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Financial Fitness

Mon, 01 Jul 2019 11:38:31 GMT

Financial Fitness

“Financial Fitness” gives a sense of exercise, growth and improvement. While the term ‘fitness’ is normally associated with our physical body, it can also apply in other areas of our lives – emotional fitness for instance, spiritual fitness, and in this case, financial fitness.

Each January millions of Americans embark on a journey toward self-improvement. Over 40 % of Americans make “New Year’s Resolutions” annually. Let’s join the crowd and make some New Year Financial Resolutions of our own! Using some simple practices, every one of us can improve our Financial Fitness.

Let’s get FIT: Financial Intelligence Training.

Financial, for our purposes, is all things relating to money. This includes wages you earn, income you receive as dividends, interest or loan payments, and money you receive as profit from your investments. We’ll also include the money you spend in all categories (household living, entertainment, children, education, investments, etc.). Money comes in the form of EFT’s, bank and credit card transactions as well as cash and checks. Thanks to modern technology, many of us use online banking tools to organize our finances and pay bills; others use cash, checks or money orders. Whatever your preference, our FIT Training will fit your needs (pun intended!).

Intelligence is our ability to understand as our awareness level increases. It involves learning, planning, perception and communication. Certainly, we all have the ability to improve our intelligence in any area; it just takes training.

And training is the action of undertaking a course of exercise in preparation, and it is what these next few articles are all about.

Starting Strong

As with any exercise program we embark upon, it's beneficial to have a goal in mind. I've learned over the years that people are almost always motivated by what pleases them (a nice outfit, a trip with friends or a new boat); very rarely are they motivated by what's best for them. If there is a way to tie the rewards together, over time we can train ourselves to be motivated by what is also best for us. For example, I have a friend who has met the man of her dreams and they're making wedding plans. Wisely, they have made a budget for their first few months of married life. Once they’ve saved enough money in their bank accounts they'll be able to set the wedding date. Motivated by her love and desire to be Mrs. Dream-man, my friend is working extra hours, eating food from home, and saving every dime.

As a team they have successfully tied the reward of a wedding (pleasing to them) to the goal of reaching a budget through discipline (good for them). What a fantastic way to begin a lifelong journey.

So, our starting point is to determine a few financial goals. What would you like to have or to do? Goals should be attainable and specific, such as putting $1,000 in a savings or IRA account, or taking a cruise vacation. Notice both: a goal that's good for you (savings or IRA account) and a goal that's pleasing to you (vacation). Once you've identified your goal(s), we'll be ready to form a plan to attain them next time.

FIT TIPS #1

Start strong by setting financial goals.
Goals should be reasonable and attainable within 6 to 12 months.
These goals should be specific
Set one goal that's pleasing to you and another that is good for you.

Plan on reaching your goals – you can do it!

Cynthia Samuels Venkler has 30 years of experience as a tax and financial accountant specializing in small businesses. Your Accountant My Accountant, LLC is located in the Delwood Office Park across from Bay Point in the Grand Lagoon.

Financial Fitness - Motivation

Mon, 01 Jul 2019 11:37:25 GMT

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:

Document the potential costs (horse, hay, medical, etc.).
Determine the time frame for these costs (horse: upon purchase, hay: weekly thereafter, medical: annually and as needed, etc.).
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 )
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.

Choosing Business Partners

Thu, 18 Apr 2019 12:41:17 GMT

Choosing Business Partners

Several years ago, we taught a series of classes for burgeoning entrepreneurs based upon the contents of my book, “Business Beginnings Principles and Practice.”

Many businesses are birthed by two or more like-minded people who have a vision to share their products and services with the public. Partners in business may be established in several different ways. Your spouse, if involved directly or indirectly, is your business partner. A legal partner or co-owner is also considered a business partner. A networking group with an exclusive referral agreement would also be considered a business partner. In this section we will discuss the impact of business partners, and we will also give you a practical list of what to avoid.

Business Partners

Choosing a business partner(s) is a highly subjective matter. Many times, people with like vision and common points of contact will consider pursuing a business venture together. Too often we have seen people rush into agreements with others without adequately evaluating the potential risks and rewards. A business partner should bring something to the table you don’t already have. His strengths should offset your weaknesses and vice versa. The combining of giftings, talents and abilities should improve business and accelerate its growth.

