And she was like, okay, but my payroll isn't consistent. And she was talking about how sometimes we will pay and sometimes they don't. And she went on for five minutes, how she was so stressed out about not being sure about her business expenses. And my one line to her was, we're just gonna get you a month ahead. And she was like, what? Oh, like she had no idea how to respond to that. Because the second it came out of her mouth, I waited for five minutes until she got it all out. And then that was my response because that's what we do. We get you a month ahead. We get everything prepared, everything going. Your budget is not a spreadsheet. It's not what you're sending to the IRS. It's not for taxes. It's not bookkeeping. It isn't budget that is so different. And I think that people miss that. They miss that your business budget is not the same as what your bookkeeper and your CPA are using. And so when you can divide the two and separate the two and you can see that we're putting money in your supplies account to buy all the supplies you need. It's a revolving door. Money is going in, money is going out. You will always have the cash for that. I think that there's a sense of release and pressure from that. Today we're bringing you real life stories and lessons from our private coaching sessions. If our clients are dealing with it, chances are you are too. So we're breaking it down to help you avoid the same mistakes, feel less alone and walk away with some quick wins for your budget. Do you make good money but have nothing to show for it? Are you tired of living paycheck to paycheck? Do you have big dreams for your financial future? Do you want to get debt free but you don't want to live on beans and rice? Do you don't want to give up those pumpkin spice lattes? Hey, it's okay if you don't already know how to budget or if you're using credit cards to get through the money. Hey, it's okay if you want to seem like you have your finances all together or you're not on the same page with your spouse when it comes to finances. We know what you're doing probably isn't working. But guess what? You're in the right place. We're Shayna and Vanessa. We're best friends, business partners and master financial coaches trained by Dave Ramsey. We've been in business since 2019 helping hundreds of amazing people like you create budgets, get out of debt, stop living paycheck to paycheck and know exactly what to do with their money. In this podcast, we'll share with you everything we know plus everything we're working on with our clients so that you have the best chance at reaching your financial goals. We want to help you take the guesswork out of your budget, improve your marriages and even bring your kids in on the compensation. We can help you no matter where you're at whether you're the single mom who's never had $500 in their savings account or the millionaire who's paid off four real estate workers. And we're not going to shy away from the tough love. We'll tell you what you need to hear and encourage you at the same time. This is the Financial Coaching for Women podcast. All right, how many of you guys have ever been for spec writing? I have. Isn't that so fun? That costs a lot of money for the business owner, right? So it's an equestrian business and there's a lot that goes into it and I have a lovely client that I've been working with her for a while and she has some costs guys like those vet bills, bank, cheap forces just letting you know in case you were ever wondering. We've been trying to set up her savings buckets. So one of the things that we for a while now have been trying to figure out how much does her business cost her? Not necessarily on a monthly basis, right? Cause that's easy. You can do your monthly bills, your electricity, your water bill, your insurance, all that stuff. But what are all the things that happen throughout the year that aren't necessarily monthly? Maybe like she has fly medicine for the horses. She has her vet bills. She has supplements for them. There's a lot that goes into owning an equestrian business. And so she thought that, hey, if I just get my savings buckets up to the number that I need, then I don't have to fill them again. Oh. Until next year. That's so sad. So she's like, if I just start in January and I fill them, then I won't have to do, I'm done. And I said to her, what about that property tax bill that's coming due in January? If you stop funding these and you use all the money from January to December and you decide to not fund them again, how is that bill gonna get paid? And I said, the purpose of the savings buckets is that they're a revolving door. You're always putting money in and money is always coming out. So once you know the true cost of your business for the year, that number that you're putting into that account doesn't change. It doesn't matter if it's December, it doesn't matter if it's January, it doesn't matter if it's March. And so once we figured that out, once she understood like the full concept and the purpose of the savings buckets, it all changed for her. And she also had an assistant who was coming and trying to help her do the books and the girl didn't understand. Cause she's like, we all the savings buck, the money's going into savings, that's just profit. And I was like, girl, no, those are all, that's money going into- So expenses. Yes, it's money going into account to save for upcoming expenses. And just, I want you guys to remember as you're making your budget, whether you're a personal or your business, the savings buckets are a revolving door. Okay, that's always money is always going in as you're continuously paying for something. Now, let's say you have an expense for something that's just this year. That's fine. So that expense, that one small expense will come out after it's paid for, but you're probably gonna end up putting something else back in there, right? Yeah, it can. So what would potentially happen is that you have to be putting more in to catch up to right now. So you're starting and the bills doing three months. And once the bills do and you pay it in three months, then you'll have a number that will be nice and even that you'll keep doing for the entire year. And this is really nice because it helps you get ready for the future. But also one hidden benefit of some of these is it really does make your bills account less crazy. Because like I was bragging on Vanessa to one of my clients who has a business how we have no bills. We have no bills in our monthly budget. We have about five? Yeah, maybe. Maybe I think we just silly to one today because she's moved them all over to annual bills, which