The Guava Girl Podcast #47: MANAGING MONEY LIKE A CEO
Sep 09, 2019
Welcome back to the Guava Girl Podcast! Here are highlights from episode #47 Managing Money Like a CEO.
The Guava Girl Podcast was created with the purpose of empowering women to think entrepreneurially and creatively so they may lead the extraordinary life they never thought possible.
Here you will find the good, the bad, and most importantly, the REAL inside looks of what it is like to work for yourself and feel empowered by doing it. We talk about growing your following on social media, building a personal brand, and what it is like being a woman in a startup culture.
Find me, Isabella Silverio, on Instagram as @isabella.guava and #GUAVAGIRL to be part of this growing and empowering community.
IMPORTANT MOMENTS FROM INSIDE MANAGING MONEY LIKE A CEO:
- [5:41] Rule #1 to managing money like a CEO. Do not commingle your personal and business expenses. You must be strict and diligent about your money. When you commingle you make separating what is spent on personal expenses and business expenses much more complicated.
- [7:23] Rule #2. Pay yourself a small amount of money every month to cover living expenses, and give yourself bonuses at the end of every quarter.
- [8:40] Rule #3. What to do with your quarterly bonus. Here I break down how to separate your income and a couple different types of savings accounts you can use.
- [12:03] Rule #4. The high yield savings account and the benefits of using them versus a regular savings account.
- [13:38] Rule #5. Do not spend money you don’t have or that you don’t have a way of attaining. To me this is NOT how you manage money like a CEO of a business. It works for some, but I personally don’t feel good about putting myself in potential debt.
- [17:32] Rule #6. Set expectations for payments from your clients. Wishy-washy payments make it hard to project your income.
- [18:45] Rule #7. Pay your car insurance in full, whether that is monthly or yearly, don’t leave that hang out.
- [19:08] Rule #8. Credit cards are okay, just be careful of spending money you don’t have.
- Best practice for credit cards: Pay of the balance in full at the end of the month.
- [19:32] Rule #9. You have so many income earning years left. YOU HAVE TIME. You do not need to make hundreds of thousands of dollars by tomorrow.
- [20:15] Rule #10. Set up automatic transfers from your checking account to your high yield savings account. This way you are automatically transferring money into savings. You should also be transferring anything left in your checking account at the end of the month over to the savings account as well.
- [21:11] Rule #11. We’ve already touched on this, but do NOT go into debt to afford a coaching program. Especially if debt is causing you stress. If you want something, go make the money.
- [23:08] Rule #12. If you have a business, you should also have a business savings account for tax purposes.
- Bonus tip: approximately 30% of your profits should be set aside for taxes. You may not need all of that money, but it is there for you just in case.
- [24:52] Rule #13. Keep 3 months worth of operating expenses in your business checking or savings account just in case. This will help cover you if you decide to take some time off, or have a slow month.
- [25:43] Rule #14. Do not keep your money in PayPal, put it in a bank account.
“I made a lot of mistakes, but that's OK. And you can make mistakes with your money. That is fine.”
[In reference to commingling business and personal funds.] “It got so bad that I hired a CFO … And I really found it worth the value in what her services offered because I was really a mess with my money, especially commingling personal and business. And from working with her, I have learned so much about handling your money as a business owner.”
“You probably have the majority of your income earning years ahead of you. So don't really stress too much. As long as you're making money now and your business is making sales and you're seeing improvement. Celebrate that. Don't look for the lack because you will always find it.”
“Everyone listening to this podcast knows how to make money. All right. You all know how to make it. So go make it to afford something that you want.”
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