Treat Your Household Like A Business

Anybody can run a household like a business, but to do it effectively you first have to appoint a household CEO in order to get the job done.   Of course, the best candidate for running your household is always YOU.

For those of you that already are having doubts about taking on the role of a household CEO, stop it.   As I said in yesterday’s post, getting your financial house in order is not rocket science!

You don’t need to know anything too complicated. You certainly don’t need to know many mundane things either, unless it’s stuff like how long should you keep financial documents.

For instance, here’s a bit of wisdom that the good folks at the Wharton School of Business will never give to their prospective students: You don’t have to have an MBA to be a successful corporate CEO.

In fact, being a CEO for a Fortune 500 company doesn’t require a college degree — just ask Bill Gates.   It may be hard to believe, but I assure you that anybody who is armed with a toolbox of basic principles in hand has most everything they will ever need to handle the job of CEO, whether they are running a Fortune 500 corporation or a household of one.

Think I’m kidding?   I’m not.   According to this article in USA Today, at the beginning of the 21st century, only about one-third of all American CEOs could claim to be a holder of an MBA.

After all, it’s not as if the holder of an MBA can say with any certainty that he or she will make a top-notch CEO.   For example, the late Kenneth Lay, infamous ex-CEO of Enron, held an MBA as well as a Ph.D. in economics.

I’m not trying to bash people who hold MBA’s.   But I am trying to stress that if multi-billion dollar companies can be run by people without all of the studying and training that is required to earn an MBA, then it certainly follows that it doesn’t take a lot of hokey financial theory to be an effective household CEO either.

Why?   Because the job of household CEO really only relies on your understanding of a few basic principles, a bit of common sense, and a commitment to becoming financially free — regardless of your household income.

A good household CEO understands the power of these four principles, which I will expand upon on in my next series of posts:

1) The consequences of fiscal irresponsibility

2) The difference between a want and a need

3) The importance of personal responsibility

4) The power of compound interest

Once you grasp those principles, then you are well on your way to being a successful household CEO and gaining your financial freedom!

Later, I will describe exactly what a household CEO does, after I address those four key principles.

Hey, if a guy like Bill Gates can successfully build and run a company like Microsoft for decades without ever having taken a business course, then you can run your own household without an MBA.

Being a household CEO is not a tough assignment.   Childbirth is tough.   A double root canal is tough.   Even driving on the San Diego freeway during rush hour on a hot August afternoon is tough.   But running your household…

I trust you get the picture.

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