Step Clear Money Clutter by alicejenny

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									     Cash Flow
  for the Solo Pro
Money Tips Every Solo Pro
      MUST Know
Step 1: Clear Money Clutter

  Clear the clutter NOW to make
  room for more money to flow in
       Money Clutter can be:
•   Emotions
•   Energy
•   Stuff
•   Relationships
   Money Clutter: Emotional
• Expansion
  – Joyful, abundant, relaxed, bountiful,
    secure, positive
• Contraction
  – Lack, avoidance, not knowing what to do,
    guilt, secrecy, negative conditioning
       Money Clutter: Energy
         & Hidden Money
• Track everything coming in and going out
  – Who owes you money? (loans, clients, trades)
  – Venders charging appropriately? Are you being
    charged for the services you ordered? Add ons?
  – Bills & Statements: open immediately, review,
• Create systems
  –   Gather bills in one place
  –   Schedule payments - use Online bill pay
  –   Pay twice a month
  –   Dedicate 1 day to do money
              More Energy
• Don’t save gift cards - use them, pass them
  on, or sell them
• Set up auto pay whenever you can
• Monitor your bank balance - set a higher
  minimum balance
• Do not rely on over draft - it causes you to
  feel contracted, disappointment (plus that
  charge is a needless money drain)
        Money Clutter: Stuff
• Collect all your loose change & convert to
  bigger bills
• Buy value instead of the cheapest - lasts
  longer & increases your feeling of worth
• Develop a plan of constantly ‘planting’ so that
  you can harvest
• Plug up all money leaks so that it can flow
  better
• Clean out all the trash in your wallet
       Money Clutter: Stuff
• What does your wallet say about you?
  – Stuffed with junk?
  – Ragged and tattered?
  – Cheap
  – Childish
  – Hard to put money in or get anything out
• Get a new wallet that says what you
  want it to say about you: Successful
 Money Clutter: Relationships
• Wealthy people do NOT trade
  – Get in the habit of treating yourself as if you were
    a wealthy person
• Beware of people who drain your resources
  – You do NOT need to help someone that’s gotten
    themselves into trouble - their bad habits will drag
    you down.
• Release pent-up Money Relationship clutter
   Releasing Money Drainers
           exercise
Right: List the feelings   Left: List how you’ll feel
  of a bad money               when free of that
  relationship                 relationship
Anger                      Freed
Taken advantage of
                           Powerful
Weak
                           I tried to help, it’s their
Drained
                               responsibility now
Exhausted
                           energized
Frustrated
Betrayed
used
         Resolving Drainers
• Confront the person & turn responsibility of
  their problem over to them
• Put a clear deadline and specific outcome on
  the conditions and be sure that person
  understands
• Stick by your decisions and refer to it
  whenever that person tries to renew the
  situation (they will probably try at least once)
• Resist the situation again
Step #2: Money Barriers

      90% of business
    is in your mindsets.
Money Mindset
    Barrier #1



 You can’t make more
   than your past job.
Money Mindset
    Barrier #2



    My clients can’t
     pay any more.
Money Mindset
    Barrier #3



    Helping is more
     important than
    making money.
Money Mindset
    Barrier #4



     Women are not
   supposed to make
     more than men.
Money Mindset
    Barrier #5


 How can I charge for
      something that I
 enjoy so doing much
     or that comes so
               easily?
Step 3: Your Money Mountain

    Create a Mountain of Money
       Setting Money Goals
• Envision what you’d like your Money
  Mountain to look like in 3 years
  – Multiple streams flowing into your Money Pools
  – Several Money Springs that feed your Money
    streams
  – A reservoir that guards and protects your money
    from being leached away
         Set your Money Goal
• Choose ONE goal to complete in 30, 60 or 90
   – Bold & expansive
   – Specific
   – Realistic
• Don’t worry about HOW
   – Decide what you want to accomplish
   – Write your Goal down
• Brainstorm the how
   – List every step
   – Don’t worry about resources now
• Create a time frame
   – Set a completion date
   – List needed resources
        Money Goal Calendar
When you have each step and date written down in
detail, pull out your calendar and schedule each step.

It’s a reality check that ensures you’ll reach your Goal!
This final step will help in simplifying your daily calendar
to focus on what will get you closest to the money.
Step #4: Money Pools

 Handling your actual Money
News Flash: Solo Pros don’t get
   paycheck twice a month
             Money Pools
1. Pool all incoming money into One High-
   Interest baring Business account
2. Transfer the money you need to pay bills to
   your personal checking account
3. Set aside a separate ‘savings account’ for
   your emergency needs
4. Set aside a ‘tax account’ (15% of payments)
5. Create an IRA or SEP for long-term or
   retirement accounts
           Money Pool Tips
• Pay bills by transferring the money into your
  personal account
• Pay bills twice a month at the same time
• Track every transaction
  – Debit cards
  – ATM (avoid using if you can)
  – Online transactions (Amazon purchases and
    Paypal transfers can cause havoc if you’re not on
    top of it)
Step #5: Tools

   Don’t be forced
to use Quick Books!
        It’s YOUR business
• Quick Books is for accountants
  – Do NOT be bullied by your accountant, CPA or
    Bookkeeper to use QB
  – Get software that works for you
  – Get a new accountant
            What to look for
• Easy to use
• Graphical Dashboard that lets you see where
  ALL of your money is
• Easy to understand reports in ENGLISH
• Reports that your accountant needs to do
  taxes
  – Income / Expenses
  – Profit / Loss statement
           Software to Try
•   MoneyDance
•   iBank
•   Money
•   MoneyWell
•   MoneyWorks
•   FreshBooks
                 Reports to Run
• Invoices sent
• Payments received
   – Record what was delivered specifically (you’ll notice patterns
     of what is selling more and what is not. This gives you clues
     where to focus your time)
• Money received in other ways
   – Passive income
   – Affiliate programs
   – Membership / continuity payments
• Track expenses
   –   Routinely reevaluate the services you pay for
   –   Web services
   –   Cell phone charges
   –   Insurance
        Remember

 Your account does your taxes
         ONCE a year.
You run your business every day.
If You’d Like More Help…
     Apply for my complimentary
  45-Minute Business Mapping call.
 Email me at: Barbara@IASECP.com

								
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