Featured Coaching Training: Bring Stability and Order to Your Business | 4 Financial Power Principles
Everyone seeks financial stability, but each of us has a different definition of what that entails. So what makes you feel stable or secure? In this series, learn how to obtain financial stability and order in your personal life and business effectively!
Notable Quotable: “Accounting is the language of business.” -Warren Buffett (American business magnate, investor and philanthropist. He is the most successful investor in the world. Wikipedia)
Editor's Note: Zapato is shoe in Spanish.
Action Step: Make a list all of your fixed expenses and put it on a spreadsheet.
Editor's Note: "W.W.G.N.D." - What Would Grease Not Do?
- Principle two, create a planned expense report and forecast. Clay, I'm gonna read this notable quotable from our main man Warren Buffet.
- If you wanna mispronounce his name, it's Warine Buffay.
- Okay. Just for all the Thrivers out there.
- There's a lot people who wanna do that, it makes it more fun.
- Yeah, so he says, "Accounting is the language of business." The language of business. Why is accounting the language of business? What is Warren Buffet saying?
- Hola, mi amo Clay. Me no speakoespanolo. No, see, I don't speak Spanish, so when I try to it sounds horrible, I don't know what I'm doing, and no point can I communicate. So I was literally down there in Mexico, true story, I'm down in Mexico. A lot of Thrivers go, "Does this guy really travel in Mexico? "What happens when he sees light?" I'll tell you what happens, I get blisters on my body. My body gets blisters. I'm not kidding, I go outside, it's just Anyway, I'm in Mexico, and I wore a boat shoe. My shoe is like a boat shoe, you know what I mean? Thrivers, a lot of training schools aren't gonna get real like this, but I'm going to. So this awkward pause provided to you by my shoe. But this is my shoe. My shoe is a good size 13, this is the real deal. I don't know if we can see this here. Can we cut to that camera? Yeah, that's my shoe. It's a boat. You could set sail on these, you could go to other countries on this boat. But anyway, I didn't have a shoe for some reason, something happened to my shoe and so I didn't have one. And so I ended up having to go find a shoe in Mexico. And so I'm walking around going... For some reason because I'm a typical American who does not speak any other languages, I'm going, "Uh, do you guys have shoes?" And this is the universal sign that foreigners use. And then you say it loud. So I'm like, "Do you have a shoe? Do you have shoes? "You know, shoes. Like, shoes." It's almost like if I can't speak the language the other person's deaf. "Do you have a shoe?" And people were going, "Uh, no habla ingles," or whatever. I'm going, "I think they're saying they don't know English." Okay, so I got that part. "No habla espanol. Shoe. "Do you have a shoe?" One guy, he has the compassion to go, he points down at my shoes and he goes, "Zapatos." I'm going, "Uh, no zapatos?" And he goes," Donde esta zapatos," or something like that, where are the shoes. And I'm like, "Yeah? True?" And he goes, "Si." So he points me over there to the Wal-Mart. And so we walk down there. Long story short, I didn't know what was going on. And by the end of the trip, because I lost my shoe, I ended up learning enough Spanish to find the bathroom, so, "Donde esta el bano," I believe. And I knew how to say my name is Clay, so it was, "Hola, mi amo Clay." And I learned a few things, but people, if you don't know your language in business you can't communicate. You can't talk to bankers, that's the language of business, that's the financials. You gotta do it. Otherwise you're gonna end up just being in a foreign country of business.
- So, Clay, can you show us on the most basic level how to create a document, what it should look like, who should Thrivers talk to about creating that document?
- Here's my challenge right now. One is go through all of your fixed expenses, everything you're gonna spend money on every month. Like your rent, your phone, your utilities, your anything you spend money on every month and make a list of it. Just put it in a spreadsheet. Excel. Put them all in there, enter them in. And you're going, "I don't have Excel," then use Google Sheets. Go to Google, make a gmail account, it's free, do it. But you gotta have one. Then you add them all up and you click the little sum total button, it looks kinda like that E thing. Hit the sum total. Hit it. And it adds it up, and there are all of your expenses. And now next month when you have other expenses, look and go, "Did my expenses go up or down?" And try every month to make them go down. That's as simple as it gets. Every month when you pay your bills look at it and make sure that's in line.
- Okay, so part of this specific principle is being proactive about the expenses. You have to plan the expenses.
- Yeah, be proactive about planning your expenses in the way our federal government is with the balancing their budget. No, don't plan like our federal government plans the budget, because there is no budget. They just keep printing money. I don't want to get on too big of a rabbit trail, but just whatever you do, don't keep it Greece-y. Don't do what Greece would do. Ask yourself, what would Greece not do? What would Greece not do? So it would be WWGND. What would Greece not do, and then do that.
- I'm printing little bracelets.
- Nice. WWGND. And then I want you to take your right hand. A lot of Thrivers are getting this wrong right now, I wanna help you guys. You wanna start low, and then you wanna fully extend, and you want to yell, and then we're gonna go to the White House.
- [Voiceover] And then we're going to Washington, DC, to take back the White House.
- That's how you do it.