Finance for beginner

[CiceroTavares12]

Well, I read all of mj's books, one more thing that I was in doubt about was the company's finances, like because there are some books that say different from what he says, more like how to do it the way he says, someone who managed it, how he did? some percentage etc, like I know, there are 3 areas, one is the monetary system, another is debts, and the other is investing in business, and there is the basic need part, but I understood the concept, like when the company is small , take the minimum for needs, end debts (I don't have it), put some money every month in the monetary system even if it's little, and invest in the business, focus on growing the business, after it takes a lever, try to a jump of 0, and increase the monetary system, the investment in it, 80% of the company's profit, right? as for the others to survive and invest more in the business, please correct me if I made a mistake, like the way I saw it, it was like this, for example, the first month, I made 10k profit, I took a minomo to survive, and I leave the rest in the company's cash, and invest to grow, second month profit 10k, I do the same thing, and the same thing in the second month, in the third let's say I earned the same, I do the same thing, only here, I get the money from the cashier, which I collected in the three months, is about 20k and little, I take what is necessary for the company to survive for 3 months, even if nothing comes in, and after doing that I can take everything that is left for me, for example 10k, then I take 3 or 4k for the monetary system, which, adding up to the 3 months that remain without putting anything more or less, a thousand reasi for each month, in this case I put a thousand reais a month, and I invest the rest in the business to grow and the profits are bigger, like correct me if I was wrong, what do you think, so right?

 

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[Kevin88660]

Well, I read all of mj's books, one more thing that I was in doubt about was the company's finances, like because there are some books that say different from what he says, more like how to do it the way he says, someone who managed it, how he did? some percentage etc, like I know, there are 3 areas, one is the monetary system, another is debts, and the other is investing in business, and there is the basic need part, but I understood the concept, like when the company is small , take the minimum for needs, end debts (I don't have it), put some money every month in the monetary system even if it's little, and invest in the business, focus on growing the business, after it takes a lever, try to a jump of 0, and increase the monetary system, the investment in it, 80% of the company's profit, right? as for the others to survive and invest more in the business, please correct me if I made a mistake, like the way I saw it, it was like this, for example, the first month, I made 10k profit, I took a minomo to survive, and I leave the rest in the company's cash, and invest to grow, second month profit 10k, I do the same thing, and the same thing in the second month, in the third let's say I earned the same, I do the same thing, only here, I get the money from the cashier, which I collected in the three months, is about 20k and little, I take what is necessary for the company to survive for 3 months, even if nothing comes in, and after doing that I can take everything that is left for me, for example 10k, then I take 3 or 4k for the monetary system, which, adding up to the 3 months that remain without putting anything more or less, a thousand reasi for each month, in this case I put a thousand reais a month, and I invest the rest in the business to grow and the profits are bigger, like correct me if I was wrong, what do you think, so right?

Just think in terms of common sense rather than formulas.

Cash flow is what keeps your business alive. Your existing cash reserve, how soon you pay your suppliers, essential monthly expenses, and how fast you get your money from your customers.

You are in big trouble if you are out of cash, but you have a big cash reserve, and you are afraid to fulfill orders with a payment that comes a bit later. You might be playing too safe.

"Investment" is a tricky word. There is no certainty that an increase in revenue will happen for advertising or renovation. Only use money that you can afford to lose. But if it is order fulfillment then it is different. If the order is large you need to take note of the dates that money comes in and the dates you need to pay your rent/staff/supplier.

It is not much different from the days when you have a job and need to pay for your bills. Except that pays comes in irregularly. And you need to feed cash in to keep the game running.

