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You cannot be your best asset by merely existing. It is necessary to be active and proactive where financial planning is concerned. You have to acquire the relevant knowledge and have the aptitude and character to transform that knowledge into results that will benefit you and your family. Becoming your best asset will make you better-off in the long-term and can be done in any number of ways.



1. Knowing what money means to you

Money is merely a means to an end. It's a servant. What you need to do is raise your awareness of the role of money in your life. Some people want more than others or want things of a different nature. Determining what money means to you will empower you to manage and control your lifestyle and finances in an effective way.

2. Having the right attitude towards money

Thinking that 'money is made to spend' will have you itching until you receive your pay cheque on a regular basis. You have to develop a proper balance between long-term and short-term needs and wants as well. Don't think exclusively of the future (few people do though) or remain entrenched in the present (many people do this). Developing a healthy attitude towards money also means not living above your means. Discipline and far-sightedness is needed if you are to adhere to the basics of financial planning.

3. Financial literacy

There are varying levels of financial literacy; you mghti never be a 'financial expert'. Still, in many areas, we need only know enough to get by. You have to understand the fundamentals on managing savings and expenditure. Also, it is important to know where to save and what financial products to avoid. Essentially, you should be aware how to create, protect and grow your assets. Financial literacy makes you a more informed customer - unlikely to be bamboozled by financial jargon or company representatives who may not necessarily seek your interest.

4. Set and affirm your financial goals

Investing in yourself is less effective if you do not have concrete goals. Goal-setting is critical to financial planning and would empower you to follow and achieve your financial goals. After all, financial planning does not exist in a vacuum - it's about achieving your financial goals.

5. Protect yourself

The majority of the world population are not capitalists (or wealthy for that matter). They rely on having to work in order to receive income. This is unlike some who have systems working for them or other people working for them. Just as key business people take insurance on their lives- you must protect yourself. Your health is your wealth and life is too uncertain to take chances. Use insurance plans that protect your income and cover you in case of sickness or misfortune. If you fail to plan for contingencies, you will be a liability to yourself and your family- instead of a valuable asset.

6. Control your portfolio

You are the key person in your financial planning. Everything is about you. Even if you solicit help, you have to ensure that all decisions are made in your interest. You must understand what financial risks you face (inflation risk, liquidity risk and job loss). Once you do this, you must make you finances work best for you. If you are too conservative you may be as much of a liability to your financial planning as if you were too aggressive with your investments.

7. Develop your career

There are several ways in which people can develop themselves to further their career. Whether you're expanding business opportunities or seeking to move up the ranks, you can choose to do the things that will help you to reach there. For most of us, developing our career is a key way to become an asset to society and the economy. Stagnation could affect your financial plan, since you may render yourself dispensable or uncompetitive.

Always remember that the most important individual- where your financial plan is concerned- is you. This is a double-edged sword because it means that you bear responsibility for your success or failure. It's in your hands ultimately. Ask yourself, do you want financial success or failure? If the answer is yes, then become your best asset.