Episoder
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All great adventures must come to an end and so does this podcast. I have deeply enjoyed our time together each week and will miss our interaction. But for me, it is time to move on. I am focusing on my expanding business and creating BWM University where we will guide entrepreneurs through their path to success. If you would like to participate, go to www.brownwelchmehta.com and click on the University tab. Until we meet again I hope all of you can LIVE RICH!
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Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
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Why is it that some people seem to shine in any sphere in which they choose to exert themselves, and others cannot manage even a glimmer despite obvious talent?
Research shows that it’s the way that they think about their ability that really counts. These people have a growth mindset.A growth mindset is the belief that intelligence can be developed. People with a growth mindset understand they can get smarter through hard work, the use of effective strategies, and help from others when needed. It is contrasted with a fixed mindset: the belief that intelligence is a fixed trait that is set in stone at birth.
This week we will learn the five steps you can take to develop a growth mindset.
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Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
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Manglende episoder?
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In the next few days, you will make one of the most important decisions of your adult life. No, it is not who will lead our country – it is who will be the leader of you! Who will be the CEO of your life?
We have become a society racked by disease – no not COVID – but the disease of entitlement. The belief that someone else should take care of you, someone else should take care of your health - someone else should take care of your economy - someone else should take care of your education - someone else should take care of your retirement - someone else should take care of your wage rate - someone else should take care of your mental stability - someone else should take care of your future. That is plain BS – it is just not how life works.
You have to do your own pushups, you have to eat right, you have to get good grades to qualify for the education you want, you have to be good enough to make the team, you have to deliver the results for the wage you want, you have to grow to get promoted, you have to save an sacrifice to retire with money.
As soon as you let someone else have the power over your life you sacrifice your own future. Someone else is the master of your fate. You give up safety, security and freedom.
A rich life comes from just one thing – your own ability to take responsibility for and produce results in your own life!
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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Here is what great advice does: It lifts you up and helps you unlock levels of your heart and your mind you never knew were there. It helps you show up more fully for yourself and others. It helps you claim your life as your own.
But the best advice goes further. It is essential. It is universal. It is truth wrapped in carefully-chosen words. It doesn’t matter who you are or where you come from or what you’ve been through, the best advice removes labels and boundaries, traverses space and time and cuts through skin and bone to reach the heart of hearts buried within all of us.
During these challenging and uncertain times, essential wisdom and excellent advice help us find perspective, shift focus and stay grounded. They show us what really matters. They restore us to right-minded thinking and wholehearted living—and break us out of our fog of fear. Right when we need it most.
That’s why I’ve assembled the list of advice for this week. May these truths be the light that call you through the mists of fear. May they see you safely back to shore. May they comfort you and remind you of what’s important. Every single time you forget.
1. Your life is your responsibility.
2. The way someone treats you is a reflection of how they feel about themselves.
3. Life is all about managing expectations—most of all your own.
4. When you know better, do better.
5. Your word is your bond.
6. Work hard. Stay humble.
7. Just keep going. No matter what.
8. Release the idea that things could’ve been any other way.
9. Listen more than you speak.
10. Do what you’re afraid to do.
11. Be kind. Always.
And lastly - #LiveRich_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
Follow us on Facebook: Cindy B Brown
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Subscribe on iTunes!
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http://www.cindybbrown.com
LIVE RICH!
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Here is what great advice does: It lifts you up and helps you unlock levels of your heart and your mind you never knew were there. It helps you show up more fully for yourself and others. It helps you claim your life as your own.
But the best advice goes further. It is essential. It is universal. It is truth wrapped in carefully-chosen words. It doesn’t matter who you are or where you come from or what you’ve been through, the best advice removes labels and boundaries, traverses space and time and cuts through skin and bone to reach the heart of hearts buried within all of us.
During these challenging and uncertain times, essential wisdom and excellent advice help us find perspective, shift focus and stay grounded. They show us what really matters. They restore us to right-minded thinking and wholehearted living—and break us out of our fog of fear. Right when we need it most.
That’s why I’ve assembled the list of advice for this week. May these truths be the light that call you through the mists of fear. May they see you safely back to shore. May they comfort you and remind you of what’s important. Every single time you forget.
