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 who are already having doubts about taking on such an important role, stop it. After all, getting your financial house in order is not rocket science. Trust me on that one.
MBAs Are Overrated
Rest assured; 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 USA Today, at the beginning of the 21st century, only 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 MBAs. 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.
Important Principles
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.
When it comes to treating a household like a business, good household CEOs understands the power of these four principles:
- The consequences of fiscal irresponsibility
- The difference between a want and a need
- The importance of personal responsibility
- The power of compound growth
Once you grasp those principles, then you’re well on your way to being a successful household CEO and gaining your financial freedom.
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 isn’t a tough assignment. Childbirth is tough. A double root canal is tough. But treating your household like a business …
I think you get the picture.
Photo Credit: Ell Brown
Cute! I like the article and the concept. Looking forward to more about this.
You always give excellent information/advice! Much appreciated.
Thank you, Rose.
Timely, with enduring truthful points. Many years ago I was asked by an old workmate to sit down with him and figure out why he and his wife were barely treading water, let along getting ahead. They both worked with good bennies. Three things came up in all caps. One, he always put a want as a need. I want my son in rep hockey, my daughter has to be in figure skating, therefore I need to pay for it and also travel to tournaments etc etc. No weekly menu or dedicated shopping trips. Nothing in the fridge for supper, just pop over the the nearest (most expensive) grocery store in town and pick something up for supper. Then, the monthly payment dance for the travel trailer, 4X4 to haul it to the leased rv site 15 miles out of town. etc etc
They weren’t really serious about finances. Sure, they wanted to be financially free and independent, but…..
Thanks, Paul!
My mother had a saying, A woman can throw more out the back door than a man can bring in the front door! Could be the man throwing more out the back door.
I know I throw more out the back door.