You and Your Company

We all hold companies to high standards of financial reporting. When it comes to the publichly held companies, they must have standard reporting practices such as quarterly statements and GAAP accouting. They are stringently judged by analysts, speculators, investors and the market in general. If they don't do well in a particular quarter, the stock often drops (which brings up another concern for another time). On the other hand, if the company has strong revenue, low expenses, good accounting practices and reporting, usually a company and its stock will do well.

What about You?

For all the time you spend analyzing charts, ticks and reports, do you put in the same time and emphsis in your own "company?" You are a small (or large) company in and of yourself. You have revenue (income), expenses (expenses), and budgets to keep track of it all. Or you should.

If a company spends more money than it makes and it doesn't change or get help, it will go bankrupt. If you spend more money than you make, you too will go bankrupt. If a company doesn't keep records of its activities, it will not know how much or little it makes or has. The same with you. If you don't keep track of what you make or spend, you will have no idea if you have money or not. Is this a good way to go about something that is so important?

A company may seem more important becasue it is bigger and makes more money, but you are your own company and are importatnt to yourself or your family. Run your finances like a company. Hold yourself to high standards when it comes to taking note of what comes in what goes out, and how it goes out.

This leaves us with some final questions. In what state are your finances? Are you an Enron or a Google (GOOG)? Would anybody purchase shares in your company?

Would you?

I do... or do I?

We all have a relationship with money. For most of us, its like being in a fickle relationship. Sometimes we love it, hate it, or feel apathetic towards it. Our moods change as it comes and goes from our lives. It's like that saying, "If you love something let it go. If it comes back, it's yours." This can also be applied to money. But with money, just because it came back doens't mean it's staying.

Don't marry money because it knows no loyalty

We base our general attitude on our past experiences with it. But whether we love or hate it, when it gets down to it, we need money. So we might as well reconcile our past emotions or attitudes we have and try to get along with it.

Sometimes we feel money is cheating on us - going out when we don't know, lying to us, saying it'll be back, then we can't find it. We try to call it and it doesn't answer so we leave a message. And it never calls back. Other times we love money. It feels so good to hold it in our arms. We get a sense of security and a warm feeling inside when it's home.

With all these emotions, how should we treat this psychotic relationship? I try to remember that money is a tool not a personality. It feels indifferent and has no memory and doesn't care if its near or far. Not to talk behind its back, but money gets around. Money is something we can use to achieve goals. We must remember that we can use money to help, and we can use it to hinder. But most importantly, whatever worth we give it, we must not forget that we need to value people more.

In contrast with money, people do have memories, emotions and they do care. People get happy and sad by the way you treat them, and visa versa. Those around us will not forgive your good or bad relationship with money. Suze Orman, a well-known financial advisor, always says, "People first, then money, then things." This is a good maxim to live by. We must not let money get in the way of how we relate to people. People have the most value, and although peoples attitude towards you will change, they also provide much more than money can.

I could have a million dollars, a huge house, nice cars and expensive wine to drink, but if I have no one to share it with, does it really have value? We must work together with integrity and comeradery to reach our goals. Using each other really only sets us further back.

I once heard from a wise man that you should be wary when lending money to friends, because you may lose both. So when faced with decisions where people and money are involved, remember to take a step back and think for a second. Make sure you know where the real value lies.

Good living to all.