Latest / The SmallBizChat with Melinda Emerson / Mastering Money Mindset with Vanessa A. Lindley

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Mastering Money Mindset with Vanessa A. Lindley · The SmallBizChat with Melinda Emerson

• 0:00
  3, 10, 1, 0, ignition, liftoff,
• 0:08
  Ending small business failure.
• 0:11
  Welcome to the Small Biz Chat podcast with a number 1 small business expert Melinda Emerson.
• 0:17
  Bolinda's goal is to end small business failure, and she'll give you the information
• 0:21
  you need to succeed and live the life you've dream of.
• 0:25
  Now here's the small biz lady herself.
• 0:29
  Melinda Emerson.
• 0:31
  Hi, everybody.
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  I'm Melinda Emerson.
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  The small lady, and welcome to Smallbizchat here on Smallbizchat Live.
• 0:38
  It is our goal to help you succeed as your own boss and we never failed to disappoint.
• 0:43
  So listen.
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  I am really excited to introduce my guest, miss Vanessa Lindley, who is a good friend of mine,
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  and she is the CEO of Lendly Consulting Group LLC, a professional and personal development
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  consultancy Vanessa is a transformative thought leader and financial coach.
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  All their consultant and trainer with 25 plus years experience But now so you don't look old
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  enough to have nobody's 25 years experience.
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  Anyway, her yay.
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  Love is a chief financial victory 7 ways to wing with your money is available now, and I'm
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  so excited, Vanessa, I have you here with me.
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  I am excited to be here, Melinda.
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  I'm so excited.
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  Thank you for having me.
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  Oh, I had to have you because, listen, Money is serious business.
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  Right?
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  I believe it's not about what you make.
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  It's about what you keep.
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  So I wanna talk about the connection that people have.
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  I think people have a money mindset.
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  Right?
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  And so that, oh, that manifests itself.
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  In their personal finances and their business finances.
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  So can you help us, like, kinda understand the connection that that sort of like that money
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  mindset and how that manifests itself everywhere where you have to deal with your
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  money.
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  Right?
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  Absolutely.
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  I mean, I find that working with people, when they have challenges in their personal
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  finances, sometimes it matches the challenges they have in their business finances.
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  And most of it, because people don't pay attention to their money.
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  I mean, most people, they they don't like math.
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  That's one part.
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  It just get into it.
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  But then my set of around money, keeping it, saving it, holding on to it, I see that people
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  they don't like set a budget at home.
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  It's something they don't like to set a budget with their business.
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  They're just, you know, trying to make money, trying to make money.
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  You know, they're trying to make money make money, but not looking at the numbers.
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  And, I mean, when I worked with a person at personal finance, I I share a story.
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  I was working with someone who could not understand where their money was going.
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  Like, I mean, I sat down.
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  I said, let's think about every bill you have, every dollar that's coming in.
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  And she could not account for a $1000 a month.
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  This is in her personal finances.
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  Same thing working with the business client.
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  They did the same thing in their money, and their business finances and start to look
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  through how much they were spending on, you know, products and services.
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  It was a restaurant owner.
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  And just by looking at the numbers, was able to cut back a expenses and save a $1000 on a
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  business finance.
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  People are not taking the time to do the math and pay attention.
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  So I see that the mindset around you know, being afraid to engage with money, you know,
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  being too busy, and it does transfer from your personal to your business finances.
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  Absolutely.
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  Well, one of the things that I see very commonly with small business folks is they
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  don't even call their accountant until his tax not.
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  They're not even so they're not even engaging with their business finances on a monthly
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  basis.
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  So when they get their taxes done, it's a surprise.
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  Whether or not they made money for a lot of money.
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  And I see that a lot.
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  And I just don't I I don't know I don't know why we do that.
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  Know why.
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  I mean, because your your accountant can really be a business adviser to your business.
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  Wouldn't you say?
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  And people, they they pay their account in a lot of DPA.
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  It's another bill that they have, but never really engaged with them that way.
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  And sometimes it's, again, the avoidance.
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  It's not really wanting to deal with it.
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  And it's just like, like I said, it's in your personal finances.
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  People don't wanna deal with it.
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  They wait until a crisis happens or a bill is due.
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  They're like, oh, where's my money?
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  And, you know, people do.
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  They rob it, Peter, the paper, and their personal finances and business owners sometimes
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  are doing the same thing.
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  And I don't know why they don't do it, but it's the same people in their personal finance, they
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  need people like me, financial coach, people in their business finances, they have people on
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  their team that they can use, and they don't use them because They're afraid a lot of times.
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  They either don't wanna spend the time or they're afraid of what they're going to see.
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  You know, America's in debt, and a lot of it is being unconscious about what they're spending
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  their money on, same thing happens in your business.
