How to Start A Goal-Based Business

How to Start a Goals-Based Business: At Peace With Money

I want everyone to be able to align their business profits with their life goals. But, what does that really mean? You may have all kinds of life goals. Is it really possible to build a business that can help you bring them to fruition? The answer is a resounding yes.

Step One: Dig Deeper

The first step in any intentional process, like designing a business that supports you financially and fulfills you emotionally and spiritually is to spend some time thinking deeply. If you aren’t sure what your goals are, it’s time to figure that out! Envision your life in 5 years, 10 years – where do you want to be? what do you want to be doing? What are you most passionate about? Will starting this business help you get where you want to go?

It’s All Related

To help you think about how your life goals and your business are intertwined, consider this example. Let’s say Sandra is a talented jewelry maker, but she is also deeply passionate about dance. She wants to build a jewelry business that supports her and helps make ends meet. She also wishes to have ample time to attend dance classes, events, and begin performing live. By building up her business so that it runs profitably, efficiently, and provides her with a steady paycheck through the implementation of the Profit First system, she can have more time to put towards her dancing.

Even though Sandra is not choosing to monetize the very thing her personal goals attain to – dancing – she is making more room for it in her life by expanding her business and its capacity to efficiently support her. In this way, her business profits directly support her achievement of her life goals. Some other examples might include building a business that includes a lot of travel if you dream of globetrotting, or creating a business which is founded on ethical principles you’d like to see manifest in the world.

Often, I think we look at business as being a rather sterile aspect of our culture and lives – it’s just the way we make money. In fact, it can be the very opposite. It can be the vehicle for achieving your dreams and visions, whether directly through your business, or via expanding the profits and efficiency of your operations. Starting and running a business is inherently creative – what are you going to create?

If you find you need some guidance in working through the questions I bring up here, I encourage you to reach out. I’m always happy to talk with solopreneurs about how they can achieve their goals through their business. Click right here or on the Services tab up top to learn more about what I offer and how you can schedule a call!

For more reading and resources on this topic, I recommend my article, “What’s Your Money Why?” which touches on some similar subjects and may help you consider these questions more deeply.

Angela

Image Sources: Florian Klauer  Amy Shamblen

Book Review: The One Thing

At Peace With Money: Book Review: The-One-ThingThis summer, I read The One Thing by Gary Keller (no relation), and my initial reaction was irritation. Essentially, the book advises us to focus on one big goal that you want to accomplish and then break that goal down into smaller time chunks.The goal is to do something small to work toward that goal every day. The key is focusing. That’s probably why it irritated me.

Staying focused is definitely something that I struggle with. As a business owner, as a wife and mother, as a person in today’s world of distracting gadgets – focusing is difficult!  It seems there is always a fire to put out, a need to be met. Always there is an idea that is nibbling your brain, or a rabbit hole to dive into and lose 45 minutes of your life. My reaction was about something I need to work on in myself rather than the idea the author presents.  

He also suggests scheduling that focused time into your calendar and protecting it – another challenge for me. On top of that, he debunks the idea of multi-tasking. This felt blasphemous to me at first. What mother do you know who does not pride herself on juggling multiple balls in the air on a daily basis!?! It seemed to me that Gary Keller was basically trying topull the rug out from under my life! This book made me so angry that I had to take a few months to calm down enough to even write this review.

Practical Applications

But somehow, this morning I woke up thinking about this book again. A practical example to apply his basic techniques popped into my mind. Let’s say you want to save $30,000 to buy a house over the next 5 years. That sounds like a lot of money to save and a crazy goal! But if we break it down to saving $6,000 this year and saving $500 each month which means saving about $17 each day, it becomes manageable. To reach this goal, we ask, what’s the one thing we can do today to get that started? Perhaps you open the savings account. Maybe you start a side hustle and allocate all the income to that goal. You might start saving your cash in a money jar to deposit at month end. Maybe you resolve to pack your lunch.

The One Thing Book Review: At Peace With MoneyWhat’s important is getting started by taking some action today to make the goals you have for your future turn into a reality.  That is a lesson I can take from this book.

I might have to work on my focus, and reexamine my views on multitasking. However, I do feel I stand behind the ultimate message of this book: get clear on your goal, focus on it, and work towards it every day. If you do that, you will achieve what you’re after. Whether that’s saving for a house or starting a business, this is an important reminder in how we approach our financial goals. If you need an accountability partner to help you get started, please feel free to reach out.  I would love to help you reach your goals (and I promise not to forbid you from multitasking!)

