February has been Money Month and this week I’m discussing those areas of business where money might be simply disappearing from your bank account as if it’s just gone up in a puff of smoke!
When was the last time you did an audit of your bank account?
I know some women who never look at their bank accounts – like NEVER!! Sound familiar?
I look at my business account every single day. Maybe that’s because I originally came from a banking background where I knew to the absolute penny what my account had in it (or didn’t have in it) and I also knew that I wasn’t allowed to go overdrawn…. Like, seriously not allowed!
And when you’ve got up the courage to log in and have a proper look at your account, when was the last time you really looked at all those Direct Debits, Standing Orders and Recurring Payments (yep, these are the tricky ones that don’t always show up until they’ve been taken) and knew exactly what was coming out and what you were really getting for that dosh?
We’ve all been guilty of signing up to membership clubs, one off programmes, private groups, regular workshops, networking etc, that costs £15/£20/£30 (whatever the price is, you’ve justified it at the time) and then not always maximising that investment.
How much do all these add up to for you? £50, £100, £150 a month?
I’ve saved nearly a £150 recently by cancelling 3 regular payments that I really wasn’t getting any value from and had told myself for months that
- a) I would cancel and
- b) I would really start to use it the following month (& never did)
What else could you be spending that money on to get a better ROI (return on investment)?
Or would it be better to not have that expenditure in the first place and feel a bit easier about your bottom line?
FOMO drives us to sign up for things – it’s a proven bloody fact!
We sign up for sh*t that we don’t need or really want but think it’s going to transform our business into something amazing. Usually with the promise of an image of shiny happy people sipping coffee and laughing lots – the reality being, you still have to do the work to make it happen and business is sometimes tough and we all have to work at it.
What value do you get from these things you’ve signed up to and are paying for?
Be honest with yourself.
Be true to yourself.
Put your hand on your heart.
And then justify that expenditure as if you were sitting in a Board Meeting and explaining your budget to the CEO (that’s you by the way!).
If you had to go and ask for the money before you spent it, would it be a different conversation?
Think about writing out a proposal to explain what the money was for and how it was going to benefit the business in a tangible way – yes you have to be able to measure it!
Would that stop you reaching for your debit card quite so quickly?
I really want you to think about the money that you are giving to other people right now and the value that you are getting from it.
I’m going to say that again…. I really want you to think about the money that you are giving to other people right now and the value that you are getting from it.
There are some amazing people out there who deliver great value. They support and serve. They want the very best for their clients and those who choose to invest in them. And then there are things that we pay out for month after month that bring us no value at all in our businesses or life.
So yes, I started in banking and maybe that was a good habit. As my career progressed and I was responsible for staff and expenditure budgets I always remember a really amazing lady telling me that she treated her budget as if it was her own housekeeping money – and do you know what, that has stuck with me to this day.
Even when it wasn’t my money, it was accounted for, justified, and value was shown.
Those habits have stayed with me for over 20 years and I would really encourage you to know your income and expenditure inside out.
So, here’s some quick advice from me:
- Build a habit of knowledge. You know that knowledge is power
- Review your bank account every month at the very least and know what is leaving it on a regular basis
- Ask yourself if you’re getting value from it – proper real value that is business or personal development related
- Shiny object syndrome – are you a bit of a magpie? Be honest about where your weakness is and then put steps in place to cool off before making snap decisions.
- Does it really serve you? Can you use that money in better ways? Is it a luxury you can’t afford right now?
- Don’t be afraid to cancel stuff – it’s worth the time and effort. And remember, it’s your decision, you can do what you want. Don’t be so British about it all!
I’d love to hear your stories
I’d love to know what’s going on for you with your review
And I’d love to know if you’ve saved money by doing your ££ audit
Why don’t you come on over and join us in Build Your Brilliant Business with Anna. I’m regularly live in the group talking about all aspects of business from strategy and money to marketing and mindset. And we have a regular monthly business review and planning session too.
And if you want to get a really quick handle on the Money Stuff, why not download the super helpful and easy to use workbook I created “Stepping into your CEO Shoes” which not only covers your Compelling Vision, Dream Clients, Goal Setting for Success and the Power of Reviewing but also the Super Important and Business Critical “Money Stuff”. You can Grab it here.
Keep having an awesome day and remember you are the CEO of your business, it’s your path and you’re following it!