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Discussing finances can seem overwhelming, hard to
understand, and intimidating. Rest assured, I will always give you the quick
and simple version to keep your head in the game and keep you focused on your
financial fitness. You can subscribe to my newsletter for financial workouts
Meet The Coach
Hi! My name is Abreia, but many know me as Coach Bre. I am
fun and trendy but also a serious and resolute financial coach. In my corporate standing, I am currently a business transformation compliance officer under a large corporation. I am also not the
new kid on the block in these financial career streets, I have over five years
of experience in finances and accounting from personal banking to bookkeeping and federal taxes to the fun stuff
like macroeconomics. I have four years of education with accreditation toward a dual bachelor’s in accounting and finance.
Here is my 101 on personal finances. Let us dive in!
Agenda
The agenda is to help
you evaluate your finances by determining where you are while keeping you
focused on where you want to be. Concentrating on your business or personal finances
will help you build wealth faster and create and maintain financial freedom. No
matter where you start, remember small efforts add to big results. There’s a moto around the Moneytelligence with
Bre brand” Progress over perfection”
At some point during this read, I encourage you to take the
time to schedule an appointment with yourself. For example, send a scheduled
note to your iPhone or use your Android to create a calendar invite. Allotting
time to focus is the best way to stay on top of your finances.
Remember you can always add yourself to my calendar for a
group or 1 on 1 chat, when available.
Where You Stand.
The first step in evaluating your finances is determining
where you are by calculating your net worth. Don’t let that scare you. Net
worth can be calculated using the balance sheet approach, which lists all your
assets and liabilities.
This step can be the most intimidating. I’m here to tell you
it shouldn’t be. Writing down all your assets and liabilities to calculate your
net worth is just that. A map with this step as the starting destination. You
want to know where you are so you can create goals around where you want to be,
because at the end of the day:
” Progress over
perfection”
Assets- Liabilities = Net worth
Assets
Assets are what you own. They contribute to the
income portion of your Net worth. Certain investments, savings accounts, and
retirement funds are great examples of assets within personal finances.
Assets should be a hot topic when building your net worth.
Assets take charge of potentially generating income. A good example of a net
worth building asset is real estate. Real estate has the potential to generate
income constantly including appreciation.
While working with a familiar client, she casually mentioned
that she only stayed at her townhome every other month. I pushed her towards renting
out her home when she was away. She was
skeptical, but she decided to do a trial run after I presented her with all the
financials. In her favor, she booked as a host for a few months in advance. She
was stunned about the income and has now decided to invest and purchase a tiny
home to rent out for long-term income. During this purchase, her net worth will
rise by nearly 50 thousand and eventually more as revenue and income from her
investment is returned.
” Progress over
perfection”
Liabilities
Liabilities are what you owe as an
obligation. Liabilities are the debts that you take on to acquire assets or
cover expenses. When trying to build up your net worth liabilities should be
avoided or lessened.
Here are some common liabilities in personal finances. Mortgages,
car loans, credit card debt, and any outstanding personal loans.
Another way to boost your net worth is by reducing
liabilities. If you're focusing on your finances opening your 10th
credit card, a liability, may not be the best financial decision.
Take your time and be kind to your finances.
Now that you have your starting point. Let’s reflect!
Reflection
1.
Was your net worth more or less than you
expected?
a.
More b.
Less
2.
Coach Bre’s moto: Progress over __________________!
a.
Everything
b.
Perfection
c.
Trips
I am so proud of you for being courageous and honest with
yourself. Your net worth is looking good.
Where do you want to be
Now that you have a starting number on your current net
worth, it's time to focus on where you want to be. How will you expect your net
worth to be in the next coming year? 5 years?
Goals
The reality is without goals and action, your success suffers.
Creating checkpoints to measure your progress is very
important for financial success. I challenge you to remember the SMART saying
while creating goals.
Your goals should be
- Specific- Your goals should be as specific as possible. “My goal is to save” is too vague.
- Measurable- Your goals must have data to measure your progress.
- Achievable- Are the goals you setting for yourself actually achievable?
- Realistic- Your goals should align with realistic situations. Becoming the first person on Pluto may just be out of reach
- Time-bound- Goals should include a timeline.
If I was setting a goal to save, I might write it down as
this.
A+ goal: I aim to save 100.00 in an envelope every month for
the next 12 months to total 1200. I am paid biweekly so I will save approx. 50
dollars per paycheck. Sweet, simple but hits all the points of our SMART chart.
Needs work goal: My goal is to save money sometime soon.
Long Term Goals
Long-term goals are financial goals that usually can be
achieved within less than a year. These goals are longer because they likely
take longer and more work to achieve. Some examples would be paying off your car
loan in 3 years or finishing mortgage payments in 10 years. Having a profitable
business in 2 years. These are all long-term goals that should be decided using
the SMART method.
Short term goals
Short-term goals are financial goals that can be achieved
within less than a year. They should be decided using the SMART method.
With short-term goals, there are 2 types of accomplishments:
quick, smaller accomplishments that can be achieved within the next 7 days and
bigger, and slightly longer accomplishments that can be achieved in under a
year.
Just thinking about the goals, what is a quick accomplishment
you can make?
I challenge you!
I challenge you to take on a short-term goal. I challenge
you to write down a seven-day expense for a specific type of expense. Maybe you
will choose to write down your morning latte cost. Or your food expenses. This
will be an easy win. I promise. This goal will lead to something big.
” Progress over
perfection”
Once your goal is complete keep an eye on your inbox for the
next checkpoint in my weekly newsletter. If you need to subscribe do so now!!
Takeaway
It was great getting started with you on your finances. This
is part 1 of a 3-part series about personal finances. Stay in touch to talk
about credit, debt and passive income topics.
Coming soon! Pod Chat with Coach Bre!
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