Finances & Wealth Archives - Elizabeth McCravy https://elizabethmccravy.com/category/finances-and-wealth/ Showit Website Templates, Business Courses, Business Podcast for Moms Tue, 10 Sep 2024 21:06:24 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://i0.wp.com/elizabethmccravy.com/wp-content/uploads/2024/08/cropped-Elizabeth-McCravy-Logo_Icon-Watermelon.png?fit=32%2C32&ssl=1 Finances & Wealth Archives - Elizabeth McCravy https://elizabethmccravy.com/category/finances-and-wealth/ 32 32 138427508 5 Shifts I Made To Go From Freelancer to CEO When I Started My Business https://elizabethmccravy.com/freelancer-to-ceo/ https://elizabethmccravy.com/freelancer-to-ceo/#respond Tue, 22 Aug 2023 06:00:03 +0000 https://elizabethmccravy.com/?p=7024 If you're a new business owner or still in the season where you prefer to call what you do a side hustle, freelance work, or a hobby, this is for you. I’m sharing 5 strategies to help you step into a CEO role, even if that term feels silly to you now. It's okay to […]

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If you're a new business owner or still in the season where you prefer to call what you do a side hustle, freelance work, or a hobby, this is for you. I’m sharing 5 strategies to help you step into a CEO role, even if that term feels silly to you now. It's okay to feel new and uncertain but to grow your business, you need to act like a business owner. That means letting go of the freelancer and hobbyist mentality and taking things more seriously. Don’t worry - I’m going to help you do just that today!

Quick intro to me: I'm Elizabeth McCravy, and I've been in business for around 7.5 years. Started with social media marketing and design, then focused on different types of design, specifically branding and Showit website design. My business had its first six-figure year within a couple of years. As the demand for one-on-one clients grew, I added website templates to my offerings. Last year, my template sales crossed the million-dollar mark, serving customers worldwide. I also launched a course called Booked Out Designer in early 2021, where I teach other designers how to build a successful brand and website design business. If you're a fellow designer, be sure to check it out! 

Now let’s dive in!

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There's a quote that you may or may not have heard before: "Treat your business like a business and it'll PAY you like a business. Treat your business like a hobby and it will COST you like a hobby."

This quote is near and dear to me, and actually prompted me to record a similar episode to this one back when I first started my podcast (although many years later and working with so many more business owners since then, I’m bringing it back with some new insights and perspectives! In fact, at that time I had a post go viral on Instagram that said “You can’t run your business like a freelancer and expect results like a CEO.” - something I still agree with today!

1. Start to actually market your business and create content

I know you might think this is basic - but hear me out for a second. 

As a new business owner, it’s super common to not have any marketing in place. This means you may lack a social media presence, a website, or even a blog. Instead, you rely on word-of-mouth, platforms like Upwork, or Facebook groups to get clients. These methods can be effective, especially in the early stages of your business. If you're looking for more guidance on booking clients quickly, check out my free guide here, where I talk about how great those things are starting out. But here’s the thing: they aren’t supposed to be a forever solution.

And that was me for longer than I want to admit. It took me over a year to start blogging in my business. It took me even longer than that to have a business Instagram account and Facebook page. Looking back, I think I would've seen faster growth in my business had I started doing some of those things quicker.

Now, after working with countless other business owners, I think that we delay taking our business marketing seriously because:

  1. We are so focused on getting clients that we can’t focus on anything else. 
  2. We don’t think we have anything to offer because we are still learning. 
  3. Our priorities aren’t long-term. 
  4. It makes our business more complicated and more work. 

If you're wondering how to get started, the simplest way is to create a social media account for your business. Don't worry about being on every platform at once. Start with the one that interests you the most. For example, if you enjoy TikTok and know what engages you, go for it. If your audience is on Instagram or Facebook, focus on building your presence there. Choose one of these platforms and create content that adds value to your potential clients' lives or businesses. Share tips, advice, and showcase your professionalism while letting your personality shine. It may take some time to feel comfortable, but you'll get there. Eventually, you can expand to other content creation avenues like blogging, podcasting, or YouTube. Personally, I started with social media, then moved on to blogging and podcasting, and now I also have a YouTube channel. Take it step by step, and remember to start with just one.

Read more: 5 Ways I’m Growing My Website Traffic This Year

If you are worried about friends and family judging you

I understand that you may be concerned about the judgment of others when you post on social media platforms like Instagram or TikTok. It's natural to worry about how people from your real life, such as friends, ex-partners, or acquaintances, will perceive your content. I really want to encourage you to let go of these thoughts. The opinions of these individuals do not pay your bills, and on top of that, people generally care less about what you're doing than you might think.

