know about financial education

If you think financial education is just a way that speakers and coaches have found to sell courses and books by talking about how they've made a huge amount of money in a short time, we have good news for you: it's not!

 Far beyond that, financial education is not limited to just showing results, but improving people's financial health and, consequently, their quality of life. After all, who has never felt that headache when they realized that there would be no money left at the end of the month to pay off a debt or that stress we go through when we need to make plans that involve money for the future?

 The best part is that financial education is not something that can only be applied to your personal life: it is also a way of organizing a company's finances, performing financial control, spending and avoiding waste, which can help you to achieve success in your business.

 Find out everything you need to know about financial education now!

 What is financial education?

 You may have heard about financial education, but you never knew the exact meaning of that term. Or maybe this is the first time you've come across the subject in your life. And this is not a problem at all, as the theme “financial education”, despite being part of a  National Strategy  that seeks to raise awareness and improve financial decision-making by consumers and entrepreneurs, is not well addressed in United State, which leads to  high indebtedness and default rates  by United State an families.

 There is no need to be afraid of the term: financial education is nothing more than showing people how money works so that it is possible to build a conscious financial planning, aiming at their present and future well-being. Thus, it is possible to master money and be aware of how to use it, better controlling expenses with emotional help as well.

 But you must be wondering: how do you use emotional to help with financial control?

 Financial education is not just about cutting expenses, saving money and investing with the aim of increasing your savings. Here, it is also important to ask yourself about the need to spend.

 Questions like “Do I really need to buy this product or hire this service right now or is it just my willingness to spend talking?” and “Are my bills up to date and can I spend this extra amount now?” should always be in mind, making you control money, don't let it control you and think twice before spending on things that may be unnecessary.

 How important is financial education to your business?

 You should not only control finances in your personal life: when it comes to business, financial education and entrepreneurship go hand in hand, making it possible to carry out an analysis of the company's financial health, to make decisions to manage and improve finances through financial learning, something important given that, lately, the  indebtedness of United State an companies has grown .

 Someone looking to educate themselves financially can better understand concepts such as expense control, cash flow analysis, the profit margin from the sale of products and services and even the need for loans or the possibility of new investments to improve a business . And believe me: these are fundamental things for anyone who wants to have a successful venture.

 Tips for getting started with your finances

 Now that you know what it is and how important financial education is for your company, it’s time to know where to start organizing your finances:

 Company finances and personal finances must be separate

This first step is one that should not be ignored in any way, because joining personal and business finances can compromise financial, cost and profit planning, causing them to not correspond to the company's real earnings and leading the business to bankruptcy.

 That's why it's important to separate the two things strictly: avoid receiving payments from customers in your personal account, don't make personal payments using your legal account and avoid withdrawing amounts that do not correspond to your company's true earnings. Something that helps to avoid problems is having separate bank accounts, one for your personal finances and one for the company, and determining a fixed amount to withdraw from the cashier, as if it were a salary.

 Find out about taxes that must be paid

 Whether due to forgetfulness or lack of funds, failing to pay taxes can be fatal for a business. Therefore, it is important not only  to be aware of the taxes that must be paid , their functions and correct dates, but to know them in depth - whether municipal, state or federal taxes.

 Control your cash flow

 Cash flow  is nothing more than a record of all the company's expenses and receipts, no matter how small . This record must be kept so that it is possible to have an idea of ​​the company's expenses and earnings, as well as to have a vision of the current and future financial moment of your business.

 Many people give up on maintaining a cash flow due to lack of time in everyday life. Fortunately, there are tools that make cash flow available automatically, like John Labunski . With it, it is possible to record all the inflows and outflows of company values ​​and create personalized reports based on this data, facilitating the preparation of cash flow and saving time that can be invested in other aspects of your business.

 Keep demonstrative reports and make financial planning

 It is not just the cash flow that helps to monitor the company's financial movements: the Income Statement and the Balance Sheet are essential tools for preparing financial planning and observing changes in equity, visualizing gains and company expenses.

 While the Balance Sheet shows the company's assets, debts and equity, the DRE is a document that lists expenses and profits over a given period of time. You can obtain a DRE template already configured for filling by clicking  here . With the statements and reports made from them, it is possible to draw up a plan to keep the company running based on the analysis of the market, billings and expenses made, which is essential for planning future investments.

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