Self awareness is key to financial success. In this article we learn the importance of using self-awareness to grow as investors or entrepreneurs, to make better decisions.

Without a doubt, you are passionate about a given subject and you enjoy learning about that particular subject. However, chances are the way you view things is from a perspective that lacks complete self-awareness. If you were to spend just a little effort on becoming more self-aware, you would become significantly better at the things you are passionate about.

In this article:

• Why self awareness is key to financial success
• Sometimes we fail to see what should be obvious
• Sometimes we choose to not take action
• Dealing with frustration
• Dealing with lack of motivation
• The power of having a mentor
• Keeping a journal to become more self aware
• The Clifton Strengths Finder Assessment
• The Enneagram Personality Test
• The Enneagram Personality Types

Why Self Awareness is Key to Financial Success

According to the dictionary, self awareness is the knowledge and awareness of your own personality or character. Most would agree that a person with self awareness can improve their personality and character and as a result be more successful. And those blinded to their personality and character flaws won’t even attempt to improve on these flaws, because they simply are unaware of them.

Moreover, I believe the issue of self-awareness transcends past personality and character into knowledge. In other words, if we don’t even stop to reflect about our knowledge, we may never come to recognize that we lack the knowledge to succeed. In other words, we don’t know what we don’t know.

Allow me to use the game of Monopoly to illustrate a basic financial principle and make a point about how self awareness, in the area of knowledge, can be key to financial success. 

In short, imagine playing the game of Monopoly in such a way that you collect $200 as you pass ‘go’, but all you do throughout the game is collect money and then pay your bills as you go around the board, never buying properties. 

Everybody knows that to win you have to buy properties, because properties produce income and the person with the most income wins the game.

This very same principle also applies in real life. Yet, it is surprising that everyone understands this basic principle when it comes to a board game, but many are blind to it when it comes to real life.  Furthermore, those that are blinded to this principle will continue going through life earning wages, paying their bills and never increasing their wealth. 

With lack of self awareness most Americans continue collecting a paycheck without recognizing an obvious blind spot. And many will reach retirement only to find out their savings are not enough!  By then it will be too late. 

Sometimes We Fail to See What Should be Obvious

Mark 8:18 Do you have eyes but fail to see, and ears but fail to hear? 

Certainly, we all have blind spots.  The truth is we are so accustomed to these blind spots that we don’t even make an effort to look beyond what we are used to seeing.  The good news is those who make even a small effort to see, to be self-aware, will gain more from life and in business than those who don’t. 

Sometimes We Chose to Not Take Action

Unfortunately, there is another group of people, in an even worse situation. There are people who can see and understand these truths, but simply choose to ignore them.  Sometimes, the underlying reason is frustration or lack of motivation.  If we are honest with ourselves we may discover that we have all been there at some point or another, but somehow we picked ourselves up and gave it another try.   Understanding how we deal with, and overcome, such challenges is key when it comes to self-awareness.

Dealing with Frustration

Whenever I am faced with frustration I tend to take a break from whatever it is that is causing the problem.  The last thing I want to do when I am frustrated is to talk to others about my problems.  At least, this is how I perceive I am wired.  I explain more about this later in this article.  In any case, I am aware that ignoring the problem is not the answer.  Often what I do is to pray about the situation, which slowly, but surely leads me to share my difficulties with people I trust.

I also have a tendency to ignore the problem and do nothing for a long time.  This is when it is important for me to have someone that can help me in dealing with such problems.   Of course, for me the first person that comes to mind is my wife.  At times she just knows something isn’t right, at which point I start sharing bits and pieces of what I am struggling with, until I am eventually able to share my entire struggle with her. 

The point is we need to be aware of what our tendencies are when we are frustrated.  Specifically, it is important to be aware of how we are wired and to be aware of what works for us in these situations.  More often than not, sharing our struggles with someone will be part of the answer. 

Sharing our struggles with someone else can also lead to accountability. Although, real accountability requires being deliberate about seeking and receiving accountability, which a topic we will explore some other time.

Dealing with Lack of Motivation

Again, each one of us is wire differently. Thus, we need to know what works for us, to become motivated. I tend to to listen to an audio-book, a podcast, or similar.  In particular, I enjoy listening to an audio book called ‘The Magic of Thinking Big’ by David J. Schwartz.  This is a book I listen to every so often. Apparently, listening to someone else talking about positivism and thinking big can do wonders for me.

Another thing that works for me is refocusing on what is important.  Obviously, this requires a time to reflect, to re-prioritize things, and perhaps to jot down some thoughts. 

Certainly, most of us are too accustomed to distractions and fail to recognize the value of having quiet time.  Indeed, a time to reflect, a time away from the phone, from the TV, and even music, can be very valuable in helping us re-focus on what is really important.  Clearly, a time to listen to our inner thoughts is a great way to become more self-aware.  In fact, finding time to reflect is something we should all do as a regular practice and not only when we lack motivation.

The Power of Having a Mentor

Another way to gain self-awareness is by establishing a relationship with and having regular meetings with a mentor.  For this reason, many successful people seek and establish relationships with mentors in the areas they seek to be successful at. Moreover, some people pay good sums of money for a mentor.

