Money Management & Wealth Building for Entrepreneurs and Business Owners

I came on as a guest in a friends business mastermind to chat about money management and wealth building for business owners and entrepreneurs - and I've added some sections of my chat with them here for you to listen in on. 

Here are a few top line takeaways:

1. Know your four numbers around your business... that's:
Knowing your sales, revenue, profit and income numbers. 

2. Split your business and personal income accounts.
You are not your business... so it's important to split your money and treat your life and your business separately.

3. Have other wealth vehicles and ensure you're investing.
So many entrepreneurs spend a lot of time and money on their business. Time spent growing their own business, and money investing back in to the business. I often see business owners then spending less time and money on other wealth building vehicles... like creating an investment portfolio. Banking on that one business succeeding is only ONE income stream, and may not be a future asset that pays you money, unless you're working in it. 

The goal? Always to have assets that pay you money without taking up your time. Which is why Investing Bootcamp exists - to show you how to manage money and create an investment portfolio that builds you wealth in your sleep. 

Find out more about Investing Bootcamp here: www.investingbabe.com

xo
Simone

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So you're here because you want more out of life, more money, pleasure, flow, freedom, luxury. Here we are all about an unwavering self-worth and a net worth. You love to talk about. My name is Simone Mercer-Huggins. I'm your resident unapologetic wealth queen. So far I've built seven figures from the ground up, and this community is now doing the same. The Ms. Wealthy movement is here to help you be more of the bad-ass queen. You were born to be so tune in for everything, investing money, energetics, Molina, mindsets, and everything in between. If you want to be a powerful player in the money game, you are in the right place. Welcome to the kiss, my money. Okay,

Welcome back to the kiss, my money podcast. I have something a little bit different for this episode today. So I recently recorded a sort of mini master class, something. It was very quick back to basics for money for entrepreneurs. It was for someone else's program. So I've thought that I would take some snippets from it and, you know, create this as a podcast for you because it's some really clear step-by-step things. Three things that I share that really entrepreneurs and business owners really need to be on top of, you know, when it comes to money and investing and wealth building, it's really important because I see a lot of entrepreneurs focusing purely on their business and not around creating any other wealth drive is or where wealth vehicles like investing. It can be so easy to spend all of our money poured back into our business.

And I know I get it. I often do the same thing and very few of us at disciplined enough to put aside money to invest. And if you had a career job, it's something that would usually be forced upon you to do whether it's a pension or a 401k or a super fund. So we need to make sure that we're matching and doing the same thing. If our actual personal income from our company that we're running our business would be the same if it were a career job. So I have added this in as some things for you to take away and do their action items, which obviously, you know me, I love the practical side. And so you can listen into a little bit of what I shared with this other program. All right. I hope you enjoy and I'll see you next time.

Hi everyone. Um, I've had a little bit

Of a brief about what you guys are about. I love what you're all doing. Um, you probably don't know a whole lot about me. I do see a familiar face here. Haina hello. Um, now I'm as woo as it gets. I'm a very spiritual person, but my entire company, Ms. Wealthy is built around practical money and wealth building strategies and tools. So my entire aim is finance education. I focus mainly on women, but we're not gender exclusive. And there are three things I want to talk to you guys about today. Um, firstly, and it's specific to entrepreneurs and I love this topic because specifically for entrepreneurs, it's something that can fall to the wayside because we're busy building our company or our business, right. We're sort of spending so much time working in it or on it that we forget, even just the basic stuff like finance and it can be scary.

You know, money management can be scary sometimes and we're also not necessarily taught it. There's no like business handbook that you get given. Um, so the first thing I want to talk about is about knowing your numbers. Some of you might be great about, you know, on this. Some of you, maybe not, the second is about business money management and the third is wealth building. Okay. So first one on know your numbers. Okay. I want everyone to be super clear about tracking at least at the end of the month, ideally at the end of the day, if not at the end of the week, what your revenue is, what your income is and what your profit is, and they're three different numbers. So with business, it can often get really mixed up. Sales is obviously another number and I get that a lot of people sell here and you might have a sold number and that's great.