Believe in yourself and your ability to succeed in your business endeavors. As you grow and become more successful, those same people who may have judged you before may start seeking your advice and viewing your business as impressive. If you still find it challenging to ignore their opinions, there is an option on Instagram to hide your content from specific individuals by muting or hiding stories and profile content. I did that and I recommend doing it. 

Adding value in the beginning

When you're new, you may think you don't know enough to teach others. But I believe you're wrong. You obviously have knowledge about what you're doing, so share it with others. If you need quick ideas for content, think about the questions your clients often have, whether it's during a discovery call or throughout projects. Also, consider the topics you've enjoyed learning and mastering in your niche. There's so much you can share!

create content for your business in the beginning

2. Use a legitimate way to accept payments. 

Have you ever seen some version of this question in Facebook groups: "Does anyone have a recommendation for avoiding fees when receiving money?" 

Some new business owners accept payments through Venmo, Cash App, or paypal.me, which are personal ways to accept payments. Others prefer cash, checks, or in-person payments. Some businesses even avoid credit card payments to eliminate fees. 

These different methods are all ways to avoid the typical 2.8% to 3% processing fee in our industry. When you allow online payments, platforms like Stripe and PayPal will take a small percentage of the transaction total as a fee. This applies to any normal payment, whether it's on Amazon, at a boutique, or for groceries. It’s the cost of doing business, and it’s not exclusive to YOUR business. Even bank fees exist, albeit smaller. 

My advice? Instead of whining about the percentage, be a business owner and set your pricing to where you aren’t “hurt” by the fees. 

Especially with services like Stripe or PayPal, they are a business too and they aren’t charging you to use their service. They only make money off the transaction fee.

I can speak bluntly about this because I've been there. When I was starting out in my business, I went through a phase—I can't recall exactly how long—where I only accepted payments through Venmo, Cash app, or checks in the mail from my clients. It was a hassle to create invoices myself in Adobe Illustrator, and managing everything on my own without a proper payment platform took up a lot of time. Besides, using personal payment apps like Venmo and Cash app didn't help with bookkeeping since they were linked to my personal bank account.

This setup wasn't ideal for my clients either. I'm sure some of them would have loved the option to use their credit cards for big projects and earn cashback rewards. Plus, let's not forget that when my business was earning less, I was only saving $10 or less per transaction, sometimes even just $5. It just wasn't worth the hassle for me or my customers.

Another thing to consider is the risk of penalty. I actually got kicked off Cash app early on in my business, and also faced issues with Venmo because they realized I was using their app for business purposes, which went against their policy. Those apps are meant for personal transactions, which is why they don't charge fees. When it comes to business expenses, it's expected that either you or your client should cover the processing fees. So, avoid the trouble and don't risk getting penalized just to save a few dollars.

Read More: Stop Using Apps Like Venmo To Avoid Fees When Accepting Money In Your Business

What is a payment processor?

Let's talk about that real quick. Firstly, let me clarify that a payment platform and an invoicing company or a CRM are different things. For instance, in Dubsado, you can accept payments through platforms like Stripe, Square, or PayPal (the payment processors), while something like Dubsado itself serves as the invoicing system (a CRM). 

Now, when it comes to invoicing systems, I have a few recommendations. If you're looking for something easy and free, Wave is a great option. It allows you to create and send invoices, automate reminders, and it's free for invoicing. However, keep in mind that payment processing is not free (ie. it’s free to send an invoice but you’ll pay a fee off the transaction).

Another more robust option I suggest is Dubsado. It goes beyond invoicing and offers features like contracts, questionnaires, lead management, calendar management, and more. It can truly transform your business and save you valuable time. If you're interested in Dubsado, you can use the code "Elizabeth30" to get a 30% discount on your first month or year.

Read More: How To Automate And Systematize Your Service-Based Business

Still resistant to paying those credit card fees?

Sit down and do the math. Sit down with your iPhone calculator and a sheet of paper, and factor in the fees when considering the cost. For my own business, when I look at my template shop and the price of each template, there's the amount you see when you purchase a website template, but there's also the amount I see. I don't take home the total because of those fees. However, I factor them into the cost of running my business, my goals, and ultimately, the pricing of my templates.

By being more professional in your payments and invoicing, you'll set up your business for long-term success. I know it may seem like a lot to pay that $5 to $15 processing fee in the beginning when every dollar counts. But trust me, once you start accepting these fees and working them into your cost of doing business, you'll feel better. The time saved by using legitimate invoicing systems will likely make up for the fees you pay. Your clients will appreciate the professional approach rather than asking them to send you payment on a cash app. 

