If you can’t manage your own money, how are you going to manage ours?

If you can’t manage your own money, how are you going to manage ours?An interesting question don’t you think? In other companies I’ve worked for, it was “kind of” assumed that as a manager got promoted and accepted more responsibility, so that responsibility included the departmental budget.  Now I for one, don’t believe that anyone can grasp any company or departmental budget without understanding their own domestic budget – in simple terms, if you can’t manage your own money, how are you going to manage ours?


Our Top 5 Tips for Budgeting:

  1. Set up Standing Orders or Direct Debits for your regular bills to ensure they get paid on time
  2. Use multiple bank accounts to split your money between bills, savings and spends
  3. Review your finances once a month on the same date to keep track of how you’re doing and spot problems before they develop
  4. Don’t be afraid to shop around when it comes to things like broadband and TV providers, mobile phone providers and even breakdown cover. Threatening to leave one of these companies will soon make them offer you a better deal
  5. Try to set aside a little money each month for a rainy day, if you don’t spend it, treat yourself!

It has a certain ring to it doesn’t it? (if you can’t manage your own money etc…). And, when you consider that a failure to manage cash, or spending too much are two of the many reasons that such a large swath of companies go bust, you might well wonder how well the principles of those companies could manage their own money, let alone that of their company!

A Great Example…

Always one for an anecdote; I recall wanting to pass more authority to a couple of people in my last business and as part of that I decided to teach them how to create and manage a small domestic budget (before they got their grubby hands on mine that is), after which I would introduce the company budget and induct them in the knowledge they had a basic understanding. Actual values didn’t matter I told them, we just need to include net income, then costs like mortgage, council tax, power etc – it can be fictitious, but you need to understand the principles.

The next challenge was when one member of the team said they didn’t want to and “they’d never been very good at maths” and the other said they didn’t want to look at domestic budgets, however fictitious and could we go straight to the company accounts.

Now here’s the question: Should I take that to mean my training was dreadful, or was I going to promote the wrong people?

Need Help with Budgeting?

If you’re new to domestic budgeting, try Money Saving Expert’s Free Excel Budget Planner available to download at www.moneysavingexpert.com/banking/Budget-planning#tools. It’s quite detailed (as it should be) but will really help you to see where you’re money goes each week/month and how you can ensure you don’t spend more than you earn.

There’s also budgeting forum at http://forums.moneysavingexpert.com/showthread.php?p=7602297 where you can ask questions. Who know’s maybe Martin will even answer!


Image courtesy of lincolnblues

avatar Name: Alexandra Eager
About: Alex has worked as a Financial Controller and Finance Director for many years for a variety of companies across a range of industries but more recently she has moved away from accounting working for an internet marketing agency as Finance and Operations director, primarily overseeing the finance functions and search engine optimisation (SEO) for clients. Follow Alex on G+ and on Twitter @Alex_BusDirUK
Alex runs her own company with two fellow owners developing a suite of e-commerce web sites and promoting them directly. “I found that SEO and finance were quite compatible both needing an eye for detail, research and analysis as well keeping up with new developments and changes.”

Visit Alex's . and Twitter
Posts by Alexandra Eager (113)

0 Responses:

Why not be the first to leave a comment, by completing the form below:

Leave a Comment: