Separating You From Your Money
As a cash flow expert, I want you to keep more of the money you make and, in some cases, keep some barriers between you and the money you make.
If you’re giving me the same “Huh?” look my dog Harley does, let me explain.
As a business owner you have certain financial goals. Maybe it’s paying off a debit, setting money aside for a new website, purchasing needed equipment or paying yourself the full salary you deserve and desire.
If you’re bringing in enough money every month, but not hitting your financial goals it could be that it’s too easy to access your money.
Remember what it was like prior to online banking? We paid in cash, wrote checks and balanced our checkbooks. We didn’t have a choice, it’s just the way it worked. Now that everything can be done online, there’s no need to carry cash in our wallets, checks are something you send electronically and if you want to know how much money is in your account, you log in to your account and check the balance.
It’s convenient, but it’s also created a disconnect about how we save, spend and allocate money. It doesn’t take more than a couple clicks to move money and it’s always accessible in an electronic form. As a result, we tend to discount, or discredit, the planning and discipline it takes to be profitable.
It’s not only a matter of making money. Money needs a job, not just a bank account.
Here are three ways you can create separation between you and your money and become a more profitable business owner in the process.
1. Earmark accounts for specific goals. If all of your cash is co-mingling in the general population of your checking account, it’s hard to track your progress in hitting specific money goals. Create separate accounts for each goal and move money into the accounts each month.
2. Create an electronic-free account. This might sound like a drastic approach, but when forced to make deposits and withdrawals in person you become more mindful of where your money is going. In addition, you create a barrier that makes it harder to access and move money away from your goals.
3. Utilize the envelope system. It’s low-tech but it works for seeing where your money is going - or growing. Some people use the envelope system as a cash-based way to track their expenses. It could also be used as a tool for reaching financial goals.
Train yourself to be profitable by allocating your revenue on a regular schedule. Twice a month, for example, move money into the accounts or envelopes you’ve earmarked as financial goals. Remember money needs a job. Put it to work and watch it grow.
If you’re considering options to grow your business, you might be interested in scheduling a complimentary Taste of Success Mentoring session to determine if coaching together is right for you.