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Labor Day weekend, I was in the driveway washing my car when our next door neighbor jokingly asked me where my husband was, hinting that perhaps Pete should be washing the cars. He was inside putting away groceries.

When Pete came outside we had some friendly banter and I asked our neighbor where his wife was. He said she was inside paying bills. In their home she must be the CFO (Chief Financial Officer). Every family has one whether they know it or not.

Having married an evolved man I know how lucky I am that he’s willing to cook, grocery shop, do laundry or any other task that would “normally” be associated with the traditional female role. CFO is an important function for any family and one that is not stereotyped as being the responsibility of one gender.

Who’s the CFO at your house? The job description encompasses much more than paying bills. At our house we share responsibility for the financial aspects of our lives and therefore must be Co-CFOs. In some instances one of us may act as the deputy CFO, helping the other with particular tasks.

What if you ran the financial affairs of your home as if it were a business? What would the structure look like? Who would fill these positions:

-- Chief Financial Officer (CFO)

-- Deputy CFO

-- Office of Management and Budgets (OMB)

-- Accounts Payable and Accounts Receivable

-- General Accounting Office (GAO)

-- Systems and Operations

-- Business Continuity Division

I don’t want to overcomplicate the situation and take something that is relatively simple and make it into a difficult undertaking. Let’s not forget that financial management is simple, but not always easy. The guidelines and systems are simple, but the actual implementation is where it becomes a challenge. If your household is made up of more than one person we’ve complicated things already. The truth is that if you’re an expert on your family, you can excel in financial management. So what are some key tips?

Tip 1: Keep it simple

Economic movement is driven by the relationship between goods and services in an open market. Supply and demand change over time. Bathing suit prices rise in spring and early summer months, sunny beaches and warm water are most appealing. Prices decline after the kids go back to school, vacationers are back to work and few are imagining life on the beach.

Sometimes investors forget that the same principle applies to stocks. While analysts may think of some compelling reasons why a particular stock’s price may rise or fall, the basic fact is that interest in and demand for the stock is what makes its price rise.

Tip 2: Be actively involved in setting a budget

Today, budgeting responsibly has become more crucial. Be involved in determining how income will be spent. Don’t miss out on your chance to have everyone’s input for your budget. Ask yourselves how essential something is; is it time for discretionary spending or can it wait? Cover the essentials first, save and then consider additional consumption items.

Tip 3: Be clear on your assumptions

A budget is a plan for the future based on the best evidence you have at the time you prepare it. You’ll have to make assumptions about things such as income growth, price inflation, etc., much of it unforeseen. Make sure your assumptions are clearly stated so everyone is in agreement.

Tip 4: Share the budget with your team

As a manager and leader, your success depends on the results of the team. Take the time to share your budget with your team, including the key assumptions on which it is based. If everyone knows what they are aiming for in terms of financial results, they’ll look to do the right things to get the best result.

Tip 5: Take responsibility

When the going gets tough it is so easy to start to look elsewhere for excuses. If you have been involved in setting a budget, which you have signed on to, it’s hard not to focus your energies on getting results rather than the injustice of the current situation. No whining allowed.

Tip 6: Monitor performance and take action

Make sure that you have a process in place to carefully monitor your actual performance against the budget. If things are going well, see if there is more you can do to boost performance even further. If on the other hand things are not going as well as expected, focus on the changes you need to make or action you need to take to get back on track.

Tip 7: Focus on the most important numbers

When it comes to financial management it’s natural to sometimes get lost in lots of detail and trivia. Be clear on what are the 2-3 big numbers that you need to pay attention to, as they will more than likely constitute about 90 percent of your budget. In most homes this will be:

-- Income (passive income and earned income)

-- Expenses (Fixed costs and discretionary expenses)

-- Savings and taxes

Simple does not always mean easy. Easy very often indicates that something is not difficult to complete or perform. Simple indicates that something is in itself (intrinsically) not complicated or difficult and very often doesn’t have anything unnecessary added to it. However you look at things, assign a CFO in your home, keep proper perspective and revisit the role each month when paying bills. It’s simple to set this up but it’s not easy to maintain, but you’ll like the results.

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Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.