What You’ll Learn From This Episode:
- The mistake of guessing your cash flow
- Getting clarity on your business money and how to invest it
- The importance of automating your money
Related Links and Resources:
Everyone wants to be a millionaire or billionaire, and there are lots of things that millionaires do to become a millionaire and then to grow even more. I wrote 3 simple ones that people can take action on right away. The URL that they can go to www.intentionmoney.com.
Justin Krane, a CERTIFIED FINANCIAL PLANNER™ professional, is the founder of Krane Financial Solutions. Known for his savvy, holistic approach to financial planning, he advises his clients on how to unite their business and personal money with their lives. Justin works with his clients to create purpose driven financial plans – aiming for a “return on life.” He manages his clients’ investment portfolios for their long-term goals such as retirement.
Justin is the author of the book, Money. You Got This. It’s a book about everyday crazy funny life experiences that we all have – with lessons for all of us.
Here are the highlights of this episode:
2:10 Justin’s ideal Client: Business owners that's probably doing north of a million in sales, and is guessing when they're making financial decisions with their money. They don't really have clarity, they know that their businesses are the primary driver of their wealth, but they just can't figure out how to get that clarity and what they should do. And they know there's a need to do something but they're not sure what.
2:44 Problem Justin helps solve: Someone needs to know that they have someone in their corner to help them. So, the problem they have is that they feel it's all on them. The thing that I'm solving is, letting them know that it's not all on them. That I can actually help them get clear on their business money and how to invest it.
3:20 Typical symptoms that clients do before reaching out to Justin: Worried, anxious, stressed, and head in the sand. Today Bill is 'National Get Your Head Out of the Sand' Day.
3:49 What are some of the common mistakes that folks make before finding Justin and his solution: Guessing; guessing on cash flow. Guessing on money coming in, not quite sure when money is coming out. That's one mistake. Another common one is taking huge risk with their personal money and small risk in business. I can't give advice to one person, but I'd rather take bigger risk in business and small risk with personal money to get that compound of interest going.
4:32 Justin’s Valuable Free Action (VFA): I think it's a mindset reframe. I think the way that you're going to get wealthy is in the business success, the profit, the cash that the business generates. It's not if you cut back in a Starbucks cup of coffee or cancel Netflix. It's about making more money and getting it clear on how you're going to do that.
5:11 Justin’s Valuable Free Resource (VFR): Everyone wants to be a millionaire or billionaire, and there are lots of things that millionaires do to become a millionaire and then to grow even more. I wrote 3 simple ones that people can take action on right away. The URL that they can go to is intentionmoney.com.
6:06 How do people really get ahead? A lot of us think "where am I now financially is not really where I thought I would be". The answer in my opinion has to do with 'automation'. You have to automate your money. Now, everyone knows this, it's written everywhere like the 11th commandment, automate your money, there's books written on this. But the question is, "how much should you automate, where should it go, what can you afford to pull out on your business, how much do you need to set aside on your taxes, how much is your mortgage payment.." and can go on and on. The thing is, you need clarity around that. But once you know that number is, you have to automate money leaving your business, and you have to automate investing personally.
Automation, we know we need to do this, it's setting electronic funds transfers or transfers between business and personal. And then you need to set up electronic fund transfers from your personal account to your mortgage, to your RIA or 401K, or to your credit card, or to whatever it is you wanted to do. So, you got to get clear on that. I would look if you're a business owner, I would look at the statement of cash flows. Probably I lost everyone by saying that one word (cashflows). You know your bookkeeper and say "how much cash on average does my business create?" and they'll tell you. That's the kind of stuff that I do, a bookkeeper should be able to help. That's step one.
“I can't give advice to one person, but I'd rather take bigger risk in business and small risk with personal money” – Justin Krane