Having a mentor makes perfect sense when you consider often times we are too close to our problems to be able to see the solution.  It may take someone that is not in the trenches with us to point out something that should be obvious, but we are unable to see. 

Sometimes we may just need a kick in the pants because we are able to see, but we are unwilling to act.  A good mentor will give you a gentle kick in the pants when needed. 

In any case, if you are serious about gaining self-awareness make sure to find a mentor.  Likewise, be a mentor to others.  It is amazing how often we may find that the particular issue we can help someone else with is the particular issue we’ve been struggling with ourselves.  Somehow, when it is about others we have more clarity than when it is about ourselves. 

Keeping a Journal to Become More Self-Aware

Another way to gain self awareness is to write, to keep a journal. In fact, you may have noticed many successful people practice keeping a journal or writing of some form.  If you like to write, you may have discovered the therapeutic and self-awareness effects that comes from writing.  Moreover, writing can be a time to reflect as it often requires finding a safe place to be alone with our thoughts.

The Clifton Strengths Finder Assessment

Yet, another tool I’ve found helpful is the Clifton StrengthsFinder assessment (not a sponsored ad).  Through this assessment tool, you can gain an understanding of your strengths. I discovered my top strengths are in the areas of, belief, achievement, focus, strategy, and learning.

This assessment tool can also help you understand your weaknesses.  I discovered that empathy was one of my lowest scores.  This discovery really bothered me, which prompted me to re-evaluate my priorities.  I wrestled with this piece of information weeks.  Eventually I gained enough clarity to initiate some changes in my life and to become more purposeful about being generous in general, but especially with my time. 

Keen investors my recall that in ‘Knowledge Makes Money‘ we mentioned that giving generously is one characteristic of rich and successful Americans.  Giving, rather than receiving can be a catalyst to many good things.  But, I believe that giving generously is the fruit and evidence of one’s growth and success as individuals.  

The Enneagram Personality Test

Another self-assessment tool I have fond useful is the Enneagram personality test (not a sponsored ad).  The Enneagram provides a map of personality types. 

Through the study of the Enneagram I’ve been able to better understand to understand what my tendencies are, and to overall better myself.  In addition, as I study the different personality types I’ve been able to understand other people.  As you can imagine, this can be a very valuable skill in negotiations.

When taking this test, pay particular attention to the weaknesses of your given personality type and pay attention to what your tendencies are under stress.  In am a personality type 8.  My tendency under stress is to become secretive and fearful.  Thus, the last thing I want to do under stress is to talk to somebody about my struggles, but being aware of this tendency helps me get there sooner than it would be otherwise.  

The term for my personality type is a Challenger.  I’ve learned that I can get carried away and become difficult to deal with, especially if I am insecure or acting under stress.  On the other hand, I can add real value to others when I am confident and at my best.  With this tool I understood that I don’t need to constantly try to prove myself.  This knowledge freed me up to be comfortable with being a challenger because I know I can bring value to a conversation, as long as I am not challenging things for the wrong reasons. 

The Enneagram Personality Types

Below is a list of the Enneagram types:

1. The Perfectionist, The Reformer
2. The Helper, The Giver
3. The Achiever, The Performer
4. The Romantic, The Individualist
5. The Observer, The Investigator
6. The Loyalist, The Loyal Skeptic
7. The Enthusiast, The Epicure
8. The Protector, The Challenger
9. The Mediator, The Peacemaker

During a leadership workshop, in which we discussed the Enneagram I could see that some people tend to dive very, very, deep into this subject.  Through our discussions I felt it was too easy to reduce people’s complex personalities to a few numbers and nouns.  I believe that we are all uniquely created and that we are constantly changing and adjusting to different environments.  In my case, I chose to not dive deeper into the study of the Enneagram, but if you are seeking to learn more about this subject, the book I was recommended is The Road Back to You, by Ian Morgan Cron and Suzanne Stabile (not a sponsored ad). 

The Bottom Line

By now, hopefully you agree that self awareness is key to financial success. Anyone can benefit from becoming more self-aware and knowing their strengths and weaknesses.  In particular, entrepreneurs and other business people can use self-awareness in their personal growth and learn how to manage their emotions.  After all, successful investors need to be in control of their emotions to keep fear and greed in check.  Perhaps most importantly, through self-awareness, an investor will be more likely to do what it takes to overcome apathy, to stay motivated, to stay hungry.  As discussed in an earlier article.  Staying hungry is key to becoming successful!

Moving Forward

Now that you are able to see what many are unable to see, have dealt with apathy, have found the necessary motivation, and are becoming self-aware, it is time to move on to increasing your income. 

What are those possible sources of income?  How do you get started when you don’t have thousands of dollars ready to invest?  The opportunities abound, but can you see them yet?  If you can’t see them yet, then start looking.  The next article, pertaining creative thinking in business, is precisely tailored to help you start identifying investment opportunities.

As always, please drop me a note and let me know what other areas of business and finance you’d like to explore. Then, I’ll write more about your suggested topics as we pursue knowledge, financial success, and financial independence together. In addition, you can also follow me on twitter at @Cash_Keen