America’s Best And Brightest
I enjoy hearing success stories of America’s best companies.
In our current political climate which often demonizes hard work and smart business practices, I have an even greater appreciation for companies such as Coca-Cola, Apple, Google, Wal-Mart, and Berkshire Hathaway.
Even during the worst economy in decades, these companies have figured out ways to succeed. They have made intelligent financial decisions that have helped them prosper.
I wonder what would happen if we approached our personal finances like these successful companies?
What if we as individuals and families had the financial mindset, will, and tenacity to make it in a difficult economy just like these businesses? If we did, then I believe we would no longer be in a down economy!
There are some great personal finance lessons that we can all learn from these prosperous companies.
3 Ways To Run Your Finances Like Successful Companies
- Avoid Debt. Apple, Inc. used to be a great example of this. Apple was formerly a completely debt-free company with billions of dollars in savings. In 2013, though, they decided to go into debt for a number of different reasons which included boosting their stock price, paying out dividends to investors, and taking advantage of our current U.S. corporate tax law. The decision to go into debt was really more of a strategic tax move and not a necessity to stay afloat, financially. Long-lasting wealth is built on the avoidance of debt in any form. In our personal finances, we would be wise to follow the ways of Apple, Inc., pre-2013! Get out of debt as fast as you can and stay out forever!
- Pile Up Cash. In our current economic climate, more and more companies are playing it safe: Apple, GE, Yahoo, and Caterpillar, just to name a few. These companies all realize that “Cash is King,” especially in an era of uncertainty. We should have the same mindset in our personal finances. Be sure to have a “baby” emergency fund of at least $1,000 if you’re still paying off any debt. If you’re completely debt free, then you want to have at least three to six months worth of expenses in accessible, liquid cash.
- Focus On Revenue Streams: products, traffic, clients, sales, and money. The best U.S. companies out there today have a laser-like focus on bringing in more revenue. They realize that revenue is the life blood for their company’s survival. Click here to see the revenue strategies for three major tech companies. In the same way, we should have laser-like focus on additional streams of income for our families such as side jobs, side businesses, passive income, dividend producing investments, and real estate. I highly recommend a couple of books on this subject from Robert G. Allen: Multiple Streams of Income: How To Generate a Lifetime of Unlimited Wealth and Multiple Streams of Internet Income.
Questions: How about you? Are you running your personal finances like these successful companies? Are you avoiding debt, piling up cash, and focused on revenue streams? Why or why not?