Emotional intelligence key to financial health

Experts say money and emotions are inter-connected therefore it is important to master the skill of bringing a balance between the two. Calvin Investment Founder and Financial Expert, Calvin Phokontsi says that if one can control their emotions, they can control their money. “Fail to control your emotions, fail to control your money. Mind your emotions, mind your money,” he says. The financial expert who runs a financial advisory firm says generally three percent of an individual’s life comprises of academics, 90 percent - emotions and seven percent natural or motivational influences.

He advises everyone to have a healthy Financial Intelligence Quotient or financial IQ, which is the ability to obtain and manage one’s wealth by understanding how money works. Phokontsi strongly believes that for one to manage and build wealth and a healthy financial lifestyle, it all begins with behavioural change. It is also critical to develop one’s personality before one thinks of investing or saving money because one’s thoughts affect action, action affects habits and habits affect character, which ultimately affects personality and the behaviour of a person.

In his experience as a financial advisor, Phokontsi has realised that many people desire to save money, for example, but only fail because they have not developed discipline and self-control. “All successful people have personal guiding principles,” he said in an interview. Phokontsi says money is only a tool that one can use for wealth creation. “Money is like a mirror; it reflects who you truly are. If you can learn how to handle it, you are halfway through to success,” he said. He has also realised that money and success don’t change people, but merely amplify what already existed. Phokontsi says it is better to start early to develop a healthy relationship with money in order to build wealth in the future.

He advises that during the ages of 21 to 55, people need to be focused on working and building a career, building a home, investments and businesses so that when they reach retirement age, they can enjoy the fruits of their labour and investments.