5 Steps To Be Your Own Mogul – Part 2

December 14, 2018

Our prior article, 5 Steps To Be Your Own Mogul – Part 1, covers the first three steps to manage your finances like a business. Below we present the final two steps.

4. Forecasting

If you have performed the budget exercise and broken your expenses out into categories, you can start to highlight areas where you can improve. The idea here is to shift the negative spending into a comfortable routine that focuses more on building savings and trimming expenses for the long haul. You can do it quite easily without weekly envelopes of rationed money or other personal finance gimmicks that rarely work in the long term.Here are some suggestions for improving your financial forecast in painless and satisfying ways:

5. Surround Yourself with the Best Business Partners you can Find

Are your credit card and loan interest rates – in business terms, your cost of borrowing – unusually high? You must improve your credit profile before taking on any strategic debt. Review your credit report to find out why you don’t qualify for better interest rates. By improving your credit score before taking on debt, you can save hundreds or even thousands of dollars in interest payments.

Online calculators are available to help you analyze borrowing costs on any kind of loan or revolving accounts like your credit cards. Use them to run best, worst, and most likely scenarios – just as an industry CFO would do when assessing borrowing options and advising where and when to invest.

Don’t forget to revisit the financial terms for all your utility, communication and savings plans. There is always a distinct possibility that you can find better terms elsewhere or through negotiation conversations.Remember: If you aren’t on sound financial footings with your creditors, you cannot make demands for better rates. Those are reserved for consumers with high net worth and high credit scores.You can check your credit score and read your credit report for free within minutes by joining MoneyTips.

Managing your personal finances can be incredibly empowering. Taking the first few steps to objectively view your total financial picture can often be difficult. Just remember – this is your money, and no one should care about it more than you do.

Photo ©iStockphoto.com/BartekSzewczyk

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