How To Run Your Personal Business
This is part 1 of a series on your personal finances. Part 2 can be found here
Whether you want to believe it or not, you own a business. “What? I don’t own a business.” Yes you do. If you have any type of income, then you have a business.
Each of us is a manager over whatever resources that we have. The word manager comes from the Greek word oiknomos. Oiknomos is translated as manager, overseer, one who has charge of the affairs of the household, an office of trust and confidence. So each of us are responsible for the resources that we have. We are overseers and officers of our businesses. You have a business and you are its manager!
As a manager, you have two decisions. The first option at your disposal is that you can be wasteful. You can disperse, scatter, squander, and waste your financial resources. The majority of us seem live this way. Over 75% of Americans live paycheck to paycheck. Paycheck to Paycheck! Who wants to live this way? I know I don’t! If you are in the majority that does live from check to check then you are on the right track by coming to this blog. Stay with me and I can free you from that prison! The average American has $38,000 of consumer debt (that’s not including the house) while the average household income is only $40,000 per year. That is insanity!
Alright enough statistics. If I don’t have you convinced that the majority of us are wasteful yet then stick with me. Read through each of these next few points and raise your hand if any of them fit you.
1) We don’t plan for the future. Imagine opening a business with no business plan! Who would do that? It would make absolutely no sense! If that makes no sense then why do we run our own ‘personal businesses’ that way?
2) We are unable to track our spending. We spend so foolishly on so many different things that we are unable to track our spending. We live our lives without a budget. Our paycheck comes in and at the end of the month we have no idea where it went.
3) We spend foolishly. We’re a bunch of grown up 5 year-olds. Heh, offended yet? (cue whiney voice) “I don’t want to save my money. I want my vacation now.” -Or- “I want a new car. This one is old and it smells funny.” ect.
So we have the option to spend foolishly. Hopefully I didn’t run you off. Come back tomorrow and I’ll show you your other option as a manager. You have a business. You are the manager. You can be wasteful or you can be….continue on to part 2