• Wednesday, February 21, 2024
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BusinessDay

Who is in your financial circle?

Your financial circle consists of the people who influence your financial decisions, with whom you engage in beneficial financial activities, who provide guidance, and who support your financial dreams and goals.

“You are the average of the five people you spend the most time with” is a quote often attributed to motivational speaker Jim Rohn, and this quote emphasizes the influence that your inner circle has on your attitudes, beliefs, and ultimately, your success.

It suggests that the people you surround yourself with have a significant impact on your mindset, behaviour, and outcomes in life, including your financial success. Therefore, it is important to choose your financial circle wisely and surround yourself with individuals who inspire, support, and positively influence your financial goals. The journey to financial freedom and wealth creation necessitates a positive mindset, careful planning, sound financial decisions, and strategic investments.

While individual work and financial education are important, the people you associate with can also have a substantial impact on your financial performance. Friends, relatives, mentors, and advisors in your inner circle can have a significant impact on your financial well-being.

In this post, we will look at who is in your financial circle and why it matters on your journey to wealth.
There are various categories of people who can be classified as members of a financial circle, and we’ll look at just six of them in this article. These categories are by no means exhaustive.

1. Collaborators or partners are people who work with you on joint ventures or investment opportunities. They are people who have similar financial goals and are willing to pool their resources, knowledge, and efforts to achieve financial success as a group. Business partners, co-investors, and other individuals with whom you share financial interests are examples of collaborators. Collaborating with like-minded people can help you gain access to opportunities, combine your strengths and abilities, and expedite your wealth-building efforts.

2. Advocates are people who champion your financial aspirations and cheer you on in your wealth-building journey. They are usually in a paid capacity. For example, financial literacy clubs or investment clubs that provide resources and support to help you manage and multiply money. Advocates are valuable because they provide a network of support that helps you stay motivated, resilient, and focused on your financial goals.

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3. Supporters: They do not play a major role other than to provide emotional support, celebrate your accomplishments, and offer a shoulder to cry on through difficult times. They are close friends, family members, and loved ones who want to see you win.

4. Accountability partners, often known as “financial accountability buddies,” are those who help you reach your financial goals. These partners are usually people who have similar financial goals and are dedicated to helping each other stay on track and succeed. Having accountability partners in your network can provide various advantages that can significantly improve your financial journey.

5. Mentors are experienced people who provide financial counsel, wisdom, and advice based on their own financial experiences. They could be successful entrepreneurs, investors, or financial professionals who have reached the level of financial success you desire. Mentors can offer useful insights, share their errors and lessons learned, and offer advice on a variety of financial topics, such as budgeting, investing, and asset management. You usually do not pay them for this.

6. Advisors are experts who provide expert advice and services in a variety of financial sectors. Financial planners, accountants, lawyers, real estate professionals, and other professionals who specialize in financial matters are examples of professionals who work in this field. Advisors can provide specialised financial advice based on your specific circumstances, assist you in developing financial strategies, and provide information on various financial elements. Having trusted experts in your financial circle can give you the expertise and direction you need to make sound financial decisions.

It is critical to carefully select the people in your financial circle since they might have a significant impact on your financial success.

What are some of the things to consider when deciding who to include in your financial circle?

Mutual Trust: When choosing who to include in your financial circle, trust is a very important factor. Your financial circle is usually made up of people you trust with important financial information and with whom you work, share ideas, and make financial choices together. Trust is the basis of these relationships, and it is important to the success and effectiveness of your financial circle.

Competence: This is important when choosing a financial advisor or professional to work with. Look for people who have knowledge, experience, and competence in areas related to your financial goals. It is safe to work with advisors or coaches with a track record of accomplishment in the financial elements that interest you.

Mutual or common beliefs: Surround yourself with people who share your beliefs, aspirations, and financial objectives. Having the same goal and mindset can develop a culture of mutual support and success within your financial circle and create good synergy.

A well-diversified circle: Your collaborations will involve joint ventures, investments, or other collaborative financial efforts. It is therefore important to strive for diversity in your financial circle. Surrounding yourself with people from other backgrounds, industries, and experiences can give you a broader perspective and a larger range of insights and opportunities.