“As a leader, you will always be faced with financial decisions. In fact, nearly every leadership decision is a financial decision – either directly or indirectly.” – Joe Sangl
Joe’s statement stopped me dead in my tracks because most leaders never grasp this reality. As leader of I Was Broke. Now I’m Not, Joe assists pastors and church leaders in the areas of both personal and church finance. He is an expert on the subject. After reading his incredibly helpful thoughts below, click HERE or on the image above to learn more about how Joe can help you and your church. Enjoy!!!
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Every leader remembers the moment where a dream encountered financial reality. Perhaps it was the moment you identified a person you wanted to hire … and then you discovered their salary requirements. Maybe it was something even larger – like constructing a new facility. The plans produced by the architect were simply beautiful … and then you received the construction costs.
As a leader, you will always be faced with financial decisions. In fact, nearly every leadership decision is a financial decision – either directly or indirectly. It is challenging to balance the demands of a strong vision and the bank account.
Lack of funds, however, can paralyze many leaders. Daily activities become dominated by “which bills are going to get paid?” meetings. Payroll becomes a constant worry. The loss of a key customer or donor can totally derail the organization. This causes a loss of what I call “financial confidence.” Financial confidence is essential to most leaders.
Financial confidence moves leaders:
- From tactical thinking to strategic decision-makers
- From being stuck to progressing forward
- From double-mindedness to laser focus
- From exorbitant risk-takers to planned risk-takers
The following steps can help any leader increase their financial confidence:
- Establish Margin There is nothing like money in the bank to increase financial confidence. People have called it by many names: working capital, cash on hand, operating reserves. No matter what you call it, work to establish margin of at least six week’s worth of operating expenses. Warren Buffet once had more than $29 billion in the bank and was asked about it. His response, “We sleep well at night.” Margin indeed breeds financial confidence.
- Maintain a 12-month Cash Flow Plan A cash flow plan for the next twelve months, planned month-by-month, enables a leader to foresee financial obstacles and opportunities long before they arrive. This means each one can be accommodated without the stress usually accompanying such costs.
- Learn to say “no” Not every good idea is an idea worth pursuing. Always filter decisions through the vision you are striving to achieve. If it doesn’t allow you to move forward toward the desired outcome, don’t commit to it!
- Establish accountability This is a person who is strong in financial administration. Some call them bean-counters. Others may be called chief financial offers. No matter what you call them, it is important to listen to them and let them hold you accountable to your financial goals. While this person may quickly get a reputation as “Dr. No,” they can prevent you from drifting into a miserable financial ditch.
If you are a church leader, you probably know all too well about financial struggles – those faced by you as the leader as well as those faced by your congregation. As a church leader and a business owner, I’ve seen it too, and it breaks my heart that so many people are struggling financially. Broke people suffer from a lack of financial confidence plus they aren’t able to live generously!
That’s why I have developed a personal finance group study called I Was Broke. Now I’m Not. It’s DVD-based and can really help people learn biblical and practical ways to win with money and develop financial confidence. Learn more HERE.
About Joseph Sangl
Joseph Sangl is the founder of I Was Broke. Now I’m Not. and the President/CEO of INJOY Stewardship Solutions. He believes in Brian Dodd and thinks he is one of the most amazing human beings ever birthed on planet earth.