Fascinated by the intersection between human behaviour and finance, Funmi Omotoso, a serial entrepreneur, management consultant and behavioural and personal effectiveness coach, has delved into the realm of behavioural economics and helped individuals cultivate a positive financial mindset and master the art of financial success, Vanessa Obioha reports.
Have you ever wondered why you make certain financial choices? Or pondered why you sometimes buy things on impulse or struggle to save for specific targets? There is an explanation for these actions according to Funmi Omotoso, a serial entrepreneur and a behavioural and personal effectiveness coach. With her educational background in psychology, Omotoso has delved into the intersection between human behaviour and finance with the understanding that financial choices are not solely driven by rationality and logic. Instead, cognitive biases, risk tolerance, emotions, and societal influences play pivotal roles in shaping how individuals manage their money.
“Some people rely on mental shortcuts and biases when making financial decisions,” she begins. “Secondly, some people are naturally more risk-averse and prefer safer, low-risk investments, while others are more comfortable with taking risks and may pursue higher-risk opportunities for potentially greater returns.
“Furthermore, some individuals have the tendency to prioritise immediate gratification over long-term financial goals. This can lead to impulsive spending, inadequate savings, and difficulty with long-term financial planning. In addition, social influences like peer pressure and societal norms can influence financial behaviours. People may feel compelled to keep up with the spending habits of their peers or engage in conspicuous consumption to fit into certain social circles.
“On top of that, emotions such as fear, greed, and excitement can influence financial decisions. Finally, people’s level of financial literacy and understanding can affect their financial behaviours.”
As a behavioural coach, Funmi combines her expertise in entrepreneurship and psychology to help her clients make better financial decisions. Through her signature coaching programme, she empowers individuals to identify and overcome psychological barriers that hinder effective money management. These barriers, according to her, include negative or limiting beliefs, such as feeling unworthy of financial success or having a scarcity mindset, lack of financial literacy, and emotional factors like stress, boredom, or seeking comfort. These sometimes lead to impulsive and excessive spending.
Cultivating a positive mindset is one of the ways Omotoso advises her clients to overcome these negative thoughts. She firmly believes that attitudinal change is the foundation of long-term financial success.
“Encouraging individuals to set specific financial goals and developing a plan of action can help people stay on track financially. Challenging and reframing negative thoughts, encouraging positive self-talk and affirmations, practising gratitude for what one already has, and seeking out success stories or role models can help shift negative financial mindset.”
She also advises that people set clear financial goals. “This provides a sense of purpose and direction. Define short-term and long-term goals that are specific, measurable, achievable, relevant, and time-bound (SMART goals). Keeping your goals in mind can help prioritise long-term financial well-being over immediate gratification.”
But does one’s personality trait play a significant role in one’s financial choices? Omotoso gives an instructive response.
“According to the Greek philosopher, Socrates, an unexamined life is not worth living. Everyone needs to strive for self-discovery and subsequently, self-mastery.
“As a general rule, introverts tend to be organised and disciplined, including financially. So, they are more likely to engage in diligent financial planning, adhere to budgets, and prioritise long-term financial goals. They have the tendency for good financial behaviours such as saving, investing, and maintaining good credit. However, some introverts tend to be agreeable in nature. This means they value harmony, cooperation, and empathy. Agreeableness can influence financial decisions in terms of sharing financial resources with others, being generous with charitable contributions, or making financial decisions based on social responsibility and ethical considerations.”
She continues: “Extroverts are usually sociable, outgoing, and confident. Their financial behaviour may reflect a desire for social status or enjoyment of experiences. They may be more prone to spending on social activities, entertainment, and luxury items. However, the impact of being extroverted on financial behaviour can vary depending on other factors such as financial knowledge and values.”
Omotoso’s journey into entrepreneurship and behavioural coaching started in her university days. In fact, she believes her career path was meticulously planned by Providence.
“I believe that Providence has a lot to do with my pathway in life. When I was seeking admission into the university back in 1990, I remember that my friends and relations advised me to apply for certain courses because they felt that such courses would help me get quick employment after my study but I insisted that I was going to study psychology. Something inside of me deeply inspired my desire for the course.”
