Helping people is the easy part - it’s what we love to do. But when it comes to taking care of your money, saving more than you’re spending, well that’s another story. With a few small changes, you can take control of your money and build the financial freedom we all dream of.
1. Know your numbers
Do you know how much money you’re making each month? How much your spending to keep the doors open? What % needs to be set aside for taxes?Who has time to keep up with those details? Besides, you’re training too many people, working 12 hours a day building your dream.
Here’s the kicker: If you don't make the time to focus on knowing your numbers, you won't have a business in 2 years.
Take 30 minutes every Friday to look over the past week to see what money is coming in and what was spent. After a few months of doing this, you’ll know what an average month looks like. This sets you up for success for step #2.
2. Operate with in those numbers
Look at every expense: rent, utilities, monthly magazine and music subscriptions, certification dues, mastermind group, CEC’s, bottle water, lunches, etc.
Take a sheet of paper out and break these expenses down into 2 columns:
1. Can’t do without: These are a necessity to running your business
2. Because I want it: These are not a necessity to running your business
A tip for the “Can’t do without”: Look to lower the monthly payment by calling and asking them “How can I lower my bill?” Most businesses will offer you a loyalty discount or provide you with a slightly lower package on their end to save you money.
A tip for the “Because I want it”: No for now, not forever. That means that you should cut these expenses for now, until you build up a solid savings and become debt free (step #3). The key to building true wealth is to run as lean as possible, constantly trimming the fat.
Bonus Tip: Make sure that your operating costs (AKA: What you spend) are at least 25% lower than what you pull in.
3. Pay off Debt
List all your debts smallest to largest on a sheet of paper. Start by paying the smallest one off first. Then, take the same payment and apply it to the next one. You’re essentially making two payments to one loan creating massive momentum you need to keep battling. And so on…
This is a process lined with personal discipline - the same determination it takes your clients to lose weight.
Think about it: Imagine if you were debt free and saving 25% of your monthly revenue. Imagine the quality of sleep you’ll get at night, the team you could build, and the lasting impact you could create in your community.