Run Your Household like a Business…a successful one

If we asked you to invest your money into a company that didn’t make any, you might think we were crazy right? Or if you knew about a business that made money, but frivolously spent it all, would your common sense tell you they are doing something wrong?

Cash flow, and managing it, are important to any successful business; and it should be important to managing your household. On its face, cash flow is a simple concept. You compare how much money you have coming in versus how much is going out. Noticed we didn’t say how much “needs” to come out. That is because if you are like most American households, credit card debt is too high, student loan payments are unbearable, and spending may be out of whack.

Cash flow is one of the many factors financial analysts look at when comparing companies and their respective stock values. Being cash flow positive (turning a profit), and having a healthy level of liquidity, both show good decision making by management and the ability to get through rough times.

So is your household turning a profit? Do you have the liquidity to get your family through tough times? If not, then we have some really good news! Managing the cash flow for your family is much easier than doing it for a business, and you have a plethora of tools available to help you do it! You should have far less categories of expenses for your family than for a company, and preparing for the future is much more intimate when it comes to your loved ones instead of when the accounts receivables department’s copy machine lease is up.

The first thing to do is start with a hard, honest look at your paycheck and your spending. We recommend basing your spending and saving goals off your net income. After all, that is the money you actually get to see and touch. Look at the past three months of your bank and credit card statements to see where you spend the most. If you have a lot of ATM withdrawals, then look at your Instagram account to see how many pictures from parties and bars you have. They might be a hint to where your money goes (hey we ain’t judging, we’ve been known to fist pump too).

Next you will need to do the math. If your statements reveal overdraft fees, late fees, and/or cash advances on credit cards; then put the calculator down, we already know you’re in the red. If the difference between what you have coming in compared to what money you have going out isn’t an amount you like, then it’s time to review your budget. If you’re in the majority of households when it comes to budgeting, then you’ll need to start one. The plan will be to prioritize what you need to pay, what you need to save for, and slowly make the progress to building up your cash savings. They will really come in handy when those rough patches in life spring up.

DISCLOSURE: The ideas, thoughts, and opinions in this article are our own, except where sources are specifically cited, and are property of Millennial Financial Planning. This article is intended for informational and entertainment purposes only, and does not serve as direct financial advice. Speak with your financial professional for direct advice and guidance. All investments contain risk and the potential loss of principal.
Millennial Financial Planning LLC (MFP) is a Registered Investment Advisor in the state of Pennsylvania and New Jersey. More information on the firm can be found at Please read our privacy policy.

21 Replies to “Run Your Household like a Business…a successful one”

  1. I might also like to say that most individuals that find themselves without having health insurance are normally students, self-employed and those that are without a job. More than half on the uninsured are under the age of Thirty five. They do not come to feel they are requiring health insurance as they are young and also healthy. Their particular income is usually spent on homes, food, and also entertainment. Some people that do represent the working class either 100 or as a hobby are not presented insurance through their work so they go without owing to the rising expense of health insurance in the usa. Thanks for the ideas you write about through this blog.

  2. These birthday quotes are a good spot to start, but do not think you have to stay with just what is written here. Personalize the sentiment even more with an inside joke and also special moment.

  3. I realized more interesting things on this weight loss issue. A single issue is that good nutrition is tremendously vital when dieting. A big reduction in junk food, sugary ingredients, fried foods, sweet foods, beef, and bright flour products can be necessary. Having wastes organisms, and harmful toxins may prevent objectives for shedding fat. While specific drugs in the short term solve the problem, the awful side effects are not worth it, and so they never offer more than a short-term solution. It can be a known idea that 95 of fad diets fail. Many thanks sharing your opinions on this blog site.

  4. Do you have a spam issue on this site; I also am a blogger, and I was wondering your situation; we have developed some nice practices and we are looking to exchange methods with others, be sure to shoot me an e-mail if interested.

  5. I simply want to mention I am just all new to blogging and site-building and truly loved your web blog. More than likely I’m want to bookmark your website . You amazingly have perfect writings. Bless you for sharing with us your blog.

  6. Each lady has the fantasy of a lovable and a dazzling home; The place when a straightforward house is being changed over by her, masterminded and reworked settled and rearranged by her. The immaculate passage to her pretty loft, smooth and even routes prompting diverse illustration room, lounge area and charitable outside family room. What’s more, what could be more satisfying than the windy climate with stunning perspective of nightfall. One simply needs to stay there, appreciate and stay till it culminates itself.for the evening bistro sets

  7. Whats Happening i am new to this, I stumbled upon this I have discovered It positively useful and it has helped me out loads. I hope to contribute & assist other customers like its helped me. Good job.

  8. “Hey There. I found your blog using msn. This is a very well written article. I’ll be sure to bookmark it and return to read more of your useful information. Thanks for the post. I will definitely return.”

  9. Hello there, just became aware of your blog through Google, and found that it is truly informative. I am going to watch out for brussels. I’ll appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

  10. “I would like to thank you for the efforts you’ve put in writing this site. I’m hoping the same high-grade web site post from you in the upcoming as well. In fact your creative writing skills has encouraged me to get my own website now. Really the blogging is spreading its wings fast. Your write up is a great example of it.”

Leave a Reply

Your email address will not be published.