Additionally, remember that you can write off these fees on your taxes. They are tax-deductible expenses, which can reduce the amount of taxes you have to pay. So as you consider the cost of doing business, keep this in mind.

taxes-gif

Looking for your next paying client?

Let me interrupt this post for a second - if you're a brand or website designer and you're new to the business, looking to find your first or next paying design client ASAP, then you need to check out my guide on finding clients fast. Inside, I teach eight key strategies for finding clients as a designer. Discover great places to look for clients, creative ways to approach them, and practical tips for implementing these strategies. Grab your copy here.

 

3. Separate your personal and business finances. 

This one also relates to finances because I have found that we often stay in a hobbyist mentality when it comes to our finances. So, the third tip is to separate your personal and business finances. This is crucial and something I personally learned from not doing well early on. I'm thankful I made the shift early enough to avoid any major headaches. 

As a new business owner, it's common for your business and personal finances to be in one account. You might be running your business transactions through your personal bank account or credit card. And this may make sense when your income and expenses are low in your business, but hopefully, that will change soon. When it does, having your weekly groceries or buying your kids' diapers mixed in with your subscription or website expenses will become confusing and overwhelming. So it's best to make the change early. 

When I first started my business, I made the mistake of keeping everything in my personal checking account with my personal bank. It seemed fine since my startup costs were low and I was disciplined with spending. I even had a separate tab for business expenses in a Google spreadsheet. But looking back, I realize how crazy it would be to continue doing that now. With payroll and multiple software subscriptions, it would have become incredibly overwhelming. 

Read More: 6 Months Into Using The Profit First Accounting Method: My Honest Review! 

Setting Up a Business Bank Account

So here's what I recommend if you have both your personal and business accounts together. First, check if you can open a business account with the bank you already use for your personal finances. It's an easy option. Alternatively, if you have a specific bank in mind for your business, go for it. When you open your account, ask your bank about no-fee business banking accounts. Otherwise, they might try to set you up with an account that has a monthly fee of around $5 to $10. But trust me, most banks can work that out if you discuss it with them. At least, that's what I've experienced. So make sure you talk about it because you should be able to have an account that is free as long as you maintain a certain balance. In my case, I had to keep $300, and then there were no fees, which is totally worth it, plus you can have that extra money in your account. 

By the way, if you are interested in diving more into this, I recently did two podcast episodes (part one + part two) about business finances and how I handle them now (in 2023) using a system called Profit First. I wish I had read "Profit First" eight years ago when I started my business because it has truly changed everything for me. 

Want to learn more? Grab my free guide where I walk you through what I do every month in my finances here.

 

Bonus tip: Keep your expenses on a business credit card that offers great rewards and pay it off every month.

This will help cash flow in your business checking account, especially in the early stages when funds may be limited. It's really beneficial as you'll be earning cash back. The card I recommend is the Capital One Spark business card, which offers a fantastic cashback system. I personally use it for both my real estate business and personal business. While I do have one other business credit card, this is the main one I use for all my expenses. If you're interested, you can learn more about the Spark 2% cash plus card, which is the one I have, here.

Now, I do want to mention that if you have a history of struggling with credit card debt and tend to overspend, it's likely better to stick with a traditional debit card and spend only what you have. But if you're responsible with money and can pay off your credit card balance in full each month, using a credit card is a great way to earn extra money. Personally, I'm a big advocate for using credit cards and getting awesome rewards. In fact, most of our vacations are funded through credit card rewards, which is really cool.

4. Have a legitimate website presence. 

As a website designer, I have to stress the importance of having a legitimate website presence for your business. Relying solely on platforms like Instagram, Upwork, or word of mouth can be fun and effective, but it doesn't reflect a serious business mindset. Platforms can change their algorithms, rules, or fees at any point, potentially impacting your ability to find clients. A website not only showcases your professionalism but also provides stability amidst platform changes. 

With that said, having a website alone is not a guaranteed win. If your website is unattractive, poorly functioning, or difficult to navigate, it can actually harm your business more than not having one. It's crucial to have a well-designed and user-friendly website that appeals to your ideal clients. Next, I’m going to address three of the most common things I hear when talking to business owners about their websites.

Feeling like you can’t DIY your website?

