I constantly hear people say, “I can manage a budget at work to perfection but my personal finances are a hot mess.” Isn’t it funny how both are just numbers with a dollar sign?
When it is our own money, our emotions and belief system get involved. Would it be better to manage your personal money like you do budgets at work? Well, let’s do that.
First of all, you need to look at your numbers. Figure out how much you make and how much you would like to save for your vacations, retirement, and dreams overall. Now figure out how much you spend. Buy a book and write down every dollar that you spend to see where it goes over the course of a month.
Now, channel your business-savvy self. How would you deal with your current situation if it were a business budget? You would cut the fat, be more efficient and pump up those surpluses so that you get a big bonus at the end of the year – right? Do the same thing here, and see how it serves you with your personal finance. The bonus will be the confidence you receive for managing your own books profitably.
If you have brought your personal books to a 10 – see what you can do to take them to an 11! How can you make more money? Can you turn yourself into a sole proprietor and do some consulting or small business on the side? Take advantage of all of the business write-offs that businesses get. Just like a business guru, you are looking for new ways to increase your revenue and cut expenses.
The best part of this exercise is paying yourself a bonus for turning a sweet profit. Reward your hard work with something that, when you enjoy it, will re-enforce your hard work and new business acumen as a personal finance maverick.
Makes Some SweetCents,
Dave
David C. Lester is a Professional Financial and Life Coach and author of the popular Canadian personal finance lifestyle blog, iheartmoney.ca. Throughout his career he’s gained his personal finance expertise from holding advisory positions within various financial institutions. David currently resides in Toronto, ON with his family dearest friends never far away. In his spare time Lester is an active equestrian and is passionate about art.