SNM010: Controlling Financial Mistakes
Spending all your money up front puts you in the hole. You spend years trying to recoup your losses, rather than make an actual profit. You’re stuck trying to get back to where you started. Tons of courses out there work, but it’s impossible to implement them all at the same time.
Don’t buy all my courses at once. You will never be able to take action and you will get overwhelmed.
Buy one course and use the profits from that course to pay for the next one.
We are trapped by instant gratification. You pay for stuff now with your FUTURE.
Track your business expenses. Even buying my book is a loss until you earn back the cost. You can take a loss but think it was a profit if you don’t pay attention to your expenses.
How do you feel about your online work right now? Is it a business or a hobby? Is it entertainment?
When we spend money from the entertainment budget, we expect no return on our investment.
You want to start with a business bank account and a tax ID. These cost nothing to setup but can save you from a mountain of headache down the line.
Don’t mix your money.
When you mingle your business and entertainment budgets, you mingle your mindsets as well.
Business owners do not act or think like employees. They have a totally different mindset and you need to transition to that mindset.
Start early, because if you aren’t fiscally responsible with small things you won’t be with big things.
The Business Mindset.
Treating your blog as a business changes your focus and creates productivity.
This is not about passion projects, feeling good or impressing your friends; those goals don’t pay for you kid’s braces.
You should make more money than you spend on any product project our course
This website, blog, and podcast are not hobbies. Hobbies are easy to quit because we don’t really take them seriously.
Wealthy people control their spend as much as they control their income.
Enjoy the Journey to the Top.
I work 1-2 hours a day to pay bills, the rest of the day is focused on growth.
Wealth is a process, not an event.
This is the start of a long relationship between us.
I am invested in your long term success. I make more money if you succeed.
We are tied together with the same goal.
- Treat this like a business from day one
- Separating your money also separates your mindset
- Businesses succeed, but hobbies fail
Send in your questions to podcast [at] servenomaster [dot] com
Freshbooks: When you are starting a small business, tracking your money is the most important step Fresh books is there to help you from day one so that your business never falters.
Poor financial management during the infancy of your business can eventually destroy you it's very important to be fiscally strict fiscally responsible fiscal discipline at the start of your business during this phase right now if you read my books from the master of the resume blog was in some of the podcasts you know that I'm a believer of spending of the profits I'm not a big believer of investing huge amounts of money at the beginning of the business I like to develop a proven business model and once it's working then invest more money in this is me being physically disciplined right now when you're at the early phases try to learn how to build your first visit learning how to develop secondary tertiary revenue streams one of the things that you'll do is run in the course is nice a course of a website that's true what I don't want you to do is go and buy all my courses okay I teach different methods for making money on different skill sets one of my courses is about how to become a nonfiction writer and teach my research method my methodology my structuring also how I find clients how to price out different projects and how to work your way up from a bottom price writer up to talk rice right that's one methodology that I teach and that we follow that path and then get writing gigs you can follow that simple path other courses ago in other directions what happens is if you buy a bunch of courses was much minor budget of people whenever you end up spending a lot of money and you're not fiscally responsible as much as it's great for me to buy my courses once please don't do it by one go through it make your money back and then once you made profits for the first course then invested in the course that's the approach to business that will lead you to being successful long-term we have this instant gratification mindset in our culture this is why it wasn't that you spend money we don't have and we spend money don't have you spent years paying off those credit cards you buy a house you don't have the money for takes you 30 years to actually own it my car takes six years were longer some credit cards people end up taking 10 years to pay off and student loans there people that panther student loans and are made 50s 30 years later you're still paying off your college tuition that's brutal and that's because we have in some gratification mindset I want to enjoy it now and pay later you need to disconnect that mindset from your business if you bought my book on Amazon I know the price is always fluctuating them a price test dispense a $70 you need to write that down the spreadsheet as a business expense and you say hey I need to make that money back to justify that expense now the book I do share with you on a couple different ways to make five dollars and five dollars there very quickly some programs that I use we really need to think about is what is going out financially most people we get so caught up excited by courses would buy too many courses then we buy really spent software top-of-the-line tackle we get the developer's license of everything we end up spending money every month you have $20 go here to their videos going there we don't track it sometimes syllabi course for thousand dollars then they'll make $200 K I'm killing and making money online we are still operating at $800 loss because you're not tracking your money you need to track your ins and outs no I am not naturally good at accounting naturally good tracking money this way doing it is why have a bookkeeper to really help me with