It might seem counterintuitive to look toward businesses and companies as guidance on how to run your individual and personal finances, however the guiding principles of many of successful companies could be translated to your personal financial situation. How a well-run company manages them is often very different from how individuals approach them, but the basic principles are transferrable. Take Apple, for instance. Apple is well-run company that has well-defined goals. Its leaders know what profit they’re aiming for this year. They know the earnings per share, return on equity, and other benchmarks they have to achieve. Their goals are clear and defined in absolute numbers and percentages. Apple looks at its numbers monthly and quarterly, not just at the end of the year. A good financial plan will have well-defined goals and numbers attached to it.

The second practical obstacle is having nothing in writing. Apple will have an annual plan, as well as longer-term plans. Everything in a well-run company is written; monthly and quarterly budgets are planned a year in advance, perhaps even years in advance. But typically, people don’t plan in writing that far ahead with their personal finances, and that’s a problem. If you don’t have a well-defined goal in absolute dollar figures and/or percentages, you cannot know if you achieved your goals or make adjustments during the year if you get behind.

Another practical obstacle is having no process. A well-run company has good training. From day one, you know what your job is, what you’re responsible for, and what your goals are. You know the systems of the company, and if you don’t, they offer superior training programs. However, individuals do not know the steps to accomplish what they need to do; their “training” in personal finance is usually haphazard at best and is often achieved on the fly.

The fourth obstacle is having no road map. You won’t see a well-run company that doesn’t have a road map; they know where they are throughout the year and where they are going. This is why companies lay people off, hire more people, or sell divisions in the middle of a year. They take actions during the year to make sure they meet their goals.

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