This singular decision, she says, formed the basis of her career and has armed her with the basic dynamics of being a behavioural and personal effectiveness coach. Despite obtaining a degree in psychology from Ondo State University and currently studying for her second master’s degree, still in psychology at the University of East London, UK, Omotoso’s quest for more knowledge has not waned a bit. She reveals that she continues to take courses and attend webinars to replenish her knowledge as she imparts it to her students. She also has an MBA in Marketing (Executive) from the University of Lagos (UNILAG).
For Omotoso, entrepreneurship has always been a natural forte. Her foray into becoming a boss of her own started in 1995 while working in the advertising/commercial department of Raypower Radio.
“I wanted a second stream of income. Though I was a young girl serving as a youth corper, I instinctively knew that I wanted more, and at that time, more meant buying and selling to me.
“So, on weekends, I would go to Balogun market on Lagos Island, to buy fabrics, jewellery, cutlery, and even undies to sell to my co-workers. That meant that at the end of the month, I would get my salary and get out of the salaries of a number of my colleagues who were patronising my business.
“Later on, I started travelling to Cotonou to buy brocade fabrics and jewellery in wholesale quantities. Today, my trading activities have caused me to traverse four continents. It has also helped to hone my marketing skills. I tell people jokingly that I can transport onions to Sokoto and sell them (Sokoto State is the largest producer of onions in Nigeria).
“Today, I’m not just a novice jack of all trades, I have been trained and equipped on how to grow multiple businesses, how to put system, process and structure in my business, how to brand my businesses and even become a global brand myself. I now have a website, www.funmiomotoso.com where people can catch up with some of my activities.”
Omotoso had an eureka moment in 2018 when she served as a member of the Business Summit Committee of Thriving Business Women Fellowship, organised by one of her revered mentors, Coach Mayokun Oreofe. She was scheduled to interview one of the speakers, Mrs Chinyere Anokwuru.
“I asked her a question about how a person who is multi-skilled and multi-talented can know the particular talent, gift or skill to focus on. Her reply was profound: ‘Reach down into your innermost heart and fetch out the gift, interest, skill or passion that resonates most deeply inside the core of your being, that is your primary assignment and your purpose in life.’ That was a light-bulb moment for me. Suddenly, I knew that I should become a trainer and a coach.”
Her expertise in financial coaching and management has helped her develop strong business acumen.
“Generally, I help men and women to find purpose in life, maximise their potential, minimise their weaknesses and be the best versions of themselves; so that they can feel inspired, uplifted and confident to accomplish their purpose in life, achieve their goals outstandingly and become more productive.
“I do this by training, coaching and behavioural therapy which help my clients to live a purpose-driven life, be most effective and multiply their success.
Specifically, my experience in media, advertising, and management consulting has enabled me to develop a strong sense of business acumen. After identifying the root causes of my client’s financial challenges, I take them through a proven, step-by-step guide to help them evaluate financial opportunities, make informed investment decisions, explore multiple streams of income and entrepreneurial endeavours.”
Omotoso’s coaching programme has witnessed numerous success stories and transformations. Clients who once struggled with impulsive spending and lacked financial discipline have gone on to achieve remarkable financial stability.
One notable success story is that of a client who enrolled in her coaching programme while running a small sewing business from her living room. Through the Goal-setting Masterclass, she gained clarity on her goals, developed strategic plans, and identified the right actions and strategies to achieve them.
“She got so motivated by the training that within two years, she had two outlets called Salted and Sweetened Couture in Lagos and is currently working on opening a third one in Port Harcourt,” Omotoso enthuses.
And the quest for honing her skills continues. Omotosho joined a chapter of the Toastmasters International in Nigeria , Merit Toastmasters, two years ago. She has just been elected the President of that chapter of Toastmasters club. Omotosho says of her election: “I have observed that anywhere I find myself I see myself as a servant pulling out all I have to execute my responsibilities. Interestingly this strategy has always catapulted me into leadership positions”.
