Finance Coach - Vol. 18

Finance tip: Spending

Treat yourself. In these times of hearing “Save, save, save!” at every turn, the suggestion of indulging may seem to be out of touch with reality. It’s been proven, though, that people will stick more readily with regimens or budgets if they ‘break the rules’ every now and then. For example, diets are more effective when the dieter knows that they can ‘cheat’ every so often with a chocolate bar or a piece of cake, as the dieter does not feel restricted to the point of depression and ultimately giving up. This reward principle can also be used in your financial life. Set yourself milestones on the road to your financial goals, and reward yourself with something small when you reach them. You could, for example, treat yourself to a night of take-aways if you’ve brought your food expenditure down by 20%; or have your hair done as a reward for paying off a credit card; or get that gadget or pair of shoes you’ve wanted once you have a certain amount in a savings account. The possibilities are endless, but having a reward system will definitely make you feel more balanced about following a responsible financial plan, and the positive reinforcement will pay dividends many times over…

Business tip: Staff

Rotate and cross-train. If you have employees that work specifically in one department (as is generally the case), consider doing some on-the-job rotation of staff between different departments and functions. You could have your accountant work with the production team for a week, get your designers out on the sales floor, or have an HR staffer assist with compiling management reports. Not only does this allow other staff to take up some slack and ensure continuity in the event of an employee’ sudden illness or resignation, but it also helps employees to get a better picture of the business as a whole. This leads to better inter-department communication, increased morale, and can also produce some innovative suggestions for improvement in areas previously un-thought of…