a course on investments. Read the stock market page every day. Spend time with someone who has done the kind of investments you aspire to do and learn from them. Work with professionals in the relevant areas. These are all choices open to you.

Stop playing the blame game. That will not magically enable your goals to be achieved. True power lies in accepting responsibility. Understand that it is your fault and empower yourself to now make different choices.