Gabrielle Bourne SMARTWomen

Archive for February 2011

We don’t think anyone would disagree that being financially independent is a GREAT feeling! There are plenty of books about it. Television programmes promote it. Events are full of well organised topics on it. Yet, why is it that less than 20% of the population are thriving and more than half the population is barely surviving?

Finances are of a personal nature, but honest and open discussions need to happen before any “breakthrough” changes can occur. Unfortunately, some of the core financial competencies are neither taught in the classroom or at home.

Most people know the difference between expenses and revenue, BUT when equating assets to liabilities, the main stream might get lost in defining it. Simply put, assets are defined as “book value” of tangible or intangible products that can be used as a resource. Liabilities are exactly how it sounds, or what we call, “things with a price tag that needs to be paid out.” We can look at a car as an “asset,” but IF you still have debt on it, throw it in the liabilities column. The difference between the two is what is known as the “Networth.”

We don’t know what percentage of the population know their networth, but in 2010 after having conducted a focus group research of 386, a staggering 86% did not know the definition of a “networth.” One of the main reason consumer debt is back on the rise, according to Consumer Reports, is that consumers are getting more comfortable with the idea of spending money. There is nothing wrong with spending money, as we know how it can stimulate the economy, it is when spending outpaces the ability to pay back on the debt.

The 30 minute segment on “Assets and Liabilities” just scratched the surface, but in the world of finance, personal finance should precede investments, otherwise investments which should be viewed long term, will get wiped out before they are needed.

Today, whilst there are many citizens saving up for retirement in their 401(k), 403(b), Roth IRA, KEOH, there are still many withdrawing from retirement accounts at an alarming rate. Retirement accounts are the basic investment vehicles. The more advanced portfolios include stocks, mutual funds, Forex, ETFs, etc.

Many small business owners don’t realise that even well-meaning celebrities and “Captains of Industry” carry huge liabilities. ALL FORTUNE 500 companies do. They have to make up for payroll and invest back in their business. Businesses do get in trouble when the spending is not managed appropriately and “creative bookkeeping” occurs. Remember Blockbuster, Chrysler AND the fall of Enron?

Small business owners have a great challenge when it comes to creating networth for themselves and their business, and most times, the line gets blurred between personal accounting and business accounting. It is vitally important, for the long term health of the business, to keep accounting separate. SMART Business Owners also know how to “Pay themselves first.”

The concept of “SMART Women” derives from this very idea that when you apply the S.M.A.R.T. strategies for your business, profession and life, you can achieve an extraordinary human experience! “Achievement” and “Thriving” are two driving forces behind “What S.M.A.R.T. Women Know,” a program specifically designed for women by Gabrielle Bourne and the T.E.A.M. @gabriellebourne. We help women align their vision, mission, dreams and game plan for life!

Twitter contact: T.E.A.M. @gabriellebourne. Ask questions at hashtag #TEAMSOUNDOFF

©2011  |  Gabrielle Bourne – T.E.A.M. @gabriellebourne

Advertisements

Strategic Planning and S.M.A.R.T. Goal Setting is a practice of many highly regarded companies, businesses and even cities, yet, most of the smaller businesses and professionals don’t use or apply them.

When a business launches, there should a process to design and implement a plan that includes the business plan, the “blue print” for the business, and the strategic plan that will help the business achieve their objectives and goals. The two plans combined is a “winning” partnership as one feeds into the other and they both will support the growth of the business. Professionals looking for work or currently in a career field can also tailor these plans for their specific needs.

No plan is “perfect,” and as with anything that is on a “growth” path, it needs to be managed. This includes reviewing the plan, revising expectations and working the plan throughout the process of its “evolution.” Within the body of the plan you have the goals, but how do you effectively implement them? You make them S.M.A.R.T.

Strategist talk about making goals S.M.A.R.T. because it is the most effective way to accomplishing them. The difference between a S.M.A.R.T. Goal and just a goal is that the latter is a statement, whilst the former is a “Process.” When goals become S.M.A.R.T., they become (S)pecific, (M)easurable, (A)ttainable, (R)elevant and (T)imeframed. Goals become “visualized,” with a real date and time stamp to accomplish them. They help you become results oriented.

The concept of “SMART Women” derives from this very idea that when you apply the S.M.A.R.T. strategies for your business, profession and life, you can achieve an extraordinary human experience. “Achievement” and “Thriving” are two driving forces behind “What S.M.A.R.T. Women Know,” a program specifically designed for women by Gabrielle Bourne and the T.E.A.M. @gabriellebourne. We help woman align their vision, mission, dreams and game plan for life!

Twitter contact: T.E.A.M. @gabriellebourne. Ask questions at hashtag #TEAMSOUNDOFF

©2011  |  Gabrielle Bourne – T.E.A.M. @gabriellebourne