1. Your life is your responsibility.
2. The way someone treats you is a reflection of how they feel about themselves.
3. Life is all about managing expectations—most of all your own.
4. When you know better, do better.
5. Your word is your bond.
6. Work hard. Stay humble.
7. Just keep going. No matter what.
8. Release the idea that things could’ve been any other way.
9. Listen more than you speak.
10. Do what you’re afraid to do.
11. Be kind. Always.
And lastly - #LiveRich_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
Follow us on Facebook: Cindy B Brown
Subscription/SocialLinks:
Subscribe on iTunes!
Subscribe to the Living Rich Mailing List
http://www.cindybbrown.com
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If 2020 had a word it would be PIVOT. Everyone around the globe has had some form of pivot this year. Albert Einstein said "the definition of insanity is doing the same thing over and over and expecting the results to change" and that is so true today.
But we are not on a one-way road for eternity with no turns, roadblocks, or change of direction. We will at some point, in business, in life or in training, need to pivot. And while pivoting on a soccer pitch or basketball court is a quick and often explosive event, it doesn’t have to be in other areas of life. Not always anyway.
This week we are going to talk about when it's time to pivot – what might indicate that you need to pivot? How you might pivot successfully and the power that lies within change of direction.
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Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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In the decades I have spent working with people and thier money I have found there are 7 major reasons why people are not able to manifest financial success in their lives. This week we are going to focus on the 7 things you must do to achieve wealth: Wealth Tip #1:Have positive associations with money. Wealth Tip #2: Make having an abundance of money an absolute must. Wealth Tip #3: Develop an effective strategy for building wealth. Wealth Tip #4: Follow through on your financial plan. Wealth Tip #5: Question the "experts" who manage your money. Wealth Tip #6: Never become financially complacent. Wealth Tip #7: Turn financial crisis into financial opportunity Bonus - Success Tip #3 Resilience is by far the most important quality you can develop, not only for your financial success, but forsuccess in other areas of your life as well. Remember, the past does not equal the future. Because you failed in a venture in the past, it does not mean that you’ll fail in it in the future. You have to just keep on trying, and stop focusing on the failures, and instead, startfocusing on the opportunities that lie ahead of you. In Chinese, the word for "crisis" also means "opportunity." You have to take your financial crisis, and turn it into a financial opportunity. Master this art, and you’ll always be able to #LiveRich
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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In episode 153 we learned Success Secret #1 - Persistance. That ability to hear no over and over and over and never give up. This week we learn what must we must have even before we have persistence. Success Secret #2 is Confidence. This week we will learn the 4 C's of Confidence:
- Courage - how to sep out into the unknown
- Commitment - the driving force for change
- Capability - the skills to get you there
- Confidence - the sum of the courage, commitment and capability to achieve your goal_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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If the words 'debt,' 'credit score,' or 'savings' make you cringe, you are not alone. Money topics such as debt, student loans, salary, credit scores and even saving for the future can cause paralyzing anxiety. In a recent study on financial literacy only 2 in 5 adults believe that, if their money could talk, it would say. “We are working well together”
So, to help improve your relationship with your money, we are going to discuss 10 potentially embarrassing money topics and come up with some suggestions so we can tackle them with confidence.
MorBEING FINANCIALLY literate, or understanding all aspects of your financial life, is crucial to becoming confident about money. But often, we’re too embarrassed or uncomfortable to talk about money openly. According to a 2013 Wells Fargo survey of over 1,000 adults, 44 percent of respondents said "personal finances" is the hardest topic to discuss with others, followed by "death" at 38 percent and "politics" at 35 percent. Money topics such as debt, student loans, salary, credit scores and even saving for the future can cause paralyzing anxiety. In a recent study on financial literacy only 2 in 5 adults believe that, if their money could talk, it would say. “We’ve been a successful team.” So to help improve your relationship with your money, we are going to discuss 10 potentially embarrassing money topics and come up with some suggestions so we can tackle them with confidence.
