Power Lunch : The Financial Magic Formula | Julio Lara | Skillshare

Power Lunch : The Financial Magic Formula

Julio Lara, Simple Steps to a Solid Foundation

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4 Lessons (18m)
    • 1. PL : Financial Magic Formula Intro

      2:07
    • 2. PL : What is the Financial Magic Formula

      4:54
    • 3. PL : Thoughts on the Financial Magic Formula

      4:54
    • 4. PL : Financial Magic Formula Summary - Conclusion

      6:17

About This Class

Welcome to the Power Lunch Series

My goal with the power lunch series is to give you short powerful classes that you can digest during a normal lunch break. The classes should all be under 30 min and ideally most will be around 10-15 mins to ensure that you get the main concept and can still enjoy a lunch if you are truly using your lunch for the class.

This is the 2nd class in the series, and is titled; The Financial Magic Formula. This class briefly covers what could be considered the formula for personal finance success.

The goal of the class is to help you understand the most basic form of your personal finance. I aim at showing you the simplest method for you to reach financial success. With the formula you will be able to determine with accuracy if you are doing well or not in your personal finance. The formula gives you a predictable way for you to solve many of your financial problems.

Now don’t get me wrong, the class is titled the financial Magic formula but in actuality there is no magic formula, there is no magic button, there is no magic pill that can create instant results in anything in life. Therefore, if someone tries to sell you a magic pill or a magic button be skeptical.

This class will show you the basic financial formula that you can follow and it will guarantee you predictable results everytime, but remember there is no magic to it, it is not a new fad, it is not a new concept, it is a very basic and foundational formula that affects all of your finance.

If interested enroll now and let’s jump in…..

