What should a manager or financial officer expect from personal finance?
I remember an old saying that went like this:
“Flowers on the outside and tremors on the inside”
This saying tells us the incoherence which is often seen in companies. Thus we see clean environments, beautiful buildings, effective systems and shiny machines, but when seen up close or when experiencing their processes, they reveal to us that everything was a farce. That is to say that an image had simply been constructed on the outside –flowers-, but on the inside there was only low quality, that is, tremors.
But when this occurs at a personal and not an institutional level, the dissonance is even greater: Imagine an expert nutritionist who talks about nutritious and healthy diets and appears before you with an enormous overweight that shows the lack of order and a terrible approach to health in your diet; Think of a magistrate who shows immoral behavior, who has fines, constant complaints to the police; or, finally, a dentist who shows us a poorly cultivated smile in the midst of cavities and unaligned and yellowish teeth. These people would evidently be in their own image, disqualifying their professional abilities.
Just by seeing them or knowing something about them we would be clear that they are neither a good nutritionist, nor an honest and competent magistrate, nor a professional dentist to whom we entrust our oral health. Their own lives would be referring us to another saying that says "At home blacksmith, wooden knife".
We have started with this reflection because we consider it applies to what we want to refer to in this article: the financial health that every executive in the world of finance should have and be able to show it so without a doubt.
Financial health of a financial manager
Below we detail some topics that we consider are key to the financial health of everything executive of the financial world.
- We would expect, obviously, that you are financially sound. This does not mean, however, that he must be a wealthy person or with a large amount of assets, but we would definitely be surprised if he has money problems, since he would be telling us that he does not know how to manage his own treasury and calculate how not to run out of liquidity. , something key to the financial health of any company or person.
- Secondly, we would obviously like a person who does not register unpaid debts or coercive collection problems in debtor records or similar. This would be a major inconsistency for anyone seeking to manage the finances of an organization. It should therefore not be in any delinquency register.
- In third place, should have reasonable debt; we cannot conceive of a financial manager who is over-indebted; This does not mean that you cannot have loans and/or mortgage guarantees, but your debt ratio should always be reasonable. In other words, you should have good financial leverage.
- Finally, we would expect him to, in its network of contacts and in their social relationships, they handle themselves with people of impeccable moral and financial conduct. We do not conceive of a financial executive of a company who has friends whose moral or financial reputation and money management is dubious or questionable. You must not only be honest but appear honest, as the saying goes.
These aspects should obviously be complemented with technical, academic capabilities and with other skills necessary to perform the function. However, the issues that we have indicated are priority and prior to these, and therefore a starting point and an objective for any executive who wants to have one long history when starting out in the financial world.
If you want to improve your future in the financial world, our Master in Financial Management, Accounting and Management Control It will help you learn about the profession from within the hands of active teachers, considered leading professionals in the sector. With them you will learn everything you need to know to be a great professional in the world of finance. Talk later?
