How do leaders successfully manage their personal finances? I have been blessed to surround myself with capable leaders and accountants throughout my career who have imparted wisdom to me in this area. Here are some guides I’ve learned that can help you, too.
- Awareness. How much do you have? How much do you spend? And how much should you spend?
- Budget. Create a strict budget.
- Accounting System. Is it Quickbooks, Quicken, or a good ‘ole Excel spreadsheet? How do you keep track of it all?
- Emergency Fund. Do you have a six-month cash reserve?
- Debt Management. Are you paying off your high interest rate debt and establishing a plan not to accumulate it again?
- Long-Term Goals. I believe that if you set a goal, you are more likely to achieve it. What are your financial goals? Many people say they want financial freedom, but when you dig a bit deeper, they are not sure what that means. Define your financial goals.
- Investment Strategy. How do you invest your money?
- Giving Strategy. What is your giving strategy?
To be candid, financial management has not been a strength for me. So I have hired experts to guide me on an as needed and part time basis. For a small expense, you can get online help from bookkeepers to keep your financial life straight. Managing money is simply a part of life. May the Lord give us the wisdom to do it well.