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  Again, people are focusing on revenue generation, looking how many sales they could
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  get, but they're not looking at how much they're spending for goods and services.
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  They're not looking at, you know, how much they actually pay in their employees and what tax
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  benefits they could get or could not get.
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  They're not looking at rents going up.
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  They're not doing the math.
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  They're just trying to get through the day and get through the month.
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  And it happened in their personal finances as well as their business finances, and I'm sure
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  you see it.
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  Oh, I definitely see it.
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  And I and but I also think what's it starts with the fact that a lot of people are confused
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  about what is wealth, and how do you build it?
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  So that's, I mean, I write about that in my book because people, they don't really know
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  what wealth is.
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  Wealth is really accumulation of assets, and it's not income.
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  I mean, again, I know you work with business owners.
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  They they have good annual revenues.
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  So they could be 7 figure businesses but they're not necessarily in the black.
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  They don't necessarily have assets.
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  Same thing with people who are employees.
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  They have a good income on paper.
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  But they're not accumulating assets, which is what will generate wealth.
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  You wanna be in the black.
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  And the accounting principle is you have to own more than you owe to be in the black.
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  And so in order to do that, you gotta have a low debt load, and you have to be generating
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  revenues and or assets, if you're a business owner or a homeowner or a real estate owner.
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  And so wealth is that asset.
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  It could be cash, stock, bonds, different types of investments, real estate, business
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  ownership, property ownership, and we want I want, and I write in my book people to be able
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  to build wealth in multiple ways.
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  And, again, it could be if you are running a business by the building, that you own that
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  you're doing your business out of.
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  That becomes an asset.
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  That's how you start to build wealth.
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  If you're an employee, you can still buy real estate if at your your thing, or you can invest
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  in stocks and bonds and business owners as well.
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  You know, I do work with business owners on their personal finance because when you start
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  making money, We hope that everybody gets there that they actually have that gap between what
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  they what they're bringing in and what they can actually keep.
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  So I have to put that into other investment streams.
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  Like stocks and bonds and real estates, etcetera.
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  But wealth, again, it's accumulation of assets, and that can be in multiple forms but it is not
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  just the revenue.
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  It is what you actually keep and invest and grows.
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  Alright.
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  So let's talk about budgeting.
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  You know, it's the fall.
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  This is the time of year when I tell people, look.
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  Hey.
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  2020 is coming quickly.
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  It's time for you to be putting together your budget for next year.
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  It's already like fourth quarter.
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  So how do you explain to people and how often do you think business owners in particular
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  should be looking at the budgeting process.
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  Like, how often should you be going to that?
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  Well, act I mean, you know, the business owners, they should be doing their their
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  revenue projection for, you know, at 5 years out.
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  And that includes, you know, some budgeting process as well.
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  And I tell personal people in their personal finance to do the same thing.
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  You should be starting with the end in mind.
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  Same thing with business owners.
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  You should be planning your exit strategy when you first open your business.
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  Same thing.
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  People don't like it, and your personal finance usually planning your debt.
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  I'm I'm sorry I came from the investment world and insurance world, but didn't work your way
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  back, you know, 10 years, 5 years.
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  And then annually, and and personal finance, there are things that happen every year that
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  people don't plan for, like summer vacation, or if you have children back to school or holidays
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  or whatever it is important to you.
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  Business owners the same way.
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  Some businesses are seasonal.
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  So, you know, there are certain times of the year where you're going to been more than
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  you're making possibly or your, you know, your revenue re revenue might be lower or higher.
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  But how do you plan?
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  You should be planning at least, you know, at a minimum, a year out, and then you should be
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  checking it at least every month.
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  You wanted to try and do some reconciliation And then depending on the type of business you
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  have, you can do it daily.
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  So, you know, I went to the Goldman Sachs, 10,000 small business program and people in my
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  cohort I have a salon owner.
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  I mean, she's doing it every day, and she's looking at how much I got in.
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  What did I spend every single day?
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  So I think that the minimum people should be, you know, reconciling that budget every month
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  and looking at their, you know, budget at least once a week, and that's business and personal,
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  in my opinion.
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  Now how important is it to keep personal and and business finances separate?
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  So, you know, as a startup, a lot of times people are mixing.
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  I mean, it's just a part of, you know, trying to get the stuff the ground unless you did did
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  a huge startup where you got funding and you were able to really knock it out the park, but
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  you don't really have to touch your own personal finances, that will be ideal.
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  Right?
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  If you're able to to get some funding investors, even if you get a loan and leave a
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  totally separate.
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  I mean, ideally, that should be always the goal to not to co mingle your money for many
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  reasons.
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  1, you get lost in, you know, what you're really making.
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  You're not looking at the numbers fluidly, like, and realistically.
