It doesn’t matter how much income you earn if you cannot manage your money well. People who earn over $100,000 may say that they are barely paying bills, but others who earn $45,000 may be able to save money and live comfortably. Likewise, companies that generate millions of dollars in revenue might not prosper any more than businesses that generate far less.
Over time, revenue or income has to exceed expenses in order to generate a positive cash flow for an individual or a company. In order to ensure that you continue to be financially stable, it is important to practice financial management. Once you master the trick of keeping your bottom line in the black, you can free up more time to enjoy the rest of your life.
4 Resources to Help with Financial Management
- Manage Business Finances
You might hope to help your business run more profitably and with less stress over operating expenses and investments. You could therefore start off by viewing lists of financial resources. These lists typically share a range of resources including podcasts, books, and videos so you can choose the medium that best fits your learning style.
Comprehensive resources such as these are especially helpful when they come from companies or sites who are heavily involved in the financial industry. You can also look for lists like these from businesses or bloggers who are focused on providing resources for entrepreneurs and people who are interested in starting their own companies.
- Estate Planning for Yourself or Family Members
Few heirs ever regret the time that their family members spent working on estate plans. While some people may take a DIY approach to figuring out how their beneficiaries can benefit from their assets, others find that the assistance of a professional saves them both time and money. It’s also never too early to begin developing these kinds of financial plans because decisions that need to be made about the estate might impact other financial choices.
The American Bar Association offers an extensive guide to the basics of estate planning. If you want to plan for your own estate or help a loved one, you might start with their article and webinar.
- Financial Planning for the Future
Almost everybody has an opinion about the way that the government spends money. However, a lot of people have positive opinions about the investment of tax dollars that went into the free financial planning tools that are offered on Investor.gov. The Security and Exchange Commission, usually called the SEC, developed this website for the public. Simply find the “Financial Planning Tools” page within the “Additional Tools” tab of the site.
The different apps on this page are meant to be used entirely online. They can help with planning for both public and private savings or investment programs. These are just some of the financial planning tasks that these tools might help with:
- Calculating compound interest
- Determining savings goals
- Social Security retirement timing
- Analyzing Mutual fund expenses and fees
- Analyzing college funds
- Learn How Regular People Get Rich
If you have a dream of becoming a millionaire, you may want to read “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. What’s interesting about this book is the way it reveals that the majority of people who are worth at least a million dollars don’t live the way that most people believe that rich people live. In fact, wealthy people are as likely to live in middle-class housing as they are to live in fancy penthouses.
The authors conducted many interviews with people who managed to amass a decent fortune. They found that these people actually got rich through hard work, discipline, and common sense. They also took care to live well within their incomes and did not engage in conspicuous consumption. By studying these people, the authors developed a set of characteristics that other people might develop to grow their own net worth faster.
Why Study Financial Management?
Financial decisions that you make today can impact the way that you can live your life tomorrow and for many years in the future. By putting in some work, you can make your money work harder for you. These extra savings can also help bring you closer to your dream of independence. For you, independence may mean a chance to travel, spend more time with your family, or even start a new company or nonprofit. Your chance of reaching those goals may not entirely depend upon how much money you make but on how you manage it. Resources like the ones mentioned above can start helping you manage your finances better and maximize your income.