“If money management isn’t something you enjoy, consider my perspective. I look at managing my money as if it were a part-time job. The time you spend monitoring your finances will pay off. You can make real money by cutting expenses and earning more interest on savings and investments. I’d challenge you to find a part-time job where you could potentially earn as much money for just an hour or two of your time.” Laura D Adams
How well do you manage your money?
Back to Basics #1: “Start with Why” Simon Sinek
Back to Basics #2: “Get the right people on the bus” Jim Collins
Back to Basics #3: “Determine Your Strategy” Michael Porter
Back to Basics #4: “Know Your Processes” W. Edwards Deming
Back to Basics #5: “Manage Your Money, Wisely”
Ok, so this blog post is as much for me as it is for those who read it. Anyone who knows me knows I struggle with numbers. In fact, for over three years I’ve worked with my coach to understand financial reports generated by Quickbooks. It’s been an uphill battle, but we’re making head way.
What amazes me is how many other business owners I’ve met with this kind of ignorance. Some discovered, much to their dismay, that the people they hired to handle their money didn’t. Some hired embezzlers others were woefully inadequate. Worse yet, some took several months and even years to make this painful discovery.
People have encouraged me to hire a bookkeeper. That way I can spend those grueling hours doing something I enjoy. There is a problem with this approach: my ignorance. Unless I know enough to effectively hold those I hire accountable I am abdicating my responsibilities as the business owner. I don’t want to do that.
I remember hearing Tony Robbins talk about how he learned the hard way the difference between abdicating and delegating. It cost him around $750K. Discovering your partner has absconded with all your funds is a painful awakening. I don’t have Tony’s money, but I can learn from his mistakes!
Are you abdicating the management of your money? Is it because you don’t like record keeping? Do you feel inadequate to the task? Is it too boring to be bothered? Does it take too much time? These are all good excuses that will empty your bank account and put you out of business. If you aren’t managing your money, we need to talk. I have some resources to help you.
Do you have good solid processes in place for keeping your accounts accurate and up to date? What are they? Care to share? I’m all ears!
FYI: Laura D Adams is a personal finance expert, author, speaker, and financial literacy advocate. Graduating from Sewanee University of the South, she went on to earn her MBA from the University of Florida in Gainesville. She currently hosts Money Girl Podcast