Author: J.D. Roth / Source: getrichslowly.org
Note: During the month of March, I’m migrating old Money Boss material to Get Rich Slowly — including the articles that describe the “Money Boss method”. This is the second of those articles. Part one answered the question, “What is financial independence? ”
For the past several years — since I published the Get Rich Slowly course in 2014 — I’ve been trying to teach people to think like a CFO. Here’s my fundamental premise: You should manage your personal finances the way a business owner would manage hers.
To illustrate why I think this is so important, let me introduce you to my friend Harlan…
When he was 25, Harlan’s world fell apart. In a matter of weeks, his girlfriend left, he lost his job, his car was impounded, and he was evicted from his apartment. When he moved back in with his dad, he knew he’d hit rock bottom.
While looking for work, Harlan did some soul-searching. He realized that for too long, he’d been letting life happen to him. He’d been letting other people and outside events control his destiny. He blamed his situation on the economy, on his boss, on his girlfriend – on plain old bad luck. He blamed everyone but himself.
But blaming others only left him feeling helpless.
Slowly at first, Harlan changed his mindset. He decided that failure and success were in his hands. He made it his mission to improve his life and his finances.
- He moved to a new apartment, which he shared with three roommates. His rent was less than $350 per month and other expenses were split four ways.
- He found a new, higher-paying job as assistant to the Chief Operating Officer in a division of a large financial firm.
- Most importantly, Harlan began to actively manage his money. He tracked every penny he spent. He opened a savings account and began to save for retirement.
In short, Harlan took control of his life. He chose when (and why) to get out of bed in the morning. He decided how well he did the work his boss assigned him. He chose whether or not he was happy…every second of the day. He was calling the shots – all of them.
As part of his new job, Harlan got a glimpse at how big businesses operate. He saw what made them profitable, and he saw what made them fail. He decided to apply some of these business lessons to his own life.
For instance, because he’d been producing financial reports for a division of his company, he started creating financial reports for his personal accounts. At first, these reports were embarrassing. They revealed just how poorly he had managed his money. But Harlan found that running the reports kept him motivated. They were a way to “keep score” on his progress.
Harlan has made a lot of progress. After nearly fifteen years acting as the Chief Financial Officer of his own life, he’s gone from deadbeat to hustler. He’s now financially independent yet he still treats his personal budget like a business.
I like Harlan’s story because it reminds me so much of my own, I think.
Note: Harlan is one of the original money bloggers, the founder of Consumerism Commentary. He no longer owns that site, but is now co-host of the excellent Adulting podcast, which gives practical and actionable advice about being a grown-up
Becoming the Boss of Me
You see, in 2004 (when I was 35)…
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