 

[WJK]

Well, I read all of mj's books, one more thing that I was in doubt about was the company's finances, like because there are some books that say different from what he says, more like how to do it the way he says, someone who managed it, how he did? some percentage etc, like I know, there are 3 areas, one is the monetary system, another is debts, and the other is investing in business, and there is the basic need part, but I understood the concept, like when the company is small , take the minimum for needs, end debts (I don't have it), put some money every month in the monetary system even if it's little, and invest in the business, focus on growing the business, after it takes a lever, try to a jump of 0, and increase the monetary system, the investment in it, 80% of the company's profit, right? as for the others to survive and invest more in the business, please correct me if I made a mistake, like the way I saw it, it was like this, for example, the first month, I made 10k profit, I took a minomo to survive, and I leave the rest in the company's cash, and invest to grow, second month profit 10k, I do the same thing, and the same thing in the second month, in the third let's say I earned the same, I do the same thing, only here, I get the money from the cashier, which I collected in the three months, is about 20k and little, I take what is necessary for the company to survive for 3 months, even if nothing comes in, and after doing that I can take everything that is left for me, for example 10k, then I take 3 or 4k for the monetary system, which, adding up to the 3 months that remain without putting anything more or less, a thousand reasi for each month, in this case I put a thousand reais a month, and I invest the rest in the business to grow and the profits are bigger, like correct me if I was wrong, what do you think, so right?

The first thing I do is figure out my "fixed" expenses. That's the rent, insurance, and other regular expenses that occur usually monthly. Then there are the "variable " expenses which go up and down. I usually figure out an average of my projected expenses. Some expenses vary seasonally so those expenses must be "weighed". You need to have additional money budgeted for their more expensive seasons.

To that expense number, I add a "sinking fund" factor. That factor is also known as a "freedom fund" factor. It is where you take the cost of things that wear out over time, and save for those expenses. An example is fixing your car or fixing or replacing a piece of equipment. Things don't last forever. You take the projected cost and divide that cost over the remaining time period. Then you add the list to arrive at a total. That way each month, or time period, you put that money aside into an account to be used when it is needed.

Sinking funds save you from financial emergencies. If you pay periodic expenses like your business insurance, you can put together a sinking fund for that type of expense too.

(FYI -- Just think if people used a sinking fund factor account and saved for their next car rather than buying a car and making payments -- with the bank collecting interest. Just a thought...)

Then I figure out my projected (estimated) net income. That's the gross income minus my cost of goods and projected expenses.

I try to have 3 to 6 months of monthly expenses in a savings account, plus the sinking fund factor savings. Stuff happens that way beyond our control. It allows me to sleep at night.

Does that help?

 

[circleme]

As far as I can remember, MJ divides it into two areas:

1. Money System Number
2. Business System Number (Cashflow)

First, you need to calculate your "dream" income per month, including all fixed and variable costs.

Money System Number = Dream Income / 0.6 × 12 / 0.05

The 0.6 is for taxes if you live in a country with approximately 40% taxes. I guess he used 0.6 to make it applicable for most states within the US or even worldwide. If you have a corporation, you can often lower that percentage, so it might even be 0.7.

Example: $10,000 / 0.6 × 12 / 0.05 = $4,000,000

If you invest the $4 million at a 5% annual rate, you will get $10,000 per month.

Business System Number = Dream Income × 5

This number can be divided as 40/40/20. 40% for taxes, 40% for savings, 20% for lifestyle. If your dream income were $10,000 per month, you would need $10,000 × 5 = $50,000 per month, with $20,000 for taxes, $20,000 for savings, and $10,000 for fun/lifestyle.

As far as I know, he doesn't provide the exact point/number/cashflow at which you should start investing in a money system. For example, I have a different approach, even though MJ's approach is absolutely fantastic, it's not that suited for my current situation, as I'm just starting out:

1. I pay myself a minimum salary (to cover my rent, food, drinks, further education, and transportation > basic necessities...)
2. Anything above that, I'll reinvest into my business
3. If there's a natural plateau, I would start thinking about investing in stocks, REITs, ... but until then: Step 1 leads into Step 2.

The reason I feel this way is that it seems somewhat surreal to me to invest in 5% return stocks instead of 500% return business outputs if you already have the system in place. If, for some reason (reached TAM, for example), things start to stagnate, I would consider investing in stocks, REITs, etc. Generally, even though a money system might be "safer" than a business, after crunching some numbers and realizing that returns of 500% or even more exist, the 5% returns kind of seem like a joke. I would rather have 10 small, automated online businesses than have a huge sum or a significant portion of my net worth in a money system. But I suppose this fundamentally relates to risk tolerance. I would prefer the business-to-business route much more than going from business to stocks or something similar. I mean, stocks are essentially businesses, but you know what I mean.

