Good to Great: How to Scale With an Outsourced CFO

"You have to spend money to make money." This saying is often used in the context of entrepreneurship and business ventures, but it can be applied to personal finance as well.

When people talk about spending mind to make money, what they're usually talking about is assessing risk and looking for opportunities. Having the mindset to do this with your own finances can really pay off in the long run, but there are several things you may need to do in order to start making money by spending money.

1. Overcome Your Fears

You work hard for your money, and you don't want to waste it. While we all know that investing is certainly not "wasting money," there is an element of risk with investing, so the fears start to creep in:

• Is this investment a scam?
• What if I lose all of my money?
• What if the investment doesn't work out?

These are valid concerns, but if these concerns are keeping you from investing, it's time to be brave and overcome them.

One of the best ways to overcome them is to realise that, yes, sometimes your investments will fail. There it is. Just like you fell down over and over again when you were learning to walk, you will make some investing mistakes. In the long run, however, people find that their investing successes far outweigh their investing mistakes.

Start small by making conservative investments in fairly safe markets. As your confidence grows, so will your tolerance for risk. You will overcome your fears and be more willing to take the chances that pay off big.

2. Invest in Efficiency

Businesses often have to put down a lot of money in order to make money later by being efficient. For example, they may need to invest in capital that will allow them to deliver products and services more quickly. At first, they may lose money as they pay off that capital. But this investment will help them to compete more effectively in the long run.

What does this have to do with your personal finances? You need to be efficient as well, and efficiency may have some upfront costs that you're uncomfortable with at first glance.

For example, your financial life may run much more smoothly when you have the expert advice of a financial adviser on your side. Using the services of a professional may sound like a luxury at first - until you start earning income like a professional instead of an amateur. 

Accountants and tax professionals may also help you to be more efficient in your financial life. Talk to your adviser about how to improve your personal finance efficiency. 

3. Remember that You Get What You Pay For

You can spot the difference between a high-end leather sofa and a low-end vinyl knock-off, and the same is true when it comes to professionals. 

People who make a lot of money in their personal lives learn to find the very best advisers, companies, stocks, properties, and investments. They create a team of professionals to help then with their personal finances that incorporates the very highest professional standards and proven experience. Yes, you have to pay more for the best, but paying more gives you the right to expect more in return. 

As you overcome your investing fears, improve your efficiency, and pay for the very best advice, you'll find that you start earning more. As you earn more, your breadth of opportunities will increase. Take courage, and don't forget that you have to give to get.