There’s never a bad time to transform your money into Smart Money.
As Entrepreneurs most of us have a common goal, to create wealth through our business endeavors. I hear a lot of business owners talk about doing it because they “love it and money isn’t everything” but the truth is that money buys freedom to pursue the things that make you happy so if you aren’t working with the goal to make money then you are really just funding your hobby. I did not grow up with rich parents, both of my parents worked 7 days a week and as soon as I was of age I also got a job. My parents instilled in me early the importance of good work ethic and most importantly the importance of being “smart” with money. My mother is a very conservative money person. NOT to be confused with cheap, she is smart about money, she understand aging your bills, living within a budget and spending reasonably. My mothers money advice stayed with me as I grow as a business owner, wife and mother. As I was headed off to college she said to me, you will get LOTS of offers for credit cards and just remember 2 things ” you never ever mess with Uncle Sam or your credit”. To this day every time I open my wallet I still hear her voice. smile emoticon
So, how do you create “smart money” and how can it help your business? My mother was sooo good at teaching me about money that she scared me for the first 20 years of my life. I was scared to overdraft, scared to have a credit card and scared of falling into debt. It wasnt until I went to buy a new car and they explained to me that I didn’t have bad credit I just didn’t have any credit. And then again when I started Silly Farm and applied for a merchant account, yet again they told me that I needed credit history in order to receive the best processing rate. And then I started educating myself about money and how I could make it work for my business.
Here are 5 tips to help you create “Smart Money” in your personal and professional life.
1) STOP being scared of money- We are either scared to charge, scared to spend, or scared to borrow money. NEWS flash- it takes money to make money. You can’t expect to win the lotto if you don’t spend $1 on the ticket. You can’t open a business for free. You have to at some point charge, collect and spend. Yes it can get scary but that’s why you need to follow the next couple of steps to limit your losses and make your money work for you.
2) Find a bank that is offering incentives to open a business account. Right now Banks have competitive incentives like free $100 opening account bonuses and free checking for a year. Take advantage of them so you can start establishing a banking relationship. A good banker is AS important as a good CPA. Especially if you are looking to find a business loan in the future.
3) Find a credit card that offers incentives like plane ticket points, gas discounts, or points. This can be your BEST tool to create wealth and happiness, when used properly. Remember when I said I was scared of credit cards and a checking account. Well I missed out on tons of free flights and perks being silly. When I put my son in day care they collect the fee on the first of the month. Well most of us also have the mortgage due on the first, so I flipped out thinking I had to come up with $2500 on the first day of every month. So I opened a Delta sky miles card and decided to put both my mortgage and the day care on my card every month. I then paid my card back the mortgage week 1 and the day care every week. NOT only was I able to stretch out my bills I also earned points and boosted my credit. HERE’s the disclaimer.**** THIS method will only work if you are diligent and can commit to paying your credit card as if it was COD. The minute you say “oh ill pay it later” that’s when you get in trouble. When used properly credit can be your best friend. So I suggest trying it for a month and seeing how dedicated you are and then slowly start adding more to that method and start accumulating benefits.
After 6 months paying my bills with my card, I accumulated enough for 2 RT airplane tickets and my hubby and I took a trip. I didn’t open a separate savings account to save for the trip, I simply paid my bills I would have to pay ANYWAY. I just paid them in a way that helped me make money from my money- now that’s SMART MONEY!
4) Offering incentives to paid in full clients. I read a few posts on different forums about artists hurting because clients weren’t paying on time and if you are subcontracting and have to pay out to performers, its easy to get in a cash crunch. Most of us only require a deposit. But there is no harm or foul in offering an incentive for paying in full ahead of time. In the past I have offered a 2% discount if they pay in full or an extra half an hour at no charge if they pay in full. Then I get paid in advance and I can rest easier knowing I can pay myself and my performers smile emoticon
5) Pretend like every job you do pays 10% less than what it does. What in the world is she talking about? When I get booked for a job that pays $300 I pretend like I am getting paid $270. I then take the $30 automatically and put it in a CD account. Because at the end of the year I have to have money to pay my taxes. Remember when I said my mom told me never to mess with Uncle Sam… well that too stayed with me and as much as I need an want to spend that $30 I know at the end of the year I am going to NEED to pay Uncle Sam so I might as well force myself to do it before I am struggling to make up 10 times that. I opened a CD account to restrict myself from taking out that money before time. I am human, there are shoes I want to buy, bills I need to pay, and trips Id like to take but as I said earlier it takes money to make money and if you fall behind in taxes, the government can and will cease your account and that’s not at all smart for you.
I hope 1 of the 5 tips I am sharing helps you start your smart money engine. All these things require commitment and dedication, they wont be easy but truthfully what in life is? You have to work hard at losing weight, building your business, and creating wealth. The best things in life aren’t things, they are a collection of accomplishments smile emoticon Being smart with money can help you accomplish so much so don’t short change yourself. Take my advice then take me on a trip at the end of the year
xoxoxox have a beautiful day friends and make that money!