1. Are you spending well above your means?
2. Are you in debt because of overspending?
3. Are you in debt because of bad financial advice? I
4. Are you loaning money to friends and family?
5. Do you have too many Credit cards?
6. Do you have a weak credit score?
7. Are you being crushed under the burden of student loans?
8. Are you enrolled in a 401(k)?
9. Do you not knowing how to save?
10. Can you talk about money with your significant other - and not fight?
Now that you’ve made it through the list (perhaps with a bit of squirming), don’t feel like you need to tackle all of this. Start small and commit to improving one aspect of your financial life at a time. Before you know it, the taboo money topics will be a little easier to discuss and manage and together, we can Live Rich.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
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LIVE RICH!
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Do you ever wonder if you will you ever succeed? Will you “make it” to the success land? Don’t worry, you don’t need to read a crystal ball to predict your future. To achieve success in life, you need a single trait that any person can develop. And it doesn’t take years to develop the trait. You can develop it right here, right now. Right now before this podcast ends.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
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I just finished the Tony Robbins five day Business Mastery event and my one big take away is that we all need a plan B. For many of us that Plan B is a side hustle that needs marketing.
For some entreprenaurs and individuals, getting started on YouTube can be scary. Trust me when I say that the benefits of being on YouTube greatly outweigh the downfalls. Don’t let your initial nervousness get in the way of giving this powerful channel a try.
The most important thing you’ll need for a successful YouTube channel is something you most likely already have — an understanding of who your audience is, as well as what kinds of things they may find valuable. Taking note of your audience and their interests will help you determine where to focus your efforts when creating content for YouTube.
Video content can reinforce your branding efforts and show off your business expertise. However, it’s also a great way to entertain, educate, and connect with people.
In order to truly make the most of the opportunity, here are 10 things you’ll need to do when you’re first getting started on YouTube:
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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Running a small business, a family or just your own life can be demanding, and you’ve probably found yourself working late into the night on more than one occasion or unable to sleep due to the stresses of the day. Naturally, this can erode your ability to be productive and can even ruin your health.
If you are too stressed to sleep, you are not alone. More than one third of us are sleep-deprived.
But to give each day your best, adults need seven to eight hours of sleep each night. Getting less than the required amount of sleep can affect your health, your mood and your brain’s ability to function—and the longer you go without the sleep you need, the more the harmful effects compound.
So it pays to make sleep a priority every night of the week, even if you need to cut back on your work time to do so. This week we will discuss why you should make sleep a priority and how to make sure you get the ZZZs you need.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
Mentioned in this show:
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Prosperous businesses don’t pop up overnight. Someone drives them to success. That person is their leader. This applies to families too, not just business. Every family hits a rough spot, and every family has one person they look to as their leader. Everyone has to weather a rough patch at some point, and while business leaders must make tough decisions on how to improve their situation, they also have to pay close attention to team morale. The most damage to a business and a family often comes from low spirits. This means, when trying times hit, your company and your family will need a leader more than ever. In recent months, the novel coronavirus disease (COVID-19) has negatively impacted businesses all over the world, with 79% of US businesses impacted and 34% of working adults are unemployed. Income, sales and revenue are falling short. You may be facing the prospect of downsizing. Your best employee might be struggling to work remotely full time. Your team's morale is at an all-time low, and it's your job as their manager to lift their spirits and get them back on track. Your family may be on the brink of falling apart. As a result, many have adapted, expanded their products and found new ways to engage their market. The good news is, you can too. To help guide your operation through crises, here are some leadership tips. It is designed for business, but the same principles apply for leading your family.
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Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
Email Cindy at : [email protected]
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One of the biggest mysteries of my business is that most of my clients do not want to review their financial statements monthly or even quarterly. Is it because they trust us so much? No. Is it because we are so good at keeping their books? No. Is it because I have assured them I will “watch out” for their business? Sadly no.
It is because they do not understand the elements of their statements and this is backed by research. A 2019 SBA report showed that over half of small businesses were not reviewing their financial statements. And of that 50%, 86% were experiencing financial difficulties.
Why?
Businesses weren’t reviewing their statements … because they didn’t understand financial jargon. This week we are going to have a quick lesson in financial terms. I am putting the full podcast in the show notes this week, so use it as a reference while you’re working with your accountant or while going over your books each week, month or quarter.
First the easy stuff:
Income StatementYour income statement is also called a profit and loss statement or earnings statement. An income statement shows all the money your business makes (i.e. profit).. Income statements are generated for a fixed period of time - generally monthly, quarterly or annually depending on the company and their needs. It is very helpful if it includes the information for the same time period for the comparative prior periods.
