4 tips to manage personal finances, the corporate way

manage personal finance

Sushil works as a Deputy general manager in a Telecom company and earns a decent 7 figure income. He is also a zonal manager and has more than 50 people in different states directly reporting to him. His work profile keeps him on tour for at least 10 days each month, and his phone never lets him feel at home if at all he is. It is natural to expect for such a work profile to be well organized, professional and expert in his specific field.

His professional life is thriving but still he has his worries on personal finances front. He understand that whatever he’s earning is just to make his and his family’s personal lives better but he’s not sure if he’s going in right direction or not. While searching for a CERTIFIED FINANCIAL PLANNER he visited my blog and happened to read my article on financial success and happiness. He mailed me by specifically quoting that he cannot call himself well settled.

We scheduled a call on a weekend, so he can share his concerns freely with me. He told me that after watching some personal finance TV shows, he has designed his mutual fund portfolio which comprised of all 5 star rated when invested but not now. He has few insurance policies sold to him by his banker friend but recently he’s bought one term insurance too with a good sum assured. Due to 3 job changes in last 12 years he has 3 EPF accounts, 5 bank accounts in different cities. As far as investment corpus is concerned, he has money but no direction or guidance if what he’s doing is right or not.

Isn’t it ironical that a person who’s managing company’s profit center so well, is directionless on his personal finances. It has been observed that when a person joins an organization ignores money matters giving reason that he doesn’t have enough money and as he progresses ahead with time he keeps on ignoring this concept citing reason of not having enough time. On a lighter note I think that the multi tasking nature of job gets so into them that they enjoy doing the same in money matters too, by making it more complicated and accumulating different investments assets.

You know what, coming out of such situation or not getting into it at first place is much easier for corporate employees. Its just that they have to manage personal finances, the way they manage their work profile. To simplify the things they just have to replicate their company’s processes in personal finances. Let me tell you how.

1.       Have a Business/Personal Financial Plan

Every organized business has a proper plan at place which tells the organization vision and objective that breaks down into short and long term goals/targets to achieve within a defined time frame. A Business plan can help improve business through investments while keeping an eye on costs and adjusting spending when and where it is possible to do so. It takes into account matters like employee costs, tax consideration and future business needs.

To support business plan, there has to be a properly laid down spending budget and marketing plan. There are specifically defined spending limits like on fuel and travel, on events, on promotions, on advertisements etc. along with the strategy on how to achieve the revenue target. These processes only help the business to achieve the target profits.

You just have to imitate the processes in your personal finance.  While working on your personal financial plan you have to take into account the expected cash inflow and outflow into family, note down the goals to achieve and by when and prepare a saving strategy to accomplish the task. Follow a strict expenses budget, so the adequate amount is always available with you for your savings. Ensure productivity of every penny you earn. (Read: 5 advantages of a written personal financial plan)

 2.       Ensure Team work

Achievement of organization goals is always a result of team efforts. It’s not a one person job. To ensure your team gives 100%, you work on their training and development, you do handholding in some complex project, you provide them cordial work environment and sometimes fight for them with your seniors.

 Same way personal financial management is also a team effort where your family members are your team. Involve them in the financial planning process. Your budgeting plan will never be successful until all family members are at same page and understand its importance. Your spouse can play a big role in all this. Involve her on each step of financial planning.Teach your kids to be good with money. Make them good human beings, so they can be a good manager like you. Teaching your kids how to save from an early age can help prevent them from the “I deserve it” mindset. Your financial planner can handle the training part

personal financial plan

 3.       Do regular reviews

 Even though you have good team in place and they are doing their best, but still you keep on reviewing the work at regular intervals. It’s a part of work process that you will do monthly or quarterly reviews to ensure the things are going as planned. Infact this is a part of regulatory requirement too where listed companies disclose their quarterly accounts to help the shareholders understand the recent and ongoing performance of the company.

When was the last time you did review of personal financial records? Consolidate your personal financial records and sit with your family and financial planner to review if the things are going as per plan or not. Many times I have seen investors not even aware of what they have and why they have.

Better to start doing timely reviews for your financial plan to make sure things are working the way you expected and if not just fine tune wherever required. 

 4.       Have a business/ Personal continuation plan

I heard this term for the first time when i was with ICICI Bank in 2005. ICICI came up with its BCP after Mumbai floods that came in July 2005. In simple terms Business continuation plan is a plan to continue operations if adverse conditions occur such as storm, fire, flood etc.  It requires identification of threats (internal or external) and provides effective prevention and recovery plan to the organization.

In your personal finances you should do the same thing by identifying the threats like job loss, life and health risk, accidents etc. and do your risk management carefully by buying adequate insurance coverage, keeping proper emergency funding and managing your cash flows properly. This will help support your finances in adverse situation.

(Also Read : 4 factors affecting success of financial planning)

Following a process has never been difficult for you. You are doing it for a very long time now in your job. To bring your finances in order you just have to replicate the same process in your personal money management. You are working hard for your company to make money, you just have to work well with your money too, so it can efficiently work for you when you require it the most.

Do you agree that bringing corporate culture in personal financial plan will bring discipline and direction to money matters? Share your views in comments section


  1. Three years back I got panicky and wondered where my money is going, my rudderless financial investments and of course blunders. Luckily I came in contact with Mr Manikaran . He sincerely and honestly guided me.He showed me the path and my perception about money and its handling changed drastically.


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