Let us look at our family, do we run our family like a business? Let us look at how similar a family is compared to a business. Businesses is about profit and loss. Its about bottom line. Its about being responsible to their shareholders.
So who are the shareholders of your family and are you being responsible for them? Parents, kids, spouse and anybody who may have a vested interest. The profit or loss in your home will be taking your combined household income minus all expenses.
Businesses have balance sheets every month to ensure they are still running on profit. If they know they are running close to a loss, they have measures and strategies to cut cost and bring the business back into the black. They know their fixed expenses and cash flow needed every month. They project how much expenses may be needed in future to sustain the business. They have risk management strategies to ensure that profitability and net worth of business is not compromised.
Do you know if your family is running on a profit or loss? Do you have a strategy if your family is running on a loss? Do you have projections for the future so that you know the family is sustained? Do you have risk management strategies to ensure profits and net worth are not compromised in your family?
Businesses also understand that they have to invest their liquid assets to allow their money to work harder for them. They may think of doing other businesses to diversify their exposure in their core markets. They may also employ asset management companies to invest their monies. They leverage on these companies' expertise in markets and sectors they may not be familiar with.
Are you letting your monies sit in liquid assets? Is your family's assets being invested to allow it to work harder for you? Is your assets diversified to reduce your exposure in one market?
If you have not thought about the above you may like to consider doing a Family Impact Analysis. Think about all the possible risk that may affect your family. Think about the probability of the risk happening. Think about the impact on the family. Then if you want a better understanding, complete the below questionnaire with your name, email and phone number
Are you letting your monies sit in liquid assets? Is your family's assets being invested to allow it to work harder for you? Is your assets diversified to reduce your exposure in one market?
If you have not thought about the above you may like to consider doing a Family Impact Analysis. Think about all the possible risk that may affect your family. Think about the probability of the risk happening. Think about the impact on the family. Then if you want a better understanding, complete the below questionnaire with your name, email and phone number
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