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  So you're looking at, you know, you're putting money into the business consistently and not
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  really reconcile it unless you're doing, like, formal loan.
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  Like, I'm making a loan to my business.
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  But when you have the accounts mixed up and, you know, you're you're not sure whether you're
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  really, you know, making money in the business or this is personal money or not paying
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  yourself.
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  You know, you should be able to quantify how much revenue is going in, how much is going
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  out.
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  And if you're short, and you have to take in your personal money, you should be recording
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  that and saying I'm giving myself a loan.
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  So in the beginning, obviously, when you're looking at starting up and you're looking at
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  loans, people are gonna look, you know, financer financers, whether it be a a bank or
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  investor.
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  They're gonna be looking at your personal finances, but when you legitimately start up,
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  you should be having it your personal and business finances separate.
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  Absolutely.
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  Alright.
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  So this is the last question I'm gonna get to you before the break.
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  Does your business need an emergency fund?
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  I I mean, we are all the business owners.
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  We know that would be ideal.
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  Everybody's putting their thumbs up because, I mean, again, working with business owners, we
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  know a lot of us try to rely on a line of credit and stuff.
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  I work with business owners.
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  That line of credit is down to the end.
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  You're waiting for that resident.
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  You're waiting for that invoice to get paid and You need emergency fund, everybody in your
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  household and your business.
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  You need that stash of cash somewhere that you can pull it because even when you're maxed out
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  from your line of credits and all of that.
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  You need to have that money available.
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  So, yes, that's the hell.
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  Yeah.
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  Alright, Vanessa.
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  Well, I'm gonna put a pin in that Thank you so much, but when we come back, we're gonna talk
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  about how to get rid of debt because it's real.
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  Whoo.
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  Okay.
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  So please don't go away because we will be right back.
• 11:37
  Hi.
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  I'm Melinda Emerson small biz lady.
• 11:40
  Know you might be thinking about quitting your business and going back into corporate America,
• 11:44
  but wait.
• 11:44
  Before you give up, my new book fix your business could give you a whole new lease on
• 11:49
  life.
• 11:49
  My twelve piece of running a successful business will walk you through step by step how
• 11:54
  to grow your business revenue, how to hire great people, and streamline your processes and
• 11:59
  so much more.
• 12:01
  Grab a copy today, affix your business, and get your life back.
• 12:07
  Hi, everybody.
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  Welcome back to Small Bizchap.
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  I'm Melinda Emerson, the small biz lady.
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  America's number one small business expert.
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  And I'm so excited to be here with you tonight because we are talking about money, the money,
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  and my good friend Vanessa Lindley is here.
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  She is a money coach.
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  She's got a great new book out on 7 ways to win with your money.
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  And so I am really excited to talk to her about the all important topic Debt.
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  Alright, miss Vanessa.
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  Breaking down for us.
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  What are the three reasons why people are in debt?
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  And what are the three ways to get out of it?
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  Three reasons why people on the are in debt typically.
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  1, not having and or not sticking to a budget.
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  I mean, The budget is a b word, but it's not a bad word.
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  And people just don't like to do it.
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  They don't like to deal with it, and they have to do it.
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  Again, it's a personal or business.
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  You to have a plan on how are you going to send your money?
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  What's coming in?
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  What's going out as a business owner?
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  That's how you you plan your revenue, and you also plan your senses and you prepare for the
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  unknown.
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  We just talked about the the importance of having emergency savings.
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  People that's the second reason.
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  People don't have emergency savings.
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  So they end up overspending.
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  If you don't have a budget, you don't plan.
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  You don't know where money is going.
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  You end up overspending.
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  You get in debt.
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  That's one.
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  2, you don't have an emergency savings.
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  So prices can happen.
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  We're business owners.
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  Sometimes we have clients that we we're invoicing.
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  The invoice could be late.
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  I mean, I know business owners are waiting for, you know, 6 figures, 7 figure invoices to be
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  paid, and you don't have that emergency fund.
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  So what ends up happening?
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  You end up borrowing more.
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  So that's the second reason.
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  1, not having a budget and not sticking to it.
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  2, not having emergency savings.
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  And, again, that's for home or business.
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  And, 3, not even understanding how much debt you can afford because some lenders are gonna
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  keep giving you debt.
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  They're gonna keep giving you loans, keep giving you loans, and then you end up over
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  extended especially in personal finance, you know, you can go to any store.
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  Any any place that that sells things, they will give you credit.
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  Now or not, you can get credit through Amazon, PayPal, the clothing store, anything anywhere
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  you go.
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  People are going to give you credit, and you don't know how much you can actually afford.
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  So people are being way overextended because they have access to all this credit.
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  And so what they end up doing is sending it going back number 1 because they haven't
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  planned their spending.
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  So now they have access to all this opportunity to spend, and they end up in debt.
