Wednesday, September 7, 2016

Create Your Own Board Of Directors


Very few businesses succeed entirely on based on the skills of their CEO. While the CEO might set the vision for a company, she likely doesn’t know everything there is to know about how to execute that vision. That’s where the Board Of Directors comes in. The Board of Directors is a group of people who advise the CEO, evaluate her performance, and generally provide support and guidance to the company. They typically have experience and knowledge the CEO does not have. They may or may not work directly for the company, but they have a vested interest in helping the company succeed.

You are the CEO of your life. You are the one steering your financial ship through the often choppy fiscal seas. Why not create your own board of directors to help you? Take advantage of the experience and knowledge of others.

Who Should Be Board Members of You, Inc.?

Your board members should be people whose advice you can trust and people who are invested in you personally and professionally.

Your spouse or partner is probably a good choice, provided you are both trying to improve your finances.

Any relatives you have who are successful at business or finance would be good choices.

Your neighbor who drives a Mercedes, doesn’t contribute to his 401(k) at work, and maxes out his credit cards? Not so much.

A financial advisor? Maybe. If they are solely fee-based and will act as your fiduciary (and will put that in writing), sure. A commission-based advisor who might steer you towards products that make the most money for him but might might not be right for you? Nope.

Your Board of Directors should be made up of people you try to emulate or who you look up to. People who are strong in areas where you are weak. Also, they should be people you can trust with the details of your financial life.

Their purpose is to provide guidance and support to you and your financial decisions. Not sure if buying that new car is a smart move? Run it by a couple of them and see what they think. Trying to decide which of two different loans would be the best for you? Ask a board member! Want someone to review the progress of your financial journey and make sure you are on the right path? Ask your board for an evaluation.

Your board of directors doesn’t have to be a formal thing. It can just be a group of mentors you occasionally seek advice from. You don’t have to gather all of them together for a big meeting or put anything up for a vote. If fact, you don’t even have to tell them they are on your board! (Although personally, I think it might be fun to go all in and tell everyone what you are doing and have monthly or quarterly meetings, maybe over a pizza or two.)

Regardless of how you implement it, manage your life like a CEO and create a board of directors to help you succeed!

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