Wealth by Design
Hello, loyal listeners! We wanted to let you know that we have a quick update on the podcast and a few things that are happening over at Toujours Planning right now. As you may know, we are a Lake Charles-based business and family, and our community, homes, and offices were devastated by Hurricane Laura in August.
info_outline MINISODE: Do You Need a Financial Advisor or a Certified Financial Planner™?Wealth by Design
Do you need a financial planner? A financial advisor? An investment professional? A money coach? And what are those initials after their names?!
info_outline MINISODE: Are You Falling into This Stock Market Trap?Wealth by Design
In this minisode, Dustin breaks down the Sir Templeton’s quote: “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”. He also discusses timing the stock market, why it’s a bad idea, and what you should do instead.
info_outline MINISODE: Should You Have a Joint Account with Your Partner?Wealth by Design
We’ll keep the intrigue to a minimum. In our opinion, the answer to this question is a resounding yes. Sharing your finances with your partner builds trust. Keeping them separate can breed suspicion and worry.
info_outline MINISODE: When Stock Markets Dip and Bounce BackWealth by Design
In this minisode, Dustin recaps what a stock actually is and how stocks are bought and sold. He discusses how people’s emotions cause those peaks and valleys in the stock market, and how you can avoid that dangerous herd mentality when it comes to your own investing.
info_outline 112: Growing a Business & Wealth with Katell and Jon of ReverielaneWealth by Design
Katell and Jon, a husband and wife design team, are founders of Reverielane, a purpose-driven brand and web design firm.
info_outline [Summer Remix] 102: Net Worth is KingWealth by Design
We talk about fear a lot on our podcast. Fear is natural and, TBH, necessary. But fear can also make you focus on the wrong thing when it comes to your net worth. Paying down debt rather than building up your assets, to be specific. And that’s what we discuss in this week’s episode: where our fear of the “debt boogeyman” comes from, our three-step strategy on how to overcome it, and what part of your finances you should be focusing on instead.
info_outline [Summer Remix] 101: Robo-advisors: Your New Best Friend or Your Worst Enemy?Wealth by Design
The robots have taken over. Just kidding. But, they have taken over a major chunk of the financial industry in the form of robo-advisors. But the truth is, we think robo-advisors are actually pretty useful. Of course, there’s a time and a place to use them, which is exactly what we cover in this episode of Wealth by Design.
info_outline [Summer Remix] 100: High Yield Savings vs. Stocks: Who Wins?Wealth by Design
There are a lot of misconceptions about investing in the stock market, thanks to fear-mongering in the news, horror stories from family and friends, and a lack of education about the stock market in general. Your fears may also be why high yield savings seems like the better option for your money. In this episode, we talked about the differences between high yield savings and stocks. We know you’re probably a big fan of saving because it’s “safe,” right? Well, we’re about to rock your world.
info_outline [Summer Remix] 98: Leaving Behind the “Punch Clock” MindsetWealth by Design
The concept of a punch clock — punching in to start a shift and punching out when it ends — is ingrained in many of us, even as business owners who write our own checks and make our own schedules. But it doesn’t have to stay that way! On this episode of Wealth By Design, we talk about how you can start changing your mindset and your life right now.
info_outlineIf you’re a business owner or entrepreneur, you may already feel like the boss of your money. After all, you’re pretty much solely responsible for what goes in and what comes out, right? But as many entrepreneurs and biz owners know, that can also lead to a lot of stress. In many cases, taxes aren’t withheld, revenue can vary from month-to-month, and it always seems like there’s a new bill to pay. So how do you feel like you’re REALLY the boss of your money, rather than holding on to money for a while before it goes out the door again?
That’s what we’re talking about on this episode of Worth It. In it, we explain what business owners and entrepreneurs need to pay attention to in regards to their money and income, and what they can do to gain control.
