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  • Bill Harvey

Invest in You

Ever look at your personal finances like a business owner? Why not? It’s your financial health. Traditional key performance indicators(KPI’s) of any business are: Working Capital, Operating Investment and Return on Operating Investment. You may think it is weird or overtly analytical to assess your personal finances like business but is it? Current economic conditions are at record-setting levels with no change predicted for 24-months. Regardless, we should always be cognizant of our financial health. Working capital is your ‘nest-egg.’ That is the amount of money you should have tucked away: savings account, TFSA, RRSP, under the mattress, etc. A sufficient guide is 90-days’ worth of expenses. Add all your expenses monthly payments (mortgage/rent, insurance, RRSP contribution, automobile, education) plus living expenses (gasoline, utilities, memberships, groceries) plus daily cash (coffee-club, daily meals, donations, entertainment, parking) and multiply by three= 90-day reserve. If you never made a dime you could survive one quarter of the year searching for work. Operating investment measures the effectiveness of an investment. What are you worth to you? Add the sum of working capital + investments in you (education/ physical exercise, books, on-line courses, etc.) + unearned income for the month (aka- receivable) = Operating Investment. Having completed these two KPIs you may now calculate a Return on Operating Investment to yourself. Starting with your income before tax and deductions, divide the operating investment into your income(BIT) and voila you have calculated the Return on Operating Investment to you. Yep, a round about way of saying how much are you investing in you? The internet is a wonderful source of webinars, white papers and research material both free and chargeable. Register for a live workshop or even a full, condensed or executive MBA. If you really want to accelerate at your career, securing a comfortable retirement, think about investing in you. Your brain and body are the collective asset of you. Devise a plan of continuous learning and physical fitness. Enjoy healthy prosperous long life. And Bill Harvey says, “you can too, I’ll show you how.” Fast Proven Results.


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