Shahzad Ashfaq is one of the known personalities from the Finance and Economics sector at international level. He's been working for more than twenty five years in these field. He has headed various financial organizations at international level and now providing consultancy services in Pakistan as well. Shahzad Ashfaq has been the part of top management for various finance companies in the world. He has been the part of board of directors committee for Jura Energy, Juniper Capital, Stanhill Capitals, Nomura International group of companies all belonging to London, United Kingdom. Shahzad Ashfaq is currently heading Stanhill Capitals as a part of board of directors and also offering his consultancy services to various organizations worldwide. He is also planning to launch his own startup incubation agency shortly. Shahzad Ashfaq believes he can help Pakistan a great deal by helping the emerging and struggling business in Pakistan. According to him the economy of the country is shattered because of corruption, malfunctioning management, and the culture of Nepotism. According to him if Pakistan fix these problems and help small and medium size business by nurturing it can greatly reduce the gap of inflation and losing value of currency with the help of proper foreign exchange management. Shahzad Ashfaq loves to share his 5 important things that are useful in handling any financial issues, here they are:
Top 5 personal financial planning tips by Shahzad Ashfaq
Setting your financial matters to the right path is always a daunting task. Throughout my career, I have witnessed several cases of financial troubles many of whom I have tacked personally. It is very important to understand the value of money and where and how to invest it. Keeping things in line and under consideration always let you avoid the chances of making any blunders. While living, there are hundreds of things we wish to have and several places we plan on visiting. Other than this, for men and working and self-supporting women, there is a whole house to run with efficiency.
To help all such people who are facing a hard time dealing with their monetary issues, I have listed below the five main key tips to effective personal financial planning.
- Have a monthly budget in mind
We all are aware that at least 50% of our monthly income is spent on our daily expenses, right? For some, it might be more than 90% but the thing you need to note here is the actual requirement. Decide a monthly budget that you need to spend on the most necessary things. I am not suggesting living on an edge but I do insist on organizing your living style. You must know how to live within a budget. Every now and then one wants to shop and spend lavishly but that comes at a cost. You can save money every month for any long-term expenditure or spend a reasonable yet small amount on extra things every month but try not to exceed your budget. Moreover, taking loans and going in debt is strictly prohibited. Even if you have to cut down some of your expense, do that but never indulge in the matters of loans and debts on monthly basis.
- Take a look at your insurance coverage
The insurance companies offer a varied type of insurance. The most important ones are the house insurance, life insurance, vehicle insurance, business insurance and the accident insurance. Make sure you have them planned. Renew your insurance if it fails as it makes a lot of things easier for you and your family. Suppose your vehicle was in an accident and severely destroyed, wouldn’t you find yourself at peace if you had insurance for your car? This way the urgent expenses for the car would be paid by the insurance providers and you’ll get your mended car back within days.
- Always have a retirement risk management strategy in mind
A day will come when your professional career will end in terms of an office job. You can always carry your personal business or a freelancing job but the main source of earning money will come to an end and you’ll retire from your job. This time usually comes around at an elderly age and we all must plan our future for that time. This personal financial planning includes retirement risk management. The top risks that you can possibly face during your retirement are the volatility of the market, surprise expenditures and the unknown longevity of your age. Thus, only saving money for the long-run wouldn’t do much good. You need to consider a few investment options or a source through which you’ll be able to handle the surprise situations.
- Discuss your financial plans with your loved ones
Why carry the entire burden on your shoulders? Your loved ones love you back and care about you and they would be more than happy to listen you out to reduce the stress. The earner of the house often tries to keep the members out of the financial crisis loop. This worsens the situation and damages the relationship with the family members as well. Being transparent with the family and loved ones allow you to work accordingly. You can easily cut out on some expenses or spend more when you have enough. Thus, share your matters with your loved ones and keep them in the loop.
- Keep an eye on your investment
Many of us love to invest n the property land or run a small-sized business. This final tip is for them to keep a check on your investment. You need to analyze the profit it is making and weigh it against the validity of the investment. Time to time, check whether it is still beneficial to invest in the project or should you shift to another when? More importantly, while dealing with property, make sure you have a trusted dealer by your side to conduct the legal matters.
These five secret tips for personal financial planning sum up most of the basic things that you need to cover while handling money. Give them a good read and point out where you are making a mistake. Happy financial planning!