And please do track that. But as I mentioned, I'm all about the practical and the very physical, tangible, what is actually landed in your cash account. So this is literally as simple as checking at the end of the day, either your bank balance or your Stripe balance, we got PayPal bones of what has landed in terms of revenue. So that's number one on know your numbers. Okay. Number two is what is your profit? And I'm going to talk on the actual second point around money management about understanding profit because often business and personal can get really mixed up, particularly in the beginning. I don't know where most of you guys are in terms building a business or company, but that it's very common to have meshed finances, even if you have an accountant. Um, so the second one is profit and the third one is what is your personal income?

And this is really, really super important because if you're in business, it's for the long-term, which I'm assuming most of you are, you want to have a personal income, whether you have a formal company or not, you still need to have a formal income because that dictates things like how much you can borrow. If you want to buy a house understanding or personal income and personal money management, which needs to be split. And it also dictates you benchmarking yourself about how you are in terms of business owner. It's great to sell early high numbers. It's great to have really high revenue. It's also great to have really high profit, but if you're paying yourself a minimum wage, guess what? You kind of suck in that area. You were in business to be financially free. Yes. To build something that's scalable and to have a personal income that reflects the effort and time and attention that you're putting into it.

And let's be honest, we all put a lot more into building our business or company than you would if it was and employment contracts, Dora Korea. So those two, three things are really, really important to know. I can't do that for you. So I employ you to grab a glass of wine or up whatever you need to get through it. You can do all the money mindset work in the world. You can do all the energetic work. You can do all the emotional regulation and nervous system work in the world. And trust me, I've done it all at the end of the day. We're still just have to cut through that and do the practical stuff that we need to do. And that's getting clarity. So most of the time, what is actually blocking us is not necessarily a money mindset thing, or it's not necessarily like no emotional reaction to money.

It's actually that we don't have clarity and a lack of clarity creates a ton of confusion. Um, and when we get confused, we get overwhelmed. Then we get into procrastination and it creates this crazy eight loop. You probably heard Tony Robbins talk about the crazy alert. So sit down and get clear on those numbers. And then you want to get clear on what do I even want my income to be like, we can always progress our business or our company. You know, obviously you're always, it's about scaling and growing and increasing our numbers. And it might be that the second year in business or the third year in business, you work on scaling and revenue and in the fourth year, what you work on profit, but it's always about ensuring that you increase your income as who you are as an individual. This is particularly important because we need to separate you energetically from the business.

You are not your business. Okay? And so having an income where your business pays, you separates it. Your clients are not paying for you. They're paying for your product, whatever it is, you're coaching your service, your actual program. So getting clear on those three things. The second major thing I want to talk to you about is money matters. Now, even if you have an accountant or a bookkeeper, that's great, but they're not necessarily going to help you with how to manage your money and set up your accounts. So can everyone tell me in the chat who fear has completely separate business or company accounts to their personal finances, where everything runs independent from one another? Okay. So when it comes to your business account, how I, what I teach my clients is to have one reserve account and not main account is kind of where all of your business revenue sits from there.

You need to have separate accounts. If you're running a company, at least in Australia, you'll quote, you'll pay quarterly best. It's different if you're running a business, but you want to have a separate tax account. You want to also have a separate future retirement account, which kind of leads to my third point, which we'll talk about then operations and expenses that is normal part of running your business and then your fourth part goals. So things like, do I want to scale my company? Do I want to hire most off? Do I want to invest in coaching? Do I want to invest in systems? Everyone will have goals. And as you kind of tend to increase the scalability of a company's going to come most of the time with more expenses, right? So everything needs to be split up, particularly around tax. And then we also need to have a personal income account.

Now that's separate, that's a separate bank account, but everything needs to come from that main account and split up. Then your personal income is in a separate bank account and that's completely separate. And I'll quickly show you what personal money management looks like. Ideally you have everything split from a postman money management point of view in terms of savings to invest living and expenses spending now spending late and giving if you're inclined, if you're not, that's totally fine. So from a business point of view, we have our accounts separate. And also from a personal point of view, we have our accounts separate because that way money has purpose. Money has clarity. We know exactly where we are at with our finances were in total control, but we also have balance ironically, controlling it, like this actually creates freedom and being on top of it, being intimate with how money, both from a business and personal point of view makes us better with it.

