Financial Fitness - Motivation

Motivation – ah what a word!  Have you ever thought, “Wow, I’m so glad we decided to try this?” or “Why didn’t I know about this five years ago?”  My childhood dream has been to have a horse.  Riding down the road I’d point out the window and cry, “Pretty horsie Mommy, pretty horsie!” to which she would always respond, “Pretty horsie” while nodding her head in compliant parental agreement with her overtly excited child in the backseat. 

So when my husband decided to get me a horse (and himself one too) I was charged and ready, internally motivated to do all of the tasks surrounding horse ownership.  For those readers who may not realize what that entails, let me just mention that horses have needs far beyond the average pet in their caretaking that include a rake, wheelbarrow and gloves, if you get my drift.  For many, this sudden responsibility would be a bit overwhelming, but for me having Pat, the black hunky horse of my childhood dreams, it was not a deterrent at all.  As a matter of fact, I looked forward to the time I was spending with him (and Jesse) every day, even if it did include some menial tasks.  I was MOTIVATED by my desired result – a horse of my own.

How does my experience with Pat and Jesse relate to Financial Fitness?  In the last issue we discovered that to become financially fit, we should start strong by having a goal for our financial outcome in mind at the onset.  That coupling of a goal that is both good for you along with one that is pleasing to you will go a long way in encouraging your success financially.  My goal was very specific: to have a horse of my own.  To attain that pleasing goal, however, not only did I have the horses, we had to have a place to keep them with a pasture, hay and grain to feed them, and special people to help take care of them (trim their hooves, give them shots, wormer, etc.).  All of this requires – you guessed it – money!  So my very pleasing horsie goal also provided a motivation for setting some financial goals as well. 

Financial Goals

In determining the finances needed for my dream horses Pat and Jesse, here’s the process:

1. Document the potential costs (horse, hay, medical, etc.).
2. Determine the time frame for these costs (horse: upon purchase, hay: weekly thereafter, medical: annually and as needed, etc.).
3. Prepare a budget for the venture to determine the up-front financial need and the recurring needs to reach your goal.  (Helpful tools can be found at www.crown.org/resources/category/budgeting)
4. With the known $ numbers, we’re prepared to make an informed decision as to when to move forward – determine the timing.

NOTE:  Many times, once the total cost is determined, the decision to wait may be the best decision rather than stepping into something that is beyond your means at this time.  In either case, whether moving forward now or deciding to wait for another time, you’ve become more Financially Fit in the process.  You know more financially than you did at the onset of your goal quest.  Congratulations – you’re moving forward in your Financial Intelligence Training!

FIT TIPS #2

• Determine your specific motivational goal.
• Research and document the costs associated with that goal.
• Prepare a budget, a summary of the costs by month/year for the goal.
• Decide about the timing of pursuing that goal.

Business owners, a reminder:  March 15th is the IRS filing deadline for S Corps, Corps, Partnerships and some LLCs.

Cynthia Samuels Venkler has 30 years of experience as a tax and financial accountant specializing in small businesses.  Potential entrepreneurs may consider Mrs. Venkler’s book, “Business Beginnings: Principles and Practice.”  Your Accountant My Accountant, LLC is located in the Delwood Office Park across from Bay Point in the Grand Lagoon.