• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Treating Your Household Like A Business Isn’t Rocket Science

By Len Penzo

corporation streetAnybody 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. And you can trust me on that one.

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.

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:

  • 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 running your household …

I think you get the picture.

Photo Credit: Ell Brown

January 24, 2016

Comments

  1. 1

    Jules @ Lovely Las Vegas says

    Cute! I like the article and the concept. Looking forward to more about this.

  2. 2

    Rose says

    You always give excellent information/advice! Much appreciated.

    • 3

      Len Penzo says

      Thank you, Rose.

Trackbacks

  1. 50 Personal Finance Habits - Sharing is the simple way to spread happiness says:
    August 9, 2017 at 7:25 am

    […] Treating your household like a business. By taking an active role in managing your finances — and looking at ways to maximize your income […]

  2. Quality Information and Innovation says:
    November 4, 2018 at 8:51 am

    […] your household like a business. By taking an active role in managing your finances … and looking at ways to maximize your income […]

  3. Quality Information and Innovation says:
    November 7, 2018 at 5:38 am

    […] your household like a business. By taking an active role in managing your finances and looking at ways to maximize your income […]

  4. The 50 Biggest Money Mistakes Household CEOs Make – Len Penzo dot Com says:
    March 23, 2019 at 4:30 pm

    […] 41. Refusing to treat your household like a business. […]

  5. What the Heck Does a Household CEO Do? – Len Penzo dot Com says:
    March 20, 2021 at 12:16 pm

    […] me preach that the job of household CEO is a relatively easy one. I’ve already discussed the primary qualifications that every household CEO must have in hand, but just what is it that a household CEO […]

The Question of the Week:

If the government eliminates cash, to what degree will that impact your freedom?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Par for the Course
  • The Continuing Chronicles of Elaine, Part 7
  • Three Reasons Why Credit Unions Are a Great Choice for a Car Loan
  • Bad Habits That Make You a Target of Credit Card Fraud
  • Lessons In Tax Law: Why You Should Never Try To Bribe The IRS
  • Why Paying Off the Mortgage Early May Be a Big Mistake
  • Black Coffee: Welcome to the Fun House
  • A Georgia Teacher Shows Why It Always Pays to Read the Fine Print
  • Why Extended Warranties Sometimes Do Make Sense
  • 10 Ways to Get the Most from Your Next Business Conference

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. Scientists Say This Clever Trick Can Help You Break Your Overspending Habit
  2. 2. 4 Online Shopping Mistakes You’re Making and How to Avoid Them
  3. 3. When Is the Right Time to Use Your Wealth Insurance (Gold & Silver)?
  4. 4. Dear Friend: Here Are 41 Reasons Why I’m Not Lending You the Money
  5. 5. Home Repair Scams: Here Are the 9 Biggest
  6. 6. Trying to Save Money on Gas? Here’s Proof That Driving Out of Your Way Rarely Helps
  7. 7. How I Fought My Parking Ticket and Beat City Hall
  8. 8. Are You Frugal or Cheap? Here’s How to Know the Difference
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023