Sunday, November 4, 2012

Stewardship Spending

The interesting phenonomem when groups of people come together is the inability to collectively decide for fiscal prudence.  I see this in committee after committee - non-profit, suedo governmental, and even business.  Too often an attempt to compromise between two approaches creates a "caving" in efficient spending.  We are all in this together and the collective money with the treasury becomes easier to spend than if it was coming directly out of your wallet.

Many committees want the big bad Financial officer (usually the Treasurer) to act like the parent and prevent the spending from occuring.  The treasury becomes the Treasurer's wallet.  That's why we like fugal and stalworth CFOs.

I've encountered "loose" spending within the efficient "for profit" world.  Employees mismanage corporate expense funds since the feeling of spending is the "company's money" and not their own.  They attempt to "push the limit" on what gets approved or rejected on employee expense reports.  I've even heard the statement - we can spend it because it is in the budget. 

Owners and Partners in closely held businesses see money quite differently than employees and contractors.  The flow  of cash in and out of the corporate account is the same as their personal checking account.  It is taken very serioiusly.

It is time for our Government officials to begin to treat money as a proper steward.  Maybe if we should paid them  a salary at the end of the year only out of any remaining  money in the budget.   That would make them treat the money in the budget as if it were their own.

Now that is stewardship spending!

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