Example: First quarter of 2020 as compared to the first Quarter of 2019. Then you can use the data to compare results against same time frame.
The Income Statement has several major sections that should be in the following order:
Gross Sales or RevenueGross sales includes the total of all sales activity during a reported period. Items like sales discounts, sales returns, and sales allowances are recorded on separate lines form Gross Sales.
Net Sales or Net RevenueRevenue is the total amount of money a company brings in from its business activities after discounts, returned goods, and other sales allowances have been deducted. Businesses that sell goods, such as retailers, are more likely to refer to revenue as net sales. It is also called top-line because it usually appears at the top of an income statement.
Cost of Goods Sold or Cost of RevenueCost of goods sold refers to the full cost for the production of the goods a business has sold.
For example, if you sell shoe lace, the money the customer gives you to buy the shoe laces is revenue and the money you pay to the supplier for the shoe laces is cost of goods. Another example, if you have a mental health therapy business, the amount the patient pays you for a session is revenue. The amount you pay the therapist for an hours work to conduct that session is cost of services.
An accurate calculation of the cost of goods or services is critical to efficiently run your business.
Gross Profit
Gross profit is the cost of goods sold or cost of revenue subtracted from net sales. This is the first and most important judge of the health of your business as it is the first determinant of how profitable a company is. It indicates the profitability of the products and services the company offers before considering operational expenses or overhead.
Gross Profit MarginGross profit margin refers to the ratio of the revenue that you keep as gross profit. It is also called gross margin or gross profit percentage.
The formula to calculate this is (Gross Profit/Net Sales) x 100.
A detergent business whose gross profit is $20,000 with net sales of $50,000 has a gross profit margin of 40%. This means the detergent sold returned 40% on the capital that’s directly associated with the detergent production.
Now for the Overhead
Operating ExpensesOperating expenses are the costs tied to a business’s core operations outside of production costs, which are generally classified as cost of good sold. Operating expenses include selling, general and administrative expenses that are not directly related to the production of the company’s products or services.
Selling, General, and Administrative Expenses (SG&A)Selling, general, and administrative expenses are expenses you incur while selling your products and services. They also include the cost of running your business on a daily basis. Below is a breakdown:
Selling expenses include the cost to sell the goods you’ve already produced or purchased. This excludes cost of production or purchase. It includes: expenses related to sales material, traveling, advertising, delivery, warehousing, telephone bills, salaries of sales employees, and sales commission.
General and Administrative expenses are usually more fixed than selling expenses. They include expenses related to rent, mortgage, insurance, utilities, and salaries of non-production and non-sales employees.
Operating IncomeOperating income is the revenue or net sales that’s left after you deduct operating costs. It is also called operating profit or earnings before interest and taxes(EBIT). Its calculation excludes non-operating expenses like interests, taxes, lawsuit settlement expenses, etc.
Operating MarginOperating margin is the ratio of revenue or net sales a business keeps as operating income. It is calculated by dividing operating income by revenue or net sales. The result is then presented as a percentage by multiplying by 100.
For example, a business’s operating income was $10,000 on a $50,000 revenue or net sales. Its operating margin is then $10,000/$50,000 = 0.2 x 100 = 20%.
Operating margin helps determine how efficient a company’s day-to-day operations are. In the example above, the business’s day-to-day operation made $0.20 for each dollar of revenue. Non-Operating Expenses and LossNon-operating expenses are costs incurred due to activities unrelated to a business’s core operation. These activities don’t have tangible effects on operating results. This includes, but is not limited to, interest and insurance.
A non-operating loss is loss incurred from activities that don’t relate to business operations. A good example would be a loss incurred as a result of a lawsuit settlement or a flood.
Non-Operating Revenue and IncomeNon-operating revenue and income is the total profit created by a business from activities that aren’t tied to its core operations. Examples would include proceeds from selling business equipment or realizing a gain on a special transaction.
Net IncomeNet income is gross profit minus all other expenses incurred during the reported period and also reflects any additional non-recurring income and expenses.
It is the overall determinant of how profitable a business is. Here’s an example. If your gross profit is $20,000, and you spent $10,000 on operating and non-operating items, your net income would be $10,000.
