Free Family Finance

Dave Ramsey often presents a simple question to folks who call into his radio program. “If I hired you to manage your finances, what would you do?” Almost every time, the solution is made abundantly clear.

Its interesting how differently people run their lives from how they might run a business. Although the same principles apply, emotions creep in. Personal finance becomes just that – personal.

If we ran our lives like businesses, I think we would find ourselves in much different places. Much better places. In this series, we will look at how we can run our lives more like businesses and benefits of doing so.

The Marketing Department

Your company has a Marketing Department, but do you?

Two years ago, it might have been difficult to see the need for a personal marketing department. However, since that time, many companies have been forced into layoffs and pay cuts. With these circumstances, it is easier to see the reasons you need a personal marketing department. Let’s look at 3 things your company’s Marketing Department does, that you could mimic at the personal level.

1. Public Relations: Business like to be charitable and like for others to know about it. It is the heart of public relations. As individuals, we can replicate this easily. How? Do good stuff and don’t be a hermit. There is great value in community involvement. It should be something we are involved in, regardless. But as we participate in these activities, we should make extra effort to engage the folks we serve with. Community involvement is a fantastic way to network, particularly with other good-hearted people. If you have been laid off, or are currently looking for a new position, it might be time to ramp up your charitable involvement.
2. Record Keeping: Your company’s marketing department should keep lots of records. They use these records to develop marketing material. Your marketing department must be able to substantiate their claims with facts and their facts come from record keeping. As an individual, you should also keep adequate records about your performance. Depending on your line of work, it is important to track stats that show your effect & importance. Don’t wait until you are looking for your next job. By then, it will be too late. You won’t be able to access or remember the important details. But by continually keep records of your performance, you will be prepared for any unexpected career change.
3. Maintain a Website: Your company certainly has a website. But do you? Probably not. It can be incredibly useful to morph the record keeping above into an online portfolio. It doesn’t necessarily need to be a website, although it could be. With tools such as Twitter, Facebook, Linkedin, etc. you have plenty of opportunities to create a fantastic online portfolio for perspective employers to see your handy-work.

Dave Ramsey often presents a simple question to folks who call into his radio program. “If I hired you to manage your finances, what would you do?” Almost every time, the solution is made abundantly clear.

Its interesting how differently people run their lives from how they might run a business. Although the same principles apply, emotions creep in. Personal finance becomes just that – personal.

If we ran our lives like businesses, I think we would find ourselves in much different places. Much better places. In this series, we will look at how we can run our lives more like businesses and benefits of doing so.

Maximizing Your Income

As a business would strive to maximize sales, an individual should also strive to maximize their income.

So what might this look like?

Asking for a raise: Yeah, it is a bold move, and one that should only be reserved for appropriate situations. If you are in the midst of a struggling company, in a struggling industry, now is probably not the time. But if your situation is less dim, it might be a great time to put together a case for higher compensation.

Picking up a second job: It might not be the most ideal scenario, but it might be the most productive. It could certainly be a quick way to raise your income by a significant percentage. Do you have a hobby that could easily be turned into an income producing effort? Is there a natural extension of your day job? Could you use your expertise in a consulting roll?

Advancing your capabilities through education: While the first two suggestions are short term solutions, the answer might need a long term approach. The dreaded, “What do you want to be when you grow up?” question. It might be time to identify your career path, set achievement milestones, and begin achieving.

1. It could cost you a job

Even employees who think their jobs are safe can sabotage themselves by being too honest online about their personal lives or by posting feelings regarding a boss, a client, a co-worker or the company they work for.

2. Debt collectors can find you

Social-media outlets have become a key tool for collection agencies trying to track down debtors, says Michelle Dunn, the CEO of the American Credit and Collections Association and the author of “Do’s and Don’ts of Online Collections Techniques.”

“If they don’t have a good phone number or the mail’s being returned, a lot of them use Facebook to find out if (debtors) have a different address or their employment information,” Dunn says.

3. Scams are rampant

“If you have a public Facebook profile that gives your birth date and your parents’ names and that kind of thing, they can provide the answers to security questions that your bank might have on its Web site,” she says.

Some Thoughts:

There is definitely a false sense of comfort embedded within social media. I often find myself publishing things that I would not publish, if I thought about each individual person who could read it. I usually just consider the people I want to read it or those who most often respond to other things I post.

I protect myself from these potential disasters three ways.

First, I group my facebook friends into 4 groups, each with their own privacy settings. Close friends get full disclosure. Regular friends get almost everything. Meanwhile, family, coworkers, & acquaintances get next to nothing. Additionally, there is a Sh-Crap List for people who get nothing beyond the satisfaction of an accepted friend request. I have found that this system helps minimize social trouble.

Second, I have a protected twitter following.

Third, I have a zero tolerance policy on social drama. If someone uses my social publications to stir up social drama, they immediately get promoted to the sh-crap list. It isn’t worth it. Social media is entertainment. I shouldn’t have to babysit it.

Although these safety nets can help minimize social disaster, it doesn’t prevent it. In the end, you still have to use common sense.

article | Facebook and Twitter hazards: scams, job loss, debt collection – MSN Money.
photo | SashaW