All In One Marketing Platform For Personal Trainers
Login
Institute of Personal Trainers
  • Platform ▼
    • Website Builder
    • Funnel Builder
    • Membership
    • Scheduling
    • Email Marketing
    • Payments
    • Client Management
    • AI Assistant
    • Surveys
  • Academy
  • Services
  • Pricing
  • Reviews
  • More ▼
    • About
    • Articles
    • Affiliate
    • Community
    • Support
    • Contact
  • Platform ▼
    • Website Builder
    • Funnel Builder
    • Membership
    • Scheduling
    • Email Marketing
    • Payments
    • Client Management
    • AI Assistant
    • Surveys
  • Academy
  • Services
  • Pricing
  • Reviews
  • More ▼
    • About
    • Articles
    • Affiliate
    • Community
    • Support
    • Contact

Understanding Money

Picture

Want us to do it for you?

See how the team at the Institute of Personal Trainers can help you grow your business.
See Services

Learn More About Understanding Money

What You'll Learn
This lesson will help you understand how managing your finances affects your business success. You will also learn the difference between assets and liabilities and you'll have access to a PT Earnings Template to start organising your money and figure out your balance.

Why is This Important?
​Educating yourself on how money works is essential to become financilly independent and to run a profitable business. If you use money with purpose as a tool to help you achieve your business goals instead of just going with the flow, you can see the differennce within a short period of time and set yourself up for success for life.

Finance is scary. For most personal trainers it’s either a job they outsource to an accountant or a shoe box of receipts from 5 years ago hidden under their bed.

If the thought of managing your money is scary, frustrating or confusing, take a sigh of relief in knowing that not only do most other trainers feel the same way but so do most other business owners in all industries.

Why Managing Money is so Hard

Managing your money is not something you learn about in school. School doesn't teach you how to manage a balance sheet, how to create assets or control your liabilities.

In fact, once you leave school and get your first job, you’re pretty much left to your own devices. It’s for this reason that everyone has different attitudes towards money, conflicting ideas and usually a lot to learn.

Your Relationship With Money

​Learning how to manage money might seem pretty intimidating (and boring) but it’s actually very simple. If you can understand a few key concepts you’re good to go.

But first, let’s look at your attitude towards money.

Most personal trainers and business owners often assume there is a correlation between how much money you make and how much self worth you have. 

Of course, we know this isn’t true but it’s hard to see the PT on Facebook bragging about making $5,000 while you’re still trying to make your first $100. We create a relationship with how much we make and how much value we offer.

So let’s be clear, money measures the success or failure of your business activities, but it’s not who you are.

Becoming Financially Intelligent

To become financially intelligent you need to understand that accounting is the language of business. If you are not interested in learning about the language of business, you should not manage a business.

One of the most important things you need to know in order to be financially literate is how to read an income statement and balance sheet and the relationship between them.

Picture

If you can understand the following diagrams, you have a better chance of managing your money more effectively. Let's begin:

An asset is something that puts money in your pocket. An example of an asset is recurring client. Assets add money to your income column.
​

Picture

A liability is something that takes money out of your pocket. An example of a liability is your gym rent. A liability usually goes in to your expenses column:
​

Picture

Simple enough, right. But this is where it gets confusing because most people think that a house is an asset. Like this:
​

Picture

In this diagram, we have a $100,000 house where someone has put $20,000 cash down and now has an $80,000 mortgage. How do you know if this house is an asset or a liability? Is the house an asset just because it is listed under the asset column?

The answer is of course no. In order to know for sure, you would need to refer to the income statement to see if it was an asset or a liability.

Picture

As you can see from the income statement, this is a house that is a liability. You can tell it is a liability because it’s only line items are under the expense column. Nothing is in the income column. The house is not making any money. It’s costing money.

But now let’s imagine we rent the house to a tenant and we now receive a rental income.

If the rental income of the house, minus the expenses of the house, equaled positive net rental income, the house is an asset. If not, it is a liability.

These simple lessons are the basis for building all wealth. 

Understanding the relationship between the income statement and the balance sheet allows you to quickly understand if an investment is an asset or a liability—and this understanding will allow you to make the right investment every time.

Picture

Exercise:

Go to page 15 of your iPT Workbook and complete the exercise for this lesson.

Next LEsson

Finding This Useful?

You should check out our all in one business & marketing platform for personal trainers!
Picture
See platform

Ask a Question

Submit

Our Partners

Picture
Picture
Picture

Education

Business Mindset
Become a Personal Trainer
Money & Finance
Marketing Basics
Business Setup
Build Your Business Brand
Become an Online Trainer
Business Management
Social Media Marketing
Build a PT Website
Email Marketing for PTs
Search Engine Marketing

Platform

Website Builder
Funnel Builder
Membership
Scheduling
Email Marketing
Payments
Client Management
AI Assistant
Forms & Surveys

Company

Education
Pricing
Reviews
Articles
About
Support
Affiliate
Privacy & Terms

Community

Facebook Group
Twitter Page

About

The Institute of Personal Trainers is the worlds leading all in one marketing platform specifically created to help personal trainers work less, save thousands per year in software costs and simplify their business.

Start For Free
© Institute of Personal Trainers

My Account

Login
Free Trial

Platform

Website Builder
Funnel Builder
Membership
Scheduling
Email Marketing
Payments
Client Management
AI Assistant
Forms & Surveys

Company

Academy
Pricing
Reviews
Articles
About
Support
Affiliate

Resources

Fitness Website Design
Online Training Software

Community

Facebook Group
Code of Conduct