is fantastic because we save money, but it also saves clutter, right? Instead of paying those bills every single month, we're paying them annually. So it's like just a little bonus win. But the idea here is to actually, and the same thing goes for your personal budget, but obviously with a very expensive business, it's really nice to know you have these things saved ahead of time that you're covered, that you're not wasting profit on stuff that you don't need or that is less of a priority than actually paying your horse that bill or whatever you are saving for. And it really does set your business up. And I think the first thing that you said Vanessa when you open it is like, what does your business cost? What does your business cost is going to take the wrecking balls and the rat race out of your head and put it on paper and then be honest and let's really look at the numbers and how do I get there versus just trying to play like month to month, week to week, hoping that it's all gonna work out. That's not, that does not make you feel good and nobody wants to do that. No, and also your accountant will love you, your bookkeeper will love you. If you can move as many of your bills as possible to annual because you get one bill a year. One receipt, you have to reconcile. I've learned that. Instead of 12 for however many subscriptions that you have. Oh, so now you want me to, I see what you want me to do. But I will say that a lot of our monthly bills that we have on our business is because they don't offer annual subscriptions. I just throwing shade. No, I'm being serious. You're throwing shade at these people that don't offer it. Oh, yes I am. That's what I'm doing. Let's pull up our budget and call them out. Probably call them to the town square. Yes, so if you are somebody that offers subscriptions, please allow the option for annual. It just helps us business owners. It's so much easier. Plus a lot of times you, like Shayna said, we do get a discount. So if you can just save up enough money to get that annual subscription for something, you can save big plus, again less clutter. It's time to enter your coaching era because making good money should feel like making good money. Yeah, imagine six months of private coaching where we'll tell you exactly what to do. No guesswork, no confusion, and absolutely no judgment. It's a done for you system that actually works. You don't know what to don't know, and that's not your fault. And that's why we're here. Financial coaching with us looks like two coaching sessions a month, personalized recaps, and after hour support you can text an email. So you're never stuck wondering what to do next. Together we're gonna build your budget, set up your system, and tackle any challenges that come up along the way, which by the way they always do. If what you're doing isn't working and you're tired of trying to figure it out on your own, sign up for financial coaching at budgetbesties.com forward slash coaching before all of our spots fill up, and we will help you go further faster. Six months from now, you'll wish you started today. We're talking about expensive businesses. I have, I wanna go, we should take a field trip and go to my client's business. It's, I can't say, I don't wanna say the name, but anyway, she runs a restaurant at Tavern. It's super cute and it's named, it's got her name in the title and everything, so I just love it, or in the name of the business. But it's expensive, you guys. Like, actually her payroll is really cheap and her bills are cheap, her supplies. The constant going with food, ice, beverages, all of that kind of stuff is very expensive. Obviously the more she makes, the more- More she has to buy. But also the more people come in, the more she'll make, but also the more she has to supply. Either way, it's not only expensive, it's very cluttered. And it was keeping her awake at night, as you can imagine, with vendors that do, at least 20 vendors that bill weekly. Oh, and that's just the ones that bill weekly. Then you have the other, every other weeks, and then you have, it's just, and those are vendors, so that supplies, and she still has her bills. And she has a lot of bills for, to run a regular business between insurance and all the other stuff that she can't necessarily take away. Right, like we did take away like one of her, she eliminated a couple to save on, save some money. Anyway, long story short, finally, we have gotten to where we have the separate accounts. And she was, she went from having to deposit, cause they're a cash-based business for the most part. Most of their, most of everything goes in cash. She went from having deposit like three times a week to go, to be able to afford tomorrow's vendor bill, or tomorrow's payroll, or whatever it was. To now Monday, she goes in, they're closed on Monday, she puts everything in for the weekend, and then on Friday, she'll go and make another deposit, which with this much turnaround in a restaurant, I don't think that you necessarily can get away from that. But she might, she might, and she has been scrambling. So anyway, we have, just like in your personal business, we have set up a spending supplies, is what she calls it, over there. And that's for all of her vendors. And our goal is just to keep enough money in there that it just always can pay the vendors. Whatever is happening with the vendors, we're gonna, it's literally 50% or more, I can't remember, of all of her revenue. So that's always going. Every time she makes a deposit, 50% is going over there, she's got a certain amount for payroll, and then her bills account can just pay bills. And who knew your bills account was gonna be the least, or yeah, literally the least, cloddery of your accounts, because she has payroll, which has got probably almost as many transactions going on between all the servers and people that she pays, and the taxes that she gets to pay and all that. So anyway, long story short, she was able, she finally ripped the bandaid. I told her, I told her, because my daughter was in jail, I said, I'm gonna take this dirty bandaid off of my daughter's knee, and mail it to you. If you don't rip the bandaid and do this, because the cycle she was in, the losing sleep, the having to figure out who am I paying next tomorrow, I said, you've got to do it, it's gonna make your life better. She finally did. It did help, she got a wedding deposit, which allowed her to get ahead. So now she can actually get on this cycle of depositing, dispersing money according to how much money it needs to go into the payroll, the bills, and the supplies. And now she's ahead, and she just has to maintain