Monday, May 5, 2014

Financial Abundance | Are you unprofitable

This past week I was listening to a financial video on youtube  he mentioned a verse in Proverbs that will now become my motto in life going forward.  Proverbs 14:23 states "in all labor there is profit, but mere talk leads only to poverty.."

Lesson #1:
There is so much wisdom in this verse.  Let's break it down, shall we?  First let's look at the first half of the statement.  In all labor there is profit.  Most of you, like myself are full time employees who receive a paycheck every two weeks. Our labor brings us a paycheck.  Typically, when one thinks of the word "profit" we relate it to businesses that bring in revenue, pay expenses, and generate profit.  Do we see ourselves and our financial decisions as profitable? Profit is defined as a financial gain after expenses are taken care of.  We receive income revenue for our work. Our primary goal should be to make a profit from our labor. By the time the next paycheck comes, we should have made a profit.  Meaning, there is money left for us to save or reinvest our growth.

If we managed our financial health like a business, our goal would be to make consistently greater profits week after week.  Then we utilize the profit to grow our financial standings. The profit that you take in (after expenses) are meant to be invested in things to make you more profitable.  Finding ways to increase profitability on a consistent basis should become a priority.  If you make this your focus, your financial future will be set.

Lesson #2:
Now let's talk briefly about the second part of the lesson.  "Mere talk only leads to poverty."  I sit in a lot of financial meetings at work.  The goal is always the same, discuss specific strategies on how increase revenue and manage costs.  Sometimes, weeks later, we find ourselves back in the meeting room, looking at numbers again.  When things aren't improving, there's usually one reason for it - no (NEW) actions were taken.  Sometimes, the managers discussed what they would do differently but in actuality, they went back to their normal routines.  The promises we made went unfulfilled.  It was all talk.

At this moment I could rattle of at least half a dozen ideas and plans of what I want to do to grow my business. Some of those things I've been talking & thinking about for a long time.  And action taken.  And, on the other hand, there were plenty of ideas that came from a thought.  After the ideas were formed, I took small, consistent actions and things always work out. I have to constantly fight hard to move out of the world of "all talk" into the world of "taking action."  One thing I like to do is to ask myself "if I couldn't use words to talk about my actions, could others know my plans simply by observing my actions (or my results)?"  If the answer to that question no, then I need to get moving.  Another thing I like to do is write down a "completion list."  It's like a to-do list except I write down the action after I've done them.  This way I keep myself focused on what I've done, not what I say I will do.
  1. So incredibly true! I have really been re-evaluating myself and trying to create a path to success and wealth. While having a college degree helps (only in name in most cases) It is very important to have basic fundamentals of what is really important. Taking action trumps all!! If we do not take control of our own destiny than how will one ever succeed?! Thanks for this very informative article. These posts continue to motivate me.

  2. Wow Nadege this is impressive. I really love to hear your interpretation of things you've read or seen. All the reading or thinking in the world is not going to change the outcome, it's so true.