Being a leader is about living your life in a way that inspires or encourages others. To lead is to serve. If you make it your goal to do the best that you can and to help people, then you can't fail. I encourage you to commit to keep learning.

This is newsletter #19 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to take advantage of the discount offer for Mike's Leadership and Life Skills Program. Click on the coupon at the bottom of this page.

Knowing how to manage money is part of being a great leader. Many of the decisions that you will have to make will involve money, whether it’s a project that has to be within a budget or a wise purchase that makes your dollar go far. The ability to manage money is an important skill to master, and you'll see that you will constantly be addressing issues that have to do with finance. As an owner or manager some of those questions might be:

• Can you buy the tools or equipment that you need to do the job?
• Can you afford to take the job?
• Can you afford the team that you need to do the work?
• Will doing the job result in you losing money?
  

Success with money management on the job begins with how well you manage money in your personal life. If you can’t manage your own money it will be impossible to manage money in a business. If your personal finances are a mess that sends a really bad message to the people that hire you, the people that work for you, and also to your potential customers. Many employers run a credit check on you as part of their hiring process because they know that bad personal financial management will influence how you manage yourself in a business. If you are in debt or financial trouble your fears can lead you to make poor decisions that might have long-term effects, and you may take unnecessary risks because you are under so much pressure.

Your personal objective should be to learn how to build a life based on the income that you have; to make a decision to save a certain amount each month and to get debt-free. Most importantly, live within your means. Refrain from impulse buying and take time to consider all purchases before committing. When you've achieved financial freedom, your life will be significantly different. You’ll be able to weigh future options and make sound decisions without being swayed emotionally by your financial concerns from not having enough money. The day you become debt-free you will have increased stability and security and this this will open up new opportunities and flexible ways to approach your work and your personal life.

Personal financial freedom should be your first goal on the path to financial leadership, and when you understand the process, it will become the model for your professional life. There are many books and programs on the market that can help get you started on the right track and instruct you on how to become financially free. Authors like Dave Ramsey have complete programs that teach you to Take Control of Your Money. This process of training yourself for financial success will carry over to all the other areas of your life.

At the end of the day, true leaders have control over all areas of their business and their lives, especially their finances.

We'd love to hear from you about this series, and the ways you're using it. Send us your comments and feedback by clicking on Post a Comment below. Look out for the next part in this series a month from now, and please share with your colleagues.

The above content is extracted from Mike Holt's Leadership Skills textbook.