361 – How Your Business Income Should Impact Your Personal Life with Erinn Bridgman

Lack of a financial mindset is a very common block experienced by small business owners like us. And usually, nobody wants to talk about it - even though it can make or break the business. Well, buckle up because that's the topic of today's show. You may gain some insight into yourself as we dive into the 5 reasons we tend to avoid numbers – our business financials that is. And that leads us to another big topic this is usually left out of financial conversations; how your business numbers transfer over to affect your personal life. Obviously, there’s the income you make from your business for living expenses … but it’s more than that. Taking control and planning out your complete financial strategy, no matter how large or small the numbers are you are working with, can enrich your life more than you can even imagine. As a money management and mindset coach, Erinn empowers female entrepreneurs to design a business that is not just profitable but actually grows their personal wealth. Born with an entrepreneurial spirit, Erinn cut her chops by scaling her photography business to over six figures in under two years, affording her the capital to begin funding the real estate empire she and her husband now run. Ever passionate about supporting women as they uncover their own potential and earning power, Erinn works with female business owners to not just scale their business but to use it as a means for building personal wealth. When she’s not working with clients or finding her next investment property, Erinn can likely be found vacationing around the world and spending quality time with friends, her husband and daughter, Ava. Strengthening Your Financial Mindset Get really clear on the pricing of your products. Your hourly rate isn't just about making the product. It's also the materials and all the work you do to make, market, and sell the product. Do not underprice yourself. Put the right price tag on your time. If it feels weird to make money from something you love doing, remember - isn't that the point? Understand your money journey. Ditch the scarcity mindset. Develop your worth around money. Be confident to raise your rate. Be conscious and strategic in making your business impact your personal life. Understand your numbers. Create projections and analyze your numbers. Have strategic ways to allocate money to increase profitability and revenue. Figure out how to pay yourself a consistent salary. <-- Tune in for more on this important topic! Part of knowing your numbers is knowing your tax numbers. Know exactly how much you need to set aside for taxes. Have a spreadsheet to input your revenue and your expenses. That would make it easy to see how much you have for profit. Revenue minus expenses equal your profit. You need to be the CFO of your personal life, not just your business. Understand your money goals and how your money will be used. Have six different bank accounts for personal and for business. One of those is your tax account. Every month based on the profitability of your company, set aside that money right away into your tax business account. 5 Different Areas To Create Long-Term Goals Pay down debt Create bigger savings Generosity Investment Lifestyle improvement. 5 Reasons We Avoid Numbers "Not a numbers person" ...