Why You Need to Think Like a CFO

Thanks to many years of modeling financial statements and analyzing performance ratios, I tend to think like a CFO when it comes to my personal finances. This means I have a comprehensive understanding of the ripple effect that good or bad financial decisions will have on my net worth.

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One role of a CFO is to ensure profitability, despite fluctuations in revenue. This starts with the essential task of identifying the proper balance between fixed and variable costs. When managing your personal income, you must do the same.