Failing to Review Your Finances, Progress, and Overall Activity at Least Once a Week (2)Posted by at October 29, 2012 in Activity | Control | Financial
Now I get a report from the management company I hired and review the numbers without fail every Friday. You see, if I only reviewed the numbers every month or two, I’d lose track of what’s going on. I know that if something got out of control during the week, it could be radically out of control for the month.
Most people actually wait a whole year before reviewing the numbers. Imagine the possibilities if things stayed out of control for an entire year! That’s why it’s best to identify problems early and frequently. Then you can lessen the amount of time that anything is in chaos.
I also sit down for 30 minutes each Friday and analyze how I spent my time during that week so as to determine what made me money and what didn’t. (In my courses, I provide a simple worksheet to help with this task. It’s actually best to fill it out every day, but at least do it once a week.)
In addition to tracking your time, I recommend that you project the amounts that will come in and go out, then determine what you’ll need in the near future. If you can’t do this calculation yourself, get someone who can. Hire a bookkeeper to scrutinize the numbers weekly.
Yes, you will get ripped off and lose money from time to time. But if you see the books every week, you’ll know it. If you let it go for months, it may become too late to turn around a chaotic situation.