Muhlenkamp Marathon

Muhlenkamp Marathon Financial Training Workbook

April 28, 2016
Connect with Us or call (877) 935-5520 ext. 4 to request a copy of the Muhlenkamp Marathon Financial Training Workbook.

There are many similarities between training for a marathon and creating a legacy of financial freedom—both take desire, time, effort, and discipline. Our workbook contains 26.2 “miles” of financial information to use as a reference guide to keep you on course, including best practices based on current tax rules and regulations, as well as words of wisdom based on experience, observation, and statistics.

Remember, training for a marathon takes time to lose fat and build up muscle and endurance. Training for financial freedom takes time to pay off debt and grow assets. Just like any fitness agenda, once you have reached your goals, you must maintain them. We suggest you review this workbook annually, to make sure you are staying on course. As things change in your life, you may want to revise some decisions that you made in earlier years.

Since this is about a marathon, we’ve also included general running tips, if you want to challenge yourself both physically and financially.

Cash Flow Statement

April 24, 2016
What is a Cash Flow Statement? A personal cash flow statement is a spreadsheet you can use to see where you spend your income over a period of time. This cash flow statement is set up so you can use it to estimate your monthly inflows and outflows, document the actual amounts, and plan your spending for next month. It’s designed as a zero-sum budget where every dollar of income (inflow) is allocated to a specific expense (outflow), so that total inflows equal total outflows. [TOTAL OUTFLOWS = TOTAL INFLOWS] Try not to rely on borrowing to pay for your expenses. Your goal should be to spend less than you make and place a percentage of your income in savings and investments.

Create a Budget! A budget is a written plan of how you will spend your money for a specified time period (usually monthly). This tool can help you manage your future spending in an attempt to keep your expenses aligned with your income and your financial goals. A budget allows you to see your financial life on paper. You can use the last column of this cash flow statement to plan how you will spend your income next month. Every dollar should be accounted for, whether you spend it or save it.

Balance Sheet

April 23, 2016
What is a Balance Sheet? A balance sheet is a spreadsheet used to find your net worth at a specific point in time. You subtract your total liabilities from your total assets. If you calculate your net worth on a periodic basis, you can determine whether your total assets are growing or shrinking. To increase your net worth, you must shrink your debt (liabilities) and grow your assets. [Total Assets - Total Liabilities = Net Worth] Assets = What do you own and what is it worth? Liabilities = What do you owe and what does it cost you?

SMART Financial Goals – Short Term

April 22, 2016
How do you set SMART financial goals? SMART Financial Goals identify Specific outcomes; indicate Measurable and Achievable actions; recognize the Reasons for wanting to attain them; and establish Target dates for completion. Goals should be in writing. If you have multiple goals, they should be prioritized. If you are married or getting married, both of you should agree on your goals and how to achieve them. Set SMART goals to keep you motivated and focused.

What are short-term financial goals? Short-term financial goals are those goals that you would like to achieve in five years or less. The reason for separating short- and long-term goals is because the number of years that you have until your target date will affect where you should save or invest the assets you are accumulating to reach these goals. Sample short-term goals may be to pay off all debt besides your mortgage and save $1,500 in a mini emergency fund.

SMART Financial Goals – Long Term

April 21, 2016
How do you set SMART financial goals? SMART Financial Goals identify Specific outcomes; indicate Measurable and Achievable actions; recognize the Reasons for wanting to attain them; and establish Target dates for completion. Goals should be in writing. If you have multiple goals, they should be prioritized. If you are married or getting married, both of you should agree on your goals and how to achieve them. Set SMART goals to keep you motivated and focused.

What are long-term financial goals? Long-term financial goals are those goals with a target date more than five years away. For long-term financial goals, you have to grow your assets to counteract the effects of inflation, but you don’t have to worry as much about short-term market volatility or liquidity. Since your investments are long term (over 5 years away), when there is a correction in the market, there is less reason to panic. Too many people get nervous and sell when prices are down. When the market reaches new highs, they get comfortable and want to buy. That’s not a recommended way for investing in the stock market. As the target date of your financial goal approaches five years, you should move assets designated to that goal to less volatile and higher liquid investments. (That long-term goal transforms into a short-term goal.)

Library Navigation

Announcements

Muhlenkamp & Company’s 40th Anniversary

2017 marks the 40th anniversary of the founding of Muhlenkamp and Company, Inc. We are pleased, proud, and grateful that...
More ›

Connect with Muhlenkamp

CLICK HERE TO Sign-Up for Our Newsletter and E-news Updates