Featured Coaching Excerpt - Notes & Transcript, Part 1
Ask Yourself: Am I completely clear on where all of my money goes?
Lesson Nugget: A ledger helps you keep track of how much money is going in and out of your account on a daily basis.
Lesson Nugget: You have to keep track of your revenues, expenditures, accounts receivable and accounts payable.
Ledger: A physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable. Ledgers used to be kept in books preprinted with lined ledger paper - which explains why a business's financial info. is often referred to as the "books" - but are now commonly kept in computer files that can be printed out.
understand yahoo finance, time management
-My name is Caleb Taylor, and I'm one of the hosts here at Thrive15.com, the online platform that teaches time management, sales, marketing, pr, etc... And I'm going to be sitting down with ClayClark, CEO and visioneer of Thrive. He's going to be helping us better understand the ledger. He's going to define what that is and why it's important for you to understand.
As you know, here at Thrive15, we believe that knowledge without application is completely meaningless. So always ask yourself, how can I apply this lesson to my life and my business? If not, today's episode could be more meaningless than a filter on a cigarette. All right, Clay.
-You keep your distance.
-OK. I've got a real quick question here, before we start. What superpower suit are you wearing under your current suit?
-DavidRobinson, number seven, US Olympic dream team number-- I believe it's number two. There was actually a number three.
-So if you don't know what we're talking about-- underneath all of his suits, Clay always wears some kind of athletic jersey. And today it's David Robinson.
-D-Rob, ad bro, what's up?
-Love it. That provides a lot of his energy and his superpower. So can you please channel that for us right now as we define ledger?
-Yeah, ledger. So let's define that. Because you need to know what this means as an entrepreneur for your business. A ledger is a physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable. Ledgers used to be kept in books preprinted with lined ledger paper.
Which explains why a business's financial info is often referred to as the books. Clay, channel that passion, that energy, that focus, that superstar here. But now, these are now commonly kept on computer files.
They can be printed out, but it's done differently now. So Clay, I know you are really just enraptured with my definition here. So as you were listening to it, what did that mean to you?
-OK, I'll tell you. And I'm being serious now, I'll be focused. John D.Rockefeller, one of the world's most successful people--
-I've heard of him.
-He recorded almost everything. Now people who know him claim that he recorded every expenditure he made his entire life in a book. World's wealthiest man by today's standards. He would be so wealthy today that he could be buying companies like Google twice. It's unbelievable.
Every expenditure, what he did is he wanted to make sure that if he's bought something that he deducted it and knew how much was left. Now let's talk for a second. If you're watching this, you have, probably, a debit card. You probably have a credit card.
-You probably have some sort of payment device.
-And you probably routinely spend money without thinking about how that affects your net worth. But every day, John Rockefeller said, I am going to be worth more today than yesterday.
-And he documented all of that?
-Every single expense. Now here's what's crazy-- I know, personally, probably four or five dozen millionaires. And most of them are just as fastidious just as detailed, just as focused about knowing, every dollar, where it goes. So if you're watching this and you have a bank card and you have a credit card and you have all these expenses going everywhere, you need to get it together. You need to know how much money is coming into your account and out of you account on a daily basis.
-And that's what a ledger is.
-A ledger is that. And so there's websites. There's a wonderful website right now called Mint.com.
-Mint.com offers you a powerful tool that you can use to keep a virtual ledger. Or-- and I'm not kidding-- I prefer-- I personally keep a physical book.
-Yeah, I've seen it. It's real.
-I do it because I want to know where each account is at. It freaks me out not to know. And I'm telling you, I see people all the time that say, I'm going to do it digitally. That's great that you talk in that voice and that you want to do it digitally. And I'm not against digital, I'm not against doing it on paper, but you have to have a ledger which is defined as, again, we're keeping track of our revenues and our expenditures.
Our accounts receivable and our accounts payable. We have to keep track of it somewhere. And if you do that, you'll be successful. Just last month, I knew that I had about $8,500 owed to me from one person.
I had about $202,000 owed to me from these things over here. And then I knew how much was in the bank. So I knew exactly all my revenue, I knew all my expenditures, I knew how much money was coming in, and I knew how much money I owed.
-So help me understand this. If this isn't something that I'm good at this, this isn't my calling, this isn't something I enjoy-- is there another option for me here?
-This message is not brought you by bookkeepers of America.
-But it is super important that every Thriver watching this-- and I say Thriver. If you are not content with just surviving, you need to hire a bookkeeper. That's expense number one. When you start your business, you need to go out there, get incorporated, and hire a bookkeeper from the very beginning.
-If nothing else, it helps keep you accountable by making sure, hey, have you written this down? Do you know how much is coming out of here and how much is going into here?
--For Thrive, we have people who've invested $200,000, $100,000 in this business and they want to know, where's the money being spent? And I can tell them, this is where it's gone. And what's neat about it is it tells a story. And the thing about the bookkeeping and a ledger that's exciting is-- in a good movie, there's a character and there's a plot and you get to see the development. Well, in a good business, you can see the money comes in, the money comes out.
And the ledger tells the story. It tells how you're managing your money, what you value. And you could look at and go, uh-oh, I value a lot of alcoholic beverages. And you'll realize, oh no, I'm spending a lot there. Or, uh-oh, I like lottery tickets.
Or, uh-oh, I keep buying ads that don't work-- or whatever. But the thing is you have to have a ledger to keep track of this stuff. And a lot of entrepreneurs are using the bank card. If you're watching this right now and you have a bank card, I would challenge you to ask, how often do you look at that statement? And a lot of people don't.
And it's sad to see a 45-year-old man pay me as a consultant and it overdrafts his card-- to see her overdraft her card. It is sad to see it over and over and over again. And why do they do it? Because they're not keeping a ledger.
-Keep the ledger. You can see the story, see where that money's going. You've got to keep track of it.
-Keep the ledger. Heath Ledger.
-Thank you so much. You're a great pale
Watch online trainings on time management and more.