PJS #008: Master your Money by Mastering your Time
Updated: Oct 24, 2022
In today’s issue of Profit & Joy Simplified, I’m going to share ways to take control of your money using skills you already have.
If you can manage the time in your day, you can use those same skills to master your money.
Unfortunately, most entrepreneurs are so busy working the business that they never stop to take control of their finances.
But the truth is…
You control your cash or your cash controls you.
Are you working hard on your business & it’s bringing in good money, but somehow you still feel constant stress about money?
Do you check your business bank balance to get a pulse on your business’s health?
Are you working harder & potentially maybe even taking home less money than you did as an employee? today’s issue of Profit & Joy Simplified, I'll share how I would set up a strategy to achieve financial independence ("FI") if I were just starting on that journey.
While feeling like this is pretty normal, there’s good news:
If you can manage your time, you can use those skills to master your money.
Master your Money by Applying Time Management Skills
Pick your priorities
You'll never have enough time or enough money for everything.
If I have 2 options for spending my time, it’s important to choose based on which helps me best achieve my goals.
This works the same with your business finances. Defining your priorities will help order your spending choices.
For example, with an extra $10,000, you could put it aside for reinvestment in your business, invest in a coach, or pay out a bonus. (Set aside money for taxes first!)
Knowing what’s most important to you will help make those decisions easier. You don’t want to invest in a coach without realizing your first priority is purchasing new computers.
Review your vision of success & your 12-week goals to see what the priorities are for your money right now. Commit to spending based on that.
The question to ask yourself is not whether you have the money, but whether spending it matches your priorities.
Know your limits
We each have the same 24 hours a day so we have to make the most of it. Time is a non-renewable resource. Spend it wisely because you can’t get it back. There’s no correct way to spend your time, but we know what it feels like to waste it.
Money is a renewable resource, but you still have a limited amount TODAY. If you spend it wisely, you’ll be using your business’s money as a tool to help move you toward your vision of Successful You. Even if all the things you want to spend on are important, evaluating based on the cash you have available is key.
In the same way you look at your monthly calendar for an overview of how busy you'll be, you should project out 13 weeks of cash flow to make the best decisions.
If you don’t see me add a commitment to my Google calendar, I will not be there. You can count on this.
I use calendars, planners, and scheduling apps to help simplify my scheduling. They help me keep track of my time & spend it wisely.
In the same way, you are not meant to master your money alone:
Use accounting software that links to your accounts (QuickBooks is my fave until you need an ERP too).
Hire a bookkeeper to help you keep your financial records up-to-date. Until you need full-time help, you can use an outsourced bookkeeper.
A fractional CFO helps create a financial plan to help you achieve your goals. Even small businesses benefit from one-time consulting. Once you're bringing in more revenue, you'll want someone with financial expertise to create forecasts, cash flow forecasts, and financial roadmaps. This can be outsourced or hired full-time.
Create white space
I first learned about this “white space” concept in a message delivered by Andy Stanley. Unexpected things happen in life. Daily.
If our schedules are cram packed, we don’t have extra white space available to flex commitments around easily when those unexpected things come up.
With white space on our calendar, we can say yes to spontaneous fun or not stress if something comes up that we now need time to deal with.
Money works the same way. Be a profit PRO by setting aside money monthly for paying taxes, reinvestment in your business, and also for “owner’s choice” which you can use for whatever you want or need. If something unexpected happens and your business needs extra money, you’ll have the resources to deal with it without panic.
Peace of mind comes from knowing you have extra time in your schedule & money in your bank account. Seriously. Worth it.
Review & revise
Just because you've been doing something doesn’t mean it’s still serving you now. Sometimes we need to let a commitment go - and recapture some white space in our schedule. That’s why we need to periodically review our commitments to see if they are still serving us well. And make revisions.
In the same way, we master our money when we are intentional about how we spend it. Schedule a money date on your calendar to review and revise your spending.
Ask yourself questions like: How am I feeling about where I am financially right now? What big things are coming up for cash inflow and outflow? What plans do I have in place for those? Make notes and make revisions.
Do something fun I call “going on a treasure hunt” which causes you to review your ongoing charges to see if they still make sense for your business. I do this myself & with my clients quarterly. I did it last week for my own business and saved hundreds of dollars.
Apply your time management skills to your money & you'll be the master of both:
1. Pick your priorities
2. Know your limits
3. Get help
4. Create white space
5. Review & revise
If you think you might be ready for the peace of mind & confidence that comes from taking control of your business finances & are ready for some help, I'd love to hop on a call to see if we might be a good fit to work together.
I offer high-touch fractional CFO services & am passionate about helping my clients optimize profits and create a financial roadmap so they can achieve their personal & business goals.
What tips would you add? I'd love to hear.
See you again next week!
Whenever you're ready, there are 3 ways I can help you:
1. Get one-time consulting help here.
2. Want to chat about how you can gain peace of mind & confidence with a fractional CFO by your side & on your team? Schedule a call to see if we'd be a good fit to work together.
3. I post on LinkedIn every weekday at 7:15a CST. I'd love to connect. Find me here!