Tuesday, March 22
Running a Household Is Like Running a Company
 Yes, in terms of economy, running a household is like running a company. As a matter of fact, a household is an essential element in microeconomics. A households provides human resources to capitalists, who later on produce goods and services, which later on are consumed by households. But I'm not going to discuss the role of households in microeconomics. Here, I would like to discuss similarities between running a household and a company. In a company, financial planning is indispensable for a better future, and so is in a household. A household needs to plan for future income to cover future costs and future needs. Failure to make a sound plan for making a better income will result in financial bankruptcy, and nobody likes this kind of disaster. Just like in a company, a household must needs keep a sound accounting. It is important that a household keeps track of where the money comes from and where the money goes. This financial record is very helpful in a sense that it provides information on how secure a household is in terms of finance. Accounting will inform us whether the household we are running is accumulating wealth or suffering a financial loss. In a company, human resources management is essential. In a household, it is strongly advisable that everyone in the household be aware of the vision that their leader is pursuing for the sake of ultimate success of the household. The leader of the household must have a sound leadership skill to deal with the members of the household to fulfill their shared interests. Failure to apply this principle will result in confusion and dissatisfaction among the household members and will bring about a severe disruption to the household's work. The leader of the household is responsible for bringing out the best in every member and patiently nurturing them so as to be able to achieve their success together. In conclusion, the success factors that apply in a company such as financial planning, sound accounting, and human resources management are also applicable in a household. |
posted by Splinters of Thoughts at 10:36 PM
