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In this Smart Money video, Bradley Taylor explains the concept of a personal SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. He describes it as a systematic approach to aligning one's actions and goals with personal attributes and skills while addressing weaknesses and potential threats. Taylor emphasizes the benefits of conducting a personal SWOT analysis and introduces an example in the form of a grid that showcases how to populate each block. He plans to delve into specific details for each component to enhance understanding.