What do you have in common with a corporate banker?

Have you lost track of your finances?  Do you take out $300 on Monday and have no idea where it all went by Thursday?  Do you forget to make payments and then get charged with late fees?  Do you sometimes bounce your checks and get insufficient funds fees?  Hopefully not, but for many Americans, not tracking where money is spent, making late payments and bounce checks is a way of life.  However, it doesn’t have to be that way.

You may say, “I’m just bad with money,” but that doesn’t have to be the way it is.  In fact, you are your own corporate bank and should treat your finances as such.

Someone who specializes in corporate finance for large U.K. or U.S. institutions must make wise financial decisions for the institution.  A corporate banker analyzes the business’ cash management solutions (how much money is spent and how much money comes in during a particular period of time) and also plans for short-term and long-term investments.

Your job is to be your own corporate banker on a personal level.  You are in charge of your own finances.  How are you doing?  Would you be fired, or are you a skilled financial manager?

If your financial situation leaves much to be desired, don’t use the excuse, “I am just not good with money.”  Instead, empower yourself.  You are your own corporate banker.  How can you improve your finances?

Maybe you need to start by cutting your unnecessary expenses.  Then, perhaps you need to earn more income.  Maybe you can ask for a raise at work or work extra hours.  Maybe you need to get a side job or create a side gig doing something you enjoy.  Between cutting expenses and increasing your income, you should see your cash flow improve.

Next to tackle is debt.  If you have credit card debt, put as much money as you can on the debt.  You can save yourself hundreds of dollars a year in interest charges by paying off your debt.  In addition, each debt that you pay off increases your monthly cash flow.

After debt, you will want to set aside an emergency fund to protect you from unexpected expenses like job loss and home or auto repairs or sickness.

After all of the basics are in place, you should be able to begin to invest for your short-term and long-term goals.

Successful personal finance is not difficult.  However, what is difficult is changing your mindset.  If you can convince yourself that “I am not good with money” is a myth you are telling yourself daily and that instead you are a corporate banker in charge of your money and your life and your job is to make the best possible financial decisions for your financial situation, you will be able to begin to improve your situation.  Your attitude toward yourself and money is the most important part of personal finance.

Post by Melissa

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