Many people set new goals for the New Year…losing weight…stopping smoking…cleaning out closets…but what about your financial goals?

If you set your financial goals, business and personal, and get to work figuring out how to reach those goals, you can improve your financial condition.

Make your goals realistic but make them a bit of a stretch too…after all the point is you need to be able to plan on how you are going to reach the goal. Don’t just pull a number out of thin air and then getting discouraged because there is no way you are going to make it.

One way to start your plan is to work backwards, starting with what you want to achieve.

Wealth can be measured by your net worth, so that is the place to start. Figure out what your personal net worth is right now by adding up the value of all of the assets you own and subtracting everything you owe (mortgage, car loan, credit card debt, etc.) Then set a goal of increasing your net worth by some percentage. Work out what you will pay on the amounts you owe without adding any additional liabilities like paying for things you can’t afford with credit cards, and then add a goal for some cash savings that will increase your net worth. That’s two more goals, spend less and save more.

Actions to increase your net worth:

1 – Pay down the principal on your liabilities like the mortgage or car loans

2 – Pay down credit card debt and stop using the cards unless you can pay off the balance in full when you get the monthly statement.

3 – Find ways to cut expenses – we all spend on items that are optional, right?

4 – Put a portion of every paycheck into cash savings toward an emergency fund (set a goal for the amount you want to reach in that fund)

5 – Once your emergency fund is built up, start putting some cash into investments that will grow (don’t overlook the benefits of a retirement savings plan account which can also reduce your income tax liability)

Next step: How much more personal income will you need to achieve that increase in net worth and pay all of the bills you will incur during the year? That number is the basis for setting the goal for an increase in your personal income. If you are earning $60,000 a year now, and you will need to earn $70,000 to make the net worth goal, then figure out what you have to do to make that happen.

The actions you take will differ based on whether you are a business owner or an employee, of course.

If you work for someone else, then the assets you have to sell to increase your income are skills and time. You can increase your skills and make yourself more valuable to your current company and ask to take on more responsibility for more pay. Or, you can get a second job or start your own money-making entrepreneurial activity that you can work on in your spare time.

Don’t overlook cutting back on discretionary expenses. You can save money on restaurant meals when you dine out by buying gift certificates for your own use for a fraction of their worth at http://tinyurl.com/restaurant-gift-certs-4-less and they make great gifts for giving to others.

As a business owner, your increased personal income demand is placed on your business. That means working out a plan to generate more sales and cut expenses wherever possible to pay you a salary increase and cover the increase of the cost of doing business in the coming year.

So, working backwards in the equation, how much of an increase in sales do you need to make that goal? How can you use your cash flow more effectively to generate more cash? Where can you cut expenses without harming the income production and profits of your business?

Becoming financially fit is not all that different from becoming physically fit. You start where you are and train yourself to use discipline and your brain power to perform better and make small, consistent improvements every day. Before you know it, you’re on your way to achieving your financial goals for the new year and better money management habits become second nature.

Money Saving Tips:

Save money on restaurant meals;  buy gift certificates for a fraction of their worth

Lose the fax phone line: Send and receive secure faxes by email and never miss another fax

Buy ink and toner at deep discounts and opt-in to receive the additional coupons by email to save an additional 10 – 15%

Buy shipping supplies at good prices and get cool FREE stuff for yourself or gift giving

Automatically protect your computer files for pennies a day

Do you have other great money saving ideas? Leave a comment and share them with our readers.

There is one area that most schools are not able to adequately prepare most future Doctors and Healthcare practitioners for — that is the realities of opening and running their own practice. Setting up accounts, purchasing supplies, running a staff, money management and financial planning are just a few of the very real pitfalls that can sabotage a practice.

If a practitioner could just concentrate on helping their patients all day and not worry about the business end, many doctors would be more than happy. But in a healthcare office there are bills to pay and payrolls to meet, and with the current state of the economy, many practitioners are having a tough time of it financially.

“Over 20 years ago, I became a health care practitioner primarily to help people with their health. I went to classes, took the tests, and graduated from one of the largest chiropractic colleges in the United States as a Doctor of Chiropractic,” says Dr. Brian Dawson DC, author of the book Breaking the Profit Barrier –The Healthcare Practitioner’s Guide. Real pain and sorrow showed up early in my practice when I noticed there was not enough money to run the practice the way I wanted to and still help the most number of patients.”

Like many other healthcare practitioners having financial difficulty with their practices, Dr. Dawson attempted to seek the necessary help in order to salvage his practice and make it financially successful.

“I tried a few practice management consultants along the way which helped with other aspects of my practice, but this problem with the handling of money persisted. It really started to worry me,” he explains. “I didn’t seem to be going anywhere. I felt that I couldn’t reach the financial goals I had set for my practice or for my life. I had all these debts, but nothing to show for it.”

