Financial management – the key to home and business success

In the quest for financial wellbeing, the two skill sets that the vast majority of people lack are financial management and wealth building skills.

Both are needed to run a successful business and a run a successful household.

Lack of financial management skill is one of the main reasons for business failure in Australia.  It is also the reason why the amount of personal debt is so high.

As a business starter, you spend years learning a trade or profession only to find that you possess only a fraction of the skills required to run a business.  One of the glaring omissions is financial management – the ability to manage your own money.

In your home or in your business, it is highly distressing to consistently run at a loss.  That means debt must be accessed just to make ends meet.  Not only is it a stressful situation to be in, but parents are inadvertently teaching their children some terrible financial habits.

The first step in financial management is to do an honest assessment of your situation.  Being honest with your self is paramount.  Seeking help is the second step.

You may think that you are in a desperate financial situation, all alone in a place that no one understands, but you are wrong!  Talking to a professional adviser can make a world of difference.  Your situation is not uncommon and there are some practical steps that can be taken towards a solution.

The process of changing from bad to good financial management is like quitting smoking.  You need to recognise you are addicted to bad habits.  You have to want to quit and be open to learn new habits.

The new habits will include some simple business planning or lifestyle planning and the preparation of a budget.  The budget shows you the expected result if you follow your plan.  This will be your blueprint for a new direction to financial wellbeing.

The principles of financial management are the same for your business and for your household.  Whatever else you may believe your business to be, it is a valuable source of income to finance your precious family’s lifestyle.

For more reading on financial management and your path to financial wellbeing, visit

Until next time!