Questions to Ask About Yourself

To operate a small business profitably, strength is required in four main areas; knowing how you operate in these key areas is essential to your success as an entrepreneur. These areas are: 1) Money management/budgeting/reporting. 2) People management (customers and employees). 3) Workflow (quantity and quality). 4) Recognizing and communicating the need for change.

Once you and your partner(s) have identified your strengths it would be beneficial to compare your lists. If you are both strong in certain areas, capitalizing on your strength as you develop your business will increase your success. Alternatively, if neither of you is strong in certain areas we recommend finding someone who is strong in that area. It may not be necessary to bring another person into the partnership, but you do need to “hire” those functions out to ensure the success of your business.

Ownership and Employment

Once you come to an agreement as to who will do what, the next step is determining the worth of each partner to the business as a whole. This worth will then be compensated through a paycheck to the partner as an employee, or through dividend distributions to the partner as an ownership privilege. Many partners choose to be compensated both ways; in other cases, one partner limits his involvement in the daily operations of the business, hence not receiving a “paycheck” for services performed. Rather, he prefers a distribution of profits based upon his share of ownership. You should consult an accountant before establishing the business to assist you in making these decisions. Once the determination has been made as to the ownership percentages and the operating responsibilities of each person, an attorney can then help document this understanding by preparing an employment agreement for each working partner.

Leadership Skills - Part 3

Mon, 15 Apr 2019 16:08:30 GMT

Financial Fitness - (Leadership Skills - Part 3)

Key #5 have realistic expectations

Have realistic expectations of yourself . This means having real, honest and attainable expectations of what you are capable, willing and able to do in and for your business.
Have realistic expectations of those you lead . Put yourself in your employees’ shoes for a moment and ask these questions:
Do I know what is expected of me today?
Why am I here? Am I needed by this organization?
How do I fit into the big picture? If I leave will I be missed or am I just a number?
Can I move up? What position(s) would I be good at doing/filling in the future?
If you answered any of these questions from your employee’s perspective in a way that you, as their employer, know is not real or attainable for them in your organization currently, you may have identified an area those expectations need to be adjusted. To determine how to adjust you must know where the expectation went awry. Did you mis-communicate your expectation of them to them? Did you fail to communicate at all? Can you pinpoint where their perception is coming from? If you choose to let it slide how will that unrealistic perception or expectation affect their attitude toward the organization in the long run (hence affecting their ability to buy-in and eventually their effectiveness as a worker)?
Know which battles to fight . Sometimes expectations need to be adjusted, sometimes they do not. As the adage says, “a dog can whip a skunk, but sometimes its’ not worth it.”

Key #6 learn from those you lead

Be willing to hear the heart of your team. Not prematurely wavering in your course of training them, but those who have been tested and tried – listen to them. Listen to the depths of what they are saying. Their insight could mean the life or death of your enterprise.
Like Moses’ father-in-law Jethro when he saw Moses exhausted from judging the people in Exodus Chapter 18:

17Moses' father-in-law said to him, “The thing that you are doing is not good. 18"You will surely wear out, both yourself and these people who are with you, for the task is too heavy for you; you cannot do it alone. 19"Now listen to me: I will give you counsel, and God be with you. You be the people's representative before God, and you bring the disputes to God, 20then teach them the statutes and the laws and make known to them the way in which they are to walk and the work they are to do. 21"Furthermore, you shall select out of all the people able men who fear God, men of truth, those who hate dishonest gain; and you shall place these over them as leaders of thousands, of hundreds, of fifties and of tens. 22"Let them judge the people at all times; and let it be that every major dispute they will bring to you, but every minor dispute they themselves will judge so it will be easier for you, and they will bear the burden with you. 23"If you do this thing and God so commands you, then you will be able to endure, and all these people also will go to their place in peace.” 24So Moses listened to his father-in-law and did all that he had said. (NASB)

Example: My husband Danny contributed to a company-wide contest to come up with a slogan for St. Joe Paper Company. His slogan “Our Quality is on a Roll” earned him the $250 prize and gained the company a great slogan at a very low cost. They saved thousands by not hiring an advertising firm to create the promotional ad for them. This company effectively learned from one they led.

