Treat Your Money Like a Business Profit and Loss Account
Published / Last Updated on 29/07/2020
Build your own personal wealth profit and loss account to plan for the future, just like a business.
How is your career likely to develop?
Pay rises, redundancy, is income rising, falling or static? What is your ‘career’ longevity? Are you likely to reach the limit of your career progression in your 40s, 50s? Some industries are younger by nature and you need to have a plan as to what happens when you hit your career plateau. Cash flow model this forward to predict what spare income you will have for investment both now and in the future.
What are your expenses?
Go through your spending with a fine tooth comb and improve/make cutbacks to save money so that you can build wealth. Cash flow model this forward to predict what expenses you will have in the future. Mortgage paid off? University costs? New car? This will allow you to plan for likely investment both now and in the future.
If you call in financial advisers/experts when needed – treat them like your staff or trusted colleagues – are they productive? Are they adding value or saving you time, money and tax?
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