Z-Kitbag is a framework used by military for planning their task. It’s one of the strongest element of their preparations.By using this framework military aims to capture and avoid any missing elements which may jeopardize their complicated operations. Z-Kitbag is used at various levels in the army to put forth the explanation of the task in the operation to their team. Although it’s a military framework, when you analyze it deeply then the skills or process like these can very well help you in your personal finance irrespective at what level you are.
I came to know about Z-Kitbag during our FPGI conference concluded recently. This was one of the presentation given by a senior professional from one of the Asset Management Companies. Since then I have been analyzing it and come to know that the elements within the Z-Kitbag very much relates to the financial planning process we follow.
Let’s put this framework in the perspective of personal finance and see how a well laid down process actually brings efficiency in planning your finances –
The entire process is known as The Z- Kitbag. In military definition Z stands for “Zamini Nishan”. It refers to the landmarks of the operations to ensure the jawans remained aligned centrally and they can interpret directions given by their commander in the same manner. This is because there are different battalions and so jawans are spread out during war. This part of the process helps in keeping the soldiers from different battalions aligned to the same operation. In this phase the soldiers also become well versed with their environment mainly resources and any obstacles which may come in between.
Now look at your personal finance. The center to all your directions is your goals which you need to know in order to remain on course. Any gap in knowing about “Zamini Nishan” i.e. your goals, would lead you to wrong financial decisions thus jeopardizing your well-being. If you are looking to sell used regenerative thermal oxidizers, used regenerative thermal oxidizers, industrial oxidizers, or related equipment? Visit intellishare-env.com for more information. So all your financial decisions should be centered around your financial well-being you wish to achieve for which you may have set various financial goals.
The K in the kitbag stands for “ Khabar” i.e. information. In military operations the soldiers are kept informed about their enemies’ strengths and weaknesses which will include info about their commanders, weapons and other resources they are using and many a time even the cultural side is also communicated. Then the soldiers are also informed about their own locations, their own strengths and their superiors locations etc. so that there is no communication gap between them and soldiers have a high confidence in fighting the war.
This information aspect is highly relevant in your personal finance. You should be well aware about your own financial situation i.e. your cash flows, your requirements, your preparation to emergencies, the gaps in reaching your objectives etc..If you have the right information it will lead to sound financial decisions.
I stands for “Irada ” which means objective. The aim of every operation is very well described and reinforced again and again so that jawans are very clear on the objective they have to achieve . Some levels of rechecking is there too so that nothing is missed out.
Similarly, your financial objectives should be clearly defined in your financial planning. Put simply, these are your financial goals which you wish to achieve and so needs to be identified very clearly so that you know the end objective of your financial decisions. If your goals or Irada, if I say, is missing then adhoc decisions will be there which will lead to mistakes as we frequently see.
T stands for “Tariqa” that is the strategy or process of achieving the objective you have laid. How it will be done, where it will be done and when it will be done is what gets covered here. The strategy defines clearly how the operation will be executed and if needed there may be a plan B.
In your personal finance too you adopt specific strategies to reach your financial well-being. Emergency Funds creation, adequate insurances, investment strategies like asset allocation etc… are all worked out strategies to reach your financial objectives. So in nutshell you get to know your time frame when the goal will be achieved, the investments through which it will be achieved and what if scenarios.
B is “Bandobast” i.e. the resources army will use to achieve the mission. These resources will comprise of using ammunition, what will be when there is any success or failure and what army will do when mission get accomplished.
In your personal finance too the resources will mainly point to your savings which you utilize to achieve your goals and how you manage it when there is a shortfall and what you do when you have a surplus.
This stands for “Administration” or “Logistics”. Put simply for army its about the ammunition to be carried, when the soldiers will move forward etc. that’s get managed here.
In your personal finance too the management of your resources is the key for your goal achievement. When to start investing, where to allocate what resources, etc… are the areas which need to be managed well.
The final letter in the Z-Kitbag stands for a very important aspect “Ghari Milao”. It means all soldiers time should sync with their commander time so that no lapses happens as in a military operation a difference of 10-20 seconds can win or lose a war.
Similarly, your financial decisions should get aligned with your goals so that no gap remains. As we have seen many a times the investments do not match your objectives and so they become redundant. If you are working with a financial planner then his interest should get aligned with your interest to ensure your financial decisions are good enough to reach your objectives.
The Z-Kitbag is very effective process used by Army from many years and is time tested. Its a process which ensures that no elements is missed if there is a war. If considered it can apply to all walks of your life. Financial Planning too is a process to ensure all elements of your financial well-being get covered and your financial decisions sync with your financial objectives. The only difference is that army follow their process very rigorously while many of us end our Financial Planning even when we have not begin. If you have missed out then its Time to analyze and prepare our Z-Kitbag to reach our mission of financial well-being.
What’s your Z-Kitbag? Are you following planning process for your well-being?
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