3 Steps To Keeping More Of Your Money
3 Steps to Keeping More of Your Money
Is money flying through your hands?
Not sure where to find the leak?
I know this is one of the most frustrating things for most people when it comes to money…. You can make it. There are thousands of ways to make it.
AND the steps to keeping it are actually quite simple.
Here are three Steps:
- Baseline – Where are you today?
This first step is getting really clear on where you are today financially. This means having a current and accurate Balance Sheet and a Profit Loss not only for your business but also for your personal life. A big mistake I often see is not having this kind of bookkeeping for your personal life, this will cost you a lot of money! Then keep your bookkeeping current. I never recommend you do this yourself even if you are good at it, it is not the highest and best use of your time. If you are new to bookkeeping be sure to work with an accounting firm like ours (not a CPA and not a Bookkeeper) this way you will learn how to read the story of your numbers.
- Forecast – Where do you want to go and by when?
The second step is creating a detailed plan forward for at least 12 months. Knowing what your long term vision is you will want to create a month by month plan for Revenue and the associated expenses. Again you will want to do this for both your business and your personal life. Put the big blocks in first and then your variables. Now you are in the driver’s seat for cash flow!
- Close the Gap – Dynamic Planning
This is the final step that you will do on a regular basis. Depending on where you are in the development of your financial picture, the least you will want to do this is monthly. In this step you will be comparing your bookkeeping (what is actually happening) to your plan. Asking three powerful questions:
What is next?
Mastering these three steps will ensure you will keep more of the money you make. If this sounds hard, I encourage you to reach out and make a complimentary appointment with us. We are happy to expand on any of this so you are empowered to keep more of the money you make!