As with many health practitioners faced with seemingly never ending financial issues, the business end of running a healthcare practice began to be more than an annoyance or distraction. The bleak financial outlook began to seriously impinge on Dr. Dawson’s life.

“I have to admit that I was not happy during that time,” he says. “Because I was working just to pay bills, it took the fun out of practicing. I really liked treating my patients but I was usually worried or frustrated because I could not buy the things that I wanted for myself to enjoy life.”

The stressful financial situation also kept the practice from growing. Determined to succeed, however, Dr. Dawson continued to look for solutions that would help not only himself, but also other healthcare practitioners who were having similar business and financial difficulties.

After many years of investigation of various systems, Dr. Dawson realized the real root of the financial problems that many healthcare practitioners faced was one of proper money management. It was not so much an issue of how much money was coming into the practice; rather it was one of handling the cash flow of the practice in such a way that money was properly managed in order to make more money in the future.

“When people hear the words ‘money management’ they sometimes get the wrong idea,” notes Dr. Dawson. “Money management isn’t just accounting or keeping track of the money with billing and accounting software,” he says. “Money management has to do with what is basically a whole new way of thinking about money, cash flow, and finances. Done correctly, money management will put virtually any practice in control of their cash flow and on the road to growing profits stably.”

“The majority of us, even those who have gone to business school, are taught to manage money from a purely accounting point of view,” says financial and money management expert Sandra Simmons. “Accounting software is merely a look into the past and shows you where the money has been spent. True money management forces you to look into the future and invest in those things which are making you money. The correct money management point of view will get you to plan and predict how much income you expect for the week, and then set your budgets accordingly. It really is a forward looking point of view that puts the healthcare practitioner much more in charge of his or her financial future.”

Healthcare practitioners who use proper money management techniques have found that suddenly they feel much more in control of every aspect of their finances. Debt is rapidly reduced or eliminated, bills are paid in a very definite manner, and money is set aside to begin the process of building wealth for the practice.

Dr. Dawson actually combined forces with Sandra Simmons to form a company called Money Management Solutions. The company was specifically formed to help health practitioners, and business owners of every type to provide easy and workable financial solutions that they could use to resolve their financial situations.

Dr. Dawson and Ms. Simmons provide money management counseling services to those healthcare practitioners and business owners who would like individualized help. To that end, Money Management Solutions has an impressive track record of successfully turning businesses around so that they are well on the road to wealth and prosperity.

Knowing and learning how to run a business and performing the correct kind of money management practices can be a daunting task, Simmons and Dr. Dawson decided to automate the money management process to make it as easy as possible for businesses to get back on track.

“So after years of work, I helped launch our Money Management Business software,” he says. “As a Chiropractor, I knew that we had to have a software program that was going to be very easy to learn and use, so we’ve taken great care to make the information very user friendly and easy to understand. Most Doctors will find that they are up and running in a very short amount of time.”

Dr. Dawson is quick to point out that the money management software program is not meant to replace your current bookkeeping program, such as QuickBooks®. He emphasizes that it is definitely not billing software or an accounting program. It is a unique, one-of-a kind-money management program that works in conjunction with your bookkeeping program to put you on the road to financial wealth and success.

“You can learn to use the software program in less than 1 hour by watching video tutorials built into the program,” he says. “It is very easy to implement? You just fill in the blanks. You don’t have to think about it. The software does it for you. There is a simple interactive flowchart in the program to guide you all the way through each step. We’ve really tried to make it very user-friendly.”

In conclusion, Dr. Dawson promises that healthcare practitioners will see how easy it is to have more than enough money to meet your financial obligations and put the fun back into your practice. The software was specifically designed so that healthcare practitioners and business owners would not have to think about what to do with their money because the computer program does the money management and financial planning for you.

So, if you are a healthcare practitioner who is looking for ways to improve your practice, build wealth, achieve financial freedom, and devote more time to treating your patients, you owe it to yourself to find out more about money management solutions.

“I know about the challenges in the health care field,” states Dr. Dawson with great sincerity. “This Money Management software is my contribution to the Chiropractic profession to make these challenges become smaller, and make your purpose as a successful health care practitioner to grow larger each day so you can have more fun and help more patients!”

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For more information about money management or help with your healthcare practice, contact Dr. Brian Dawson, DC at 727.448.1011 or e-mail him at Brian@MoneyMgmtSolutions.com. To learn more about Dr. Brian’s Book for healthcare practitioners visit http://www.briandawsonbooks.com/

You’re ready to start your next construction project. Then you realize the money you need is tied up in accounts receivable. Construction invoice factoring gives you the working capital needed for materials and labor. Your construction receivables are an asset that can be leveraged.

Owners of construction companies are frequently hampered by the lack of working capital, particularly when they’re involved in multiple projects. The dilemma is magnified when their funds are tied up in construction receivables. In many cases, materials must be purchased without the benefit of credit and employees must be paid weekly. This can cause a major cash crunch, but construction invoice factoring is an excellent money management solution to the problem.