that, and she didn't have to go to the bank every single day, and it's just amazing. I think that is, in a business like that, when you're constantly having to go to the bank and make deposits, or feel like you have to, because you're so quote unquote behind, and you don't know what's happening next, or if you have the cash to pay for it, I think opening up those separate accounts, even though we do get a lot of pushback from it at the beginning, because people are, it's scary, it's the unknown, it's unsafe, it's something that they're not used to, it's outside of their safe zone. So they don't know how to handle it. But once they open up these separate accounts, especially in business, it is amazing to see how organized their finances. So that way they can know where everything is coming. You said she has a payroll account, right? So a payroll, her business, her spending, like all of that is super organized, and it allows you again to not be frantic about this person's loss and cash for her check, it's been two weeks, what am I supposed to do? How do I make sure the money's in there? I have to document that. All of that is no longer in your brain, you don't have to worry about it, it's all taken care of. There's a side bonus here too, which is she's currently, we don't even have enough spaces in our budget for the amount of bills that she has from supplies for vendors. But I told her we don't need to track that. Just like in your personal, we don't want you to track every time you go to a restaurant. You don't need to do that. If you need to see it, it's in your account, you can see every transaction, you're welcome. The same needs to be able to happen for her business. She can go back and reflect on what she paid everybody, but I said, you're not an accountant, you're not supposed to have to do this. I said, do you pay an accountant? Congratulations, that's their job, not your job. And so if we can just keep enough money into these, hi, Odie, I'm so glad that you needed to come in here with your thingy. Ah, yeah, cheers, okay. Anyway, you can keep enough money. Yeah, so if you can just keep enough money in that account, everything will get paid, you will have it documented, your accountant can go back and print out everything if you need it, but you don't, and you can monitor it, you can say, hey, hey, girl, she guy, why did you charge me? It's in your account, you don't need to track every transaction in a budget. Like we're trying, you're a CEO. We're trying to take you out of this like little, grindy thing that you don't need to be doing. But I think that is when we tell people, I had a lady yesterday on a free call, that's gonna join us for coaching, and she was like, okay, but my payroll isn't consistent. And she was talking about how well sometimes we will pay, and sometimes they don't. And she went on for five minutes, how she was so stressed out about not being sure about her business expenses, and my one line to her was, we're just gonna get you a month ahead. And she was like, what? Oh, like she had no idea how to respond to that. The second it came out of her mouth, I waited for five minutes until she got it all out. And then that was my response, because that's what we do. We get you a month ahead, we get everything prepared, everything going, your budget is not, it's not a spreadsheet, it's not what you're sending to the IRS, it's not for taxes, it's not bookkeeping, it is a budget that is so different. And I think that people miss that. They miss that your business budget is not the same as what your bookkeeper and your CPA are using. And so when you can divide the two and separate the two and you can see that we're putting money in your supplies account to buy all the supplies you need, it's a revolving door, money is going in, money is going out. You will always have the cash for that. I think that there's a sense of release and pressure from that. Yeah, and since we're just giving all the business lessons, I'll just end this lesson with that, that is also on top of that, use cash injections wisely. So they got this deposit and it's fantastic for her deposit is basically the profit, right? When they go to deliver, obviously they're gonna have cost incurred, but that is going to be the rest of it. Like she's gotta figure it out with a profit. That's all profit that she gets. When you get a big payday or when you get a big client or whenever, let's do it on purpose. Don't, a lot of times we're like, woohoo, party! Let me go get this new coaching program or let me go do whatever. I don't even know what you do, but don't do that. Or you take it personally. Or oh, I get time for a man of bonus. I have a client that takes paychecks. I said, you can't afford to take paychecks. You've got to pay your vendors and your bills and whoever. So the point being, use this wisely. And then likewise, maybe the summer or the spring for your client that has equestrian, for mine that has the restaurant, maybe there's a season where you get a lot more money or you get a lot more revenue, you get a lot more business. It's whatever. Let's set that aside and be very diligent and smart about using it for maybe off seasons or other things instead of just, I made more so I'll spend more. That's usually, whether it's business or personal, that's where our brain goes naturally, but instead you're gonna be super smart and not do that. And the other half too, really quick I'll say, if you have debt in your business, if you can pay off that debt in those high months, so that way when the low months come, your business- Less expensive. You'll have less expenses. And so that way your business can naturally function off of less income now because you no longer have those debt payments. So just think about that. It's something that I've been working with my client. She's got one debt left to pay off in her equestrian business. We're very excited about it. It's definitely gonna help her in those off months like December, January, when she doesn't have as many writers. If you're tired of feeling like your finances are all over the place and you're ready for a simple, set it and forget it, way to budget, we have something special for you. Watch our Automate Your Budget Masterclass at budgetvestings.com forward slash automate. We'll show you step by step how to finally organize your money, how to set up your accounts and put your budget on autopilot. So your bills, saving and spending around my clockwork. Imagine less stress, more savings and the freedom to spend money without having to track every dollar or babysit your bank account. Go to budgetvestings.com forward slash automate to start today.
