Reflection paper
The lessons and experiences that I have had in this class have taught me a great deal and the knowledge gained will be a great boost to both my professional and personal life. To begin with, this class has taught me the importance of appreciating what I have now despite the promise of having something better tomorrow. When learning the time value for money concept, I got to understand how something that seems worth more in future could actually be a misguided concept formed by the minds desire to have something better. The time value of money concept also taught me to make the most of what I have instead of waiting for things to get better in future and this is something I try to implement on a daily basis.
I also learnt that not everyone who tries to help you has your bet interest at heart and this is something I picked up when learning about the APR. While most banks and lenders present their loans as ways to help their customers improve their financial situation, the hidden charges that most of these lenders keep from the customers often end up making borrowers pay for more than they signed up for. The information was of great help as it made me more cautious when applying for loans. Although I still hold the trust I have always had for financial institutions, I have learnt to be more vigil and often look out for hidden charges and the approach will be of great help especially in my professional career as I will be able to help my clients get the most out the financial institutions they transact with.
Other than being vigil, the lessons also taught me the importance of knowing my rights especially in the financial industry. An example of such rights is the requirement for banks and lenders to disclose the APR rate to their customers. Since such rates tend to hike the amount of money to be repaid, lenders may find it difficult to disclose such information to their customers. While the banks are obliged to disclose the information, there could be other hidden charges that lenders choose to withhold from customers in order to make higher profits. As such, I have an obligation to ensure that I understand all there is to know about a financial transaction before going along with it.
The experience also taught me that most people tend to perform better when there is the promise of a reward compared to when extra effort is not likely to warrant any special treatment. Take the case of a company CEO for instance. If the CEO has a fixed salary, there is a high tendency that the individual will seek ways to improve the company performance. However, if the salary is based on the company performance, the CEO is likely to invest in ways to improve performance in order to get a higher salary. Motivation therefore plays a big role in improving performance and in my professional work, I will try as much as possible to motivate others so as to achieve the best possible results.
Lastly, I learnt that temporary failure does not always warrant doom. A good example is the case of a company that records a negative cash flow. The negative reports aren’t always an indication of failure but rather because the company has made more investments that exceeds the cash flow but is likely to have huge benefits in future. This lesson taught me the importance of not just learning from my mistakes but also how to see the good even in bad situations. The information I have gained will greatly help me communicate better with my clients as it will give me the knowledge needed to offer helpful advice that is aimed at protecting their interests above anything else.