my numbers all the time she's much more with all these different little things we talk every couple of days to make sure that I'm tracking what's going on at all those things but when you spend money that's money leaving the business the mindset starts with this is a business if you think of making money as a hobby or you're listening to the podcast as entertainment we spend money out of her annotated budget we never spec to make it back we do have the same philosophy remedy for the business you need to make a money back ins and outs assets and negative assets right we think of money that way but if it's a movie we go to the movie pay seven $20 where the current movie ticket prices we you expect to get the money back seething was entertainment budget and entertainment mindset so you need to separate the entertainment mindset from what you're doing online as long as you try to dabble is on having a bit of fun online you'll never succeed because you won't be serious about it and I have friends it is that thousands and tens of thousands of dollars in software products training that they don't implement because for them it's fun they're having a bit of fun, gambling is the same friends I actually have is my same friends a gamble too much it's the same mindset where they don't take it seriously so as you have the mindset were making mailing to gamble or to risk were to game then you'll struggle want you to start off with the mindset of anything I spend I need to make back on you to track what I spent any to pay attention to what's going out every month to make sure that what's coming in is more if you spend a bunch of money you spent 2000 and $5000 on something and you make it back $500 a month we are making a profit for the first 10 months you're still operating at a loss and these numbers are very important when you want to exit your business or and sell it or whether you're looking for investment these are the numbers that I was looking at starting from the beginning you want to take certain steps to show to yourself and alter your mindset so you act like this is a business you ask is responsible and that means getting a business bank account that means getting a business tax ID number if you're in America both of which are free don't cost anything to set these up and that way when you spend money when you make money you can see it because it's on one account we all start off like a I'm a solo entrepreneur so I just a special security number to ill make my business transactions the mingling not only does it affect your finances and lead to you getting audited or cause problems if you're really successful it also affects your minds and because your entertainment expense comes out of the same account as your business expenses so that all mixed up the sooner you can isolate the different funds and you don't have to have a lot of money in the business account just put $100 and have to spend that you can just look at the account and see it going up or down and knowing his profits and losses the more you begin to develop the sense of financial responsibility the more you act like a business owner business owners act differently than what entrepreneurs your people that wish they were entrepreneurs I watch every TV show where people seek investment or business as I watch all of my watch all the shows we will look for some rich person on the company come in a given device and help them grow your business or inject cash are all losing I always watch how those businesses operate in the businesses that take money seriously are always the ones that do the best the businesses with the messed up books and the owners kind of casual about money going and going out those businesses that struggle the most I'm seeing businesses whether making $2 million in transactions and the making $30,000 in profit 97% of the money disappearing in the don't know where it's going that's what happens even if you're not viscous possible small amounts you'll struggle big amounts and this is something I experience is the lesson I learned the hard way I'm not someone who started off doing think these things right when I finally did sit around business bank account when I finally switched from an escort to a real business to proper LOC and all those things it started really separating my business from my personal stuff it was really a big strong focus on mingled stuff or to his readers for no reason just because I didn't really understand I didn't really assume it is doing is kind of intimidated and I was just busy trying to make enough money for each month when you start to create a business account we start to track expenses and ins and outs with the business mindset will be much more serious and start to make more serious decisions and the way you work will become more efficient if you're just having a bit of fun you work on your blog you might spend five or six hours just messing around some little design elements is having a bit of fun your make it look nice as you're having fun when it's a business you're more thinking about what can I do that would generate the most revenue will be the most efficient decision I can make today I'm in a rented blog post on a blog post that drives traffic or should I spend some time working on social media to generate more traffic or should I work on finding things to promote should I work on my mailing list is other different elements become more important because have a quicker return on investment what you're building here is not a passion project it's not something driven by emotion it's not something for you to show your friends and be proud of none of those things matter to me know those things when I'm teaching you the only purpose of the website is to make money the only purpose of my website is to make money now there are other things happen if you visit my website if you go to serve the master you'll see tons of blog posts and videos and tons of free information loads of information but the purpose of all that information is to build fans to connect with people right information where they eventually want to go on and listen to my podcast or buy my book or even by one