Why not? Our financial lives are often so complicated that it is often impossible for us to know exactly what to do or how to do it. This is why we need to have a plan for what we are going to do, and when we do, we need to stick to it no matter how complicated our task is.
At a recent conference in Mexico City, we had the opportunity to attend the Noble Finance Amarillo (now Noble Finance, Inc.) presentation. The presentation was a great example of how to use your financial plan to help you accomplish your goals. In the video below, Noble Finance CEO, Steve McMichael, discusses how his company works, and then shows how it can help you.
It’s always good to keep in mind that any business, even a simple one like Noble Finance, could change significantly with a simple change in the way we think about money. If you spend too much money on a big purchase, it will affect your company negatively. Of course, if you have a company and you want to change everything, you might need to keep it healthy.
As is often the case, success or financial risk or both are not the same thing. It’s impossible to know how well or how well you will succeed or lose because there are no guarantees you will not end up being a victim of an attack or a bad deal. But there are a few things you can do to be more prepared for this eventuality.
One of the most important ways is to consider the cost of your expenses. A good way to think about this is to divide it into three parts: the cost of your capital, the cost of your labor, and the cost of your expenses for the year. If you have a big capital infusion, you will need to hire a lot of people to bring in new customers so you can justify the costs.
If you’re a homebuilder, you’ll need to consider the cost of materials. These are the materials you need to produce the finished product. It’s important to note that these materials are not the same as the construction materials.
In the video below you can see how we came up with the number of workers we need to hire to build a new home. We also use the same calculation as every homebuilder. There are two variables in the calculation: the number of workers needed to do a 1/2-acre job (2 workers) and the price per worker (USD) for each worker (USD).
We have two main construction industry contractors that we use for our work. The first contractor we hire is the cheapest and the second is the most expensive. We use a formula that we created and have found to be very accurate in predicting prices per worker. It is based on the average number of workers needed to build a 12-acre jobs.
With all that said, I am not a big fan of using the formula because it is based on averages rather than exact numbers. For comparison, we use the formula to find the price per worker for the three builders we hire. We use three different price ranges and one is the median for all three builders.
As for the formula itself, I can’t say that it is a bad one. It works quite well. However, it is based on averages, so if you are a builder and you have a bunch of workers and you use this formula, you end up with a ridiculously high price per worker.