Did you start your entrepreneurial journey thinking that your money problems would finally be solved? And only come to find out that you are still living paycheck to paycheck with no end in sight?
As an entrepreneur, building wealth and learning how to make your money work FOR you is essential to achieving financial freedom. I understand the struggles to reach financial stability and freedom. I spent many years in financial chaos and it took a lot of money management and a whole lot of money mindset to get to where I am today. And it doesn’t stop there. It’s a continuous journey that I work on every day, just like you. However, with the right strategies and a positive money mindset, you can learn how to make your money work for you and Create, Retain, and Expand wealth.
Keep reading to learn how to make your money work for you, create the wealth you deserve, and ditch the overwhelm to achieve financial freedom.
Start Setting Financial Goals
Every plan needs to start with setting some goals. The first step is to sit down and write out what your financial goals are.
Here are some questions to get you thinking:
- What does my current financial situation look like?
- What do I want to achieve financially in the short term? In the long term?
- What do I want my savings to look like each month?
- What does financial freedom look like to me?
- How much debt do I need to pay off?
- What kind of assets do I currently have and want to have?
- What do I need to set up now in order to reach my goal?
- What kind of challenges can come up for me?
- What happens if my plan doesn’t go the way I think it will? What will I do if setbacks or roadblocks come up?
- Are my goals SMART goals? (Check out this blog post where we go into more detail about setting SMART goals for your business.)
Once you have been able to determine what your goals are you can determine where you would like to start.
Are you going to start by:
- Paying down debt?
- Investing in a new opportunity?
- Creating a new revenue stream?
- Reducing expenses?
You need to determine where you are going to start and then you can move forward by creating a budget or what I like to call it: Money Management Plan.
Create a Budget AKA Money Management Plan
Creating a money management plan is a non-negotiable step in setting and achieving your financial goals. If you want to truly change your relationship with money you need to take control. You take control by telling your money exactly where you want it to go.
A money management plan allows you to track your income and expenses, identify areas where you can cut back, and allocate funds toward your goals.
Set your budget/money management plan by listing all of your sources of income and then subtracting your fixed expenses.
Fixed expenses might include:
- Rent or lease costs
- Salaries (yes you need to pay yourself too!)
- Utility bills
- Loan payments
- Business licenses
After you have listed your fixed expenses (those numbers that don’t change) you will then, allocate funds toward your savings goals and discretionary spending.
Remember the key here is to start! There will be times that you will need to pivot and tweak your budget/money management so don’t beat yourself up when that happens.
Roadblocks may come up, it’s an inevitable part of business, and that doesn’t mean we shouldn’t plan for them. You may come across unexpected expenses and changes to your income, or you may have a purchase that you shouldn’t have made. By anticipating these future expenses and having a plan, it can help you stay on track in the long run.
Consider setting up an emergency fund to help cover unexpected costs or look into adding another income stream to protect you from a sudden loss of income. Remember to also be mindful of your spending. As an entrepreneur things can change fast and you don’t want to regret spending money on something you could have done without.
Be sure to review and adjust your money management plan regularly to ensure you are staying on track with your spending goals you have in place.
Diversify Your Income Streams
Relying on a single source of income can be risky for an entrepreneur. What happens to your business if that one source suddenly goes away? One way to ensure financial freedom is to branch out and diversify your income streams.
Of course, building more than one income stream can help you reach financial freedom, but it also allows you to explore different opportunities, expand your skill set, and discover something new. By building multiple income streams you can also have more flexibility and control of your career.
As a business owner myself, I understand the time and commitment it takes to create multiple sources of income. That is why passive income opportunities are so great! Passive income is where you create or invest in something that does not need your constant involvement.
Some ideas to get you started:
- Look into affiliate marketing opportunities
- Create a digital product such as an ebook or online course
- Do you have a skill you are particularly good at? Possibly such as writing or graphic design? Add some freelance clients to your business.
- Invest in stocks or real estate
- Sell handmade products
- Do you enjoy photography? Sell stock photos online.
- Start a YouTube channel or a podcast
The idea here is that the options are endless. Choosing something that aligns with your business goals and interests will help you be successful.
Diversifying your income takes time and effort. However, the benefits can outweigh the effort and time it takes in the long run. This is a good way to provide your business with some safety and increase your chance of financial success.
Never Quit Learning
You should never stop learning, especially as an entrepreneur. It’s important to stay ahead so you can be ready for any changes you may face in your business. The world of business and finance is always changing and you will need to stay up to date on what is currently working and what is not.
There are SO many opportunities to continually learn about money management. There are several ways to do this:
- Read books on financial strategies and business opportunities
- Attend seminars or webinars
- Seek advice from financial coaches or advisors
- Join specific programs that are tailored to your goals
- Listen to podcasts or watch YouTube videos
- Join a group of entrepreneurs that have the same goals as you
- Invest in a wealth coach
By staying empowered and educated, you can learn how to set goals that will work for you, stay competitive in your field, and have sassy and sexy money.
Financial freedom doesn’t happen overnight. It might be a dream for many, but it is definitely not impossible. Financial freedom takes work, effort, and time. It means learning how to make your money work for you by following the right strategies to get you there.