Take your money out for coffee
Coffee is one of those things that kinda fits almost every situation. You meet someone new, a serious talk, a date, some work left to complete, study for a big test, or just because. It seems like everyone in the local coffee shop or Starbucks is there for one of these reasons. So why not add your money to the list?
Think about it, when was the last time you checked in with your money?
You and your money… It’s a roller coaster for some and a solid relationship for others.
You use it almost daily, you look forward to or celebrate the days you get more of it, and you reach out to experts to help you handle it on a more productive level.
But just like any other relationship in your life, you need to truly invest YOUR time, YOUR thoughts, and YOUR actions into it.
So what’s all the fuss about these so-called money meet-ups?
Time for a story.
When my husband joined the military and we moved away from home for the first time, we made Morning Star (the absolute best café in Michigan) our second home.
It’s one of those places where you’re willing to wait 45min to get in, even in the winter, multiple times a week. Cause, why not, right? There weren’t that many options to begin with and their cinnamon rolls and coffee convinced us every time we tried to talk ourselves out of it.
Well, one day I decided to see how much we were spending there. To my surprise, we were spending about $300 every month just in that restaurant!
Considering that we were living on one income, that was outrageous! If we wanted to have some savings or buy anything else other than carbs and coffee, we needed to rearrange our spending. This meant I needed to start with tracking my expenses on a whole new level.
I started simple and slow, but with time, I’ve gotten much better and I literally look forward to “meeting” with my money regularly to clearly see what I have been doing with it during the week.
Currently, I meet up with my business finances and my personal finances every Sunday. Yup, I have to schedule it, otherwise I would procrastinate it and things would pile up. I don’t like that! Not only the work for me to do grows, but I’m also left wondering about my bills and invoices. For an overthinker and an anxious mind, this means mental chaos and underlying stress that typically comes out as “grumpy mom”.
Here’s the thing, if you have never done this before, or if you don’t know where to start, this meet-up kind of deal sounds like torture and the very thing to contribute to the “grumpy mom” status.
So how can you make it better?
I break it down to two simple areas
Think about incentives for YOU!
In my case, I always grab a nice hot cup of coffee when my toddler is napping and my 5y/o is having “quiet time” so I can minimize distractions. I also bring along a dessert. My coffee and my sweets are my incentives. And to be honest, I totally love the feeling of being in charge and in the know so I add that to the mix.
Work your way back
Think about your end goal. In practical terms, what numbers do you want to look at during these meet-ups? It’s important to have clear and up-to-date numbers so you can ask your money the questions you need answers to.
Or, if your process is not too extensive or complicated, you can take this time to this work first, and then get to the “talking” part. Plan for a longer time if you’re doing both.
This is another reason why I enjoy my work as a bookkeeper. My work makes this moment a lot less stressful and more clear. By the time that you sit on your own or with me, all the work of getting those numbers organized will be done.
KEY QUESTIONS TO BRING UP DURING YOUR MEET-UP
Our liquid cash is truly a great indicator of the health of our finances, and on how we treat it.
Asking these questions can help you analyze and determine the “health” and sustainability of your cash.
How much money came in?
How does it compare to my financial goal for this period?
Am I happy with the results?
What changes should I apply?
How much money did I spend?
Am I happy with that amount?
Do I like the way I’m spending and the things I’m buying?
Are there any outstanding bills?
Do I owe any money?
How much should I save for taxes for this month?
How much am I going to set aside for savings? Is there anything specific I want to start saving for?
How much did I pay myself? Can I increase that amount for next month?
Just like you have done before, new things might feel overwhelming or confusing in the beginning, but you can totally do this!
Knowing your numbers truly puts you in control of it, and will help you plan ahead for your business. Talk about CEO status!
Add more questions and bring them along next time you sit down with your money and a treat.
Want some help?
Book your free call with me below or email me at Andrea@LiquidCentsBookkeeping.com
Sometimes a little push or some accountability is what we need.
This is for informational and educational purposes only. Please seek individual legal and tax advice.