 

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[CiceroTavares12]

Pense apenas em termos de bom senso e não em fórmulas.

O fluxo de caixa é o que mantém seu negócio vivo. Sua reserva de caixa existente, quando você paga seus fornecedores, despesas mensais essenciais e com que rapidez você recebe o dinheiro de seus clientes.

Você terá um grande problema se estiver sem dinheiro, mas tiver uma grande reserva de dinheiro e tiver medo de atender pedidos com um pagamento que virá um pouco mais tarde. Você pode estar jogando muito seguro.

“Investimento” é uma palavra complicada. Não há certeza de que ocorrerá um aumento na receita para publicidade ou reforma. Use apenas dinheiro que você pode perder. Mas se for o atendimento de pedidos, então é diferente. Se o pedido for grande, você precisa anotar as datas em que o dinheiro entra e as datas em que você precisa pagar seu aluguel/equipe/fornecedor.

Não é muito diferente dos dias em que você tem um emprego e precisa pagar suas contas. Exceto que o pagamento chega irregularmente. E você precisa investir dinheiro para manter o jogo funcionando.

I understood your approach, like, if it is to invest, with caution, only that money that we can afford to spend, but if it is a request, we can do it, right? like my business, it's more daily sales, you know, like, I'm going to sell banana chips at the fair, and I'm starting, that's why I said it that way, I liked your approach, it's simple and logical

 

[CiceroTavares12]

Like, it's almost the same as my approach, but in your case, not just the business, right? a personal emergency reserve, right? like, do you have one of the business too?

A primeira coisa que faço é calcular minhas despesas “fixas”. São aluguel, seguro e outras despesas regulares que ocorrem geralmente mensalmente. Depois, há as despesas “variáveis” que sobem e descem. Normalmente calculo uma média de minhas despesas projetadas. Algumas despesas variam sazonalmente, portanto essas despesas devem ser “pesadas”. Você precisa ter dinheiro adicional orçado para as temporadas mais caras.

A esse número de despesas, adiciono um fator de “fundo de amortização”. Esse fator também é conhecido como fator de “fundo de liberdade”. É onde você calcula o custo das coisas que se desgastam com o tempo e economiza para essas despesas. Um exemplo é consertar seu carro ou consertar ou substituir um equipamento. As coisas não duram para sempre. Você pega o custo projetado e divide esse custo pelo período restante. Então você adiciona a lista para chegar a um total. Dessa forma, a cada mês, ou período, você coloca esse dinheiro de lado em uma conta para ser usado quando for necessário.

A amortização de fundos salva você de emergências financeiras. Se você pagar despesas periódicas, como o seguro comercial, também poderá criar um fundo de amortização para esse tipo de despesa.

(Para sua informação - pense se as pessoas usassem uma conta de fator de amortização e economizassem para o próximo carro, em vez de comprar um carro e fazer pagamentos - com o banco cobrando juros. Só uma ideia...)

Então descubro meu lucro líquido projetado (estimado). Essa é a receita bruta menos meu custo de mercadorias e despesas projetadas.

Tento ter de 3 a 6 meses de despesas mensais em uma caderneta de poupança, mais a poupança do fator fundo de amortização. Coisas acontecem dessa maneira além do nosso controle. Isso me permite dormir à noite.

Isso ajuda?

Like, it's almost the same as my approach, but in your case, not just the business, right? a personal emergency reserve, right? like, do you have one of the business too?

 

[CiceroTavares12]

As far as I can remember, MJ divides it into two areas:

1. Money System Number
2. Business System Number (Cashflow)

First, you need to calculate your "dream" income per month, including all fixed and variable costs.

