The family CFO

I read this book "The Family CFO" by Mary Claire Allvine and Christine Larson. Very interesting.

Though I have not finished the book, but I have already learning a lot from it. The author encouraged couple or a family to practice and run it as if it is your business and your company.

Set up your board of directors - to plan the vision (dreams). It mentioned that giving time frame and priority to these dreams help make money decisions eaily.

Next it talk about setting yo the CFO office - staffing it with a Cash Manager and a Investment Manager (though in a family the two roles may be played by the same person). The Cash Manager manage the Income, expediture, cash flow and pay bills of the family. The Investment Manager manages the extra income determine the insurance, mortage, investment plans. The CFO finally present in either monthly or quarterly the finance statement of the family - detailing how well is the family reaching their dreams.

Dreams are infinate but resources need to achieve these dreams are finite. Therefore planning - which invole decisions making are needed. The finance satement of a family can be used to plan and executing and fulfils these dreams.

BTW - one of my dream is to bring my whole family to stay in the West Coast of U.S.A for a year - enjoying the four seasons, the people and the culture.