Yesterday was a big day in our family. Our beloved LSU Tigers made the SEC Championship game for the first time in 8 years (but who’s counting?) and won! The weekend has been filled with conversations about statistics—passing yards, rushing yards, completions, sacks, and on and on. Most football fans can recite a breathtaking number of player and team facts, but there are a lot of numbers that are more important than your favorite football team’s that you should know.
Most ODs I talk with know their practice numbers off the top of their head—gross collected revenues, operating margins, net revenue. But a lot of times they struggle with the numbers that relate to their personal finances. One of the most time-consuming projects I do with clients is to crunch the numbers and pin down some very important figures every OD should know:
- The net cash flow their practice is providing
- How much they should be distributing to themselves
- How much they can be/should be saving per year for retirement
- What their actual spending is
- The amounts and how they are going to save for large expenses such as weddings and college tuition
So if I know off the top of my head that Joe Burrows completed 28 of 38 passes for a 74% completion rate, threw for 4 touchdown passes, 349 passing yards, and that he caught one of his own blocked passes and ran it for a 16 yard game (my personal favorite play of the game), shouldn’t I know how much I need to save every year for retirement and what my approximate annual spending is?
There is so much we can learn from athletes about discipline, teamwork, and hard work, but if your December is a slow month, take some time to engage in one of the most effective drivers of team performance is: knowing your numbers. And Geaux Tigers!
FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY.
The views expressed here are as of the date of publication and are subject to change. This information should not be construed as investment advice. It is presented for information purposes only and is not intended to be either a specific offer (or recommendation) Hayes Wealth Advisors to sell or provide, or a specific invitation for any investor. Information herein may have been obtained from sources believed to be reliable, Hayes Wealth Advisors is unable to warrant its accuracy.
All data, projections and opinions are as of the date of this report and subject to change.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
Hayes Wealth Advisors does not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. All recommendations must be considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be suitable for all investors.
Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. government. Investments in foreign securities (including ADRs) involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.