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Personal and Family Finance Considerations for Business Leaders [Three Tips for Executives Strapped for Time]

Written by Brenda Hellums on September 27, 2021

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If you’re a business executive, chances are you’re knee-deep in ensuring your organization is profitable and financially stable. But, when it comes to your personal and family finances, can you say the same?

Are you sure you’re keeping the pertinent receipts for tax preparation? Do you check your credit card statements regularly? Are you reviewing insurance policies to make sure all of your assets are covered appropriately?

The truth is that, because of the professional demands of leading a financially successful organization, many savvy CEOs, CFOs and other executives often don’t have the bandwidth to manage their personal and family finances to the same degree that they do for their companies.

It certainly isn’t because they can’t. More often than not, it’s simply because their time and attention are already spread thin—and getting thinner. And as wealth increases, so does the level of complexity.

The result is ironic, to say the least. The same professionals who spend day in and day out painstakingly ensuring their companies are financially successful in turn may struggle when it comes to simply finding the time for managing their own routine financial tasks.

For these business leaders facing increasing professional demands, your personal money matters don’t have to take a backseat. Here are a few personal and family finance considerations for high-level executives when it comes to managing your financial affairs.

Learn more about Warren Averett’s Daily Money Management Services and personal financial reporting for high-net-worth individuals and executives.

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1. Build Your Own Personal Finance Team

You wouldn’t perform every role for your company’s financial systems single-handedly. It would be too time intensive, and you’d likely miss valuable perspectives and insight. Consider the possibility of building out a (formal or informal) personal finance team as well.

Have a go-to person in your life who can be your representative. While it could be your spouse or a family member, depending on your specific situation, you may find it beneficial to partner with a number of experts on different financial subjects.

The more trusted team members you have managing and monitoring, the more agile you are to not only manage your situation, but to also avoid potential issues.

2. Find a Middle Ground Between Preparation and Flexibility

First and foremost, planning ahead can’t be oversold. It’s important to be proactive in your plan, prioritize your long-term objectives and to have an emergency fund in place.

While preparation for the long term is key, rainy days can hit when we least expect it, so don’t discount the value of adapting to the unexpected. It’s not until we face abrupt or significant change that we realize even the best of plans can benefit from some flexibility. If there is a lesson we learned this past year, it’s the importance of being able to adjust to changing circumstances.

In short, be prepared, but be flexible. Stay alert and focus on your immediate needs, but not at the expense of your long-term objectives. Plan ahead for the bigger picture by putting all of the smaller pieces together.

How you navigate the journey matters a lot.

3. Consider the Data for Your Personal and Family Finances

Just as a business has a month end and financial reporting, you and your family can benefit from the same type of reporting when it comes to your personal finances. Reporting can present actual data about income and expenses and create realistic budgets to assist families in reaching their goals.

How often do you reflect on your normal spending habits? Are you aware of how much the little things cost?

Reviewing data and reports about your personal and family finances allows you to be conscious of where you’re spending your money and identify changes to improve your financial situation. In fact, it’s the seemingly small changes applied consistently that end up making a big difference over time.

Connect with a Partner for Tailored Personal and Family Finance Considerations

You’re busy with your career, managing multiple investments and homes in multiple states and raising a family. With so many important things to juggle, you may not have the time to look at your day-to-day financial details and set a plan for your personal finances.

Warren Averett’s Daily Money Management Services provides personal financial reporting and support for financial tasks and operations. Ask one of our team members to reach out to you to start the conversation about how we can help.

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