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Three Pillars of Financial STability that Are a Must Know

 

Three Pillars of Financial Stability

This weekend, Christian Medical Fellowship of Kenya (CMF-K) is holding its annual professional conference in Nakuru. Today, I happened to attend a break-out session on financial stability that was quite interesting and full of information.The session was facilitated by Dr. Melvin Lima. I picked a few nuggets on the three pillars of financial stability and I would love to share them with you.

Before we delve into the core of the matter, let me give you a little profile of Dr. Melvin Lima so that you can trust the source of information. Dr. Melvin Lima is a born again christian dentist and public health professional turned Business Coach and Mentor for Small and Medium Enterprise owners with a bias to Health care business. He holds a BDS and MSc (Public Health) as well as NLP life Coach Certification, trainer in Business skills in healthcare businesses certification and ILO start and Improve Your Business Trainer Certification.

In the Corridor of Champions

On to the pillars of financial stability, he classified the pillars into three. Numebr one is yourself, two is what he called pools of accumulation and three he referred to as multipliers. Let us look into the three in detail.

1. Yourself

As an individual, you play a crucial role in you being financially stable. For long, financial stability has been associated with the liquidity level of an individual, which is correct in a way but not complete. Financial stability actually lies on the foundation of your financial literacy.

As a person who is aspiring to be financially stable, how much have you invested in becoming financial lieterate? Do you read books and listen to teachings on financial literacy? How familiar are you with the concept of passive and active income? Which saving model are you exploring or have implemented as a strategy of stabilizing your finances? Have you mastered the discipline of budgeting?

There is a lot that you need to invest in as far as financial literacy is concerned. You can easily access free online courses on financial literacy to sharpen your skills on finances. This will be a plus as you work towards stabilizing your finances.

Related >>> 7 Common Financial Mistakes that Medical Professionals Make

2. Pools of accumulation

The second pillar of financial stability is what Dr. Lima referred to as pools of accumualtion.

This simply refers to sources that accumulate your income. Your savings is a good example of what pools of accumulation are.

Do you have a fixed savings account with a bank or a savings plan with a sacco? Are you a member of a chama? (by the way, a chama is not only for women but is also beneficial to men)

Gifts that you occasionally receive, such as inheritance, also fall under this category.

Read also >>>Blazing the Trail

3. Multipliers

The third pillar of financial stability is what he referred to as multipliers. These are ventures that multiply your wealth. They are also called wealth creation activities.

As an individual, how have you monetized the skills that you have gained so far? Perhaps, you have specialized in a certain discipline in your profession: Have you thought of engaging in consultancy or private practice?

Engaging in business is one fo the path that you can choose as your resource multiplier. In this era of technology, there are many opportunities in business that are available for you as a medical professional. Medical professionals have made it big in real estate, transport industry and other ventures which show that actually, you can also make it in business.

As his final punch-line, Dr. Lima encouraged his listeners to start small and start now in pursuing financial stability, which is a challenge that I also throw at you. I hope this article has been of benefit to you. Drop a comment below and share the article widely. Thank you.

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