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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!

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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.

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

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  • 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

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Rosa Say

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

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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