Schlagwort-Archive: financial freedom

Become Your Own Private CFO

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.

Your Commitment To Your Home Business

I’ve witnessed a lot of people „make a commitment“ to creating a business, then at the first sign of a little obstacle, they quit!

In reality, this supposed commitment was simply mindless noise. No substance. Just a lot of fluff and hot air.

At one time this bothered me. But I’ve come to the realization that it’s necessary to pay no attention to the words people speak. The only thing that impresses me these days is actual business building activity.

To be successful in this industry you need to train yourself the same way.

But what does commitment really mean? And what does your commitment look like?

If you’re either thinking about, or are already involved in a home based, network marketing business, you should pause and ask yourself some basic questions. I also think you should be brutally honest with yourself as you search for your answers.

Are you willing to do the really tough things necessary reach your goals? Will you put yourself in uncomfortable situations? Will you move heaven and earth get past the inevitable obstacles you will face?

Let’s look at some of those obstacles so you can answer that question truthfully.

A very real obstacle you might face, one that so many have dealt with, is the negativity of those around you. You’ll likely hear lots of negative comments, your friends will advise you not to get involved, prospects will tell you it doesn’t work, maybe even your spouse or other family members will be unsupportive or downright negative.

Your ability to deal with this wave of negativity is a very real test of your commitment. This is something that many in this industry never get beyond.

Even if you’re mentally ready and expect it, dealing effectively with it is hugely challenging for many.

One solution is to surround yourself with others like yourself, people who support you in your goals. This is often easier said than done, and requires a huge effort and perhaps some changes in your relationships. But it’s critical.

Another obstacle is lack of time.

Let’s face it, after a long day at your j.o.b., battling rush hour traffic, spending some time with your family, it can be tough to muster the energy to devote to your business. Quitting might seem like the easiest thing to do.

The basic laws of physics come into play: we want to find the path of least resistance. And to quit when you face obstacles is that path. Here’s the question: Is your commitment strong enough to move you past those obstacles?

When you see really successful people in your business, perhaps on the stage at an event, we tend to think it was easy for them, or that they were always successful. Someone who does something well tends to make it look easy!

Deep down you know they went through many tough times, they faced all kinds of obstacles. The main difference between them and the rest of the crowd is this: the leaders who are being recognized made firm commitments, they work their business every day, they attend training calls and events, and they are leaders for their teams. The lesson for you? They do the things you absolutely must do to attain the same level of success.

You need to treat your business just like that.

Success doesn’t come in one fell swoop! It’s a culmination of all of these efforts that are made on a daily basis. Some big and some little. But consistently learning, taking action, failing (yes, failing!), learning, then taking more action, that’s what leads to success.

Looking for a business you can really commit to? Click here to check out Kim Thornton’s site.