“I’ve got 50 grand sitting there for a rainy day, and it’s a rainy day.”
From a cash flow management perspective, a lot of our clients say that they’re not number’s people and don’t do well with all the dollars. What’s human nature is our tendency to spend everything that’s in the account. Then you get these quarterly or annual tax bills that can often catch you off guard if you haven’t got systems set up in place.
One of the things we advocate for is setting up a system where you’ve got multiple different bank accounts with a direct debit setup. That way you’ve got a certain amount going out each week or month into these savings accounts for the purpose of tax or a rainy day fund.
We’ve got clients, who at the start of COVID-19, they rang us so grateful saying, “Hey, thank you for a year ago telling me to set up that bank account. I’ve got 50 grand sitting there for a rainy day, and it’s a rainy day.” That’s the difference between a happy client who is able to survive this easily versus someone who hasn’t got that cash buffer and almost in damage control trying to work out how to get through the next few months.
Some practical things to do is to pay yourself first, don’t pay yourself last, that sends the wrong signal to yourself. You’ve got your own family to provide for, but you’ve also got the families of the team members and you can’t do that without putting the oxygen on yourself first. You need to make sure you’re looked after.
Start with $100 a week going into an account or $1000 if you can afford it. Just start that behaviour and then dial that up slowly and slowly. You won’t notice that over time when you increase the cash flow going into those savings accounts.
Check out the full length of my episode on the Reimagining Healthcare podcast with Yianni Serpanos
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