There are things you must know...

Have you ever heard the saying "You don't know what you don't know?"  I'm sure you have and you understand what it means.  There are blind spots that keep us from seeing exactly what needs to get done or happen next.  Usually someone else can see your blind spot much more clearly because they've either been down this road before or have been trained to see things differently. Most of us have financial blind spots.  We go through life thinking everything is ok and really we are only doing what we know to do.  In our business and personal lives that simply isn't good enough!  Here's why.  If no one ever told you that 60% of the people over the age of 50 don't feel like they have enough saved for retirement you would see how important it is to begin now.  If no one ever told you that 68% of small businesses perform no cash flow analysis you wouldn't understand why so many don't last longer than 5 years.  Now that you know these things, you can shift what you are doing to avoid that statistic for yourself.

There are some numbers that you just NEED to know.  If you focus on these numbers you can make better decisions around your finances.  Track the following for the next 3 months and pay attention to what changes in your confidence, planning, and outcomes.

As a small business owner and household financial manager you must know...

  • Total household income
  • Total monthly expenses
  • Household bank balance
  • Business bank balance
  • Total receivables
  • Total payables
  • Revenue forecast
  • Total business expenses
  • Emergency fund balances
  • Total debt owed
  • Total net worth
  • Credit score

These are your critical pieces of information that you need to track on a regular basis (quarterly).  Over time you will know exactly what items you need to work on.  Keep it simple but make sure it happens.  Your future, goals, and financial health depend on it.