 

Angela

Image Sources: Squidhub, Bonehead Business

Check In With Your Goals – Time for a Review

Check In With Your Goals: At Peace With Money

Time to review your goals.  Only four months left in 2018, can you believe it? It’s certainly flown by for me, which is why this week I want us to take some time to reflect on our goals. Many of us set goals at the beginning of each year.  You may have set some goals for your business that you have since been working towards. It’s been a while since January, so now’s the time to check in!

The Review

Review your goals and begin to reflect on your progress for each one. Now, here’s the tricky part: don’t get caught up in what you still need to do. Instead, it’s important to spend a good chunk of time reviewing what you’ve already done to reach your goals. If you feel like you can’t remember everything, try going back month by month. If you use a day planner, flip through it and scan your old to-do lists. Chances are, you will find you’ve done quite a bit of work towards your goals, no matter how close you might be to completing them! Take some time to reflect on the work you’ve done, and congratulate yourself on this work. Celebrate your achievements so far! Being a self-starting solopreneur is hard work. If you’ve done the work, you deserve to cheer yourself on once in a while.

While you’re having this victory party for yourself, now may also be a good time to map out what you hope to get done during these last three months of 2018. By reflecting on what you’ve done up to this point first, you are able to clearly see the pace you work at. With this in mind, you can set realistic expectations for the next three months, rather than trying to cram in too much work.

My Check-In

You may remember that I set a goal earlier this year to be mindful by enjoying what’s right in front of me. I want to share a little check-in of my own on this goal. That way, you can see how it’s going and be inspired to reflect on your own goals.

I’ve been doing a couple things throughout this year to stick with this goal. Every weekday, for 10-15 minutes each morning, I’ve been writing in my little gratitude journal. During my morning walk, when I reach the top of our road, I cross the street to take in the view of the Monterey Bay for a few minutes. In this way I’ve been able to appreciate the place I live more fully. I also notice changes in the season and the forest, and even the subtleties of the fog cover.

Check In With Your Goals: At Peace With MoneyI’ve also been trying to practice a technique for grounding my memories. The way this works is, when having a good experience, you try to capture the memory by taking in all the sensory details. Notice how your surroundings smell, feel, sound, and taste. Paying attention to these details has helped me appreciate them more. I learned this technique from Lucky Bitch by Denise Duffield-Thomas. It’s a great read, and I hope to do a book review on it soon!

For more resources on reviewing your goals, I recommend this video series by Muchelle B. on Youtube. I hope this post inspires you to check in with your goals, celebrate your hard work, and be mindful of your capacity as you finish out the year. Remember to enjoy your business, and your life! If you find you need some help setting goals, especially for your business, check out my services page or set up a discovery call with me!

Angela

Image Sources: Brooke LarkAmy Shamblen

How to Get The Most Value From Your Bookkeeper

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

As a business owner, every time that you outsource a task for your business, you want to make sure you are getting the highest value out of that task. Particularly if you are hiring a professional for services, such as a CPA or bookkeeper, they should not only provide the service you need to keep your financial records up to date. They should also be able to provide you with insight or advice into your business finances. They regularly see all the financial facts of your business right in front of them. If they aren’t interpreting and discussing with you the trends they see in your business,  or they aren’t talking about or making suggestions to support the health of your business , they are actually doing you a disservice. Financial professionals can easily access that information. Making sure you hire someone who is willing to talk to you about those things and provide information that will provide you with much greater value from this professional service. If you are able to apply these financial insights, your business will benefit greatly in the long run.

This point also illuminates the value of hiring a professional in the first place. Hiring someone who knows what they’re doing to both keep your books in order and analyze financial trends is important. Paying a professional a higher wage for a better quality work, rather than hiring someone who doesn’t do the job well, will greatly benefit you and your business. Someone who can provide you with valuable information about expenses, cash flow, profit margins, and other financial inner workings of your business can prove invaluable in the long term. Think of hiring a talented professional as an investment in your business’s financial wellbeing.

