If you are anything like me, budgets and finances are not even remotely on the list of your favorite things. Even bank officials sometimes struggle to keep up with their own personal finances, and most entrepreneurs do as well. You’re concentrating so much time on your business, your personal checkbook takes a back seat. But unfortunately, if you haven’t saved enough to back you up during lean times you may panic.

Well, just apply your professional talents to the situation and become your own personal CFO. If you can look at things with CFO eyes, you will be more detached and more prone to finding a solution. Here are 5 simple steps you can take to take charge of your finances.

You can be a board of directors yourself. To make good decisions, you must know what you’re trying to achieve. In business, Board of Directors write mission statements to keep the company on track with goals. If you are running your personal finances, it is your responsibility to come up with a goal you can work toward. And, financial goals are not the only thing that can be included – life goals are just as important.

Have an idea of your monthly expenses. Have you ever totaled your expenses? Businesses must do so because they customarily measure their expenses to an historical pattern. But when it comes to daily life, most people have no clue of how much they spend. You can make out detailed budgets, but find out at the end of the month that you haven’t stuck to it. It is better to create a cash flow sheet, to see where all the money goes, month after month.

Know Your Net Worth. Companies measure progress toward goals through balance sheets which list their assets and liabilities. Your net worth is your balance sheet where you list everything that you own. That means your checking and savings accounts, investments, car, house, etc. minus everything you owe. Track your net worth quarterly to make sure you’re moving toward your personal goals. This step is great in showing you the result of some of your money decisions.

Forecast Money Decisions Results. „Scenario planning“ is a strategy used by some companies. They try to come up with possible results of different choices to make the best possible decision. You can use the same concept for personal finances. If you have to make a choice, guess what the outcome of each possible path will be. Keep in mind that there are no bad choices, but some choices will get you closer to your goal than others.

Track Progress by Annual Reports. Your priorities and the way you do things may have to be adjusted year after year. How close are you from achieving your goals? Did you make any changes in the way you spend? Were your expenses less that what you earned grossly? Were you able to save anything?

You need to treat your money like you treat your business. Give it the time it deserves, because in the end the time you spend is really an investment in yourself and your dreams.

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