There are many ways to achieve a prosperous year. A tax-advantaged investment account may be a better investment for you. You can pay off high-interest debt, build an emergency fund, and save for a specific purpose. Even in just five minutes or less, you can cross a few things off your financial checklist.
If you want to build wealth, you must also change your mindset. How can you avoid mistakes or make permanent changes if you never learn more about money? This blog will help you build your financial sixth sense.
SIX HABITS THAT CAN HELP SMALL BUSINESS OWNERS INCREASE FINANCIAL WISDOM
1. LEARN ABOUT PERSONAL FINANCE
A tried-and-true money book is often the first step in anyone’s journey to learning personal finance. There are plenty of books that can help you think about money in a new way, including Robert Kiyosaki’s “Rich Dad, Poor Dad,” David Bach’s “The Automatic Millionaire” and Dave Ramsey’s “The Total Money Makeover.” Take a course (or two) in finance related to your goals, from debt repayment to investing. We have listed some books that can help you become a financial wizard as a business owner.
2. FIND OUT HOW MUCH YOU ARE WORTH
By focusing only on your earnings, you may think you’re getting richer when you’re not. Growing wealth won’t happen if you spend all the money you earn – even if it’s six figures! Tracking your net worth – the difference between your assets and liabilities – puts your income into perspective. The figure allows you to know how much money you’re actually banking, as well as your liabilities over time. Investment apps are also available for tracking your net worth. You can also track it manually.
3. MONITOR YOUR SPENDING
Are you ready to have a financial awakening? Spend some time tracking your expenditures. You’ll have to do some work to track your spending, but it’s worth it. No matter how you track your purchases, whether you use bank and credit card statements or special software, you’ll have nowhere to hide once you see how much you spend on food, entertainment, and extras every month.
4. VISIT A TAX PLANNER OR FINANCIAL ADVISOR
As your financial situation grows more complex, meeting with an independent financial planner specializing in investment strategies may prove helpful. Meeting with a tax planner or accountant also has advantages, especially since so many changes will affect taxes in 2021-22. Tax planners can help you minimize your taxes payable and help ensure you are set up properly for the future.
There are probably a few things you’d like to learn, or maybe you’d like a certification that leads to higher revenue and better opportunities. Investing in your own or company’s development can be the best way to grow your opportunities. Many people overlook the rate of return on an investment in themselves or their team members. These results can often be very profitable.
Keeping your finger on the pulse of your clients and your industry are vital for success. Making valuable contacts within your field will ensure you are aware of current trends and best practices. These relationships can also lead to strategic partenerships, or merger and acquisition opportunities, which can lead to long-term business growth.
SIX BOOKS THAT CAN HELP SMALL BUSINESS OWNERS GAIN FINANCIAL SUPERPOWERS
1. Profit First
Turn Your Business into a Money-Making Machine by Mike Michalowicz
Profit First offers a fresh perspective on what it takes to run a small business. By reading this book, you’ll learn how you can transform your business from a cash drain into an income generator. With a conversational tone, this book employs analogies, storylines, and behavioral principles. Also this book teaches you how to control the processes that leads to making money in your business.
2. Found Money
Discovering the Hidden Profit and Cash Flow in Your Business- by Steve Wilkinghoff
Known as a necessity for small businesses, the book is packed with valuable ideas and concepts. Furthermore, it offers tools and approaches that business owners can use immediately to create a more profitable, predictable and healthier financial performance for their business. You’ll learn how to identify, improve, and track the steps in your business process that contribute to your bottom line.
3. The Wealthy Barber
The Common Sense Guide to Successful Financial Planning- by David Chilton
The Wealthy Barber differs from many other popular books on personal finance in that it is a novel. Every chapter is structured around a nugget of financial advice and a personal anecdote that illustrates Roy’s journey along with his wisdom. Topics covered include saving, starting an investment portfolio, getting insurance, RRSPs, taxes, and purchasing a property.
There is a strong consensus that The Wealthy Barber does an excellent job of explaining financial concepts without using jargon and without talking down to its audience. With a novelistic structure, the book provides just enough character development, plot, and dialogue to keep things moving without detracting from its primary purpose: providing financial advice.
Throughout the book, the financial advice is straightforward. Financial-help books often combine get-rich-quick schemes with stock-picking tips, which often come to mind when thinking about financial-help books. This book emphasizes longevity and sustainability instead of stock-picking tips or get-rich-quick schemes.
4. The Intelligent Investor
The Definitive Guide to Value Investing by Benjamin Graham, Jason Zweig with Warren Buffett as Collaborator
Benjamin Graham taught and inspired people all over the world in his role as one of the greatest investors of the 20th century. Most people are not aware that his most successful student is Warren Buffet. Buying and holding undervalued companies is the principle underlying the book. The value and profits of the company increase over time, allowing investors to gain richer rewards.
5. Accounting for the Numberphobic
A Small Business Owner’s Survival Guide- by Dawn Fotopulos
All business professionals need to understand the basics of accounting. A business health assessment is provided within this book, by breaking down financial statements and ledgers. If you are unfamiliar with how finance works, this book will eliminate any fear you have. You will begin your journey toward financial literacy by understanding the context behind the numbers. The book’s greatest strength is it teaches you how to actually make better business decisions through understanding your numbers.
6. Lighten Your Back Pack
How to Simplify Life in a Complex World – by Mark Landers
The name probably rings a bell, but this is a book written by our Managing Partner, Mark Landers. He brings to light the struggles he went through in his 20’s as he pursued success in life and business. Mark then walks you through 10 steps he’s discovered that will help simplify life for you personally, financially, and in business. Each step is actionable and designed to be implemented immediately. From learning how to say “no,” to paying yourself first, Mark makes suggestions on how to simplify life in a world that seems to be getting more complex and complicated every day.