Managing Your Money

Knowing how to manage money is part of being a great leader. Many of the decisions that you will have to make will involve money, whether it’s a project that has to be within a budget or a wise purchase that makes your dollar go far. The ability to manage money is an important skill to master, and you'll see that you will constantly be addressing issues that have to do with finance. As an owner or manager some of those questions might be:

• Can you buy the tools or equipment that you need to do the job?
• Can you afford to take the job?
• Can you afford the team that you need to do the work?
• Will doing the job result in you losing money?

Success with money management on the job begins with how well you manage money in your personal life. If you can’t manage your own money it will be impossible to manage money in a business. If your personal finances are a mess that sends a really bad message to the people that hire you, the people that work for you, and also to your potential customers. Many employers run a credit check on you as part of their hiring process because they know that bad personal financial management will influence how you manage yourself in a business. If you are in debt or financial trouble your fears can lead you to make poor decisions that might have long-term effects, and you may take unnecessary risks because you are under so much pressure.

Your personal objective should be to learn how to build a life based on the income that you have; to make a decision to save a certain amount each month and to get debt-free. Most importantly, live within your means. Refrain from impulse buying and take time to consider all purchases before committing. When you've achieved financial freedom, your life will be significantly different. You’ll be able to weigh future options and make sound decisions without being swayed emotionally by your financial concerns from not having enough money. The day you become debt-free you will have increased stability and security and this this will open up new opportunities and flexible ways to approach your work and your personal life.

Personal financial freedom should be your first goal on the path to financial leadership, and when you understand the process, it will become the model for your professional life. There are many books and programs on the market that can help get you started on the right track and instruct you on how to become financially free. Authors like Dave Ramsey have complete programs that teach you to Take Control of Your Money. This process of training yourself for financial success will carry over to all the other areas of your life.

At the end of the day, true leaders have control over all areas of their business and their lives, especially their finances.

The above content is extracted from Mike Holt's Leadership Skills textbook.

--

Mike Holt is an author, businessman, educator, speaker, publisher and National Electrical Code? expert. He has written hundreds of electrical training books and articles, founded three successful businesses, and has taught thousands of electrical code seminars across the US and internationally. His company, Mike Holt Enterprises, has been serving the electrical industry for over 40 years, creating and publishing books, DVDs, online training and curriculum support for electrical trainers, students, organizations, and electrical professionals. 

Mike has devoted his career to studying and understanding the National Electrical Code and finding the easiest, most direct way to share that knowledge with others. He has taught over 1,000 classes on over 40 different electrical-related subjects to tens of thousands of students. His knowledge of the subject matter, coupled with his dynamic and animated teaching style, has made him sought after from companies like Generac, IAEI, IBEW, ICBO, NECA, and Fortune 500 companies such as IBM, Boeing, Motorola, and AT&T. He is a contributing Editor for Electrical Construction and Maintenance Magazine (EC&M) and formerly Construction Editor to Electrical Design and Installation Magazine (EDI). His articles have been seen in CEE News, Electrical Contractor (EC) International Association of Electrical Inspectors (IAEI News), The Electrical Distributor (TED) and Power Quality Magazine (PQ).