Six Steps to Running the Business of Your Life
By Ginita Wall, CPA, CFP and Candace Bahr, CEA, CDS

Looking for a clear and orderly approach to managing your financial life? Just as we juggle the many aspects of our personal money matters so do businesses wrestle with the need to earn, invest, and grow their financial resources.

Businesses use tried and true principles of management to make sure all bases are covered as they work to reach their goals. Luckily, you don’t need an M.B.A. degree to take advantage of the good ideas business managers use.

Here are six steps you can take to run your financial life like a thriving business enterprise:

1. Develop Your Board of Directors
Just as businesses have governing boards to advise and make decisions for the company so do families have members who need to agree and work together to reach financial goals. Keeping all contributing members involved, informed, hopeful, and happy helps the family make good financial decisions, plan for the future, and stay on track.

2. Create Your Personal Business Plan
Figure out where you stand now and develop your financial goals. You’ll need to make a budget and follow it. Keep track of your cash and make borrowing decisions wisely. People, like businesses, have to have a plan to follow in order to reach their goals.

3. Protect With Insurance
Choose the insurance that fits your family’s needs and protects you from major financial loss: life insurance if you have dependents, disability insurance to protect against loss of income, medical insurance, homeowner’s insurance, auto insurance, and an umbrella policy to cover any gaps in protection.

4. Watch Your Bottom Line
Manage your resources wisely to make sure your money is growing. Pay yourself first by setting aside a portion of your earnings before spending any. Keep an eye on your credit score and make sure it remains at an optimum level for your needs. Be a long-term thinker, not a short-term worrier. Stay focused on your ultimate financial goals and keep your confidence and optimism high.

5. Control Taxes
Contribute to retirement plans as early and as fully as you can. Document your expenses and keep your tax information well-organized to ensure that no deductions are overlooked. Have an estate plan in place for your future well-being and peace of mind.

6. Invest Wisely
The future of your family’s financial business depends on making the most of your hard-earned money. Take care of all your family’s assets—from your cash emergency fund to a balanced and diversified portfolio of investments to the home you live in. Be a savvy manager and make sure your saving and investing plans are on target to meet your goals.

At WIFE we welcome your comments. Please feel free to contact us.