Financial Leadership

People in leadership positions, employ a variety of characteristics and skills to achieve results.  Being a good communicator, having a positive attitude, being passionate, and having expertise in your area of interest certainly are important.  In addition, most leaders have to deal with finances.  Whether you are the CEO(Chief Executive Officer) of an organization or the CEO of your household, both require income forecasting, working within a budget, understanding the activities that influence the budget, debt management and enrolling others in the importance of working within the established financial framework.

The following characteristics and values that make good leaders also make successful financial stewards.

1. Honesty in all areas of life is certainly a plus.  When it comes to dealing with money, having integrity and operating with class not only allows you to sleep better at night, but also better enables you to engage others when it comes time to implement your plans.  This is especially true when you are being honest about your current financial situation so you can most effectively move forward.  Whether fundraising for a non-profit, managing household finances with a partner or reviewing last month’s financials with your team, truthfulness will best set you up for success and support.
2. Commitment to the cause for which you are advocating not only shines more light on the cause, but will also draw others in to support the cause as well.  When it comes to financial matters, discipline and commitment to strategy combine to make a great one-two punch for progress.  Just like a road map is only good if you follow it, a plan only works when you stick to it in spite of adversity or challenge.  A good leader not only talks about commitment, but demonstrates it as well.  This is especially true when it comes to financial matters.  Do your financial activities demonstrate commitment to your cause?
3. Flexibility is critical in allowing you, your business and/or your family to make necessary modifications as needed.  Just as life situations change, so do financial situations.  Once made, plans should allow for adjustments when and where necessary.  Remember, change doesn’t mean failure.  On the contrary, having the courage to make alterations along the way demonstrates commitment to the end goal.
4. Vision for the future is one common trait that all good leaders have.  How do you envision your future?  Are you taking the steps today to get you there?  If the tools or the strategies you are using aren’t working, it may be time to look for new resources or take a look at the vision you are working toward to ensure it is what you really want.  Goal setting is an ongoing process and working for goals that are meaningful for you and your family will keep everyone more committed to the process.
5. Humility is an important characteristic of all good leaders. They know they can’t do it all on their own.  If you are entering into unchartered or uncomfortable territory…ask for help.  Find the experts that can support you in your financial journey.  Business leaders understand the importance of partnerships and how to leverage the knowledge of others.  This is an equally important skill when it comes to managing finances.  Find the team of advisors that will empower you to achieve your vision!

Good leaders have a wide range of personalities.  The common characteristics above are found in business leaders, entrepreneurs, educators, public leaders (we hope) as well as leaders of households.  Chances are, someone who employs these traits in one area of their life is going to utilize them in all areas- including finances.  Are you approaching your financial situation as a leader or are you recognizing an opportunity to step up your game?

Don’t forget that good leaders also mentor others.  As you take control of and elevate your financial situation, consider how you can empower others to do the same.  In addition to your family, friends or peers, we have a generation of youth thirsty for this type of knowledge.  We can all take steps to ensure a developing generation of effective financial leaders by sharing tools like our ThriveTime for Teens game.  Simply by showing an interest, you will create more impact than you realize!

To your success,

 

Sharon Lechter