A reason why Shahzad Fakhar Ashfaq is a renowned financial analyst and an economist. He knows how to do his job best and is the perfect role model of a professional Managing Director. For over two decades of his life, he has been keen enough to invest his time and efforts in the right direction. Slowly from the side place, he became the real deal and landed numerous numbers of clients to the business industry he worked for. His exquisite qualities in the communication department, financial strategic plan making and knowledge of the investment domain made him fit for the job of the Managing Director. Since that time, he has excelled in nearly every related department including the stock services and the investor relations.
Shahzad Ashfaq is a proud bachelor of the Macalester College situated in the US and has received double bachelor’s degree in the subject of Economy and International Studies. His educational journey has remained fruitful and soon he jumped onto building his professional career. Throughout his journey, Shahzad Ashfaq has worked in the Merchant Banking Group of Stanhill Capital for a long time as the Managing Director. Other than this, he has delivered his great financial and economist services in Jupiter Capital, TouchGold stone (US), and TechPacific, Hong Kong.
He was born in Pakistan and after a long journey of serving the international countries, he has established his firms in Pakistan that deliver the service of providing financial, investment, budgeting and assets management consultancy. Shahzad is known for his hard work and determination. This is what has led him to be a prominent member in the supervision of bringing home (Pakistan) a 160 million USD Pakistan Government exchangeable bond. He is eager to serve his clients and makes sure all their objectives for their businesses and projects are met through the financial advice and plans he makes. Shahzad Fakhar Ashfaq plans to launch his very own startup incubation center that is going to provide absolutely free consultancy to the youngsters who are planning to become entreprenuers.
Being an Entrepreneur is the new Hype of the society. But being a Successful Entrepreneur is something very different and challenging. Not everyone is capable of doing the same magic in this risky Entrepreneurial World of Business. According to Shahzad Ashfaq, there are some common mistakes done by the Entrepreneurs of today whether beginners or veterans
1. Trusting and Seeking advice from Anyone and Everyone
Being an Entrepreneur, means you have to be very careful about discussing your business secrets. Shahzad Ashfaq emphasizes that you should know with whom you have to discuss and what to talk? And blindly following Anyone’s and Everyone’s advice is the biggest mistake you can ever make.
Business details should be kept low key, and only experts or consultants should be hired to offer advice and suggestions.
Everyone from the friend circle, in the family should not know every bit of your professional details. The reason is simple; not everyone can be trusted. Money is something that can make even the blood relatives your foes. So, it is best to work in silence, let your actions become your words. You should not speak as your Success will speak for you.
2. Setting a low wage for yourself
Fixing a low salary for your own self is not a smart move to make. By doing this maybe for your satisfaction you will maintain a good profit margin, but in the long term, it won’t help you much. Shahzad Fakhar Ashfaq says that the problem in fixing a low salary for yourself is, whenever you or your family will have an emergency or a personal need which cannot be fulfilled by your salary as it is not enough you will depend on your company account. And in mind, you will be saying that now it’s an urgency and I take so less already, so it doesn’t make a big difference. But gradually it will make a difference, your personal expenses and company expenses will just mix up together. And yes, one more problem that will arise is that the Account details, expenses and revenue details, and the profit and loss margin will all get mixed up. Kasb group of companies set a fine example of it by implementing it in their organizational structure.
Hence, it’s best to set a standard salary for your own self so that your personal expenses just don’t get mixed up with the company expenses. Being fair about business and keeping your personal and professional life separate can help you to stay stress-free.
3. Making the Office Environment Stressful
The healthy atmosphere is essential for quality work. Being rude, setting inhuman rules and regulations, Setting low wages, firing employees for small reasons are things that make the Office environment stressful. And trust me, this is a mistake which results in low standard performance of the hired employees. Helpful and friendly atmosphere will help your employees and your team members to work tension free and give their best to the company. Healthy and stress-free minds will be able to generate greater, bigger, better and innovative ideas. Kasb Bank headed by Mr. khadim ali shah bukhari also belongs to the same percepation, the owner of Kasb group of companies focuses on this point a lot to help people work free from stress and contribute with dedication in the organization.
It is best to set a healthy atmosphere. Value your employees, set standard wages and give them enough workspace so that their inner abilities help grow your business in a positive manner.
4. Compromising on Quality over Quantity
Shahzad Ashfaq advises that giving importance to quantity over quality is a mistake which will always result negatively. Whether you are doing this with your product or you are hiring loads of employees with low wages, thinking in your mind that more workforce will give you more success will never positively help you. According to Kasb bank latest news they have changed the whole dynamics of the group of companies by implementing somthing pretty similar to it.
