4 Steps to Get a Handle on your Money

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“Money is just Choice plus Communication.”

We sat down (figuratively on IG Live) with Portland finance pro, Renée Shade, to talk about moolah in the time of Coronavirus. She shared her 4 steps to get a handle on your money, both personal and for business:

1. TAKE INVENTORY of all your expenses

This is a brain dump of everything you pay for. Refer to bank and credit card statements, expense reports from Quickbooks or Xero for business expenses and spending by Payee in Mint, YNAB, Venmo, and the like for personal expenses. Write each expense on a sticky note or spreadsheet (something you can move around) then for each expense, identify:

  • Name of Vendor

  • How much is it?

  • What does this pay for?

  • How often do I pay it?

  • It is contractually obligated?

  • Business or personal? Separate your biz and personal expenses.

2. MAKE DECISIONS AND CHANGES

Make a decision matrix, divided into four quadrants: Important & Not Important / Hard to Change & Easy to Change. Sort your expenses into each quadrant then start by cutting Not Important/Easy to Change items like monthly subscription to apps you never use working your way through to the Important/Hard to Change items like insurance. Voila!

 
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3. ADD IT ALL UP

Add up all of your business and personal expenses then figure out what expenses you have to pay in the next...30 Days, 60 Days, 90 Days. Do this separately for both your personal and business expenses.

4. MAKE A PLAN

For each period, answer:

  • What are my expenses (after cuts)?

  • How much do I need to bring in?

  • How am I making money during this time?

  • What am I doing/What’s staying the same/What’s changing?

  • What are my contingency plans?

If you’re feeling like everything is uncertain now, remember now is the perfect time to make a plan and that starts with getting a clear picture of your finances and spending. Making changes within your sphere of influence will put the control back in your hands so you can do your best!

“Take a moment, take a breath. Make a plan and try your best.” Zoe | Starbeam

 
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Renée Shade has almost 20 years of experience in operations, finances, and executive leadership for solopreneurship, nonprofits, startups, and Fortune 100 companies. She’s organized and prepared, which gives her the advantage of excellent foresight. Whether it's dollars, numbers or values, she enjoys seeing the world through measurable means, and is even more passionate about helping others see the advantages of doing it too. renee@fisherbusiness.net