First I would suggest working on a budget. A zero-based budget allows you to clarify your personal financial (and life) priorities to make sure your money is going to the items that are most important to you. I personally recommend even finding a budget format that works for you. The point is to know how much you make and how much money you keep at the end of the month. The author then recommends a “debt snowball” payment method. In this type of payment method, a person pays the minimum payment on all but the smallest debt. When that debt is paid, you take the amount you were paying toward it, and apply it to the next smallest debt. Repeat this process until all debts are paid off. Another method you can use is to align all your debts by highest to lowest interest rates and target the smallest balance with the highest interest rate. Finally, the author recommends making changes to your lifestyle such as downsizing, and decreasing increases. The author also recommends increasing your income through part time jobs or side-gigs like driving for Uber. The process of getting out of debt isn’t easy but it begins one step at time. Focus on creating assets while you get out of debt. If you’d like to learn my techniques, reach me in the contact me section.
When it comes to running a business, you have to know your numbers, says Marcus Lemonis, star of CNBC’s “The Profit.” The serial entrepreneur, who puts his own cash into struggling businesses and tries to turn them around, would know. At this point, he’s invested about $35 million in companies featured on the show. There are three numbers that every business owner must know: annual sales revenue, gross profit margins, and expenses as a percentage of your gross profit. Marcus’s point is that you pay your bills with gross profit and not with revenue. Not knowing these numbers is the one big mistake that business owners make. Even in your own life, treat your life like a business. Know your gross income, expenses and net income and be as detailed as possible. Every penny matters. If you want to run a successful business, you have to know your revenue, gross profit and expenses “inside out,” Lemonis said.
If you have a prayer request, or if you’re in need of a financial checkup you can reach me in the contact me section.
For this week, I’ve included a video clip from the Profit called You Have to Take Care of Your People from the CNBC Prime YouTube channel.
“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, “ GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”
Psalm 35:27-28 MSG