Financial Lessons from Work

Working at a small company has taught me a lot about business in general. I have rewired my mind to look at return on investment instead of just cost. I also learned a lot about the battle between time and money, project management, and accounting.

Lessons Learned:

  1. Cost Analysis - In business you look at a potential cost and figure out if you will get more than the cost back. You can apply this at home to purchases. The return does not have to be financial but is it justifiable?
  2. Time versus Money - In business time costs money. In personal finance we can weigh the convenience of something versus what we earn per hour. How long do you have to work in order to pay for that particular item or service? Is it still worth it?
  3. Project Management - Projects are everywhere in business and in life. Goals are projects in a sense. Achieving financial freedom is a long project and requires careful planning. Setting deadlines and goals along the way gives you milestones to work towards and eventually finish it!
  4. Accounting - Businesses have to account for every penny they have. We should do the same so we stay on track for goals, avoid fees, and have a very good idea of where our money goes. Businesses and personal finance alike will fail without accounting. This includes budgets!
These are just a few of the many concepts of business that we can apply to our financial lives. The "return on investment" of your life depends completely on how you live, how carefully you plan and manage it, and what you do every day. The same goes for business. Take control and live the life you want!