Those are the elements of the Income Statement or Profit and Loss.
Net Revenue less Cost of Goods or Services equals Gross Margin. This is what you have left to pay for overhead and yourself.
Operating costs are Selling, Marketing and Administrative. When you subtract this from Gross Margin you have Operating Profit. This is what tells the health of your business.
Then there are the one time, odd things like floods, sale of equipment, interest and tax expense that are called Non-operating income and expenses.
The bottom line calculation is called Net Income, which is what is left over for the owners.
Now it gets a little more complicated. Let's talk about the Balance Sheet.
Balance SheetYour balance sheet gives an overview of the financial situation of your company. Unlike an income statement, a balance sheet offers a snapshot of a business’s finances at one specific moment in time.
A balance sheet consists of three segments:
“Assets” - which are everything you OWN
“Liabilities” - which are everything you OWE
“Owner’s Equity” - what is left for you.
These three segments must balance out in a simple equation. Assets = Liabilities + Owner’s Equity. Hence, the name balance sheet.
AssetsAn asset is any item your business owns that is of fiscal value and is expected to benefit the business in the future.
Cash and Cash EquivalentsCash and cash equivalents are assets and items that a business can easily convert into cash. Cash equivalents could include checks, certificates of deposit, and treasury bills. If your business doesn’t have cash equivalents, it would only report its cash-on-hand and in the bank.
Accounts ReceivableAccounts receivable is the amount of money a company has invoiced that has not yet been paid by the customer. It is from having sold goods or rendered services to its customers. This is what other businesses or customers owe your business.
Prepaid ExpensesPrepaid expenses usually arise when businesses pay in advance for goods and services needed in the near term.. Prepaid expenses usually appear on a balance sheet in the current assets subsection. This is because they’re usually due within 12 months. Prepaid expenses
Insurance is one example of a prepaid expense. For example, assume your business pays up front for an an insurance policy of $2,400 with a 12-month term. You will initially have a $2,400 prepaid expense asset on your balance sheet. As each month passes over the 12 month period, you’ll reduce this asset by $200 and record an expense until the expense has been equally recognized over the course of the term.
Other typical prepaid expenses include rent, supplies, legal and other products or services paid for in advance.
InventoryInventory is the product you have on had to sell, but has not yet been sold. For example, all the books on the shelves in Barnes & Noble are inventory. Things they have purchased to sell, but have not yet been sold.
Fixed Assets
Fixed assets are a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment(PP&E). They are also referred to as capital assets. An example would be manufacturing equipment, delivery trucks, computers, etc.
The next section of the Balance Sheet are the Liabilities
LiabilitiesA liability refers to any financial amount a business owes. This includes trade and accounts payable, accrued expenses, loans, mortgages, and even advance payments received from customers for goods and services not yet delivered or rendered. Liabilities are reported on balance sheets as short-term (current) and long-term liabilities. Current liabilities are typically obligations that are due within a year.
Accounts PayableAccounts payable is also called trade payable. It refers to the total invoices for goods and services a business has received, but has yet to pay. They’re usually due for payment within 15 to 45 days. In short, this is money your business owes to other businesses.
Accrued ExpensesAccrued expenses are expenses that a business has incurred but has yet to pay. This is because either the invoices have not yet been received or the payments aren’t yet due. Accrued expenses are generally created by an accounting entry to reflect these liabilities.
Examples of accrued expenses include interest on loans and taxes incurred. Salaries your employees earn up to the period of reporting, but aren’t due for payment until after the report is prepared, are also accrued expenses.
Unearned RevenueUnearned revenue refers to advance payments a business receives from its customers. It is also called deferred or prepaid revenue. It’s considered a liability because you received the payment but haven’t delivered the product or service yet.
Unearned revenue is treated similar to prepaid expenses. Whereas the prepaid asset is reduced and the expense is incurred monthly over the period of a contract the opposite is true for unearned revenue. In this case, income is incurred evenly over the period of a contract and the liability is reduced accordingly.
Notes Payable and Notes ReceivableNotes payable are are amounts due to other parties outside of your usual trade and accounts payables. . These could be funds borrowed from a bank or an amount owed to a supplier for raw materials delivered. Notes payable are a debt instrument. They are recorded as a current liability on a balance sheet if due within 12 months.