Leadership Skills - Part 2

Mon, 15 Apr 2019 14:08:02 GMT

Leadership Skills - Part 2

Key #3 - keep your word / make good on your promises

Remember: Actions speak louder than words.
In all cases, what you do will influence others to a greater degree than what you say.
Your team will draw strength from you as you act according to your word. If you begin to waffle and waver, your staff will likewise begin to waver and lose confidence in your ability to lead.
Example: A team leader asked the team to come help with an outdoor project on a weekend. Several volunteers showed up to help and the leader who asked us to be there walked around with his hands in his pockets. What do you think the response will be the next time that leader asks for help on the next weekend project?
Remember, people judge you on how you stick to your word, i.e. do you follow your own rules?
Example: King David had united all of Israel, reestablished the kingdom in the land of promise and brought the Ark of the Covenant back to Jerusalem, making it the capital of Israel. In this time of great success for the nation established by God, for God in righteousness as David has so clearly articulated and demonstrated in his leadership what did he do? He became consumed with his power and took the wife of Uriah – didn’t think of asking God. What happened to his leadership and organization after such a blatant departure on his part from the very ideals he purported to espouse? The nation suffered; the son of this adultery died in judgment; his eldest son raped his half-sister; another son was killed after attempting to overthrow David’s rule; and yet another son tried to take the throne (with the help of David’s chief commander and high priest) before David legitimately passed it to Solomon. All of this from the man after God’s own heart! Let’s not become so confident that we lose sight of Who gave us the position and power to start with.

Key #4 - empower those you lead

Knowledge is power. Understanding is power. As you teach and train your team in their job function, discern their particular abilities and encourage them to step farther.
This may include suggesting a book or two for him to read. Perhaps offering to buy her books if she enrolls in a college course that will further her skills, understanding or knowledge base.
The dividends you will reap may not be evident immediately, but you will be rewarded for your attempt to help others be all they can be.
Example: A former teacher of mine offered to mentor me. I met with both he and his wife every week. They would give me a tape, CD or book to read or listen to before our next meeting. If I didn’t do it, he would excuse me and get back to his other work – hence training me to respect his time and his leadership. As I read and listened I began to feel a stirring within me. Although they’ve long since moved away, their positive influence in my life is apparent every day. In fact, this entire leadership series is a direct result of their excellent influence in my life. All who are encouraged by these articles are a result of his choosing to empower just one person.

Leadership Skills - Part 1

Mon, 15 Apr 2019 12:40:28 GMT

Financial Fitness (Leadership Skills - Part 1)

Key #1 know where you are going

Write and communicate your vision, goals and aspirations for your organization.
A biblical writer said, “Record the vision and inscribe it on tablets, that the one who reads it may run.” ( Habakkuk 2:1-3 )
Here is a quote that applies to all leaders seeking to influence those around them from Johnny Cash, the famous country musician copied from an online article written on Academy of Achievement’s website, achievement.org , from an interview on June 25, 1993 in Glacier Park, Montana:

If you can hold your listener, hold their attention, and you're sure you know what you're doing, and know that you're communicating -- you know, performance is communicating. You've got to communicate. You've got a song you're singing from your gut, you want that audience to feel it in their gut. And you've got to make them think that you're one of them sitting out there with them, too. They've got to be able to relate to what you're doing.

Your vision must be clear, as the way you will achieve the vision must also be clear.
Consistently update your people on the progress toward your stated vision. This helps get buy-in to your vision and keeps people in the loop, not feeling as if they were outsiders. If we are not meeting stated goals, then there should be no surprise when they do not receive their bonuses for that quarter. This helps maintain peace and an attitude of teamwork.
Poor Example: A couple was getting married in the home church of the Bride’s family. They asked their pastor to perform the ceremony. Since he was unfamiliar with the layout of this church and did not adequately prepare in advance he led the groomsmen into the broom closet at the close of the ceremony. Unfortunately, the groomsmen followed him!

Key #2 don’t show favoritism

Set standards companywide – determination of salaries, vacation and sick pay, office or factory hours, benefits, etc.
Follow these standards, make no room for discrimination for any reason.
Treat every person fairly – reward equally. Do unto others as you’d have done unto you.
Equal treatment separates emotions and petty disagreements from the workplace.
If you give preferential treatment to one you open the door for cheating another which sprouts a root of discord. Example: The Hebrew patriarch Jacob’s second to youngest son Joseph was treated specially by his father who gave him a multi-colored coat symbolizing the favoritism. The un-fair treatment caused so much discord among his brothers that, when given an opportunity, they sought to kill him.

Recommended Resources:

The Heart of an Executive – Richard D. Phillips

The 21 Irrefutable Laws of Leadership – John Maxwell

The Top Ten Mistakes Leaders Make – Hans Finzel

The Leadership Secrets of Billy Graham – H. Myra and M. Shelley

The Empowered Leader – Calvin Miller