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

When you are looking to hire a CPA or bookkeeper, inquire whether their services include providing these insights and consultations. If you are already working with a particular professional, ask them if they are willing to start discussing their financial findings with you. If not, maybe it’s time to find someone else – because that valuable financial knowledge of your business is absolutely worth it. If you’d like to speak with me about my financial services, schedule a discover call!

Angela

Image Sources: Sergey Shmidt , Sharon McCutcheon

What’s Your Money Why?

Your money “why” is like your business’s compass, because it’s hard to get where you’re going if you don’t know exactly where you’re going or why you’re going there! Everyone talks about finding your “why” – your motivation or purpose – in business. Doing so is absolutely important, but today I want to talk about your money “why” because I think that is equally important to the direction of your business. Knowing exactly what your goals are for the money your business generates will  guide you in your financial decision making process and ultimately to the realization of said goals.  

My Money Why

When I started my first business, I wanted to make some “extra money.” The problem was, I really wasn’t clear on what that money was for. Without direction that extra money seemed to  simply come and go.  When I started my bookkeeping business, I had a specific goal for the money I was making: I was paying college tuition for our oldest daughter. She has since graduated and I am now in the process of putting our second daughter through college (three years to go!). After my goal for my money is to supplement our retirement, so that my husband can leave his demanding career. Because I know specifically what these things cost, I have an exact number to set as my revenue goal.

Know Your Money Why: At Peace With Money

Whether you have started your business to fully support yourself or your household, or you’re doing a side hustle to pay for “extras,” if you know your money goals and can get some exact numbers you need to meet in order to reach these goals, you will be so much more clear on how to get there. This added clarity will simplify your decisions, and make your objective more clear. You will also be more likely to make better decisions to maintain your business’s profitability. They always say, “keep your eye on the prize.” Doing so is a lot easier when you know what the prize is!

So, ask yourself a few questions: Why did you go into business? What are some life goals you have that cost money? What are some specific financial goals you need or want to meet with your income? Come up with specific numbers and stay focused on those – now you know your money why! If you need some assistance getting to the bottom of your money why, perhaps you’d like to check out my Business Beginnings or Turning Points packages. 

Angela

Image Sources: James ChouCasey Horner

How To Pay Yourself First

How To Pay Yourself First: At Peace With MoneyI use the hashtag #PayYourselfFirst all the time, but what does it really mean to pay yourself first? It’s a core aspect of Profit First philosophy. It’s also an important part of how I organize my own personal finances. I want to make sure all my readers know how to pay themselves first, in their business and personal finances, so let’s dive in.

Keep What You Earn

“Paying yourself first” is about having a system in place to make sure that you get to keep a portion of your earnings. In my last post on automation, I talked about David Bach’s book, The Automatic Millionaire. Bach includes the concept of paying yourself first in this book and applies it to personal finances. He suggests setting aside savings right off the top of every paycheck, even before breaking it down for living expenses. Users of this system do quite literally pay themselves first! In his system, the money goes to retirement savings accounts, but the system can be adjusted in both business and personal finances to fit your own needs.  Taking a cut for yourself from each paycheck is and important but easily forgotten practice.

Beyond Corporate

So, how does this apply to solopreneurs? If you’re working outside the corporate world, you’re probably working without health and retirement benefits. This is all the more reason to set up a system to take care of these needs. Setting aside money to address health and retirement costs is important for many people, but especially so if your main source of funding for both is your own business. 

How to Pay Yourself First: At Peace With Money

I always say I want to help my clients work with the Profit First system to align their business profits with their life goals, and I assume one of those goals is to support yourself in your health and retirement! Every financial aspect of your business can be set up with this in mind. Your products should be priced appropriately so that you earn something for yourself, rather than just simply covering costs. A part of that money should be invested into your future and your healthcare fund. This is the Profit First system at its core. This is what I want to help solopreneurs work towards with their businesses.

Take a look at your personal and business money systems and ask yourself, do you pay yourself first? Are you setting aside money to support and reward yourself? If you’re interested in more on this topic, I highly suggest downloading the first 5 chapters of the Profit First book through my website.

 

Angela

Image Sources:  Alisa Anton, zixuan Fu

Why Automation Is Your Money’s BFF

Why Automation is Your Money's BFF: At Peace With MoneyAutomation is your money’s best friend. By automating your finances, you reduce your opportunities for decision making, thereby reducing your chances to change your mind about saving money or paying a bill in full. By reducing your decisions you set yourself up for success! Automation can build up your savings and pay off your bills, without any extra effort on your part. So, how can you use automation as a financial tool?

