Be Your Own Budget Finance Director

Large corporations often hire a budget finance director to oversee the corporation’s budget. This person may create the budget, analyze data, and implement financial policies for the employees to follow. This person’s job may also be to set short and long range financial goals for the company to reach.

Setting yourself up to be the budget finance director for your personal finances or for your family gives you a lot of power and the responsibility to make wise decisions. While far too many people view a budget as an unnecessary constraint that takes all the fun out of spending money, as director of your personal finances, you know that you are leading yourself and/or your family on a successful financial journey when you take this responsibility seriously.

While creating your budget, either on paper or on the computer is the easy part, actually living by it is a little more difficult. However, when you budget for every conceivable expense and category, you will find that your budget is not constraining at all but that it actually frees your money to be spent wisely.

Telling your money what to do by creating and maintaining a budget is important regardless of how much money you earn. Whether you earn minimum wage or megabucks, it is important to plan ahead for how your money will be spent. When you plan ahead, you cut out impulse purchases, which can throw a wrench into your budget. Also, just by planning ahead, most people are much more careful with their money. After all, most people don’t plan to be irresponsible; these are often decisions that are made on the fly. By sticking to your plan, however, you will find that the financial decisions you make are more sound and will lead to a brighter financial future for you and your family by being your own budget finance director.

People who live paycheck to paycheck often have no financial direction for their money. They pay their bills or as many of them as they can and the small amount that may be left over simply fritters away. However, when you set out to be the director of your own finances, you will find that there are almost always areas in which you can improve your financial picture.

Setting and reaching goals is an important part of any financial picture. By setting and reaching goals, you will find that you are willing to cut corners in some areas in order to make room for more important expenditures in other areas. Being your own budget finance director is a big job but it can also be a fun and challenging position that improves the future for you and your family.

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A Look at Finance Directors

In this article in our series of finance job profiles we will be looking at the role of a Finance Director. Finance Directors are seen as being the most influential when it comes to making finance decisions within a business or organisation. This role is a very important part of the finance function and you will be in charge of how the company performs by creating and managing budgets.

Due to the importance of the role you will be expected to liaise with all departments within the business helping them manage the budgets you have set them and working closely with the CEO to improve profitability.

Like most job positions, the type and size of a business will determine your exact duties. For larger companies, a Finance Director will be involved in more strategic decisions and analysis and if the company is of considerable size they may employ Finance Directors for just one department or decision. For smaller businesses, there will probably be less people in the department, so your role will be more hands on with the running of accounts.

General activities that the job will be involved in include, creating budgets and making sure they are adhered to, managing people within their team, creating accounts, future planning, analysing competitors, monitoring performance and cash flow and general financial advice within departments.

Top level jobs like this role will involve plenty of meetings, working between offices and putting in extra hours where needed. The skills a recruiter would be looking for in a candidate for a Finance Director include, strong experience in that sector, good business and finance knowledge, good people skills, high maths skills, an analytical nature, good at problem solving, good decision making and good management skills.

Individuals wanting to make it to Finance Director will have to work their way up as it is such a senior role and will require plenty of experience in the finance and accountancy sector.

Moving on from Finance Director roles can lead to more general management roles either within the finance world or in other sectors. Many move on to start up their own business and some even become Chief Executives of the companies they work for.

To find out more information about the role of a Finance Director and current opportunities, you should talk to a finance recruitment expert.

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The Benefits Of A Part-Time Finance Director

Before deciding to hire a finance director, it’s important to define the duties a business considers the most important part of the job. This determines whether the job is served adequately on a part-time basis or if the need is great enough for a full-time position. In small and medium-sized businesses, a part-time finance director may be sufficient. However, if the job of Finance Director is a position in a municipality with a population of 100,000, as an example, it’s clear how much time will be required. Once this issue is fully researched, the actual duties of the Finance Director become more obvious.

Most business owners prefer to manage their own finances. This can be a big mistake from the standpoint of objectivity. Unnecessary business expenditures are far easier to justify when objectivity is compromised. Most often business owners view this job as a good cop/bad cop. Yet, not all business owners are experienced enough in finance to make serious determinations of changes that need to be made to salvage a flagging revenue situation. Nor do they possess enough experience in financial management to make financial projections that coincide with peripheral or external economic situations. These are just a few examples of the benefits of a part-time finance director.

In most cases, when a business owner finds time is of the essence to recoup losses in revenue, this is when hiring becomes vital. It takes a certain amount of personal review of financial skills for a business owner to recognize there is neither the time nor experience to manage the job of business finances on a day-to-day basis. It isn’t a sign of defeat or weakness to hire a part-time finance director. Rather it is a sign of professionality and strength that proves business commitment and innovation. The job role can be a business owner’s best ally when financial data is requested by compliance auditors. If this sort of management for small and moderate-sized businesses was just a matter of adding and subtracting, any employee could manage the job. Providing accurate, reliable financial reporting on a daily basis makes good sense and saves time. Whenever time is saved in business, so is money. Costs for a part-time finance director is always a return on investment.

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Stop Working Hard and Grow Money on Trees

For the average person today, getting ahead financially seems like an almost impossible feat. It’s difficult for many to envision ever escaping the rat race when the cost of living is so high and wages are so low. Seeing no way out, most just suck it up and push through, trying to make the “best of it” the only way they know how – by working harder.
The problem with this approach is that the rules of money have changed, and working hard simply doesn’t work anymore. Most people have no idea that the rules of money have changed and that they are being penalized for playing by the old rules. Working hard used to work. Saving money used to work. However, after the rules changed in 1971, working hard and saving money progressively makes you poorer.
Because of a lack of financial education, a number of people find themselves metaphorically attempting to push a boulder up the side of a hill. A very few might make it, but for the majority the hill wins. This is what life is like today for those who don’t have a financial education and choose to play by the old rules and work hard.
The new rules require that your money work hard for you, instead of you working hard for money. You can look at this as “growing money on trees.” The rich don’t work hard for money. The rich have their money grow on trees, and so should you!
The rich work to accumulate assets. In very simple terms, assets are things that place money in your pocket. Some examples are businesses, stocks, real estate, and precious metals. When we speak of growing money on trees, the asset is represented by the tree. Whether it is a business, real estate, stocks, or precious metals, the tree – as an asset – represents something that places money in your pocket.
How the asset performs is represented by its quality of DIRT. DIRT stands for debt, inflation, retirement, and taxes.
Having a sound financial education provides you the ability to increase the amount of money that goes into your pocket because of a high quality of DIRT. The poor and middle class suffer due to a lack of financial education. This is why they end up deeply in debt, destroyed by inflation, sold the riskiest of investments, and paying the highest in taxes.
Playing by the old rules is a losing proposition and dangerous! Learn to have your money work hard for you. Learn to grow your money on trees through assets – just like the rich.

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