of my other courses that's what a business is all about if I didn't want to make any money I wouldn't have any courses my books will be free and I would be living in poverty with any business I work with any structure I develop the mindset is always about building something that can make money and that's what I'm teaching you I want to teach you something that makes more money I want you to make more money… Podcast and you spend on anything you buy for me or anywhere else I want you to be profitable I want us to have a long-term amazing relationship that's the correct mindset for successful business that's my mindset and that should be your minds as your spending time here as your listening podcast deciding what you're gonna do always think about every decision as a business expense when I first started making money online I murmured so vividly saw this amazing course came out and it had my attention it was all about using videos for local marketing so I would approach a local car dealership they let make a bunch of commercials for you put on the Internet will drive much traffic you sell more cars the outcome of the idea of the course was I think $3000 and have a kind of money at $500 left my credit card is really struggling and I said hey I can spend $500 but have to make $500 in profit from this course every month for the next six months to make the six payments and that's exactly what I did it was a business expense I work really hard to make sure that every month I could pay off $500 for the next payment came to before the next tab on the credit card I had that business mindset and I was forced there because I was young and had Max a credit card which is the worst place you ever want to be but I went to all that so I know what that struggles like and the way I succeed the way I built a business would have spent money I have to make it back I don't have a choice that mindset will help you when you're sitting down to glacier I watch TV for an hour sure, block for our records of YouTube videos or sugar the movies were making decisions when it's entertain myself or work the business minds of the desire to make money will change everything is now set of choosing between different to different types of fun are two different entertainment you're choosing from so they can give you a future can give you amazing freedom and a little bit of fun I love having fun I love movies and iMac so also I love doing all those things but I want so much from my life and I want the same thing for your life reading the correct mindset unlocking that I'm at work right now we have that mindset we have that approach a lot of these things will become much easier be much easier to dialing your time to achieve focus to be efficient with what you're working on to push yourself is excellent as possible I really see everything I do as part of the business and I do things that sacrifice in order to build a business if this podcast was fun it would be totally different right now I have everything unplugged all the fans are turned off the air conditioning is unplugged or even unplug the water machine I unplugged the television humming everything is turned off all have turned on is the little recorder this microphone is connected to not recording the computer because I want to sow to be perfect I'm determined to create the best audio I possibly can as I've done everything I can I'm sitting here sweating very physically uncomfortable I wouldn't do that if this was just fun if I was just doing a fun podcast doing that because this is something I'm serious about because it's my business as much is a spot as much is actually really do love doing these things I enjoy my work this is me enjoying my work rather need being a fun if you look at podcast you look at people online endeavors most people quit most podcasts the record 50 episodes 30 episodes hundreds of those quitting two or three years very few people podcast for seven or 10 years they just keep going forever and ever eventually people get tired one of the run of ideas we can't think of new topics all these different things they run into these walls and they just quit and a lot of that is because they were just having fun it was a hobby when it's your business we see the people who been consistent put an episode every day or once we grow two weeks or less 1015 years you okay these people it's their business it's their income certain people that are very one of the podcasts that 11 million listeners 25 investors and they do an episode five is week Monday to Friday just like if they had a regular traditional radio show they have the mindset of its their job don't think of a podcast as a hobby is there.this is my job I'm at work right now and I want you to release that mindset look back you probably spend money on stuff online without thinking about it and he never took it seriously as you like tried out if it works great if it does a great that kind of half-and-half Outlook or mindset is the reason you're still kind of struggling to work your way up that's the reason that I start off with very low price courses and work with the more expensive courses I expect someone I took someone to go through my nonfiction writing course make back their investment by writing a few projects make taking 10 article writing jobs make back their investment then make a profit by doing it over and over again go okay I'm feeling good about writing how to get to the next level and on reinvest for my profits because that's how I though my business is how I invest money fiscal conservatism fiscal responsibility will keep you from failing the reason what you need to do is say any money I spend I have to make back before I spend money again people are very wealthy is often as much control your spending is controlling their income every dollar that you spend less this month is exactly same as a dollar you made from extra work so the more you control your outs the last time you accept as been working I know we can't even commit a lot of heavy mindset stuff and this and that it only to think that you don't have to have fun anymore because I don't want this to something but I really enjoy