Maintaining quality of your product, and by hiring less but efficient team will always work in your favour. People will recognise you and your brand for the quality you provide. Customers or clients will increase day by day. But giving a low-quality product in the market will result in bad reviews and gradually result in low sale rate. So, make a quality product so that the product speaks for itself. Impress the customers in such a way that once a customer, becomes always a customer.
5. Hiring an Unprofessional team
Another mistake done is hiring irrelevant people on board. Sometimes because they are some known ones, and sometimes you are being bribed and requested to engage them. This mistake will destroy your image as an Entrepreneur. Hiring unprofessional people will result in an improper environment. And the result could be worse.
Shahzad Fakhar Ashfaq says that setting rules and regulations while hiring, setting some must-haves will help you recruit a better and capable team. For hiring professional, qualified and dignified employees, you will need an excellent HR (Human Resources) department.
6. Saving expenses by not spending on Marketing
Saving company expenses by saving on Marketing is a big NO. If you won’t spend on Marketing, how will you turn the crowd towards your offered product in the market? But some Entrepreneur spends so less on Marketing thinking about saving company expenses. Shahzad Ashfaq believes that this isn’t a smart move.
Digital marketing or multimedia marketing, social media marketing, online marketing are some of the best ways to market your product. Marketing also helps to build a connection between you and your customers. Especially social media marketing helps to get the direct feedback from the customers. Marketing is the main cause of increased sales. If you want your sales to be high then you won’t regret investing on Marketing. A fine example can be taken from kasb bank merger with bankislami, why did they do it? The reason was pretty simple investing less on marketing.
7. Ignoring the Competition
Being a businessman it is necessary to be confident, but being overconfident and underestimating the other product similar to yours in the market can give you heavy loss. For example, you are owning a company of perfumes, now you yourself should know that there is not only your product in the market, you have tough competition, and you should never underestimate your competitors. It’s not easy to make a Mark. Therefore always be very careful about your competitors. You can take another example from Kasb group of companies in Pakistan, they ended up into a merger with another bank just because of the very same fact.
8. Trying to do everything yourself
Being a company owner, controlling expenses is a good habit. But trying to do everything yourself is a bad idea. From making your own logo, to planning of marketing strategies usually looks tempting. And it feels good to be a multitask at work. But no, if you think you are a one man army and can handle everything, it’s never going to work. Maybe your good, maybe your bad but handling and juggling between different things all together will make you all puzzled up. You will feel stressed and quality of your work will get affected. So try to hire proper staff members, delegating work is a good idea.
9. Building debt load on Yourself
Taking debts from the market or bank, and investing in your business should not be done ever. In this way you build a pressure of debts on your Company and yourself. And these debts if not paid back on time they get increased day by day. Your company can be at high risk if you are habitual of taking debts for various reasons.
Debts are the biggest reason that the companies get bankrupt. So taking debts means you are risking your business. Instead of prospering it will all get over at once.
Hence, just make a policy of no debts for any reason. This will help you in making your business risk free.
10. Doing Business with the Wrong Partner
Partnership in business is not a very good idea. Many businesses in Partnership have just failed. The issue was always the same. Money makes a Man dishonest and greedy, as soon as the company rakes in profit the partners usually try to kick one another. And business never flourishes if dishonest attempts are made regularly. The attention of each partner just stays on the other, and business suffers great loss.
If doing business in Partnership remember to not just trust anyone blindly, make an agreement, enter clauses, and make transparent policies. So that the business can be done in a proper honest environment.
Shahzad Fakhar Ashfaq emphasizes on a few things that every business should consider before jumping into the sea. According to Shahzad most of the times people figure out business, its market, the finances they need but they normally ignore jumping into it first. Yes, you should try to gain some experience of the field first before planning to start a business. There are numerous businesses in Pakistan, that started with a bang but failed to make any impact on the real world. The example of KASB group of companies, the merger of KASB bank with Bank Islami are some of the finest ones that can help you get to the depth of the notion made above. Khadim Ali Shah Bukhari invested his time and money and in the end, he had no option but to go for the merger with Bank Islami. The major reason was the lack of research in the field and the real-life experience that Shahad Ashfaq emphasized on earlier. If you want to be a successful entrepreneur, the first thing you are going to need is research and loads of it, then comes the real-life experience, then comes your interest, and after that comes the investment. Shahzad Fakhar Ashfaq does not just offer his consultancy for free but he wants the young entrepreneurs to come and talk to him if they are planning to start their business.
Shahzad Fakhar Ashfaq would like to advice young entrepreneurs to avoid these common mistakes and make your business venture successful. Good luck to the Entrepreneurs.
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