Checking in on our business status -

Believe it or not the end of August is here and we are eight months down for 2010.  Next month estimated quarterly taxes are due and I find it a good time to review things and see how I'm doing.  Some of you have more time into the "self-employment" path than I do but regardless it's never a wrong time to put on paper the goods, the bads and things that need to be changed so you can evaluate and make adjustments so the last quarter of the year produces improved results.

Of course have you been entering your transactions in either Quicken or Quick books or even a simple Excel spreadsheet?  That is the question right?  If you haven't now may be a good time to get started as you will have a difficult time getting a picture of how you are doing without the historical information on hand.  However, as any self-employed individual will tell you..."I know (in their head they know) how I'm doing."

I've always loved that statement because to a great degree it is true.  The person who wears all hats is the most hands on expression of the business.  They know who their customers are, if they are asking for more services, if they are paying their bills and of course they know if the business is growing by virtue of how busy they are.  Yet, the specifics of how they spend their money and what that amounts to or what percentage of their revenue is spent on certain things usually remains to be seen.

People I have had the pleasure working with who were self-employed or just wanted their finances tracked were always, without exception, surprised when the data was organized and put together and they could see, in black and white, where their money was going.  It's quite a wake up call even if you believe you are the most knowledgeable about your finances. 

So, take the opportunity now, before you pay your taxes or the end of the third quarter (9/30) to take the time to put your information together in a way that works for you.  If you're not quite up to speed with Quick books or even Excel, just buy accounting paper and make your own financial statement.  The good thing about this exercise is you will continue to learn about what you know and what you don't know about your business.

Remember, any questions can be easily answered if you take the time to think about them and don't be afraid to talk with others who are self-employed as they are struggling with the same issues as you.  I've found it very interesting to walk into the local retail stores and if they aren't busy, talk with the managers and find out how they think things are going for their business.  You'd be surprised how willing people are to talk about their perception of the economy and how their business has made changes to accommodate the economic challenges and keep business profitable.  Sure, their business is different than yours but we are all challenged by these economic times and it never hurts to check in with other business people who live and work in the same world you do!

How to convey ideas to self and others?

Just this morning I was reading the NYTimes on-line and ran across a great visual addressing all the ideas of money, finance, planning for the future that each and every one of us considers.  It was done in such a unique and creative way I just had to share it.

Here it is -  The Sketchpad: Personal Finance on a Napkin  It draws you into exploring what the ideas are about and hopefully gets you thinking about where you stand and how you would rate yourself.

As we have all learned over time, no one person has the correct answer for all which is why it is important that we take responsibility for educating ourselves about money and the ideas around managing it.  Not that we have to be a whiz at every aspect of financial planning, investments, life insurance, as that makes no sense, but it is our responsibility to ourselves to have at least a global understanding so we can choose people who can help us get to where we want to go.

That, of course, suggests that we know where we are going.  I think that answer isn't always available to folks who work hard in a jobs that only allow them to cover their basic needs.  If you are just living check to check, you may not be able to take the time to think about the future or even believe there is a financial future for you.  But believe me, even those folks who can only save a few dollars here and there are trying to plan for tomorrow.

Take a look at this article and enjoy it's message.  Hopefully for those of you who, like myself, are visual learners, you'll start thinking again how you can better manage your own personal finances.

Money changes people?

It's been said that money changes people - I'm not too sure. I guess it's because I believe that people are who they are and as each new circumstance enters their life new choices are available, they see new things and who they are appears, only in a different light.

Because I am focused on helping people manage their money on a day-to-day basis, I am always looking to find new ways to do this. New ways to ease their confusion and anxiety. When working with self-employed individuals I find that my optimism over simple things that can be done to make a difference, helps them build hope that they can be in a better financial position...and they can. It just takes the awareness you are in trouble and need help; the willingness to ask for help and the important step...the ability to take action on your own behalf.