VIEWS: 6 PAGES: 31 POSTED ON: 8/15/2012
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
"Step Clear Money Clutter"