"I want to Ask him... What Is The most Important Company In your Life?"

 

For: Camilo Pinto
Publisher


One of the most important aspects to achieve a few healthy personal finance, economic safety and a life focused in the generation of wealth has to do at the level of conscience that you have on the question: What is the most important company in his life?

Many persons answer immediately that the most important company is the company for which they work, or the company of which they are associates or shareholders, or that company that they want to form... since I want to say to him that the most important company is YOU himself. You, as it presents itself, it is a company that has income, expenses, probably debts, strategic targets, etc.

For the same is vital for his financial well-being to understand where is his personal company at present in financial terms? If personal financier was doing with the help of an expert in planeación a diagnosis of HIS current situation, what would it be the result? Would it be well, regularly or badly?

As when we go to the doctor for a periodic checkup it can happen that we meet well, even that we feel good, but that, on having done the corresponding rigor examinations to us like tests of urine, blood examinations, between others, we prove with triglicéridos high places, high cholesterol, high tension, or any other indicator that clearly shows that our health is not so well like initially we believed! Or also it can turn out that after the diagnosis really we are healthy.

The important thing is to realize that without having carried the diagnosis out we had never known really what our condition was and therefore the actions of progress to apply.

Well, the same happens with our personal financial situation. Be able you turn well, to feel good, to have a good revenue and the others, but really on having done a financial diagnosis to him with a specialist, it turns out that there are several points in which it might improve his situation! Or it might prove like several times it has happened to us that a person is at the edge of the failure and has not realized!

If we were taking any medium or big company as an example that you know... what would happen to this company if the departures were major than the income or a saying of another form, if it was spending more than it was bringing in him? Very probably was not his financial situation very well and if it is situation prolongs in the time the surest thing the fact is that it fails or that he needs a strong capital injection on the part of the associates... that is not true?

The same him happens to the persons... and it is more frequent than you imagine! The tallest percentage of the population of Colombian executives spends more than it wins! Also they do a series of figures or rather of maneuvers with the credit cards or with credits of free investment with which they are provided not to sink in the moment! If we understand what we explain previously the most probable thing the fact is that they are at the edge of the financial failure!

Also it is important to admit that they not all come to the point of spending more than they win, but unfortunately they commit many errors that might be easily corrigible. It is necessary to be provided with the strategies of administration of the revenue not to fall down in the pitfall of being a wealth destroyer instead of being a wealth generator!

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To do these diagnoses normally hardware is used like analysis of the Balance General Personal, of P&G personnel, indicators of Retention of Wealth and Bosses of the Cash flow.

Balance General Personal

It shows us the relation between what you have and what you owe, or said technically between his assets and his debits. It is a photo of how it shows his personal company in a specific moment of time. Analyzing together with a specializing consultant in planeación financier will be able to establish if:

	Are his assets productive assets or countable assets only?
	is debt level that it has the suitable one or is it excelling itself?
	Are his debts good debts or bad debts?
	Is his clear hereditary value (the difference between what it has and what it owes) adapted for a person with his income and of his age?

The Personal State of Losses and Profit

He says to us which is the movement of cash of his personal company in a specific period of time. Of his analysis it will be possible to establish:

	What are his cash flow bosses?
	Is the form in which you handle his money that of a person who will be permanently in financial problems? That of a typical person of the middle class? Or that of a person with high possibilities of generation of wealth?
	Is it his expenses level adapted for a person of his age and for the income that it has?
	Is his income structure a structure directed to that you could buy his time in the future? Or is it a structure of income in which the time freedom will not be anything very probable for you?
	What is the level of risk that you run with the type of income that you perceive?
	Are sufficiently diversified the sources of revenue of his family?

Personal Financial indicators

There are financial reasons that allow him to be able to measure his situation with more definite criteria and give him the possibility of formulating actions of progress. Well Dr. Demming was saying: "... what is not measurable is not improvable...".


Inside the most useful financial reasons in his personal analysis they are:

	Reason of Indebtedness: It establishes the risk that there run the creditors of an individual, the financial health of the person and the expediency or unsuitability of a certain level of indebtedness. This expediency or unsuitability takes root in the type of debts that are had: bad debts or good debts. (Bad debts are all those that extract silver of the pocket to the person and good debts are those that allow that between silver to the pocket. In next editions we will explain with more thoroughness this concept).
	Indicators of Yield: They measure the effectiveness that the person has in the administration of his personal finance, in controlling his expenses and turning his positive cash flow into more productive assets and therefore into more cash flow.
	Indicator of Liquidity: It measures the availability with which he would have what it has (his assets) in case of needing them. It is recommended to take liquid assets as 10 % of the value of the productive assets. (Productive assets are those assets that put silver in his pocket. In next editions we will explain with more thoroughness this concept).
	Indicator of Retention of Wealth: it establishes what proportion of the income that you have received in all his life, has used them in wealth construction. This exercise is simple and his target is more of conscientización:

One would surprise if there was taking the time to calculate how much money it has gained in his life; that is to say, what a lot of money it has spent for his hands... and how much of this money he has been you capably of retaining and of setting to work for you!

It is important that it begins registering the excellent information and seeing really THAT HISTORY COUNT THE NUMBERS!

Nevertheless not everything for there, likewise not everything for when you go to the laboratory and receive the results of the medical examinations. A specialist needs in this case a doctor that he could interpret this information and do recommendations to him and probably formulate some medicine. Well, with the history that the numbers count across the different hardware of financial diagnosis the same happens: it is necessary that you are provided with a specialist in planeación of personal finance that he it should can face and help it.

It is not any more for this edition. I say goodbye of you, hoping that the information that I have just shared with you should help him to improve in his personal finance and to take control of his financial future.



Camilo Pinto
Publisher
Tel.: (571) - 6914692

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