Leadership and healthy personal finances
I once had the opportunity to watch Dave Ramsey speak. He is a financial leader, host of a popular national radio program and a best selling author. He shared some basic principles at a seminar designed for business people and he hit a huge home run. I realized while watching him speak, that although his principles were basic, they were desperately needed among the leaders he spoke to. I am sure they are needed for you as well.
Here are the five basic principles he shared:
1) Live on less than you make
Keeping up with the Joneses is a popular term but can still be applied in our lives. Whether it is your personal finances or even your business or organization, we are often guilty of spending more then we have. Cars, boats, clothes, office furniture, expenditures and the list goes on and on. It comes down to our desire to look like we have more then we really have. Learn to live on less in your business, church, organization and your personal life. If you are a leader you must do this by example. Furthermore, if you are a leader you must teach this to your team. The less stress they have about money, the more effective they will be.
2) Save money
A survey done by Parade magazine indicated that the average person in America has less than $100 saved. That is horrible! Here are some realities that you need to face. It is going to rain. There are going to be bumps in the road. Your business will have ups and downs as well as your personal life. Saving for a rainy day is an old traditional saying but it still applies. As a leader, model discipline through your savings.
3) Get out of debt
7 out of every 10 Americans live check to check, because they have created such large debt. Imagine what you could do if you had no debt. Imagine what your organization could accomplish if it had no debt. Start tackling your debt one at a time. Start with the small ones and work your way up. Getting out of debt and staying out of debt gives you great leverage as a leader to speak about self-discipline. On the other side when you are in debt, your words of self control are quicker to fall on deaf ears.
4) Develop a written cash flow plan
We have now reached the dreaded B-word, the BUDGET. I love what John Maxwell says about budgeting “A budget is people telling their money where to go instead of wondering where it went.” Get help if you need it but make a plan and know where the money is going.
You can only do three things with money: Spend, Save and Give. Be a model of great leadership by becoming a giver. Give from your organization and give from your own personal finances. There is a powerful lesson in life that when you give it will be given back to you. Learn to be a giver. Find the joy in giving to people, organizations and churches. You will never go wrong when you develop generosity in your life.
The hardest person to lead is you, and the hardest area for many is our finances. START NOW by getting a grip on your money. Help those in your organization to get a grip on their money as well. Maintaining healthy finances is a great step toward leading yourself.
Until next time,
QUOTE OF THE DAY:
“What does it take to succeed on a big scale? A tremendous God given talent?
Inherited wealth? A decade of postgraduate education? Connections?
Fortunately for most of us, what it takes is something very simple and accessible;
clear written goals.”
– Brian Tracy
Author and Speaker
Posted on February 22, 2010, in Habits, Leadership, Personal Growth and tagged Effective Leader, finances, influence, Leadership, Personal Growth, Planning for success. Bookmark the permalink. Leave a comment.