118. "I don't know where all my money went"
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Podcast Episode Synopsis: Where Did All My Money Go?
In this episode, I address one of the most common concerns that I hear from higher earners - "Where did all my money go?" Many individuals who make a significant income find themselves wondering why they don't have much to show for it.
I begin by acknowledging the frustration and confusion that comes with this question. It's especially disheartening for those who earn 6 figures or more each month. The realization that despite earning a substantial income, they still struggle to save or see the benefits can be unsettling.
To help my listeners tackle this issue, I outline three key steps they can take.
Firstly, I encourage them to answer the question, "Where did all my money go?" This may seem obvious, but many people avoid facing this question due to shame or guilt. By examining their bank and credit card statements, they can gain a clear understanding of their spending habits and take ownership of their decisions.
Secondly, I emphasize that as businesses grow, expenses naturally increase. It's important to recognize that scaling a business requires additional investments. However, it's crucial to ensure that personal compensation, or owner's pay, also scales accordingly. By aligning personal income with business growth, entrepreneurs can avoid feeling resentful and ensure they are fairly compensated for their efforts.
Lastly, I urge my listeners to shift their focus from month-to-month profitability to a broader perspective. While it's common to have negative cash months or periods of low profitability, it's essential to evaluate the overall year's performance. By looking at the bigger picture, entrepreneurs can identify trends and make informed decisions to improve profitability.
Throughout the episode, I emphasize that profitability is a solvable problem. As entrepreneurs, we have the power to organize and operate our businesses effectively. By examining our spending habits, making purposeful financial decisions, and focusing on long-term profitability, we can take control of our financial success.
To further explore these concepts, I invite my listeners to join my upcoming masterclass, "Save 10K in 30 Days," where I will delve deeper into strategies for saving and financial management. Additionally, I offer enrollment in my 12-month group program, Six Figure Saver, which provides ongoing support and guidance for achieving financial goals.
By addressing the question, "Where did all my money go?" head-on and implementing these three steps, entrepreneurs can gain clarity, improve profitability, and ultimately achieve financial success in their businesses.