Transcripts

1. PL : Financial Magic Formula Intro: hello and welcome to the power like Siri's. My goal with the power lines Siri's is to give you fort powerful classes that you can adjust to in a normal lunch break. The classes will be around 30 minutes, and ideally, most of them will be between 10 and 15 minutes to ensure that you get main concept and can still enjoy a lunch if you truly using your lunch break for the class. This is the second class in the Siri's, and it's titled The Financial Magic Formula. This class briefly covers what could be considered a formula for personal finance success. They go off the classes to help you understand the most basic form off your personal finance, I aim is showing you the simplest method for you to reach financial success with the formula. You'll be able to determine with accuracy if you're doing well or not in your personal finance. The formula gives you a predictive way for you to solve many of your financial problems. Now don't get me wrong. The classes title the financial magic formula. But in actuality, there is no magic. There is no magic formula. There is no magic button. There is no magic pill that can create instant results in anything in life. Therefore, if someone tries to sell you a magic pill or a magic button, please be skeptical. This class is about building and solid foundation. This class will show you the basic financial formula that you can follow, and it will guarantee predictable results every single time, as long as he used to form. But remember, there is no magic to it. It is not a new fat. It is not a new concept. It is a very basic and foundation of formula that affect all of your finance. Therefore, if you are interested, if he sounds like something you want to do, if it sounds like something that interests do you want to know a little bit more about and roll now and let's jump in. Remember, this is a power lunch Siri's so it will not take you more than 10 15 minutes to go through 2. PL : What is the Financial Magic Formula : Hello and welcome back into the power lunch, Siri's. So today we're gonna talk about the financial magic formula, so let's just jump in. So what is this financial formula? Remember, there is really no magic formula. There is no magic with finances. There is no magic with really anything in life. So your formula is simply your income or your revenue minus your expenses equals your net income or your net profit. That's it does not get any simpler than that. That is your basic formula again. Your income or your revenue minus your expenses equals your net income or your net profit. Everything in your financial life revolves around that formula. Everything. It's Hench on their formula, so let's break it down a little more. So when you look at it, what is your income or your revenue, your income or your revenue? It's really the money that you receive, especially on a regular basis. You see that the work or investments Usually we refer toa income as your personal income or your personal money that you receive revenues, usually a term used more in reference to business. But they're interchangeable. They mean the same thing. Now what are your expenses, your expenses air simply a cost or charge. There you have it. Is your money going out? So if you think about it, income is money coming in expenses. Is money going out? So in the formula, your income minus your expenses equals your net income or your net profit. So what is your net income or your net profit? Your net income or your net profit is basically your tank. Take home pay. If you get a salary, it's equal to your gross income minus any deductions? Any garnishment, any taxes from your paycheck? If it's in reference to a business, it's a gross income less any costs off goods, sold any expenses and Texas. So that is basically your net income or your net profit. But when we're looking at our formula, we're looking at more than just your individual income or take home or salary. We're looking at all of your income. Everything that's coming into U minus all of your expenses, and that is going to be your total net income. And that is the formula. All of your income, minus all of your expenses, equals all of your net income. Again, everything that's coming in reference to finances or money minus everything that is going out should equal your total net income. And ideally, your basic goal is to have the highest amount off net income, or net profit possible. So again, your income minus your expenses equals the net profit. So how do you accomplish your goal? The goal is to have the highest amount of net profit. So the way that you accomplished is is either. If you look at the formula, you could either increase your income. So if you increase your income and your expenses stay the same, you will have higher net profit because income minus expenses equals net profit. So again you could increase your income. So if you get higher income and your expensive stay the same, you will have higher net profit and not a way for you to do it is to actually decrease or lower your expenses. So in the same formula of your income stays the same. But you lower your expenses. You will have higher net profit. You will have a higher output, another formula or another way off. Working with the formula is to do a combination toe actually have your income increase while your expenses decrease, and that will give you a higher net profit. So those are the ways that you could actually accomplish the school. You could increase your income. You could decrease your expenses. All you could do a combination off both, but it is simple. That's all there is to it. Income minus expenses equals or net profit in your personal life. In your business, life in anything financially related. If you always have more income than expenses, you will have more profit. If you always have more expenses than income, then you're gonna be at what they called a deficit or you're gonna be operating in the negative, and that is not a good place to be it. 3. PL : Thoughts on the Financial Magic Formula : So now that we know our goal, our basic goal is to increase our net profit. Now we could think about ways for us to actually do that. And again, if we go back to the formula, there is basically three simple ways of doing it. Run is to increase your income. One is to decrease your expenses, and the last one is to do a combination of both. So I think this way. Think about what can I do in my personal life or in my finances from the business to increase my income. So if you are an employee, you could think about how can I get racist? How can I get and raise at my job? Or how can I get another job that will pay me more, or can I get over time, or can I get another source of income? So those are ways that you could actually increase your income again? If you're an employee, you could get races. You could get bonuses you could get over time. If you are paid by our and you're actually employer allows that you could look at other sources of income, you could look at what they call side jobs. You could look at side hustles, which are jobs that you do besides remain job. You could do part time jobs. Right now, the economy that we live in is what they call a gig economy. And it is called a gig economy, because people are actually doing gigs or freelancing a lot more than before. So you could as an extra income or as an extra way off increasing your income. You could do freelancing. You could do side jobs. You could do side gigs. Those are just ways for you to think about increasing your income. You could actually start a business now. You don't have to leave your current job before an employee. You could start a business on the side until your income level increases to the point where it's higher than what you're doing. Currently, you could invest. If you have some money set