Rick Dahlseid, PBO Advisory Group’s Consulting Chief Financial Officer overseeing our nonprofit services, wears many hats for our clients – fractional CFO, strategic planner, trusted advisor, trainer, mentor, and much more. He is also an often-requested speaker on accounting and finance topics. Rick’s wisdom and wit, combined with his ability to make complicated topics simple to understand, makes his presentations educational and interesting.
Recently, Rick was asked by podcaster Jeremy Brown to speak on financial issues for the Moments Before Death podcast. The information Rick provided was focused on personal finance but many of the tips can also apply to the businesses and nonprofits that PBO Advisory works with.
At the start of the episode, Jeremy asked Rick, “What is Your Why” (Why do you do what you do?)
Rick shared the story of being in college and interning at the IRS. His assignment was to help individuals with filing their taxes. Rick realized that he lit up when helping people and loved the feeling it gave him. That experience influenced Rick and put him on the path of working with nonprofits, as he does today at our firm. Over his more than 40 years in the accounting and finance field, nearly one half of that time has been devoted to nonprofits and their specialized needs.
When asked about how to find a balance between saving and spending, Rick suggested a simple method to find a happy medium and live within your means – use a percentage. For example, of your income use 80% to live on, 10% should go to savings, and the other 10% to charity, if that is a focus for you. Your savings should be invested in vehicles that earn interest, dividends, etc., and be sure to take advantage of any employment retirement account opportunities for which you are eligible.
And the most common mistake that Rick sees regarding finances? Credit. The money you live on should include credit card payments. Remember, not all debt is bad, such as a home loan mortgage (though perhaps not now given the current interest rates).
Rick also believes that you should budget for the fun things that you enjoy. Providing experiences and creating memories are important, too.
When it comes to budgeting for your nonprofit or business, Rick and PBO Advisory are here to help. We assess, outsource, and advise regarding all aspects of your accounting and finance, HR, and business operations. And if you haven’t yet filed for a refund through the ERTC program, we can help with that, too.
Listen to Rick’s full podcast episode here.