In this post, our team is going to help you start the process of winning against your greatest threat. Before we go any further, you should know this powerful little secret:
The number one common denominator for all success is a paycheck.
Our greatest threat is the lack of paycheck. It is a threat because our entire lifestyle is predicated upon it. Paychecks are paramount for us. Threats come in the form of unpredictable illnesses, sickness, and physical bodily injuries.
The ability to produce value in our respective careers yields us monetary earnings. Your paycheck is a direct result of your performance and value add. Your current lifestyle is based on your intelligence and execution of the occupational duties you are responsible for. Here at Brentley Financial, we love to educate by asking serious questions. The foundational question we present is the following:
” What is your plan to replenish your paycheck in the event of experiencing a disruption specifically due to you becoming sick or hurt?
This is a question that must not be processed in a matter of seconds, but over time. The answer will shape how form a financial strategy through proper evaluation. Processing can be a brain buster, so we decided to share a few starters to brainstorm strategies that will handle the paycheck replenishment needs.
SAVINGS
A savings fund can be a way to replenish your paycheck. How long will your savings last in order to keep your lifestyle current? When is the last time you evaluated the efficiency of this plan?
SELL OF YOUR BUSINESS
Selling your business can be an outstanding strategy to replenish your paycheck. Growing your business in order to do so as an exit strategy is very common. We also have to factor in that over 75% of business owners over evaluate their business. Also, before selling your business to replenish the paycheck, the buyer would look at the “Debt to Equity” ratios. Maybe, there is no debt and you own 100% free and clear. Your only concern consist of the “Fair Market Value” process. There are several other factors that play a major part with this plan. When is the last time you evaluated the efficiency of this plan?
TRUST FUND
Having a trust fund is a beautiful strategy to replenish your paycheck. Sort of a incubator to hold what we call: Real Money. If this is your strategy, your only concern would be to address provisions in the trust fund that will allow early distributions. This is a strategy worth evaluating its efficiency.
WORK
A massive amount of our lives are spent in the workforce. Experts believe at least 80% of our daily time is spent with our employers. If this is your plan to replenish your paycheck, you would have to address the time spent away to recover from your illness or physical pain. Also, addressing if your employer will compensate you in your absence. When is the last time you evaluated the efficiency of this plan?
Our team truly believes that these starters will drive the conversation for your household economy forward. Having a paycheck replenishment strategy in place is a wise executable. We hope this article is valuable to you.
Brentley Financial Team