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  So the top 3 reasons I find, again, is that no budget, no emergency savings, and not gonna
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  understand it.
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  So how do we fix it?
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  3 easy ways.
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  I'm gonna say 3 in the caveat.
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  1, we have the snowball method.
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  2, we have the avalanche method.
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  3, we have the Snowflake method, and it's all snow.
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  But the snowfall method, you arrange your debt from the smallest balance, and you pay it off
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  first from the smallest to the largest.
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  It then keep paying it down, taking it down.
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  So the payment from the smallest, when you pay that off, it goes to the next, the next, and
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  like a snowball, it gets rid of debt.
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  The Avalanche, you start with the highest interest rate, and it just avalanche down to
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  the smallest one.
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  And you keep taking that big payment, put it on to the next one, the next one.
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  The snowflake is for people who get that extra little money here and there, and you just
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  sprinkle it on your debt.
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  So you get a bonus.
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  You get an unexpected client that was not in your in your budget.
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  You take that extra money, put it on debt, and just knock it out.
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  The biggest thing is going back to playing your money and having that budget.
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  Alright, miss Vanessa.
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  We're almost out of time.
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  Tell me what is the best business finance advice you can give a business on right now.
• 15:48
  It helps.
• 15:49
  You said it.
• 15:50
  You can both see your CBA.
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  Maybe get your financial coach.
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  Get help.
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  Get a plan.
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  Look at those numbers, plan it out, and get help.
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  Do not try to do it on your own.
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  That's the best advice I can give you.
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  Alright.
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  You guys heard in here, miss Vanessa Lindley.
• 16:05
  She is the finance coach and the author of Achieve Financial Victory.
• 16:10
  7 ways to win with your money.
• 16:12
  Check it out.
• 16:13
  Vanessa, what is your favorite business at?
• 16:16
  What is your favorite one?
• 16:18
  Oh, probably quickbooks.
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  Talking through my invoices and get paid and watch it all the time.
• 16:26
  QuickBooks, honestly, QuickBooks.
• 16:29
  I'll okay.
• 16:30
  I'll take that.
• 16:30
  I I could understand as the money coach why you are talking about QuickBooks.
• 16:34
  Look, Whatever your accounting software is, you need to be checking it and you need to be able
• 16:39
  to reach it through your phone.
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  So I completely agree with that.
• 16:42
  Alright, miss Vanessa.
• 16:43
  What's your favorite old school marketing tip?
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  I feel I'm a people person, so I still believe in going out.
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  And meeting people going to the Chamber of Brexit.
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  It's old school.
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  People consider it networking.
• 16:56
  I consider it marketing.
• 16:57
  I still believe that the people connection is is tried and true.
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  And because you need people, you just have to find out where your people are and go there.
• 17:05
  I think that's a good idea.
• 17:06
  You know, people forget that with all this online stuff, you actually can still
• 17:13
  I mean, I challenge you.
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  Yeah.
• 17:16
  Stop hiding your house.
• 17:17
  I challenge you so to go.
• 17:18
  Yeah.
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  You have to at least once a week.
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  Go to somewhere in person.
• 17:21
  And meet new people.
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  Absolutely.
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  I couldn't agree with you more, and I will just share mine.
• 17:27
  My favorite old school marketing tip is send somebody you met a handwritten note.
• 17:31
  Do you remind
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  me?
• 17:32
  Yeah.
• 17:33
  I I have personal stationery with small business lady printed on it, and I can't tell
• 17:38
  you how often I'll get a phone call or a follow-up email from somebody that got a
• 17:43
  handwritten note from me.
• 17:44
  So Definitely.
• 17:46
  Definitely.
• 17:47
  That is my favorite old school marketing tip.
• 17:49
  Alright.
• 17:50
  Vanessa, what's your favorite part?
• 17:52
  Well, you know, I'm kinda slow to the podcasting field, so I I don't have one favor.
• 17:57
  I do listen to a lot of my competitors.
• 17:59
  Like, Dave Ramsey and the the money people.
• 18:02
  And then I I may pick it peeking on one person versus the versus another.
• 18:07
  But my is coming soon.
• 18:08
  So we ought to look out for mine.
• 18:12
  I think the mission of small business chat is to end small business failure while helping you
• 18:18
  succeed as your own boss.
• 18:19
  I'm Melinda Emerson, the small business lady until time.
• 18:22
  Remember this.
• 18:23
  You never lose in business.
• 18:24
  Either you win or you learn.
• 18:27
  Good night, everybody.
• 18:29
  Thank you for listening to the Small Biz Chat podcast with Melinda Emerson.
• 18:34
  For more resources and small business success strategies, visit succeed as your own boss.com.
• 18:41
  Subscribe to this podcast wherever you listen to podcasts and join us next Wednesday.