Some years ago, John Madejski, the multi-millionaire owner of Reading Football Club, took part in a television documentary, he swapped lives with a single mother who subsisted on benefits, for one week.
First, the single mother stayed with her children, for a week, at his vast mansion, which everyone enjoyed, however the really interesting bit came when he went to stay with her for a week.
The revelation was how she managed her cash and survived on a very limited weekly income.
She knew how much money was coming and that each week she would need to spend more. Life had taught her that it was only by clever cash management that she would solve the problem of finding enough money to feed her children.
She felt she couldn’t increase her income as jobs weren’t readily available, and even if they were, she would have to leave her children with someone else, then her salary would only end up paying childminder fees. Therefore, she found a way of cash saving that would enable her to feed her children, feed them well, while staying within her budget. Each night she knew exactly at which supermarket and at what time they would be cutting the cost of their fresh food. She was able to feed her children on fresh food at a fraction of the cost that John Madejski spent on coffee in his mansion!
This is excellent cash management. She analysed her cash, matched her expenditure to it, and in so doing, improved the quality of the food that her children ate!
Through the years I have learnt that this is an additional benefit of Think Cash!
As cash management takes over so quality improves.
This a management practice, not management theory.