With factoring, cash is advanced to the client upon submission of an invoice. The services being billed must be approved and acceptable to the client’s customer. With construction factoring, there must be a “milestone” for each billing. In other words, a certain part of the contract must be performed and an actual invoice generated, as opposed to a percentage of the entire contract completed.

The advance for construction factoring is typically between 65% and 75%, depending upon the situation, with the remainder remitted to the construction company upon collection of the invoice, less the factoring fee. The advance can be advantageous in a variety of ways, including the ability to obtain materials purchase discounts and to be able to negotiate optimal pricing. The influx of working capital from factoring construction receivables fuels the company’s growth.

Factoring provides cash flow to:

Cover payroll and other expenses

Take on new jobs

Take advantage of volume discounts on material purchases

Increase your company’s growth

One frequent question is,” Can invoice factoring be utilized if the service provided spans a long time frame?” The answer is yes, but the way the company bills the client is critical. When you initially set up the agreement with the customer, you should specify the exact work to be performed as it relates to billing. In other words, both parties should agree that an invoice can be generated upon a certain level of performance or milestone. The factoring company will be able to advance funds based upon that invoice even though the entire job isn’t completed.

Contrast this scenario to progress billings, an arrangement in which the customer advances money for the job as a whole. The Factor (lender) is hesitant to advance funds to the client with progress billings, since the company getting billed may become unhappy along the way and stop making payments. With milestones, on the other hand, that is not a problem.

Smart money management strategies I use with my clients include looking at factoring as an alternative for funding projects. Construction companies that need working capital owe it to themselves to investigate factoring as an option.

Factoring is just one of the many money management strategies that I use to help my clients. Here is a recent testimonial from one of my construction company clients:

“Two years ago my construction company was close to bankruptcy with only $30 in our bank account and no way to pay bills.

Using the Money Management Solutions program we are doing so well now. With the power of this system and the financial stability it has helped us create, we now have $130,000 in reserves and always have $250,000 or more in our bank operating account.” K. A.

For information on a reputable and ethical factoring resource for your construction receivables or information about the Money Management Solutions program, ask Sandra by sending an email to Sandra@MoneyMgmtSolutions.com

If your business isn’t doing as well as it used to; isn’t making enough income to meet your financial goals; the money management solution activity called Income Planning says it boils down to ONE THING…

The one thing you need to investigate is WHAT CHANGED. I’m not talking about looking outside your business at the economy, or the fact a competitor opened up down the street. That is something the practice owner can’t control. I’m talking about what changed inside the practice. Something did. It may be hard to spot, but investigating what changed can reverse the falling statistics immediately.

Here’s one example. I started working one-on-one with an optometrist who bought the Money Management Solutions software program. As part of the weekly money management process, we spent a great deal of time on income planning, and focused on promoting the business.

An investigation into what promotional activities had worked well in the past revealed that some of the most successful had been dropped out over time. Those were immediately put back into action, and the new patient and income statistics started going back up. We brainstormed creative new promotional ideas focused on new, innovative products and tested those.

In just a few weeks the new patient statistic increased even more. So far so good, but we weren’t satisfied yet.

Correct money management says it’s smart to have several sources of income so if one dries up, your cash flow is still okay. I noticed the optometrist most enjoyed talking about her work designing a line of signature sunglasses. Hmmm. Here we were trying to increase her current practice and she had much of her attention focused on a manufacturing-for-retail venture.

So what else had changed? She finally realized she was BORED with her current practice.  While she loves her work, the one practice was no longer a big enough game for her. She was trying to develop a bigger game to play by going into the sunglass design business, which is great, but, even that wasn’t enough. The discovery that she was bored, that opened the floodgates of opportunity!

What did she do to relieve her boredom? Last month she partnered up with another optometrist and they bought 6 failing optometry practices that had tons of potential all at once. That’s right, SIX! Needless to say, she is no longer bored.

By using the money management software  on a weekly basis for each of the new clinics, they turned a profit the very first month. Her financial statistics are on the rise, she is enthusiastic about her business again, and, to top it off, her first sunglass design just got delivered from the manufacturer, and they are gorgeous!

If your business was doing well in the past, but income and patient counts have been going down, then correct money management, and finding out what changed, can quickly lead to renewed growth. A great tool to help you find out what changed is Dr. Brian Dawson’s new book Breaking the Profit Barrier – The Healthcare Practitioners Guide so check out this book!

If you would like a money management consultation regarding your practice or business, contact Sandra Simmons at 727-448-1011 or email her at info@MoneyMgmtSolutions.com . Or visit her website at  http://www.moneymgmtsolutions.com/.

© 2008 Sandra S. Simmons. All Rights Reserved.