Money System Number = Dream Income / 0.6 × 12 / 0.05

The 0.6 is for taxes if you live in a country with approximately 40% taxes. I guess he used 0.6 to make it applicable for most states within the US or even worldwide. If you have a corporation, you can often lower that percentage, so it might even be 0.7.

Example: $10,000 / 0.6 × 12 / 0.05 = $4,000,000

If you invest the $4 million at a 5% annual rate, you will get $10,000 per month.

Business System Number = Dream Income × 5

Este número pode ser dividido como 40/40/20. 40% para impostos, 40% para poupança, 20% para estilo de vida. Se a renda dos seus sonhos fosse de US$ 10.000 por mês, você precisaria de US$ 10.000 × 5 = US$ 50.000 por mês, com US$ 20.000 para impostos, US$ 20.000 para poupança e US$ 10.000 para diversão/estilo de vida.

Pelo que eu sei, ele não fornece o ponto/número/fluxo de caixa exato em que você deve começar a investir em um sistema monetário. Por exemplo, tenho uma abordagem diferente, embora a abordagem do MJ seja absolutamente fantástica, não é muito adequada à minha situação actual, pois estou apenas a começar:

1. Eu pago a mim mesmo um salário mínimo (para cobrir meu aluguel, alimentação, bebidas, educação superior e transporte > necessidades básicas...)
2. Qualquer coisa acima disso, reinvestirei no meu negócio
3. Se houver um platô natural, eu começaria a pensar em investir em ações, REITs,... mas até então: o Passo 1 leva ao Passo 2.

A real entendi o seu estilo, assim, o do mj, é muito bom, mas no caso dele é assim, quando o negócio é grande ou pequeno? tipo 40 para impostos, 40 para poupança e 20 para estilo de vida, mais isso é renda pessoal, certo? o salário? tipo porque tem a parte de pagar a mercadoria, e o que fazer com o lucro da empresa, sabe, mas tudo é um teste, mas sua abordagem é simples e boa, pegue o mínimo, e reeveti no negócio, você tem uma reserva ou algo assim? Filho, o que sinto é que me parece um tanto surreal investir em ações com retorno de 5% em vez de resultados de negócios com retorno de 500% se você já tiver o sistema em funcionamento. Se, por algum motivo (cheguei à TAM, por exemplo), as coisas começarem a estagnar, eu consideraria investir em ações, REITs, etc. mesmo que um sistema monetário possa ser “mais seguro” do que uma empresa, depois de analisar alguns números e perceber que existem retornos de 500% ou até mais, os retornos de 5% parecem uma espécie de piada. Prefiro ter 10 pequenos negócios on-line automatizados do que ter uma soma enorme ou uma parte significativa do meu patrimônio líquido em um sistema monetário. Mas suponho que isto esteja fundamentalmente relacionado com a tolerância ao risco. Eu preferiria muito mais a rota business-to-business do que passar de negócios para ações ou algo semelhante. Quero dizer, as ações são essencialmente empresas, mas você sabe o que quero dizer. negócios on-line automatizados que possuem uma quantia enorme ou uma parte significativa do meu patrimônio líquido em um sistema monetário. Mas suponho que isto esteja fundamentalmente relacionado com a tolerância ao risco. Eu preferiria muito mais a rota business-to-business do que passar de negócios para ações ou algo semelhante. Quero dizer, as ações são essencialmente empresas, mas você sabe o que quero dizer. negócios on-line automatizados que possuem uma quantia enorme ou uma parte significativa do meu patrimônio líquido em um sistema monetário. Mas suponho que isto esteja fundamentalmente relacionado com a tolerância ao risco. Eu preferiria muito mais a rota business-to-business do que passar de negócios para ações ou algo semelhante. Quero dizer, as ações são essencialmente empresas, mas você sabe o que quero dizer.

I understood your style, like, mj's, it's very good, but in his case it's like, when is the business big or small? like 40 for taxes, 40 for savings, and 20 for lifestyle, plus this is personal income, right? the salary? like because there's the part of paying for the goods, and what to do with the company's profit, you know, but everything is a test, but your approach is simple and good, take the minimum, and reeveti in the business, do you have a reserve or something like this?

