He said prudent personal finance was an important means of preparing for the future hence the need to cultivate that desire to have it, backed by action and the discipline to follow through to the end.

Mr Amenumey was sharing his perspective on the practical steps to financial independence on the Springboard, Your Virtual University, a radio programme on Joy FM last Sunday.

Kickstarting the CEOs forum on the Springboard programme, he said: “I see personal finance as an important means of preparing for the future. You have to make investments and financial decisions for the future.”

He added: “If you have to depend on someone for your daily bread, then there is a problem.”

Have the desire

Mr Amenumey said people must have the desire to be financially independent and also have the vision to make it happen.

“You must have the desire to be financially independent and have the vision to make it happen,” he said.

The vision, he said, would guide the desire to be financially independent because the tendency to spend savings was very high as time goes on.

He said it was also important to reinforce the desire day by day.

“You can save for the future but at the end of the day you will spend it and so you need to reinforce it day by day.

You should also have knowledge about personal finance,” he said.

He said there was the need to meet set targets and this should be done at the desired stage.

Action

At this stage, steps must be taken to actualise the desire of being financially independent. From a humble savings culture, people must also seek to invest at this stage.

He said people must choose the type of investment or savings to have and make sure to accumulate funds over time.

“Think about extra income. You need to do something extra to increase income for the future and back it with action.

Maybe you are a student and not earning much but you can start with savings in the box at home,” he said.

He said reinforcing the desire would help shape the discipline and action, adding that “your eyes will be on the big picture of having financial independence.”

“Every action you are taking should be geared towards achieving the target. Do more assessment and track the investments,” he said.

He said acquiring knowledge was embedded in the action step, adding that it was at this stage that all information relating to achieving the financial independence would be gathered.

Discipline

Financial discipline consolidates all the other two steps taken towards achieving financial independence.

He said without discipline, all the efforts would not be sustainable as it sums up all the efforts.

The tendency to even borrow ahead of realising one’s investment is high and that is where discipline is needed.

“Discipline yourself ahead. It is something you need to do. You need to be moderate about things and manage expenses as well,” he noted.

Mr Amenumey said discipline was something people actually needed to do.

“Have the desire, take action and be disciplined. After all of this you need to come back to the desire.

Have financial freedom by savings, investing in assets that can give you income and manage your expenses,” he said.