Dangers of financial indiscipline to career

By GORETTI KIMANI

KENYA: One of the crucial drivers of career success is to achieve financial independence. This is having sufficient personal wealth to live without struggling for basic necessities.

 Ironically, careers and dreams of financial independence have been cut short by financial indiscipline.

Take the case of Joe, a successful marketing executive. He always had problems with money. No matter the commissions he earned, he always spent everything, and had to borrow to get to the end of the month.

He soon started taking cash from shylocks and within no time, he was playing the hide and seek game with all sorts of illegal shylocks.

Things finally got out of hand.  He is now on compulsory leave — pending investigations into his financial dealings at work. But despite huge borrowing, he has nothing to show for it. Cases like Joe’s are quite common.

Usually, what starts as a simple issue can grow into a monster that can easily destroy your life and career?

How can one avoid getting into Joe’s shoes? First, embark on building a culture of financial discipline. In many cases, you will need to obtain some basic financial education.

Financial literacy

Luckily, you need not plan for fees or classes. Generic financial literacy books are available in most bookshops. If need be, contract a financial literacy coach. Having a simple monthly budget comes next.

Spending money without a budget is a sure way to financial ruin. As you budget, always keep some money aside for investments and unplanned expenses. A small part of your budget should always be directed towards career advancement.

As you learn, remember it is not the amount that matters, but the habit. It is also important to have some form of medical cover. Medical bills have irreparably ruined most finances. Also learn to manager the expectations of your relatives, some of which can easily drive you into bankruptcy. As Joe attests, a most common manifestation of financial indiscipline is living beyond your means. Get into the habit of avoiding people and circumstances that drive you to making unplanned for expenditure.

These could be family, friends or peers. If your urge to spend is too high, avoid overbearing peers, leave your ATM card at home and avoid credit cards.

Also limit your shopping escapades and minimise on eating out and clubbing. You should also avoid copycat living, and only buy things that you need and make sense to you and your current life situation.

 Golden egg

Take advantage of existing company savings programme. Learn as much about investments as you can and remember to take care of your job, as it is the hen that lays the golden egg.

Be ready to be taunted as mean or be generally disliked for being a non-conformist as such is the life of many financially disciplined people. If matters spiral out of control, seek professional help before you get ruined.

—The writer is a human resource specialist with Peoplelink Consultants Ltd. Email: [email protected]