Automate Everything!

There are many different facets of your finances which can benefit from automation. Automating your bills is a good place to start. Many banks have online bill pay options available that help you pay your regular monthly bills on time. In particular, automation is a good way to ensure you always pay your credit card balance in full, so that you don’t accrue any interest fees. However, one important thing to be aware of when automating your bills is that you will need to stay aware of your bank balance, to avoid over-drafting your account. As long as you keep an eye on your balance, automating your bills is a good way to avoid late fees, build good credit, and stay on top of your finances.

The other major arena of your finances that definitely deserves some automation-attention is your savings. I touched briefly on automating your savings in an earlier article, which you can read here. The most important thing about automating your savings is that if money automatically gets moved out of your spending account, you have no chance to spend it. That makes saving that much easier! We do this with our retirement savings, and it really helps us keep it up. A great resource for further information about automating your savings is The Automatic Millionaire by David Bach.

I hope this motivates you to try out automation with your finances!

Angela

Image Sources: Mitch Lensink, Lucas Silva Pinheiro Santos

Young and Thrifty: Creating a Spending Plan

How to Create a Spending Plan: At Peace With Money

Creating a spending plan, also sometimes known as a budget, can be a very important tool for getting a handle on your finances no matter where you are in life. In my last Young and Thrifty post, we briefly touched on budgeting as a way to encourage saving habits. Today, I want to look more closely at 3 different types of spending plans. Maybe you’ll find one that works for you! But first, the budgeting basics:

Analyze Your Expenses

The first step to creating almost any spending plan is to analyze your expenses. Figure out what your fixed expenses are, like rent or mortgage payments, transportation costs, food, etc. These types of expenses are things you really need that tend to cost the same amount every month. After you’ve confirmed what your fixed expenses are, you can analyze the rest of your spending habits and determine which of your expenses are flexible, and not as necessary as your fixed necessities.

Once you’ve evaluated your finances in this way, you can start to take charge of your spending using various strategies.

Categories

The most common budgeting strategy is to divide your expenses into specific categories and assigning designated not to exceed amounts for each category. For example: “Food, $200/month, gas, $150/month, etc.” Doing this can help you establish your monthly living expenses and also help you understand how much you spend on each category. If you wish to cut down on your spending in a particular area, this may be a useful strategy for you.

Set Amount for Flexible Expenses

Another strategy that is helpful when you’re really focused on saving is setting aside a set amount of money for all expenses that lie outside of your fixed necessities. When my oldest daughter was setting a budget while saving for her road trip, she set aside $100 a month for all expenses that weren’t fixed necessities. This might be tight for some, but setting an amount in this way is a very simple budgeting tactic that can encourage you to make your spending more intentional.

Rewards

A third tactic that can help you create a spending plan you’ll stick to is to set aside rewards for yourself. For example, if you have $500 to spend on a certain monthly expense, and you manage to only use $480, you can use that extra $20 to reward yourself. This can be applied to your overall monthly expenses or within certain categories. One of my daughters has found this strategy very motivating and usually ends up using her reward money on ice cream.

Resources

There are two digital resources I can recommend for anyone looking to create a spending plan. Mint and You Need A Budget are both digital budgeting software systems that will help you set up and track your monthly budget. From my personal experience, I enjoy Mint, and my family uses their free version. Amber Dugger really appreciates YNAB and uses it with her clients.Creating a Spending Plan: At Peace With Money

Though this article mentions only a few strategies, budgeting and spending plans can be as simple or complex as you need them to be. I encourage you to do more research if you’re interested. I recommend this article from Practical Money Skills and this podcast from Jen Hemphill as two helpful resources. In a later post, I will be putting together a list of some of my favorite resources for financial self-education.

I hope you find these spending strategies useful. Stay thrifty!

Angela

Images:Camille Orgel, Unknown

Young and Thrifty: A Guide to Saving

A Guide to Saving for Young People: At Peace With MoneyRecently I’ve received some questions about financial advice for young people. I think the most important piece of advice I can give is this: save your money. It’s simple, but it can be difficult to get in the saving habit. That’s why I recommend developing a savings plan. There are three parts to a good savings plan: percentage, motivation, and banking.

