So tell me, how are you holding up right now? Honestly, I’m kind of sick of it all at this moment, if I’m honest. As of this writing, everything is still pretty much up in the air as far as the COVID thing is concerned. This is where just we’re at, at least for now.

Truth be told, I’ve been through ALL the emotions. Like many of you, I get up each day and do what I have to do. I put on real pants (and those “big girl pants” you’ve been hearing about), and get to work. I do all I can in the structure of this “new life.”

But you know something, we never know what’s coming next. Whether there’s a worldwide pandemic or it’s “business as usual,” there never really any “usual” in an entrepreneur’s life, is there?

The cool part is that you can use your business owner/entrepreneurial skills to pivot in many ways. This includes “pivoting” your personal and professional finances!

These days I’m getting a TON of questions from clients and readers about managing cash flow. Honestly, nothing makes me happier! I love helping people sort out their cash flow and get it to the positive side.

This brings me to this week’s business owner/entrepreneur topic: how to take back control of your cash flow.

Things have settled down for SBA applications and unemployment claims. Since that big wave passed and the initial panic died down (somewhat), I’ve noticed something. People are stepping back and taking a closer look at where they stand financially, and getting a more “big picture” view.

It led me to see that now is the perfect time to have another cash flow conversation. Now is an amazing time to take a deep breath, a step back, and check in with your numbers. Take a look and see what your cash flow is looking like, then plan accordingly.

Where do you start? Here are a few steps to get your cash flow analysis going!

1- Print out your statements, both personal and business. Then mark each spending areas into these categories:

  • Lifestyle (wants)
  • Needs (includes minimum payment requirements for debt)
  • Investments (retirement, savings, etc)
  • Additional Debt Payoff (on top of minimum payments)

Since March, I have put $3,788 into savings because I am NOT spending any money on “wants.” (My pre-shutdown wants were mostly travel and the fancy weekly meal out. You can probably see why this has happened!)

Now more than ever, I’ve become much clearer on my priorities. There are fewer wants and more needs and investments on my list. So right now, I’m using this time to beef up my savings. That’s my top priority.

There has never been more of a space for clarity on what we NEED and what we WANT. Leverage this to your advantage!

I highly recommend that you take at what’s in each of your categories. It’ll help you see how your priorities have changed, and take appropriate action toward what matters most to you NOW.

2-Create a Current & Post COVID Budget. With this new insight from evaluating your cash flow, update your COVID budget (i.e. the “right now” budget).  Then be sure to create a separate post-COVID budget. This way you’ll be ready to roll, and be less likely to overspend when the “doors” re-open. 

(Pro tip: You can even pre-purchase gift cards available in your cash flow now for things you want later. This will help trickle down the spending you know you will do anyway.)

So you know your wants and needs in each category. How do you choose what to cut and what to keep when it comes to cash flow?

Here are a few suggestions to get your “cut or keep” list started based on your current cash flow.

1- Go for the low-hanging fruit first: This is the easiest bunch to sort out. Start by cutting glaring “extras” like meals out or travel costs. Downgrade that recurring software that was upgraded after the trial basis.  (I saved one client $2,500/yr in recurring subscriptions not used). These are just a few suggestions to get you started.

This is the perfect time to stop paying for what is no longer serving your cash flow or your budget. Take an assessment and let go of some of the more obvious extraneous expenses you can find.

2-Make an ASK List. If you have to keep it but can’t afford it, ask for help! Here’s what I mean by that…

Ask for refunds for that travel package, or the deposit you put down on something. Ask banks to stop applying monthly fees. Ask to skip to delay payments. Ask for help in any way, and you might be surprised what people are willing to do for you!

A lot of banks and loan providers (especially federally backed ones) are delaying or straight up forgiving loan payments. If you’re struggling, call and ask if they are offering any assistance. You can also ask them for any further resources.

(I heard from one client that Adobe has waived two months of payments and are offering an ongoing discount! So check for deals with your current software subscriptions as well.)

3- Payroll Pause. If you run payroll in your own company, take note of this. Payroll providers like Gusto, my preferred payroll company are offering a “payroll pause.” This allows you to literally put your payroll on pause (wages and payroll fees). They also make it easy to defer payroll tax payments with one click.

Find out if your payroll provider does anything like this. (And if not, you can always ask for assistance in another way! See #2. 😉 )

4- Insurance: While insurance is usually one of the first expenses to go when your budget is tight, do what you can to keep it. I would not recommend becoming even more vulnerable by removing your layers of protection in any area right now (health, car, business, etc.).

But I would highly suggest you review your coverage and make adjustments as needed. You might be able to switch your car insurance to storage rates. Rr lower your bill because of your lowered liability risk. For health insurance, if you are paying through the state and your income has declined, you might qualify for a higher subsidy.

5-Phone: If you are still leasing your cell phone check out how to potentially save $500/year . (You’ll also find several other tips in this post to save up to 10K per year without on this post. Check it out and pick up even more money-saving tips!)

6-Inventory: Instead of purchasing more items to hold in stock, use up your inventory reserves first. If you sell items, you can put them on a temporary “back order” to gauge demand. You can also put items “pre-order” to test demand without having to incur a possible expense as opposed to an investment. 

These are just a few ways to revisit your cash flow and make important updates!

We all know that times and priorities have shifted dramatically as of late. Now is the time to look at where you are, create new priorities, and make the adjustments you need.

Keep moving forward, and keep looking out for creative ways to improve your cash flow. It’ll help you come out even stronger on the other side, and ready for whatever happens next!

Now, how about you? Have you found any creative ways to cut costs and shift your cash flow in a positive direction? Leave a comment and let me know!

Until next time…

Love, Light, and MONEY, Honey…

Kaylee

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