Wealth Tip: Three Keys to Financial Fluency (cont'd)
Key One: Learn to speak the language of money
Yes my friends money has a language all its own. And this arcane language is essential to all who desire to master money.
The language of money is accounting—dollars and cents, credits and debits, assets and liabilities.
Now you don’t have to run out and become a CPA (the world is filled with ordinary CPA’s who never become wealthy), but you do need to be able to READ and MOVE in the language of financial statements. It’s no accident that “accounting” and “accountability” have the same root word!
My very close friend Diane Kennedy (who happens to be one of the rare finds in the world—a CPA who is wealthy and can make the language of money so intuitive and easy to understand)—once told me that the wealthy almost always have good book keeping and regularly review their personal and business financial statements.
Is this an area of strength for you? If so, build on it. If not, do whatever it takes to learn this essential skill. You can join Diane and I in Las Vegas later in January for the Financial Fluency workshop, or buy and read some books on accounting. Either way if you want to wealthy it is essential that you speak the language of money.
Key Two: Learn to Speak the Language of Business
If the language of money is debit and credits, liabilities and assets, then the language of business is contracts and agreements.
Again it isn’t essential that you become an attorney, but it IS essential that you learn how to use attorneys. It is essential that you understand the major elements of a business agreement, and how to document your business relationships so that you’ve put it all down on paper.
I’ve watched far too many investors and entrepreneurs get into BIG trouble because they felt intimidated by contracts and abdicated responsibility to other people—their attorney, or worse yet, to the other side’s attorney!
Level three wealth builders have developed a fluency for understanding agreements and intelligently using attorneys and the legal system for growing their wealth.
For me this was one of the most fun areas to get ready to teach at the Financial Fluency workshop because I’m one of those weird individuals that actually enjoys a good contract. I’m the guy who reads the rental car “boilerplate” at the rental counter and then marks changes to it before I sign. (It’s almost embarrassing to admit that but I’m hoping you will still love me.)
And this brings us to the final key to financial fluency…which I will share with you later in the week.
Until then, my best to you,
David
Yes my friends money has a language all its own. And this arcane language is essential to all who desire to master money.
The language of money is accounting—dollars and cents, credits and debits, assets and liabilities.
Now you don’t have to run out and become a CPA (the world is filled with ordinary CPA’s who never become wealthy), but you do need to be able to READ and MOVE in the language of financial statements. It’s no accident that “accounting” and “accountability” have the same root word!
My very close friend Diane Kennedy (who happens to be one of the rare finds in the world—a CPA who is wealthy and can make the language of money so intuitive and easy to understand)—once told me that the wealthy almost always have good book keeping and regularly review their personal and business financial statements.
Is this an area of strength for you? If so, build on it. If not, do whatever it takes to learn this essential skill. You can join Diane and I in Las Vegas later in January for the Financial Fluency workshop, or buy and read some books on accounting. Either way if you want to wealthy it is essential that you speak the language of money.
Key Two: Learn to Speak the Language of Business
If the language of money is debit and credits, liabilities and assets, then the language of business is contracts and agreements.
Again it isn’t essential that you become an attorney, but it IS essential that you learn how to use attorneys. It is essential that you understand the major elements of a business agreement, and how to document your business relationships so that you’ve put it all down on paper.
I’ve watched far too many investors and entrepreneurs get into BIG trouble because they felt intimidated by contracts and abdicated responsibility to other people—their attorney, or worse yet, to the other side’s attorney!
Level three wealth builders have developed a fluency for understanding agreements and intelligently using attorneys and the legal system for growing their wealth.
For me this was one of the most fun areas to get ready to teach at the Financial Fluency workshop because I’m one of those weird individuals that actually enjoys a good contract. I’m the guy who reads the rental car “boilerplate” at the rental counter and then marks changes to it before I sign. (It’s almost embarrassing to admit that but I’m hoping you will still love me.)
And this brings us to the final key to financial fluency…which I will share with you later in the week.
Until then, my best to you,
David
posted by David Finkel at 1:00 PM
2 Comments:
Hi David:
Thanks for providing so much free information!
I was listening to Investor Workshop, "Insider Secrets to Negotiating Profitable Deals!" In this workshop, you mentioned that you would be releasing an online video of advanced negotiating techniques in late 2006. Please post the link to these advanced negotiating techniques.
Thanks!
Why do you refuse to remove people from your email list even though they ask you a hundred times?
I guess that's just how Spammers like you make your money. Thanks for nothing.
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