Savings Percentage

In order to save money, it’s important to decide what portion of your money you want to regularly save. You can decide this in a variety of ways. If you’re in a situation where you don’t need most of your income for fixed expenses, the amount you can save becomes much more flexible. For example, when my younger daughter started working at our local pizza place, she decided she would save her paycheck and spend her tips.

Many sources recommend saving about 10% of your income monthly. If you have a fixed income, this can be calculated easily. With variable income, you can simply tally up what you’ve made and calculate the percentage each month. Use the other 90% of your income to live off of and cover your expenses. 

If you want to make things more  organized or complex, you can work on budgeting out your expenses. I’ll talk about different budgeting strategies in a later post.

Motivation

Having financial goals is important! Make sure you know what you’re saving for. Are you looking to purchase a car? Moving out? A  fund that will enable you to leave your job in case of  sexual harassment or unfair treatment? Having an intention for your savings is important because it helps keep you motivated. The more specific it is, the easier it is to focus on. For example, when my older daughter decided she wanted to take a 3 month road trip, she calculated how much she needed to save, got a job at a shoe store, and the next few months saving almost all of her income. She even lived on her friend’s couch for two months to save on rent. In the end, she saved all the money she needed and then some. That’s the power of motivation! 

Banking

Use a bank that earns you high interest on your savings and doesn’t charge fees. Doing some research to find a good bank will help you figure out where to put your money and watch it grow quickly. You can also read my tips for avoiding bank fees here

Some banks allow you to automatically transfer money to a savings account each month. Setting up that automation can make saving even easier. When you don’t even have to think about it, it’s much more likely to get done. 

A Guide to Saving for Young People: At Peace With MoneySaving is the best piece of financial advice I can give to young people. Getting in the habit of saving your money opens up a lot of choices, something that’s important and helpful in any young person’s life!

This post was written in response to some requests I’ve received for financial advice for young people. To answer these questions, I’ve created a series called Young and Thrifty. Check the tag Young and Thrifty to see other articles in the series. 


Angela

Image Sources: Jeremy Cai,  Sharon McCutcheon

Why You Need a Money Buddy

Why You Need a Money Buddy: At Peace with Money

Who do you go to for financial advice? We don’t talk about money that much in our society, but we should! Talking about our finances, our incomes, and exchanging financial advice can bring in helpful new perspectives to our financial lives. That’s why I believe everyone needs a go-to person for financial advice or perspective.

Not unsurprisingly, I am that person for a few people in my life. When my sister and I were young adults, we had a conversation about what roles or specialties we would take on in our lives. I have always been a “numbers person,” and volunteered myself to be the financial sounding board between the two of us. My sister calls me any time she needs financial advices, another perspective, or an extra set of eyes on her finances.A few weeks ago, she asked me for my advice about buying a new car, which I wrote about here.

Why It’s Important

Having a go-to person for financial advice is crucial for a few reasons. First, using someone else as a sounding board can lend clarity or new ideas to any financial situation. You can also share tools, tips, and ideas with each other. I enjoy talking with other financial coaches about their favorite strategies, and also get some good book recommendations!

Most importantly, having someone you trust to talk about money with can make your finances less intimidating. If you hear about someone else’s financial situation, it can put yours in perspective. Having a “money-buddy” is likely to keep you more accountable to your financial goals and also help you feel more comfortable thinking about money as it becomes a more regular topic of conversation in your life.

Solopreneurs may also appreciate having someone to bounce financial ideas off of, because they can benefit from outside perspectives. When you’re running your business all by yourself, it can be easy to develop financial blind-spots. Having someone to talk to about your business finances can help you avoid that.

Find Your Person

Try approaching a trusted friend or family member with the idea of sharing financial advice with each other. Make sure it’s someone you feel comfortable with so that your conversations are solely helpful. Once you’ve found someone, figure out how you want to structure your financial mentorship. You could review Why You Need a Money Buddy: At Peace With Moneyyour finances together every month, share your financial goals and progress, start a mini financial book club, or simply plan to call on each other when you need to make financial decisions. Keep it as simple or involved as you like.

I hope that finding a go-to person for financial advice will help you make better financial decisions and reach your financial goals. Of course, if you ever need professional help, you know where to find me.


Angela

Image Sources: Thought Catalog, Tyler Nix