WHAT YOU’LL LEARN
00:51 What symphonies and maestros have in common with your money
01:05 Why taking control of your money will help you personally and professionally
02:05 A cautionary tale of what can happen when you don’t tell your money what to do
03:02 The downfalls of 1099 income
05:18 Why planning for taxes is non-negotiable
06:21 Why changing the way you think about taxes is important
06:49 The importance of knowing your (and your employees’) salary
07:39 Why you need a snapshot of your income and expenses (steady vs. variable)
10:43 3 ways to be the boss of your income
10:48 The importance of treating your money like a full-time employee
11:51 How to set up a “mothership account”
13:16 What you should include in your sub-accounts
14:38 How this “mothership” approach helps you embrace a profit-first model
15:00 How to start thinking of your income as “net” instead of “gross”
16:03 Why you should view expenses like healthcare, taxes, and salaries as part of doing business
BUSINESS INCOME: WHAT YOU NEED TO FACTOR IN
How many times have you been trucking along, thinking you’re doing pretty well with sales or client work, only to find out that you have a big fat bill to pay at the end of the month? Or maybe you’re like Danielle’s friend who didn’t realize she had to pay taxes out of her 1099 income… and had a hefty check to pay at the end of the year.
That’s why the first step to being the boss of your money is to figure out taxes, hourly contractor rates, healthcare — all the things that come out of your business income. This way, you can make sure that what you’re making, what you’re taking home, and what you owe (to the government, your healthcare plan, your workers, etc.) are all accounted for.
Other things you need to pay attention to as a business owner:
- How much are you withholding for taxes?
- How much are you paying yourself? (Remember: you need a salary)
- Is your income consistent or does it vary?
- What are your total expenses for your business? (office, employment, etc.)
- What expenses are steady and which are variable?
Once you have those numbers and you are for sure paying yourself a salary (nope, this is non-negotiable), you can finally have a better picture of what’s going in and coming out. You’ll also know exactly what to set aside each month to pay at least the non-variable expenses, like your salary, your office rent, your software costs, etc. That brings us to the second part of our podcast discussion….
HOW TO TAKE CONTROL OF YOUR BIZ INCOME (ONCE AND FOR ALL)
Having an accurate picture of your numbers is a great start. But what do you do to make paying those bills and saving that money easier? Here are some actionable tips that can help:
- Figure out what you need to pay yourself. Your salary as a business owner or entrepreneur can eliminate a lot of stress about variable income. Even if it’s not what you want to be making right now, or you’ve never calculated a salary before, don’t skip this step. Talk to your accountant or CFP if you’re not sure what to do.
- Treat your income like a full-time employee. Tell your money what to do, and set up systems so it automatically does it. As your income comes in, have automations set up so that money immediately goes to work. This way, it all gets done without you having to do anything. How do you do that? Create a “mothership” account where you have all your revenue come in, and then you’ll have “sub-accounts” that hold your salary, your employees/contractors pay, your taxes, etc. Whatever you know you need to set aside money for each month, quarter, or year, set them up and automate the withdrawals so that it’s totally off your plate. See how easy that was? This follows the Profit First model, which focuses on paying yourself (and your bills first) and then uses whatever’s left to float your business, invest in it, etc.
- Change yo’ mindset. Instead of thinking about all the money you bring in (the gross revenue of your business) as money made, you need to start thinking about income as net income. That means you’re only looking at what you’ve got after expenses are paid, taxes have been contributed, and so on. It hurts a lot less to watch the money go out, and you’ll have a much better idea of what kind of profit you’re making, which can help you raise prices, streamline processes, or decide to hire help.
This was a quick and dirty episode, but we think the tips are super valuable. If you’re struggling to feel like you have “money in the bag,” this is definitely an episode for you. And even if you’re a traditional employee, you should check out this episode so you can get a feel for what you can do with the money that’s leftover on your paycheck.
Our hope is that you can implement these tips into your life and business today, so you can stop feeling so out of control — even if your income and expenses vary. It doesn’t have to feel so chaotic, y’all!
This material is for general information only and is not intended to provide specific advice or recommendations for any individual.
RESOURCES & PEOPLE MENTIONED
- The Toujours Planning Quiz — Are we a good fit for your financial planning needs?
- Episode 13: Financial Planning for Entrepreneurs
- Our FREE go-to financial and life planning resources
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