Are you currently making multi-six figures in your business but seem to never have the cash in your business bank account to show for it?

You realize you’re great making money, but you seem to know even better how to spend it. 

But, now that you’re scaling, can’t tell what money coming in is truly “spendable” and what you need to save for taxes, what should be used to pay off debt, and what to save so you can pay yourself consistently, even when your revenue is inconsistent. 

In this episode, Iyanna is sharing how you can stop being avoidant, learn how to look at your cash flow (and why it matters) and how to create healthy cash flow in your business so you can pay yourself and achieve your personal wealth goals.

Subscribe on YouTube | Apple | Spotify

Tune in for:

02:18 — The subtle (and not-so-subtle) ways poverty mindset makes you avoidant and causes you to have cash flow issues 

05:39 — You need to assess your trends to know how any decision impacts every area of your finances 

07:35 — How to create a plan to define success for each of your numbers 

13:26 — The real reasons why you’re avoiding your money and the habits you have that are keeping you stuck

15:34 — Why you aren’t looking at your numbers and finally gain confidence to review your reports

20:13 — ​​How to gain confidence with knowing your numbers and how to use them

Why Your Cash Isn’t Matching Up with Your Revenue

Struggling to See Cash Despite Multi-Six-Figure Revenues? 

Your cash flow systems just aren’t efficient. You have payment plans for your offers, but you don’t know exactly when you should expect those payments. 

You don’t know what you must bring in and holistically what is going out of your business in cash. You may even have business debt. 

When you get a pay-in-full client, you’re unsure if you should be paying off debt or wait to pay it off. 

Finally, you might even have a five-figure tax debt that you have on a payment plan, but you’re unsure if you should just knock it out because when you did last time, six months later, something else came up in your business.

If you have experienced any one of these scenarios, let me tell you that there is no shame, and you are not alone. There is absolutely a better way to handle your cash in both your business and personal life. In this blog post, I’m sharing how to create healthy cash flow in your business and life. 

Here’s How to Fix Your Cash Flow Issues.

The Psychology of Money

You might feel like the money you have in your life and business now is exactly what you’re comfortable with most of the time. Of course, things happen in the market or there are seasons in your business, but if you’re comfortable making $10,000 or keeping $5,000 in your bank account, that’s kind of where you’ll stay. Compare this to someone who receives $100,000 at the end of the year and then depletes it because they think it’s a one-time opportunity and it’s going to disappear. This behavior is common and tied to our psychology of money.

In the book, The Psychology of Money by Morgan Housel, the author states that we are not crazy; we just do crazy things with money. By becoming aware of these crazy things, we can move on to the reasons why we don’t see the cash.

1. Mindset

Mindset is always a fundamental factor. Our thoughts and beliefs shape our reality. 

If your mindset is misaligned, it can severely impact your financial outcomes. You might be avoiding your finances because you don’t fully understand them or, even if you do, because you’re afraid to confront the reality of your situation. 

This avoidance often stems from fear and shame, creating a vicious cycle where you feel anxious and desperate without taking constructive action.

2. Understanding and Awareness

A lack of understanding about your financial situation can lead to avoidance. If you’re not clear on your numbers, it’s easy to push them aside. However, even if you do understand your finances, lingering fears can still lead to avoidance. You might dread facing the numbers because they could reveal uncomfortable truths about your business.

3. Action vs. Avoidance

The key is to shift from a mindset of avoidance to one of proactive management. Avoidance might temporarily reduce anxiety, but it doesn’t solve underlying issues. Instead, take concrete steps to address your financial situation. This proactive approach can alleviate anxiety and help you focus on business growth rather than being paralyzed by fear.

Creating a Plan for Success

Once we understand your mindset and habits and how they impact your cash on hand, we then look at the trends. Creating a plan for success is going to be extremely important. By tying in your mindset, looking at your trends, and then creating a plan for success, you can create harmony in both your business and personal life.

With our Profit Planning Intensive clients and CFO clients, we have a four-step Harmonious Wealth Framework:

1. Create a Legacy Plan: Uncover your goals, immediate lifestyle goals, long-term goals, and what you want to retire with.

2. Assess the Trends: Understand what’s going on with your finances.

3. Highlight the Gaps: Identify the gaps between your legacy and where you are now.

4. Create a Profit Plan: Understand where you need to be to hit your success plan, pay yourself a profit, and have adequate cash on hand.

Weekly Cash Flow Forecasts

One crucial tool is having a weekly cash flow forecast. Yes, weekly. So many things happen within a month that can affect your cash flow. A weekly cash flow forecast allows you to assess cash flow leaks immediately. Within 30 days of working with our clients, we help them create healthy and predictable cash flow for both their business and personal finances. This way, you can prioritize where your cash will go and avoid cash flow surprises.

Tax Strategy and Legal Tax Reduction

In addition to cash flow management, we help you create a tax strategy. Increased profits often mean an increased tax liability. A tax strategy helps you legally reduce your tax liability and save for those taxes throughout the year while maintaining a profit plan.

Setting Immediate Lifestyle Goals

We assess your immediate lifestyle goals, such as going on a family vacation, paying off debt, getting a new car, or buying a home. We think within the next 12 months: What can we do to positively impact your business and personal life immediately?

The Harmonious Cash Flow Planner

If you’re ready to take control of your cash flow, I recommend you purchase the Harmonious Cash Flow Planner. With this planner, you can map out your cash flow monthly for the entire year, save, pay off debt, and much more. Visit lovelyfinancials.com/cashflow to get started.

Moving Forward

In summary, aligning your cash flow with your revenue requires a mindset shift, a clear understanding of your finances, and proactive action. By addressing these areas, you can move from a place of avoidance and anxiety to one of clarity and growth.