Why Your Business And Personal Finances Are Definitely Interrelated

Perhaps it seems like a no-brainer, but it’s important for business owners to keep in mind: Business and personal finances are intimately related. All of us have personal financial lives, and they dictate what we’re able to do in our business. In the same way, how our business is doing financially vastly informs what we’re doing in our personal financial lives. Today, I’m talking about how the two effect each other and why it’s important to be aware of that.

Where Business and Personal Meet

In the past, I’ve written about the importance of separating the two by opening different accounts. Keeping things separate means more clarity about what’s going on in both financial realms. However, just because you want to look at them separately, doesn’t mean they shouldn’t inform one another. I’m also in support of checking in with your lifestyle costs and making sure your target revenue aligns with those. I’m a firm believer in making sure your lifestyle costs and your life’s goals are the things that inform how much revenue you want your business to take in. 

Many finance and business coaches like to throw out round numbers: “Increase your revenue by $5,000!” “Have your first $100K year!” However, these are more helpful in their marketing schemes, rather than your real life. Personally, I find that when your income goals are directly linked to your lifestyle costs and your long term goals, they have much more meaning to you. Doing the work of figuring out what your costs and goals are also keeps you checked in with where your money is going, and where you are going in your life. The way we spend our money and what we do with it directly correlates with how we treat ourselves. In my mind, a revenue target should be an invitation to self care and personal fulfillment.

Working Backwards

If you’re struggling to picture how your business income goals can be informed by your lifestyle costs, I invite you to try a little exercise. In my money-mapping series, I go in-depth on how to create a money map that encompasses your business earnings and your personal accounts. You can sketch one up for yourself, and then start from the personal end on the right. Total up the amount of money you need for financial goals and living expenses, and then move toward the business end and see whether your business is producing that amount of revenue. A big part of this exercise is actually understanding what your lifestyle costs you – and that’s important to your business finances too!

The Whole Pie

The bottom line here is that it’s important to look at both your personal and your business finances separately, and as they relate to each other. We have to look at the whole pie, so to speak. Many business owners might have one field or the other down pat, but having confidence in both areas takes a bigger understanding of how they work together. If you feel you have a lot of clarity in your business but struggle to pay personal bills, or vice versa, it’s time to take a step back and re-evaluate. The two inform each other.

If you appreciated this post and found the opportunity to think about personal and business finances helpful, you’re in for a treat! I am beginning to add personal financial coaching into my practice, and this month I’m looking for three small business owners to get started working with at a special low introductory fee. If that’s something that interests you, click here to set up a free 30-minute consultation, where we can see if we’d work well together.

☮

Angela

To Find Clarity and Focus, Do a Mid-Year Review Pt. II

This is part two of a two-part series on doing a mid-year review of your business! You can find part one here

So, now that you’ve reviewed your work so far and adapted your strategies and goals appropriately, it’s time for the next few steps. These are intended to really up the feeling of getting a fresh start, while enjoying your business for what it is: a way to meet your life goals.

Refresh

For an extra dash of clarity and focus, include a refresh in your review process! Now is the time to do whatever necessary maintenance you might need to grease the wheels of your business. You might clean your workspace, clear your inbox, or centralize your passwords. Attend to your physical and digital spaces. Check in with your finances, and schedule an appointment with a bookkeeper. 

This is usually my favorite part of the review process, because I make time to do all the little things that have been nagging me, like scheduling lower priority appointments, finding that one piece of paper, and sometimes making a new goal chart for myself. Giving yourself the time and space to get organized can save you time and effort down the road. It can also add ease to your everyday business functions – which is an added bonus!

Celebrate

Go back to step one, and take stock again of all you’ve done this year, including this review process. 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 celebrate all the work you’ve done. Treat yourself to an afternoon off, a fun or inspiring event, or whatever you’d like to do to 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.

If you busted through this whole review process, congratulations. I’d love to hear from you about how your business functions going forward, or if there are any little things you’ve added to the process. Just leave a comment below or shoot me an email at angela {at} atpeacewithmoney.com. If you think you could benefit from working through this process with an accountability partner, you know where to find me – just check in on my Services page.

