Are you debt free ?

There are no simple answers to this question because debt can be good for you if properly managed. For example, in Kenya middle income families finance their land purchases with co-operative loans. The challenge with debt is ensuring you do not get trapped in the cycle of using debt to finance your every day expenses or lifestyle.

Have you prepared a budget of you monthly expenses ?

Have you ever wondered why you get broke by the 20th of the month despite getting pay increases every year? Part of the reason is that you have failed to budget. Developing your personal budget allows you at a glance to identify the areas where you need to spend and make conscious decisions to save and invest. We encourage you to take time to write down your monthly budget, monitor it regularly and review it to ensure relevance to your current lifestyle.

Do you review your budget regularly to fit your lifestyle ?

A regular review of your budget is essential if it is to be a realistic reflection of your lifestyle. Most of us treat budgets like New Year resolutions - you take one day to make them and over the next 364 days of the year ignore the budget. If you have a budget, congratulations! However, this is but the first step - you need to implement and review the budget to ensure your lifestyle changes are reflected.

Are you able to meet your monthly expenses in a timely manner?

Perhaps we should ask your landlord this question. Although rent is the most commonly delayed payment, it is not the only one. There are several creditors whose payments we postpone each month as part of our managing cash flow. Why is this? Is it due to lack of cash to meet the payments on time? At times, yes - however in most cases, the issue isn't the lack of cash but lack of priority and planning? This is true especially when you meet the same individual in the pub or salon spending the 'absent' cash. Failure to pay your bills in a timely manner may incur a reconnection fee and in some cases you may damage your reputation and/or credit rating. Include all your expenses in your budget as a way of minimising such occurrences.

Do you set aside finances each month for savings ?

Savings should not be viewed as a luxury for the rich. You too should make a conscious decision to save for your dream holiday, mortgage down-payment, children school fees, new furniture or clothes, etc. No matter how much your level of income, you should allocate a percentage of it each month for savings. Retirement savings are critical and should be encouraged both on an individual basis as well as by employers to cater for your 'latter' years.

Have you set aside a 'safety net' to deal with unexpected events?

Imagine what would happen if your house was to catch fire? Most of us have invested significant resources in our furniture and fittings and yet consider domestic insurance to be too expensive. This is but an example of an unexpected event that may be managed by insurance. The same applies to your motor insurance, personal accident and medical cover, etc. However, in addition to insurance cover it is essential that you set aside 2 - 6 months of your take home pay to deal with other unexpected events that may occur. This is what we refer to as your 'safety net'.

Have you made any personal investments with your income?

Investing is essential if you are to attain financial independence. A right investment strategy should allow you to preserve your capital as well as 'beat' inflation. In order to make an investment you need to set aside savings, consider the available options, determine your investment goals and match the goals to the options available. Having your own personal investment portfolio is a useful way to boost your level of income and increase your personal wealth.

Are you familiar with the various investment opportunities available to you?

In Kenya today, the capital market provides you with various investment opportunities e.g. treasury bills, treasury bonds, corporate bonds, quoted and unquoted equities as well as unit trust funds. Other investment opportunities include property and other alternative assets, insurance products and even 'start up' businesses for entrepreneurs. Each of these investments has unique characteristics and is designed to match particular investment goals. Empower yourself with knowledge of the various investment opportunities available to you before making any purchase decisions.

How do I motivate & keep my employees happy?

Your employees are your greatest resource. This makes human resources management a key function for any successful business. Most business focus on hiring the right caliber of staff and once been done hope for the best. Employee motivation should be an on-going exercise and should focus on more than monetary compensation. Highly motivated employees remain with you longer and provide your customers with exceptional quality and personalised services. Thus providing you with competitive advantage.

How do I deal with difficult customers? Should I retain their business?

Customer service is no longer just a buzz word to be used by industry experts. All businesses, service or product oriented, need to focus on meeting the customers' needs and exceeding their expectations. It is essential that you evaluate all your business decisions with reference to your customers' perceptions and expectations.