Every January, business owners across the country do something that feels as natural as breathing: they pull out the previous year’s financial statements. They look at revenue, expenses, profit (or loss), and they ask the hard questions:
- Were we profitable?
- Where did the money go?
- Is this still a viable operation for the coming year?
If you own a business, you probably did this ritual at the end of 2025. But here’s a question most people never ask:
Did you do the same thing for your family?
Because if you think about it, your household is a small enterprise. Money comes in (salary, side income, investments). Money goes out (mortgage, groceries, insurance, college tuition, vacations). At the end of the year, you’re either in the black or in the red.
Even the IRS understands this concept. When they audit a small business, one of the first things they look for is whether it’s actually a business or just an expensive hobby. Their rule of thumb? If you’re not profitable in at least three out of five years, they start wondering if you’re serious.
So, let me ask you directly: Are you running your household like a real business—or like a hobby?
It might sound cold. It might sound overly capitalistic. But we live in a world that runs on dollars and cents, and pretending otherwise doesn’t pay the bills.
The Household P&L Statement
Look at the expense list from almost any small business:
- Salary
- Utilities
- Telephone & internet
- Insurance
- Repairs & maintenance
- Supplies
- Travel
- Education
- Taxes (federal, state, Social Security)
- Advertising & promotion
- Legal & accounting
Now read it again and tell me that doesn’t look very similar to your family budget.
At the end of 2025, every business owner subtracted those expenses from revenue and asked, “Did we make money? Can this thing survive—and thrive—in 2026?”
You should be asking the exact same question about your family.
- Were we profitable in 2025?
- Did we end the year with more money than we started?
- Or are we slowly bleeding cash and calling it “lifestyle”?
If the answer makes you uncomfortable, good. Discomfort is the first sign that change is possible.
Quarterly Reviews Aren’t Just for Corporations
Every quarter, I sit in a room with about 80 other entrepreneurs just outside of Chicago. We spend an entire day dissecting what’s working, what’s not, and how we can serve our clients better. We remove friction. We dream bigger. We set measurable goals.
We also do the same thing inside our office—full-day strategy sessions focused on one thing: How do we get our clients closer to their “promised land,” whether that’s retirement, financial independence, funding college, or simply having the freedom to live life on their terms.
You can—and should—do the same thing with your family.
Once a quarter, sit down with your spouse or partner (and older kids, if appropriate) and ask:
- What’s working financially?
- What’s not?
- Where can we cut friction and waste?
- How can we increase income?
- Are we on track for the dreams we say we want?
Because dreams without numbers are just hobbies.
The IRS Test for Your Life
The IRS has a simple litmus test for whether something is a business or a hobby: intent to make a profit, consistent effort, and actual results over time.
Apply that same test to your family’s finances and future.
If you treat financial planning like a hobby—“Whatever happens, happens”—then life will happen to you. And it usually won’t be the life you had in mind.
But if you treat it like a business—if you review the numbers, set goals, make adjustments, and stay intentional—then 2026, 2030, and beyond can look dramatically different.
It’s 2026 - Let’s Not Have This Conversation Again in 2027
Nobody wants to be the person looking back saying, “Woulda, shoulda, coulda.”
The numbers don’t lie. The goals don’t achieve themselves. And the life you want will not build itself.
It’s time to stop dreaming and start running your household like the serious, profitable, world-class enterprise it deserves to be.
Schedule your family’s version of an annual (and quarterly) review.
Because the best time to start treating your family’s future like a business was years ago.
The second-best time is right now.
