Financial Intelligence: What You Need to Know to Succeed

GAVID091 – Financial Intelligence: What You Need to Know to Succeed

September 2018




Profit First  By: Mike Michalowicz


Rule of Thumb:

    1. 15% of revenue should be your profit
    2. Manager cost 20%
    3. Labor hours ($12 per hour)
  1. Sell it for x dollars
  2. I know it costs me to deliver this, what should I charge
    1. If you triple the cost, you are in the right ballpark
    2. If you double your prices and lose half your customers you are doing well
    3. Value yourself and your company right


2 most common disasters most people face

  1. Job loss
  2. Major sickness/accident


Figuring out your finances:

  1. What you make and what you keep (Per month)
    1. Have a safety net/buffer
    2. Spreadsheet
      1. Income
      2. Expenses
        1. Mint (App)
    3. Save for things you like to do
  2. See what you can trim from your spending each month
    1. “Blood money”
    2. Figure out what you have to make in order to spend on big purchases
  3. Ways to reduce spending
      1. Whats on sale
    2. Insurance
      1. Reduce insurance costs
    3. Think long term on your daily/weekly spending
  4. 401K
    1. Put more money into your 401K and keep your taxable income down
  5. Hire a CPA
  6. Books on financial intelligence
    1. Set for Life
    2. Your Money or Your Life
  7. Consistently put money away for retirement
    1. Be aware of fees in your Investments

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