How to Use Business Principles to Handle Personal Finances

1. Set Financial Goals: Examine where you are now and what has gotten you where you are. If there are changes that you’d like to make, determine what it will take to get there and set a timed goal. Give yourself specific expectations regarding your personal finances long-term or short-term.

2. Invest: The decisions we make in our personal lives can serve as financial investments. Begin viewing each transaction and each financial decision as an investment. For example, if you begin buying certain groceries items in bulk, how will that help your finances now and in the long run? If you choose to buy a certain car, how much will you save on gas and repair expenses?

3. Monitor: Develop a system for monitoring your finances. It can be a calendar, a file system, or even a smart phone app. Monitor not only what you spend, but where the majority is spent, and financial patterns.

4.Review: Every three months or so, review your financial activity. Note any financial improvements, stagnations, gains, or losses. Use this information to improve the next three months and develop a goal for your next self-review.

It’s never too late to change the way you handle your personal finances. What are your thoughts? Comment below.