Angela

Image Source: Emma Matthews

To Find Clarity and Focus, Do a Mid-Year Review

Goal motivational quote

We’re six months down the line. How are you doing with your goals? Have you totally crushed them, worked on them bit by bit, or are you not sure? In the thick of things, sometimes our focus on our goals can get a little murky. Here’s the first two steps of a two part series on doing a mid-year review (steps 3 & 4 can be found here). Let’s jump in:

Review

Step one in a mid-year review is the review, of course! When you take a look at the goals you’re working towards, it’s easy to get bogged down by focusing on what you still need to do. Instead, train your focus on what you’ve already done.

Start by making a list of milestones you’ve hit or steps you’ve completed. Rifle through your day planner or old to-do lists if you need a refresher. Go back through the year, month by month.

Now, it’s time for a little introspection. Take stock of all the actions you’ve taken towards your goals, and then ask yourself a few questions: How do I feel about this goal? Do I still want to achieve it by the end of the year? Is that feasible? At what pace have I been able to work toward this? What’s my capacity been like?

Don’t be afraid to drop things or add new things. Some goals may simply no longer excite you, or you may have realized that another achievement is more important or time sensitive.

During this review process, it’s also helpful to take a look at the systems and work routines you have in place for your business. For example, you may have set an intention to review your numbers once a week, or you may be trying out the Profit First system. Evaluate the effectiveness of your systems and routines. Are they working for you? Do you have time to do these things? Are you consistent? You may find that your routines need to be simplified or tweaked to be more pleasant. Or, you might find that your systems and routines are working just fine! Both are vital evidence when checking in on your business.

Learn and Adapt

Next, it’s time to use all of that evidence you’ve gathered to adapt your goals and practices. First, notice if you have any goals that you are either discarding or adding. Next, examine the pace at which you’ve worked on your goals. These pieces are important when it comes to planning out the rest of your year.

I recommend drawing or writing out a map for the next six months. Include any events relevant to your business, like conferences, trade shows, or gallery openings. Then, begin to write in milestones you hope to meet in the next six months. Make sure these are realistic! Don’t pressure yourself to level up in three months if it took you six to get where you are now. Instead, allow yourself the space and time to achieve things incrementally.

When you’re making your plan, be sure to adapt your goals to what’s worked so far this year. If you really love a certain routine or feel fired up to keep working toward a certain goal, go for it. If you’ve stalled on a project because you need to do more research, carve out some time to go back to the drawing board. When charting your course, keep your own needs and preferences in mind.

The next two steps will coming out in part two of the series, but I think this gives you enough to chew on for now! If you haven’t yet set goals for your business, or would like some more help thinking them through, check out my article Set Informed Income Goals. And of course, I am happy to walk through the goal setting process with you. All three of my service packages are focused on helping you set, work towards, and achieve goals. If you find you might appreciate some accountability or guidance, head on over to my Services page and schedule a curiosity call

Angela

Image Source:  S O C I A L . C U T

Book Review: The Art of Money by Bari Tessler

Book Review: The Art of Money By Bari Tessler

If you read my newsletter (you can sign up by clicking here) then you know that this month, I’m focusing on how we can love ourselves through our money. This idea touches on financial self care, but also folds in the idea that looking after our finances can be a pleasant and loving thing we do in our lives.

If there is a book that captures that sentiment, The Art of Money by Financial Therapist Bari Tessler is it. This is one of the first books that I read when I became interested in adding financial coaching to my bookkeeping practice.  While I know that I have a talent for helping people with their money systems, Bari Tessler has a talent for helping people go deeper in their relationship with money.  If you have ever listened to Bari speak on her podcast, you can clearly hear her voice in this book. She truly makes doing emotional work around money feel like a safe space.

She lays the process out in three phases and includes many useful practices in each area. Her first phase gently lays out a process to understand and heal your feelings and your history around your money past. She utilizes her training in somatic psychology to help facilitate this process.

In phase two, she covers the practical side of dealing with money.  Here she includes something we’ll explore later this month: money dates, or spending intentional time working on your finances, in a pleasant way. She also talks about setting up money systems and assembling your support team – whether that is professional help or a money buddy.

Her final phase deals with goals, dreams and plans.  Her philosophy holds that when you have healed your relationship with money and have tools in place to address it, you can start to see the bigger picture and how your dreams can become reality. This book can be a great resource, but particularly if you have money beliefs or blocks that are holding you back. It provides support and practical tools to heal and move forward with improved financial self care.  My posts this month will feature other ideas and support around this topic. If you are ready for  more in-depth help around your money systems, I invite you to reach out and schedule a call.

Angela

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