Advertising
Advertising

Think “Learning” for a Better Budget

Think “Learning” for a Better Budget

Aloha, let’s manage with aloha: Work well, live well.

I’m hearing the B word a lot these days: BUDGET. In my coaching I find that this is the time when all my clients are focusing on goals and objectives for the coming year. The thing is that they are focusing on it only because they have to, not because they want to: It’s time to get those forecasts and pro-formas in!

Advertising

While goal-setting with that financial catalyst is better than nothing, and it can be a good thing in terms of better realism with dated business models, the wiser, forward-thinking companies are those who use this time for financial goals connected to career development, service enhancements, and the customer-responsiveness of product. They connect those financial objectives—which will never go away, nor should they—with people objectives.

Advertising

What does this have to do with my learning theme this month? Plenty. This is just a short list for starters:

Advertising

  • Learn to use a better budget-writing process, where you look forward and not backwards. If your only research is the pattern of your past history + a new quota, no surprise that come year’s end you’ll only get what you’ve always got before.
  • Learn to involve the rest of your staff. In my experience, the more the merrier when it comes to the budget process. A goal for all managers should be banishing any entitlement mentality in staff and replacing it with business partner collaboration. Budget time is a great time to start: If they affect the budget, they should influence it and own it.
  • Learn some new measurements. I’m guessing that ROI has always been in your budget; now how about ROR (Return on Relationships) and ROA (Return on Attention)?
  • Learn that investment is a better word than cost. Asking yourself, What better investments can I make next year? is far better framing for your own thinking than Where can I cut costs? yet you answer the same question in terms of money and time, and cut out those un-worthy expenditures that won’t hurt anyway.
  • Learn to look outside versus inside. Lucky for me, fresh out of college, the first company I worked for never started the budget process until the coming year’s marketing plan was written, and an internal company campaign had been started to inspire us. Then the particulars of the marketing plan was presented in dialogue format to all the managers who’d then write the budget. Customer focus, company focus, then budget planning.
  • Learn to love numbers. Really. Fact of life: work success—not just business success—revolves around them, and once you set a new goal of improved financial literacy for yourself your outlook changes. Befriend someone who works in corporate finance, investment banking, or money management today, and get a window seat into their world: There’s a lot of passion to be felt there, a lot of smarts to get infected with.

Finally, Learn to Learn. I urge all of you now in budget-crunching land: Get that line item in your budget for “Staff Training and Education” and make the numbers work for it to happen. Then, set your own goals in learning and personal growth using that cash: Connect all the dots.

There’s just one Thursday left for our September Learning here on Lifehack.org this month: Comment here or email me if there’s a learning topic you’re interested in for next week. On every other day, you can visit me on www.ManagingWithAloha.com. Aloha! Rosa Say

Previous Thursday Column: Workhack: The Attitude of Q.&D.

Article Reference: The 3 R’s in Business: ROI, ROR, and ROA

Managing with Aloha, Bringing Hawaii’s Universal Values to the Art of Business

Advertising

More by this author

Rosa Say

Rosa is an author and blogger who dedicates to helping people thrive in the work and live with purpose.

12 Rules for Self-Management The Six Basic Needs of Customers What’s the difference between Mission and Vision? 7 Steps for Resolving Customer Complaints Reap Joy from this Thanks – Giving Holiday

Trending in Money

1 How to Develop a Millionaire Mindset in 6 Simple Steps 2 How to Eat Healthy on a Budget (The Definitive Guide) 3 9 Millionaire Success Habits That Will Inspire Your Life 4 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2020 5 How to Set Financial Goals and Actually Meet Them

Read Next

Advertising
Advertising
Advertising

Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

Advertising

2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

Advertising

If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

Advertising

4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

Advertising

5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

Read Next