Every Dollar Your Business Earns Is Cash In the Bank
Yes, every dollar your business earns is cash in the bank. But that also means every dollar you spend is cash out of the bank! Every use of cash should be an intentional choice. Why? Because it’s cash you now no longer have in the bank. Every use of cash is also an opportunity to grow your business or grow your personal lifestyle. Growing your personal lifestyle could mean anything from having savings bonds to having a bigger or newer car or house.
To me, a penny saved is a penny earned. You may think of this as a depression-era mentality. But for me, it is a modern lifestyle.
I practice this both personally and professionally. Another way to think of it is running lean. I use free or cheap versions of software until I can’t hack them anymore or the time it takes to hack them is too valuable to spend anymore. But that bar is super high for me.
Freedom to Spend Your Business’s Money
My team knows to run every expense by me, and I know to run every expense by my budget. I weigh the cost-benefit of expenses vs. the value of the service or product we purchase.
This doesn’t mean we don’t spend money. In fact, it gives us the FREEDOM to spend. We have a budget for marketing, for subscriptions, for specialty contractors. And it is SO FREEING. I actually stress less about big spends because when they line up with what we planned to spend and fit within the forecast (and I know I’m going to hit my cash and profit goals WITH that expense), it can be an exciting, rather than terrifying, check to write. This is the big investment I PLANNED on. This is the big expense I KNEW about.
For me, it makes all the difference in the world. Having financial goals for your cash is indeed a game changer. If you’re looking for a way to get excited about writing checks again (and investing in your businesses and YOUR future) try forecasting with us!