A simple way to manage cash in your business and personal life

Are you spending more than you can afford?

Why did my wife have 100k in the bank when I met her and I was in 40k of debt?

This was a trigger nearly 15 years ago for my to master my own finances.

I was spending money based on my income and buying things on credit.

She was spending money based on her savings and didn’t have a credit card.

She had developed a simple way to manage cash.

What’s the system I hear you ask?!

Have multiple bank accounts.

One primary account you keep 3-6 months worth of overheads in.

One tax account you keep your estimated taxes to date in.

One growth account which is used to house any surplus.

Use Xero to calculate (or your accountant) your built up taxes.

Work with your accountant to decide the level of overheads you need to retain in account no.1

Only spend money when you have cash in account 3.

It's shocking how simple this is, but 95% of businesses do not operate this way.

Yes it's overly simplified for a business that has grown to a significant size (say more than 10m in sales) but these emails are for business owners with businesses from startup to that level.

The last point is a mindset.


Side note - I do wonder how many of the parents on the school run actually own their supercars and Bentleys versus how many put them on long finance deals and struggle to make payment each month for appearances sake.

Whether it's a personal or a business spend, make sure you can afford it, you've budgeted for it, you know the ROI (return on investment) before you pull the trigger.


If you would benefit from a financial review call 121 with me on zoom to setup your own cash management system there is a link below for you to book a call.

These calls are only for business owners. They are 30 mins and I will not try to sell you anything.

That's a promise.

What are you waiting for?


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