what I love Pakistan was as I love working my blog I blocked out I think 15 new blog post today drawn draft format I came up with a new contest idea that I'm very excited about launching today and I spent a lot of time blocking out in researching how other people run similar contest similar challenges and all that stuff because I enjoy it I could very much lock into less work I could easily work less every day and take Zachary Matt in my current fiscal level and define particular family pillar bills everything we find if I just work one or two hours a day that's really all I need to work to maintain my lifestyle but it's because I desire to grow kind of have these amazing ideas in front of me the book for example I just launched a certain rest of the book that's the first time I've launched a book with my own name fully by myself normally I have a book with a co-author of the publisher under pen name is the first time it's all means all Amazon it's totally sold some really excited to do something new so a lot of it is about passion so money is a part of hundreds of business but also doing things to get excited kind conquering that next mountain there is a lot of joy in the journey and is cumulative joy in front of the happiness in front of you don't have to leave those things behind but you do have to be serious about money because this is a business I really want you to achieve financial success I want you to pay after that I want you to total financial freedom allergen position we can quit your job I would do this with you what you can travel the world you can spend more time with your kids what time with your parents help take care of people when they're sick and your family those are the opportunities that come winter strong financial position and part of that is having fiscal responsibility being business minded now if you make those decisions now then those other things will come for you I don't really have short-term little goals for you Michael fewer long-term Oglesby to achieve those big freedoms is big amazing things with big life-changing moments and that comes for making the right decisions now I see a lot of people spend huge amounts of money on a lot of different courses a lot of different ideas they get shiny objects and from the get excited always different types of ideas I have friends who every month the company with a new business idea to pay this month I'm doing the school thing on Facebook and the next one is all set of 20 different blogs are holding together domestic or I'm doing this snorting every month Avenue idea and ideas never make money is it takes time not every business is can make $1 million the first month wealth is a process it's ensure you were on that journey together I'm here with you to communicate with you to guide you to help you get to the top of the mountain but it is a journey doesn't happen in a moment I want you to be someone who doesn't get caught up buying all these different things and not completing them if you just learn one thing to make it a rule that when you buy a course we buy a piece of software when you invest in something you won't invest in another thing until you make the money back from the purchase if you buy one of my courses don't do anything else until you go to the course to make back your money that's how you know you're making the right decisions and that's how you'll be very fiscally responsible a simple rule don't spend more money into the make back the last investment if you have that simple rule that simple approach to money to be very successful you'll unlock the mountains of wealth and huge amounts of freedom that mindset will help you every time you're sitting there going all I don't really need this but it seems really cool I can tell you right now that when I thought about buying the podcasting course I bought a course on Shabbat several teach me every little thing the podcasting everything from formatting to interest out euros to the type of music to type a call to ask all these different the little pieces all the different ways of driving traffic and connecting everything I waited a really long time though until just a few weeks ago when I go okay now I've got time to really focus on this is much as I knew as much a podcast matter what I waited until right before I was going to live before I invested in this training and this couple piece of software that have a my website that help me publish the podcast as well all those different little pieces that you need to upload a podcast and have posted all those pieces I waited as long as possible as last Monica's ago I only want to buy these things are back she can ample better need to make the money back that's my mindset this will help you we are tempted to buy course that you probably will use for six months or year the thing you'll notice is that you get really excited we see a salesman you are commercial or something is a great product ever but then if you wait a month easily don't miss it at all was caught up in the emotion of the sales process was what great copywriters do that's okay that's their job to make you want to buy I want to teach you as much as you it's great for me if you decide to buy tons of affiliate products on my side by a click every link to every product ever mention sure they'll be wonderfully for me in the short term within your business will fail and we would have a long-term relationship I'd much rather help you build a business that succeeds and us have a relationship for the next 50 years rather than trying to make a few quick sales over the next few weeks that's not what I want because I have a long-term mindset that's to your benefit I'm invested in your success because the longer we work together longer you succeed ball falling my path the more it can help both of us grow please be fiscally responsible please start tracking the ins and outs of your business please the business mindset. Think of this as a hobby and please if you buy course for me or from anywhere else don't buy another course until you complete the first course implement the first course and at least make back the investment you put in the first course