Last Updated Jul 24, 2009 12:58 PM EDT
Keeping More of Less. Even though revenue is down across the board, many companies have been able to squeak out some decent numbers because they have worked their budgets pretty hard. They've cut unnecessary expenses, focused on increasing productivity and ended up keeping more of what they earned.
- As incomes are falling within the American household, you can still run a profitable home if you approach your budgeting like major corporations do. You have to be ruthless about what you need and what you don't.
- Sometimes the solution is to reduce the amount being spent in a certain area, and other times the solution is to eliminate the expense all together. You'll have to decide what's important for your family.
|Corporate Expense||Household Expense|
|Equipment||Big screen TV|
|Communications||Cell phone / cable bills|
|Employee benefits||Auto / home insurance|
|Energy costs||Utility bills|
Will To Do It. So you've got the tools, the question is do you have the will to get it done. On the job, we don't have much choice, it's got to be done. But at home, there's no outside pressure to run a tight budget. You've got to create it yourself.
Bottom line. The world's most successful companies have shown that good budgeting is critical to getting through a recession. We should learn from that.