Notes receivable is the opposite of notes payable and represents amounts owed to you that are outside typical customer receivable transactions Examples may include loans made to employees or shareholders. Notes receivable appear as a current asset on a balance sheet if expected within 12 months.
Owner’s EquityOwner’s equity is the totality of the owner’s investment into the business. This is the portion of assets that belongs to the business owner. It is derived by deducting total liabilities from total assets. Owner’s Equity is not the fair market value of a business.
Statement of Cash FlowCash flow refers to the flow of cash moving into and out of a business over a fixed period of time.. When a business receives more cash than it sends out, it is cash flow positive. A business is cash flow negative when it spends more than it receives.
Everything is recorded on your Income Statement or your Balance Sheet. Every item has two sides, thus Double Entry Bookkeeping. So, if you pay the electric bill, the payment is recorded as an expense in the Income Statement under the category of Utilities and the other side is a reduction to cash or an increase in accounts payable.
Managing your finances is one of the most important parts of running a business. Unfortunately, small business owners who have little financial background shy away from these responsibilities. By learning these key financial terms, you’ll be more able to understand your financial statements, communicate with finance professionals, and monitor your business’s cash flow.
If you have any questions email me at [email protected]. Until next week Live Rich!
_____________________________________________________
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After years of earning and saving money, you may be left wondering how you can increase you income further. Or, if you received a recent "pink slip" you make need to find a way to make some income. Investing probably comes to your mind fairly quickly. After all, we’ve all heard stories of people making a lot of money off of the stock market. So how can you invest to make money?
_____________________________________________________
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Last weekend I attended the Tony Robbins virtual Unleash the Power Within event with 22,500 of my closest friends. What an experience.
But, one of the early questions was “what is success?” Is it wealth? Is it happiness? Is it fame? How did we define success?
The late Zig Ziglar was one of the most respected modern day experts on success, motivation, and leading a balanced life. In his book Born to Win!, he argues that success cannot be defined in one sentence, but instead it is comprised of many things. One could argue that the definition depends on the individual and that one size does not fit all.
After some real soul searching I found 21 different definitions of success. Not all of these will resonate with you, but chances are at least a few of them will. Use these or find inspiration here to create your own definition of success that can be applied to your unique life.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
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LIVE RICH!
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For longtime listeners, this guidance may seem repetitive. But even if I stressed this point every month, it may not be enough. Investing in risky assets like stocks and corporate bonds should never be the first step you take in building wealth and establishing financial freedom. It should be one of the last. But why am I doing this again? Well, somehow COVID had make people think that they can be an investor in their down time. My son, and many many of his friends have invested with the App Robin Hood. The app makes recommendations on trades and even teaches you to day trade. While some of these elements are great - there are some big big cautions you need to take before even think about investing. All investors – and I mean all – must go through these mission-critical preparatory steps first... Clearly Define Your Investment Goals Know Your Investment Horizon Understand Your Risk Tolerance Clean Up Your "Personal Balance Sheet" Then you can invest in the top two tip I have this week.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
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One of the easiest things you can do to help keep your financial house in order is to get organized. Having your financial information stored and processed in a systematic manner will go a long way in helping maintain your finances. This week we will cover five easy steps to get your finances organized.
Start a Basic Filing System Keep Important Documents Organized How Long to Keep Your Documents Keeping Your Information Safe Being Organized for Your Heirs_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
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LIVE RICH!
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Well, the first half of 2020 is over. Whew! But what will the second half bring? There are many things in today's world that are out of our control. However, there are many things we can control. This week we are going to learn how, not just to survive these crazy times, but how to THRIVE. Use these eight tips to come out of 2020 stronger and more successful than ever.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
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Now it the time to move forward STRONG, to know where you want to be at the end of this year, to have a goal and plan to come out of this time. There is both an art and a science effective goal setting -and this week we will learn both skills. Lets ROCK the rest of 2020.
_____________________________________________________
Get my NEW book Pragmatic Prosperity now!
Download Think and Grow Rich ---> CLICK HERE
Listen on iTunes or Listen to/download this episode here:
Love the show? Tweet me a shoutout at: @Cindybbrown777
Want to sponsor episodes of Unlocking the Secret of Living Rich?
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LIVE RICH!
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