Tap Your Inner Bond Manager and Grade Your Finances
© Tracy O
Bond manager services have a creative, yet simple, way for rating a person's bond portfolios. They use letters A, B, C, etc. that are much like report cards you received in school--except you get much more money for A's here. It's a novel idea that can be easily applied to your personal finances. Using basic indicators like grades is a method everyone can understand, providing a more meaningful signal to how you manage your money and business investments.
First take a look at your budget. If you're covering your essentials and still have a substantial amount leftover you can consider yourself the top of the class. However, if you find many of your expenses are going towards entertainment and luxury purchases, then you are failing in a major way.
If you're a business owner, replicate the grading process above. Are you keeping your source of income above average? And if you're an investor, think about those businesses and projects you've taken a stake in. How would you grade those business decisions?
Ask yourself a few more questions. How prepared are you in case of tough economic times? How well would you be able to move on if your business went belly up? How you grade your answers to these questions is predicated on your savings and assets. Maintaining a savings balance to cover 3 months worth of expenses, plus assets that have worth, should be considered an A. In times of economic uncertainty this arrangement will guarantee a limited financial disruption, which just may be the hardest test of all.
Another area to consider grading yourself is your history of any past business mistakes, fees or penalties. Think of it as an overall indication of your business and financial-savvy. Compare your results and see how well you're making the grade.
© Tracy O
Bond manager services have a creative, yet simple, way for rating a person's bond portfolios. They use letters A, B, C, etc. that are much like report cards you received in school--except you get much more money for A's here. It's a novel idea that can be easily applied to your personal finances. Using basic indicators like grades is a method everyone can understand, providing a more meaningful signal to how you manage your money and business investments.
First take a look at your budget. If you're covering your essentials and still have a substantial amount leftover you can consider yourself the top of the class. However, if you find many of your expenses are going towards entertainment and luxury purchases, then you are failing in a major way.
If you're a business owner, replicate the grading process above. Are you keeping your source of income above average? And if you're an investor, think about those businesses and projects you've taken a stake in. How would you grade those business decisions?
Ask yourself a few more questions. How prepared are you in case of tough economic times? How well would you be able to move on if your business went belly up? How you grade your answers to these questions is predicated on your savings and assets. Maintaining a savings balance to cover 3 months worth of expenses, plus assets that have worth, should be considered an A. In times of economic uncertainty this arrangement will guarantee a limited financial disruption, which just may be the hardest test of all.
Another area to consider grading yourself is your history of any past business mistakes, fees or penalties. Think of it as an overall indication of your business and financial-savvy. Compare your results and see how well you're making the grade.
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