 

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[WJK]

Like, it's almost the same as my approach, but in your case, not just the business, right? a personal emergency reserve, right? like, do you have one of the business too?

Like, it's almost the same as my approach, but in your case, not just the business, right? a personal emergency reserve, right? like, do you have one of the business too?

Yes, I have reserves for business and for personal.
I'm also OCD about keeping my expenses down -- even if I can afford it. But, my analysis has changed.

For example:

I'm building a new deck on a rental under an awning. Do I use treated lumber or heavily stain regular lumber? The treated lumber costs twice as much upfront. But, it's cheaper in the long run. It will last longer and the deck can be built faster -- which means a lower vacancy factor for that unit. And the people who would have stained the regular lumber can work on something else.

Do I outsource pouring a carport slab or should we do it? I decided to outsource it since it frees us to do other work.

I buy machines to do as many jobs as I can. My paper shredder in my office has a paper feeder that will shred up to 250 sheets of paper. My big all-in-ones have user boxes to store often-used documents. And that's just a couple of the machines.

 

[circleme]

No taxes included in this example, for easier demonstration:

Let's assume you make 5k per month and your living costs are around 2k. So, after paying yourself a 2k salary you have 3k left in the business account. With those 3k you can theoretically do whatever you want, but the most obvious step imho is to reinvest those 3k into your business. Not doing it would be kind of a bad thing tax-wise as well, at least in my country. So you can reinvest your profits into your business or invest it into a money system or you can even sit on it (even though I think that is the worst thing someone can do, but as always, it depends...). My goal is to generate enough cashflow to strengthen my business with an acquisition of another business in order to provide even more value to my customers. So in this case, saving the money in the bank account for a certain time in order to purchase the other business might be not that stupid, but I will let you know when I'm there, currently in the accumulation phase, if you want so.

 

[CiceroTavares12]

No taxes included in this example, for easier demonstration:

Vamos supor que você ganhe 5 mil por mês e seu custo de vida seja em torno de 2 mil. Então, depois de pagar a si mesmo um salário de 2 mil, você ainda tem 3 mil na conta comercial. Com esses 3k, você pode teoricamente fazer o que quiser, mas o passo mais óbvio é reinvestir esses 3k em seu negócio. Não fazê-lo também seria uma coisa ruim em termos fiscais, pelo menos no meu país. Assim, você pode reinvestir seus lucros em seu negócio ou investi-los em um sistema monetário ou até mesmo ficar sentado nele (embora eu ache que essa é a pior coisa que alguém pode fazer, mas como sempre, depende...). Meu objetivo é gerar fluxo de caixa suficiente para fortalecer meu negócio com a aquisição de outro negócio a fim de agregar ainda mais valor aos meus clientes. Então, neste caso,

Good brother, I live in Brazil, so this is not illegal, you know, I got the hang of it, what you said, like, this 5 thousand, comes after I take all the expenses of the company and the money that I invest, right? in merchandise for example, I'm going to sell banana chips at the fair, and I just take the 5 thousand, after paying everything, right, and I take the salary, or even before, and the 3 k, I can stay or invest, the best option would be to invest for sure, but don't you add cash? like if she has a bad month you know, just new to this world, I'm 18, I'm out of this rat race. Up old man, sorry it's wasting your time, but let's go up

 

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[CiceroTavares12]

Alocar lucros para formar reservas de caixa para o negócio é crucial para resistir a despesas imprevistas ou quedas de receitas. Você sugere reservar fundos para cobrir três meses de despesas, o que é uma boa prática para criar uma rede de segurança financeira

oops brother, thanks, I'll do that in the future, at that time I still thought wrongly, like I think it's these short videos that make everything too quick, normally I wanted success quickly, more like, and variable, you have to working for other people at the beginning, it's difficult, you have to save money to invest the expense, instead of selling on the street, I work on a farm, I'm going to save and sell brigadeiros on the street, slowly it works out, after the street plr, and from the plr , innovate, up bro!!!