aside, you could invest it and get some rewards, lexei or gains, ideally in reference to your investment. So the reason why I mentioned it is because with the formula, what I want you to do in reference to this class itself is to generate thinking, brainstorming, I want your brain to start thinking about ways for you to get higher net profit and again the first way that I would think off its increasing your income find ways for you to make more than what you're currently doing. Now. The key is if you're increasing your income, ideally, you want your expenses to at least stay the same. Because of your income increases and you expenses increases, then you're really not doing any benefit to it. Your second part of the formula you could think of is think of ways for you to decrease your expenses. Think of ways for your lower your expenses. So how can you currently lower your expenses, either in your personal life or in your business? If it's a business, you could lower your overhead. If it's your personal life, you could lower your overheads in reference to your household. You could lower your expenses. You could lower your debt. If you lower your there and you're gonna be lower in the amount of interest that you pay, as well as the amount of money that's going out, you could find ways to reduce unnecessary spending. There's ways I mean, trust me I found in my own personal budget. There's many things that I spend unnecessarily. I'm not saying for you to go without eating or go without you know anything that you really , truly need or want, but find ways of being creative about it. Find ways off reducing the unnecessary spending. First, find ways off being frugal if you can. Not necessarily being cheap, but being frugal. If you can be smart about your money, and those are ways that you could actually increase your net profit, remember, the goal is for you to have more net profit. And why do you want more net profit? The reason. You want more net profit in your personal finance as well as in your business. Finance it so that you to use that money for other activities me to use that money to say, if you could use that money to pay down more that you can use that money to invest. If you use that money for many other things and ideally in your personal life, it would give you a sense off piece to know that you are not living in a deficit that you do not have more expenses than income. It would give you a sense of control 4. PL : Financial Magic Formula Summary - Conclusion: So now you might be wondering. I've stressed the fact that there is no magic. There is no magic formula specially your personal planets. So you might be wondering, Why do you call it a magic formula and the reason why I called it a magic formulas Because all of your personal finance aspects hinge on it. Everything related to finance personal as well as business hinge around that formula. Off income minus expenses equals you. Net profit. If you think about your budget, why do you create a budget so you could know what your income? What you bring it in, what you were spending, what you're getting out and then what is your product? What is your end result? That's why you create a budget because of that formula. Why do you plan because of that formula? How do you achieve savings, or how do you save If you look at the formula, it is pretty simple for you to create a saving plan. Either increase your income or reduce your expenses or do a combination of both, and you would have a net profit. If you haven't a profit, then it's easier for you to save because that money to use toward savings. Same thing with investments you can't invest or save what you do not have. So if you have a deficit, if you have a negative for your profit, where your expenses is more than your income, you won't be able to save. You won't be able to invest. So in order for, you know, actually turned that around. You need to know that formula. That's why we call it a magic formula. Because it works like magic in the sense that is very predictable, you would always get a positive profit if your income is higher than your expenses. That is very simple. That's the basic or most basic form or formula you could find. If your income is higher than your expenses, you would always get a positive outcome. Same thing with loans and credit. That old hinges around that formula. Your banks are not going to lend you money if your expenses are way higher than your income , because then they're gonna think, how in the world are you going to pay me back? The money that I'm lending you and obviously a bank is a business. They're in it to make money not to lose money. So they're not gonna give you money if they do not expect that you're going to be able to pay them back. And your credit works around the same formula because if you can't afford to pay you credit , it's hurt and it actually goes down. Credit wise credit score if you think about it that way. So everything in reference to your personal finance as well as everything in reference to business finance revolves around that formula or hinges around that formula. And if you think of that formula, it is very, very simple formula. So look at it from your personal life located from your business life and look at what we were just discussing. Think about ways for you to improve your net profit. Think about ways for you to increase your income or think about ways for you to decrease your expenses or ideally, through a combination of both. And remember, you don't have to do everything at once. You don't have to do something drastic when you would increase your income by tenfold or reduce your expenses by tenfold. Take it one step at a time. Start increasing your income if possible, slowly if you can. Obviously, if there is a huge opportunity for you to get a huge pay raise or increasing your income, then by all means. But don't think of it as a overnight process. Take your time with it. Remember, it is a simple formula it will always on. That's the predictable part. It would always yield the same results every single time. If your income is higher than your expenses, he would have a positive output. If your income is lower than your expensive, he would have a negative output. Your results are always gonna be guaranteed, depending on your formula, on how you use it, what you have as input what you have as an output. It is very predictable, but at the same time it could be very fun. If you look at that formula, you that control you gain control. You know that if you increase your income, you will have a positive result. If you increase your expenses, you would have a negative result. So the formula is simple. It's always the same. You could gain control of your finances just by knowing that formula and working with it that is sick. It is not going to get any simpler than that formal. That is your solid foundation. Understand it, work on it, building it. You could get very complex, and you're getting toe very difficult formulas, and you could get into many different strategies and ways off generating income or reducing expenses or combination. But start with the simple basic formula, and then you could always build on that. Now I want to thank you very much for this time, thinking for the opportunity to be repute for you to listen to this class. Hopefully, it would generate some thoughts. It would give you some brainstorming ideas, something that would actually yield a positive net profit for you. If you start thinking about ways of increasing your income or ways of reducing your expenses or a combination, remember, it's pretty simple again. This is a power lunch, Siri's. So it's a pretty quick class just to give you a little taste off a way for you to improve in reference to your personal finance or your business finance again, Thank you so much. Have a fantastic day and gutless