Remember the BIG PICTURE- The Corporate YOU!

The latest issue of ‘Outlook Money’ dated 25 August 2010, has covered an intriguing story on How to build one’s wealth efficiently?

The catch of the entire story is based on one plain idea which says ‘One must build one’s wealth like a successful corporate’. In other words, in the process of creating wealth for yourself you should treat your finances like a company, let’s call it You Inc.

In a company there are different departments handling different functions, however, in this case if you were to be the CEO of your financial outfit you are almost alone except for the advisors you might want to engage with. This gives you greater flexibility and you become the decision maker of yourself in the different walks of life.
If this were to be related to a company, the different roles that you would have to don in You Inc. would be:
1. Be your own Chief Marketing Officer: Market yourself well and be a brand in yourself.
2. Be a Chief Financial Officer: Like any other company make meaningful expenses & allocations to your best understanding.
3. Be a Chief Risk Officer: Learnt to identify risks and have a plan to deal with them.
4. Be a Chief Investment Officer: Arrange surpluses into assets by balancing key points which matter to you the most.

What would it take to build the most successful YOU Inc.?

1. Vision: This is what a company wants to be in future, like a successful company you need have a clear Vision statement.
2. Values: Remember, your values would be the reflection of your financial attitude, this is the time when you would want to ask yourself, what do you want your money to do for you? How long do you want your values to shape your decisions? etc.
3. Mission: Each company needs a mission with a vision, meaning things that are actionable; things that the company is already doing. Similarly even you need to have a short and long term mission as you scale up in life.
4. Goals: Goals are nothing but tangible targets of the company, which in your case would be financial goals such as acquiring a home, children’s education and retirement.
5. Realizing  Your Goals: Three essential things to do to ensure one hits the bull’s-eye and on time:
•    List your goals
•    Priorities
•    Create the infrastructure for the pursuit of goals. This involves among other things selecting the tax advisor, financial planner, ECS mandates for EMIs and SIPs.
•    Periodically review the progress made towards goals (annually for long-term and Quarterly for short-term).

All it takes is determination, dedication and a sense of strong focus on the BIG picture to be an invaluable player in the game of life.
Source: Outlook Money (25th August 2010)