Staying Above Water in Uncertain Weather

No…this is not an article about weather uncertainties and future climate change.  This article is written about  managing the “new normal” - that is adapting to the erratic economic changes and knowing what is, “money in the pocket” vs “money in the market”.  Basically, knowing when to just hold on to it and knowing when to let it circulate in the economy.  After all, if you don’t spend, your economy will stall.  Come to think of it, it does sound like a “Catch 22” situation…or is it?

As an entrepreneur, I believe I am quite adapted to uncertainties in my financial life.  I would stand in front of a crowd of entrepreneurs and question, “why do we do it?”  Why do we constantly put ourselves in a situation where our heart races and we break into kabillions beads of sweat when the month comes to an end and our bank statement reflects…RM5.00 or less?

As much as this “RM5 or less”  truth invite cackles from self-checked in entrepreneurs…back in the banks, multiple records showcases too many bankruptcy and painful lives of business owners who allowed poor cash flow and unhealthy financial management take over their lives.  Sadder when there is a lack of acknowledgement from the business owners that there is an urgency to seek help.  Without help many sinks into an abyss of hopelessness and progressively into other psychological conditions like depression and suicide.

I, too, have sat nervously many times looking at my balance sheet hitting unsavoury numbers.  There are months when cashflow was simply NIL.  There was a dire need to smarten up, especially when I am a sole proprietor with dependents to feed. Then, again…looking at what I have accomplished month-on-month and year-to-year, I did learn something from the many gurus and mentors I listened at seminars, workshops and conferences.  As a constant learner, there is just ONE thing I’ve picked up in the many learnings…

It is called DISCIPLINE!

It was hard to begin and I cheated on my own rules the first few months to get into rhythm, but as soon as I understood that wealth is a habit…then wealth becomes a state of being and not just mere doing.

It all hit me when I started to have a strong desire to invest, but I had no money.  I thought I was a big JOKE. Then I learned about the 6-jars concept.  It was quite a simple exercise and I thought nothing of it until push came to shove and I gave it a leap of faith.  It is so simple, I cannot imagine not  discovering the formula sooner.  All I have to do is put percentages of my income into 6 jars and manage it with sound discipline every month.

Six Jars System

Jar 1: Financial Freedom Account (10%)

Jar 2: Savings to Spend (10%)

Jar 3: Education (10%)

Jar 4: Splurge (10%)

Jar 5: Necessities (55%)

Jar 6: Give (5%)

To date, I have enough.  I won’t say that it is overflowing, but my personal income has become healthier.  I’m am now attempting to put the same system into my business so I can replicate the wealth in the business and see how far I can go with it.  I admit that it is a process but the learning curve has been kind.  It is a comfort to know that money is growing in funds and other investments, and I always have enough to continuously educate myself.  I also don’t have to think twice before I decide to give and there is still room to splurge on myself and family.  With discipline, a system and sound faith, I am slowly learning and allowing myself to believe that there will be enough, insyaAllah.

The concept of abundance is slowly making more sense though the age old habits based on previous belief systems still haunts.  Sometimes the fear of scarcity comes to bite with a vengeance.  Yet, with perseverance, today I lead a life of discipline to keep myself above troubled waters.  Naturally, there are concerns about the future and the life of an entrepreneur will remain colourful…but I trust in the creation of systems and discipline.  I’m also going to quickly put in a disclaimer and strongly state, I never discounted faith and prayers.

Still, success comes with putting in the effort and I heard that in business (and I believe even life), 94% lies in the system and only 6% in people.  I strongly recommend that we find a system that works for us, and allow it to function before making a judgement. Alternatively, there is always Agensi Kaunseling dan Pengurusan Kredit, AKPK.  All you have to do is ask for help.

Anyway, I took my leap of faith, picked a system, worked it and now charging into 2016 like the fiery tiger I was born to be.  

#http://www.akpk.org.my