Budgets and personal finances are not most people's favorite subjects, and actually not one of mine. Even bank executives have issues in this area, but if you are a businessman so do you. You're concentrating such a great deal of time on your business, your personal checkbook takes a rear seat. Then one day you are had a meeting with the startling fact that you're not saving enough for lean times and you panic.

Well, just apply your pro gifts to the situation and become your own private CFO. By employing your CFO eyes on the situation, it somehow tempers the pain of coping with your own money. To start, here are 5 rules for treating your personal finances like a business:

Be Your Own Board. To make good calls, you've got to know what you're trying to realize. In business, Board write mission statements to keep the company on track with goals. At home, it’s down to you to outline your aim and check you are fulfilling it by writing down your goals. Not only your financial goals either, but your „life“ goals.

Know Your Operating Costs. Do you know what you spend each month about? Businesses do because they base their budgets on important spending patterns. Most individuals , however , don't know what it costs to keep their lives running. You can make out detailed budgets, but find out at the end of the month that you have not stuck to it. So instead of doing a budget that dictates how much to spend, do a „cash flow statement“ that records how much you actually spend every month broken into several categories.

Know Your Net Worth. Firms measure progress towards goals thru balance sheets which list their assets and liabilities. Your net worth is your balance sheet where you list everything that you own. That suggests your checking and savings accounts, investments, automobile, house, etc. Minus everything you owe. Track your net worth quarterly to make certain you're moving towards your personal goals. Without this step, you will not see the impact of your money calls until it is too late.

Prediction Money Calls Results. When a business makes critical calls, they utilize a process called „scenario planning“. They glance at the possible outcomes of one choice compared to another. You can use the same process to make smart money calls. For a choice, pick two options, and then look at what each answer would do to your cash flow and net worth. Remember, there are no „good“ or „bad“ selections „only decisions that put you closer or farther from your targets.

Track Progress by Annual Reports. Just as firms assess their progress in their yearly reports, you need to check your list of concerns each year. Have you accomplished any goals? Have your purchasing patterns modified? Did you spend a lesser amount than you earned? Did you save as much as you planned?

You want to treat your money like you treat your business. Make a simple business plan. Give it the time it deserves, because in the end the time you spend is actually an investment in yourself and your dreams.

Are you a businessman and need 1 or 2 business plan examples? James Helmering’s site Entrepreneurs List gives out excellent business guidance which will help entrepreneurs get started on the road to success.