And from an energetic point of view, the more you pay attention to it, what do we know? The more it grows, right? So since most of you in the chat have already said that you split your business and personal accounts ready, perfect. Make sure you type in any questions that you have, but I want to touch on something, which is that pink box, the future retirement account. So this kind of alludes to what I was saying in that first point about knowing your numbers and being on par at least with having a career job and making sure that you're paying yourself for the Effient time, attention and energy that you put in. If you were to have a career job, at least in Australia in the UK would be a pension, the U S it would be a 401k. You be paid super, and it's about 10%. Sounds more, sounds less they're increasing it. So if you're not doing that currently, I mean, if you have a company, then you'll be forced to anyway, but if you have a business you would actually not forced to. And this has to be a proactive thing on your part to do, to make sure that you're paying your future self. Because whilst I, of course believe in building a business, and of course it being a wealth strategy,

If you get to five or 10 years down the track and have nothing to show for it, that's not a wealth building strategy. And let's be honest, it didn't go so well if we don't have anything put aside, if we're not building wealth in the background, as well as building this business, right? So we want to make sure that we're matching with what would be comparable to me having a career job. And if it's $120,000 a year, if it's $150,000 a year, and therefore I am putting away $15,000, the super, then we want to make sure that we're at least doing that too. That's separate to your personal income where ideally you're saving 20%. I'm at 20% FFA financial freedom account girl. Um, because it's the fastest way for compound interest and us to become millionaires aside from a scalable business at Louisa. So those two are really important.

You can have sub accounts with pretty much every single bank. Now, most banks are now clued on and it can take some time to set this up properly in terms of having one reserve account, and then all of your expenses coming out from one, and then all of your automating, everything. It can be a bit of a process, which I'm not going to run through now, but please make this a priority because once we have your business and personal money, so what did an automated, it takes a lot of the energy out of decision fatigue, right? The beginning of baby step is opening an account that is called your FFA or your investment account that is separate to, you know, holiday savings or anything else. And then ideally automated as much as possible. Or if you have a fluctuating income, then set a date in your diary where you transferred that percentage amount every month to that account.

And if it's 1%, then you know, the next week or the next month increase it to five, increase it to a point of capacity where you feel like it's manageable. The point here is not to go like Dave Ramsey on you and tell you that you can't enter a restaurant. If you have debt, that does not work, but we want to make it of like, how can I live my life now and also invest and get to a point where I can scale to 20%. So start with an account and then start with a percentage. And you remember too, that you can start investing with $500. So at this whole, I didn't have enough money to start investing thing is total BS. And the magic of wealth building happens with time because of compound interest. So the ironic thing is the sooner you start the better, even if it is small.

So the third thing is on wealth building. And this is regardless of whether you're an entrepreneur or not, but particularly important if you don't contribute to your super fund or your pension or your 401k, because like I said, unless we're doing it as a business owner, proactively most business owners don't do it. And we end up financially net asset worth speaking, um, in a West position, then our Korea counterparts. So making sure that we're spending as much time on building other income streams, meaning a stock portfolio, if you're not into stocks, fine invest in real estate. But obviously the barrier to entry is a little higher, but making sure that it's just as much a priority as your mindset work as building and growing a business as pulling on, you know, bringing on clients as increasing your revenue, because the more income streams that you have, the more financially stable you are and building a business becomes something that you see as external to you and a wealth vehicle rather than it being tied off in you.

And thinking that it's you. So obviously I could talk for three hours about wealth building, but that was just my third point on ensuring that it actually happens because not everyone does. So my, that is essentially what my signature program does. So I have a program called investing bootcamp. It teaches people how to manage money in a really in-depth way, um, because it really is the backbone of financial success and backbone of wealth building, and then teaches you how to invest predominantly in the stock market. And regardless of whether you are in the us or Australia and regardless of where you want to invest and then have an understanding of, okay, now I can start investing in other assets too. So I, I do teach on crypto, but only once you have that really kind of solid base portfolio, because yeah, all those questions of like, I know what to buy.

I know how to set up an account. What stock do I buy? Someone said, it's risky. If you go to investing babe.com, you'll find all the info about investing bootcamp. But if you have any questions, just the best place to find me is on Instagram. Just send me dams. I always have conversations like voice note conversations on Instagram. Um, I mean, even if the program's not right for you, like whatever, just ask me a question about if it is right, what's your next step? Like, what should you do? You know, um, so that, you know, at least you can get out of your own way and make a decision on your next thing around money.

If you end up out of the Ms wealthy movement yet, make sure you head over to Instagram and hang out with me. Then I am at Ms. Wealthy official. And if you need anything else head to mswealthy.com, find us on Facebook as well. You can drop review helps us massively.