Nov 27, 2017
Wealth Building & Cash
Management
-Podcast Show Notes-
Summary:
In this episode, the Bush brothers, Bill and
Pete of
Horizon Financial Group
talk about the next two critical categories on the Confident Wealth
Scorecard – wealth building and cash management. Planning is
ESSENTIAL when it comes to succeeding in these two areas. Those who
struggle are often blind to the details of their portfolio and
spending and don’t actually realize how much money they’re burning.
Tune-in to learn why having proper SYSTEMS in place can transform
your sporadic cash flow into a steady stream and some other
insights that will help you score highly in these two critical
areas.
Time Stamped Show Notes:
- 00:43 – The Confidence Wealth Scorecard helps business leaders
assess where they are right now and enables them to compare it to
an ideal
- 01:35 – Today, we are going to tackle wealth building and cash
management; wealth building involves asset allocation and lifetime
income planning
- 01:52 – People who score the lowest are not keen on advance
planning; their lifestyle and business consumes all their cash
- 02:30 – A score of 4, 5, or 6 is for someone who directs all
their money back into their business
o
03:49 – Business owners often tend to overestimate the worth of
their businesses
o
04:40 – Diversification ensures that while you may not be making a
killing on every dollar, you will NOT get killed either
- 05:18 – A score of 7, 8, or 9 is assigned to someone who has
built up a portfolio, but has not rebalanced their asset
allocation, run retirement income projections or performed a fee
analysis in the past several years
o
06:32 – Ensure that there is minimal portfolio overlap and hence,
less risk
o
07:32 – Having a sizeable portfolio results in overconfidence and
avoidance of going into the details
- 08:00 – Ensure that your money outlives you and not the other
way around
- 08:38 – A score of 10, 11, or 12 is only possible if you
started planning a long-time ago
- 09:48 – You cannot accumulate sizeable wealth without a
rock-solid plan
- 10:34 – Cash management includes income, expenses and use of
debt
- 11:14 – Determining if you score a low 1, 2, or 3 in cash
management
o
11:37 – A poor cash management score is common in the initial
phases of a business where you are probably the owner and sole
employee
- 12:32 – A cash management score of 4, 5, or 6 is assigned to
someone with a moderately successful business but inconsistent cash
flow
o
13:32 – Not having proper SYSTEMS in place results in a sporadic
business income
- 14:19 – A cash management score of 7, 8, or 9 is for someone
with a high income, good savings, but too much cash stashed away on
the sidelines
o
15:48 – Having too much cash results in losing out on an
opportunity to generate additional income
- 16:28 – Regular business, personal financial reviews and an
ability to reliably predict profits are some of the factors which
will help you score higher
o
17:31 – Ensure you have methods and systems that will prevent
loss
o
18:36 – Diligent planning, a proactive approach and professional
help will lead you to a score of 10, 11, or 12
- 20:00 – We have tackled 5 of the 8 categories of the Scorecard
now; we’ll tackle the last 3 in the next episode
- 20:47 – Apart from making money, success is defined by how
you’re doing in your personal life as well
- 21:20 – Check out ourwebsite to know more about our team
and our various services
3 Key Points:
- To accumulate a sizeable portfolio, you need a rock-solid plan;
AVOID having too much cash stashed away and ensure there is minimal
portfolio overlap.
- Owning a small to medium-sized business often results in a
sporadic cash flow; scale your business by implementing systems
that will ensure your cash flow remains stable.
- Diligent planning, a proactive approach and proper financial
help will ensure that you score highly as far as cash management is
concerned.
To view the
Confident Wealth Scorecard, click
here.