Are You Making Good Financial Decisions?
My daughter’s school follows a method of teaching that helps children to develop mathematical skills by focusing on their practical applications in life. Instead of memorizing times tables and formulas – which is the way that I learned math – the children are taught how to use math to solve real life problems. There are plenty of arguments both for and against this type of teaching. While I do see some of its shortcomings, one of the things I am very happy about is that since kindergarten my daughter has worked with money in the classroom, becoming increasingly comfortable with some financial basics that I know will serve her well.
I remember the first time she was learning the differences between pennies, nickels, dimes and quarters. We would play a game where she would be offered a “trade” and would have to decide if she wanted to make the deal. For example, I might have two dimes and offer to trade them for one of her quarters. It was fascinating to watch how in the beginning she would eagerly make that trade. I could also easily get her to hand over those two dimes for just five pennies. Of course, given her basic understanding of numbers – two was better than one – and five was certainly better than two!
Well, let me tell you, just a couple of years later, negotiating “financial deals” with my daughter is like going a few rounds with the toughest banker out there. She knows every penny she has earned doing her chores. And, should I have the misfortune to need to borrow a few dollars, when I don’t have enough cash for the babysitter – my seven year old is just about ready to charge me interest. On a basic level, she has received the financial education that keeps her from making the bad financial deals she could easily be persuaded to make in the past.
As a solo entrepreneur are you putting the necessary time and energy into your financial education to avoid making poor financial decisions?
The business world is a tough neighborhood. There are many out there eager to trade you two dimes for a quarter AND there are many lazy business owners who are content to believe that two is always better than one. This form of decision making is the absolute opposite of financial responsibility and will absolutely keep you from success.
Every day solo entrepreneurs face critical financial decisions that can make or break a business. When does it make sense to incur business debt and when is it time to cut back? Should you be investing any available capital and if so, what kind of vehicles will you invest in? Is it time to develop new products and services or should you increase the marketing of your current offerings?
Small business owners must be willing to learn. We must really understand money – the pitfalls to avoid and the ways we can leverage our resources to achieve maximum stability and growth. Visit http://www.AbundanceBoundSystem.com for the financial education you need to confidently make the decisions that allow you to create the success you desire and deserve.
