{"id":99,"date":"2024-01-22T04:15:54","date_gmt":"2024-01-22T12:15:54","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=99"},"modified":"2024-01-27T10:16:46","modified_gmt":"2024-01-27T18:16:46","slug":"treat-your-household-like-a-business-2","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id99-treat-your-household-like-a-business-2.html","title":{"rendered":"Don’t Be Afraid of Treating Your Household Like a Business"},"content":{"rendered":"

\"treating<\/a>Anybody can run a household like a business, but to do it effectively you first have to appoint a household CEO<\/a> in order to get the job done. Of course, the best candidate for running your household is always … you<\/em><\/strong>.<\/p>\n

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<\/a> is not rocket science. Trust me<\/em><\/strong> on that one.<\/p>\n

MBAs Are Overrated<\/h3>\n

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.<\/p>\n

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.<\/p>\n

In fact, being a CEO for a Fortune 500 company doesn’t require a college degree — just ask Bill Gates<\/a>. 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.<\/p>\n

Think I’m kidding? I’m not. According to USA Today<\/em>, at the beginning of the 21st century, only one-third of all American CEOs could claim to be a holder of an MBA.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Important Principles<\/h3>\n

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.<\/p>\n

When it comes to treating a household like a business, good household CEOs understands the power of these four principles:<\/p>\n