Make your money work at home too
Mon 21 December 2009
, Marie-Pauline Luger & Dorieke Mulder, Vrouw & Geldzaken
Many women are often amazed when they realise that their finances at work are so much better organized than at home. I’m sure this goes for some Leap members too. Why are your business finances better organized than your personal? Obviously at work there are clear motivations: your boss, a promotion, or perhaps you were promised a pay increase.
Actually, it is a little bit more complicated than that. At your work you set goals. You are focused on results. To get results you have to spend money: therefore you make budgets. Every month you monitor your results: did I achieve the budget and what are the effects of the money I’ve spent? If necessary, you reshuffle the money to get an even better result. And yes, the reward is a happy boss and therefore a chance to a promotion and/or a raise.
At home we do things differently. We do not set goals, and even if we do, we are not bound by results. We don’t make budgets; if we do, we choose to ignore them whenever it’s convenient. We make our decisions based on our mood, without looking at the financial consequences. We seldom reward ourselves for goals accomplished.
Set goals, make a budget
The new year offers a nice opportunity to change your personal finances for the better. The best way is by applying a few simple business principles to your home environment.
First, set goals. Make your own 3-5 year plan. This can be about anything: a sabbatical, an emergency fund or retirement before the age of 67. Secondly, make a budget and stick to it. These two questions can help you to make a successful plan: how much are you going to put aside for your goals? Can you set money aside easily or do you need to cut back?
Meeting with yourself
The third business principle you could apply is meetings. Engage, once a month, in a ‘financial meeting with yourself’. Check if you are going to achieve your budget. Rearrange your money for a better result: if needed, spend less on Christmas gifts and set more money aside for your emergency fund. And fourthly, reward yourself when you have made your target! Buy that pretty dress, go out for dinner or take your friends to the theatre.
If you apply these simple rules, you’ll see they make a difference. You’ll have your home finances under control in no time. You’ll spend savvier, you’ll save money to achieve your goals and you’ll make better use of your time. Your boss is also going to profit. A financially well organized home relaxes your mind. A relaxed mind will help you to perform better at work!
Go for it!
We wish you a prosperous New Year and ditto savings.
About the author
Marie-Pauline Luger & Dorieke Mulder
Vrouw & Geldzaken
Marie-Pauline Luger and Dorieke Mulder are experts in personal and corporate finance, and estate planning.
Columns from this author
Columns in Money
- The remedies for capitalism (25-04-2011, Paul Polman)
- Capitalism for the long term (19-04-2011, Dominic Barton, McKinsey/ Harvard Business Review)
- Review: 'The four pillars of investing' (16-04-2010, Alberta Opoku)
- ‘The Total Money Makeover’ (26-02-2010, Alberta Opoku)
- Make your money work at home too (21-12-2009, Marie-Pauline Luger & Dorieke Mulder)
- A tricky question (05-09-2009, Henriëtte Prast)
Articles in Money
- Are Men the Real Winners with the Rise of Female Breadwinners? (09-04-2012)
- Wage gap still there, unless you are a house-sitter (26-03-2012)
- Emotion Analytics: The Missing Ingredient in Risk Management (13-02-2012)
- Mine's Bigger than Yours: Challenges of Being a Female Breadwinner (05-12-2011)
- 10 Things Baby Boomers Won't Tell you (21-11-2011)
- Negotiate for…your family, friends, colleagues (15-11-2011)
- 5 Tips to remember next time you negotiate a raise (07-11-2011)
- Female leaders share advice at Wall Street Conference (24-10-2011)
- It - literally - doesn't pay to be nice (05-09-2011)
- Effect van loopbaanonderbreking op salaris vrouwen (18-07-2011)
- Aandeel e-shoppers in 2010 verder gestegen (04-07-2011)
- Leuk werk? Alleen geld telt... (27-06-2012)
- Serious Play: The Business of Social Currency (17-05-2011)
- Banksparen steeds populairder (02-05-2011)
- Remaking Portugal Telecom: An interview with CEO Zeinal Bava (03-05-2011)
- Inkomen Japanse vrouwen passeert dat van mannen (19-04-2011)
- Nu gaan vrouwen de best betaalde banen inpikken (11-04-2011)
- Too expensive? Don’t listen to that little voice (29-03-2011)
- Bedrijven scoren beter met vrouwen (22-03-2011)
- Vrouwen werken meer voor minder (15-03-2011)
- Whose money is it? (25-01-2011)
- Ladies, Should You Ask For It? (25-01-2011)
- Budgets are sexy (18-01-2011)
- Young British women reverse pay gap (12-12-2010)
- Lehman Sisters Wouldn't Have Failed (07-12-2010)
- Chocolate will be the future caviar (20-11-2010)
- Banking on gender diversity (08-11-2010)
- European employees: ‘management are fraudsters’ (19-05-2010)
- Women and money (03-04-2010)
- Making cash with ‘socialnomics’ (29-03-2010)
- ‘Can you afford your life?’ (25-03-2010)
- Review: The four pillars of investing (23-03-2010)
- Beat the tax office to it and start now! (09-03-2010)
- ‘Every quality has its price’ (02-02-2010)
- Suze Orman’s 2010 personal finance tips (22-01-2010)
- Success in your work, success in your wallet... (01-01-2010)
- Poll: I manage My Money at home... (01-01-2010)
- Your money and you: (01-01-2010)
- My money… (01-01-2010)