Their own personal CFO become

The personal budgets and finances are not preferred subjects of the majority of people, and certainly not one mine. The executives of the bank even have problems in this area, but you are industralist so they do to him. You are concentrating as much time in his business, his personal check checkbook takes a back seat. Then a day they find him with the alarming fact that you are not saving enough per thin times and you terrify yourself.

Well, as soon as to apply its professional talents to the situation and to make its own CFO personal. Using its eyes of CFO in the situation, it tempers the pain somehow to deal with its own money. In order to obtain begun, they are 5 rules here to treat its personal finances like a business:

1. To be its own board of directors. In order to make good decisions, you must know how what you are trying to reach. Business, the board of directors writes mission declarations to maintain to the company in track with goals. In the country, it is incumbent on you to define its mission and to make sure of they are satisfying it to him writing down its goals. Not hardly its financial goals either, but their goals of the “life”.

2. To know its operating expenseses. You know what you spend every month in average? The businesses do because they base his budgets on historical landlords of the cost. The majority of people, nevertheless, does not know what running costs to maintain its lives. You can make budgets towards outside detailed, but she discovers at the end of the month that you have not stuck him. So instead of to make a budget that dictates how much to happen, it makes “a declaration of the flow of liquidity” that the files how much you really spend every broken month in several categories.

3. To know its value net. The companies measure progress towards goals through the balance that enumerate their assets and responsibilities. Its net S-value its balance where you enumerate all that you you own. That means its verification and the accounts of savings, the investments, car, house, etc. less everything than you must. To follow its net value quarterly to make sure that you are moving towards your personal goals. Without this step, you can be that she does not see the impact of his decisions of the money until is too slow.

4. Results of the decisions of the money of the prognosis. When a business makes important decisions, they use a called process “panorama planning”. They watch the possible results of an option compare to another one. You can use the same process to make decisions from the elegant money. For any option, to choose two options, and later to watch what each answer would make to its flow of liquidity and net value. To remember, not to be no “good” or “bad” option there - only the options that put to him more close or more far from their goals.

5. To follow the progress by annual information. Hardly because the companies determine their progress in their annual information, you need to review his list of priorities every year. You have obtained goals? Their patrons of the cost have changed? You happened less than you won? You saved so much as you glided?

You need to treat his money like you convite his business. To give the time him that deserves, because in the end the time you happen you are really an investment in and its dreams.