If you're struggling with improving or editing your website, don't worry. Website development can be complex, but there are always ways to make it better. For starters, I always recommend Showit. If you've never heard of Showit, it's a website builder similar to Wix or Squarespace. It's what I use, along with my clients and customers, and it's excellent. For most small business types, Showit is highly recommended. You can either have a designer custom design your website or use a template that you can customize yourself. 

As a new business owner, getting a custom-designed website may not be the best option due to budget constraints and the likelihood of changes in your business within the first couple of years. If you're a new business owner, I highly recommend getting a Showit website template. While it may not be cheap, it's usually considered a valuable investment. Most Showit templates offer payment plan options to work within your budget.

Additionally, if you have excellent credit (like the Spark 1.5 Cash Select Card, which offers a $650 cash bonus when you spend $6,000 in the first three months), this can help offset the cost of your website template or full-year subscription to Showit. Take advantage of cash-back rewards to make the expense more manageable. I did the same thing (although there was a slightly different promotion at the time) when I started my business. I put ALL my expenses on the card to get that cash bonus!

But yeah, if you're new, I'd recommend using a good template. In my own template shop, I can promise you that they're easy to use with well-thought-out content, perfect for any industry. Plus, if you use the Code BBPODCAST), you'll get 10% off. So it's definitely worth checking out!

Read More: 5 Reasons Why Your Business Can’t Afford To Not Have A Website … Even If You’re Crushing It On Social Media Or 3rd Party Websites!

Showit websites for DIY beginners

Feel like you can’t afford a website template right now?

While I do offer payment plans, I don't know your financial situation. If you think you can't afford a website right now, you might be right. However, saving up for a website template should be a priority.

Are there things you can cut back on? Can you invest money from your personal life into your business? That's something I did early on, and it was helpful because a good website is worth the investment. It's something you can work up to. Launching our websites feels huge because it's an investment of time and money, and it legitimates us as business owners. It's really exciting.

Wondering if a new website should be a priority?

You might also think your website “isn't that bad, but I know it's not great”, and that's a common thought. If it's not that bad, other things can take priority right now. 

When it comes to business spending, it's important to consider how we allocate our time and energy. We have limited resources, so creating a priority list is crucial. For instance, there might be other areas in your business that require more attention and investment than a website, especially if your current website is not bad. As you address those higher-priority tasks, you can gradually focus on improving your website. 

However, it's also important not to settle for a website that you don't love in the long run. Remember, if you don't think your website is great, chances are your ideal client won't think so, either. This can adversely affect your business's confidence and how you present yourself to others. You’re not going to be eager to send people to a website you don’t love.

On the other hand, if you have a website you're proud of, one that effectively sells your brand and products, you'll naturally feel more confident directing people to it. So, aim for that level of confidence and strive to send people to your website as much as possible. Don't underestimate the impact of a well-designed website. If you're in search of website templates, check out mine here. 

Read More: How To Know When It’s Time For A New Website

5. Start calling yourself a business owner. 

I can reflect on my past self as a new business owner and remember how huge this was for me, and I believe it can be big for you too. Start embracing the title of a business owner. The work we do, our businesses, and our livelihoods - they all hold deep emotional significance. When we make the decision to venture into the wild world of entrepreneurship, it feels vulnerable and scary because we are placing our bets on ourselves in a way that isn't present when we accept a nine-to-five job. This isn't to undermine the difficulty and challenges of traditional jobs; but declaring, "Hello, I'm starting a business, and I'm going out on my own to provide for myself" feels especially vulnerable and intimidating. 

Interestingly, this vulnerability often intensifies with the people we already know, rather than strangers. This brings me back to my earlier point about hesitating to share content due to fear of judgment from people in our lives. Similarly, you might struggle to feel confident in telling an old college friend that you quit your job to start a photography business but you might not mind the same way when sharing the news with the vastness of the World Wide Web.

Keeping that in mind, I really believe it’s important to truly embrace our role as business owners. It's important for you to acknowledge yourself as a business owner, not just a freelancer or someone with a side gig or hobby. 

If you lack confidence right now, know that it takes time to develop. I used to stumble over my words when people asked what I do, and my husband, Adam, would playfully tease me about it. He found it easy to explain, but I struggled to take ownership of what I did. When people asked about my work, I would say things like, "I recently started freelancing on the side. I do social media management, graphic design, and branding, which involves logo and that kind of thing." That became my go-to response. It was the opposite of confidence and prompted follow-up questions like: “Wait, do you work for a company, or do you do that on your own?”

Now, I will say, “I own a web design company”. That's usually how I started out. I might also add that I host a podcast and have an online course for designers. Sometimes, I say that I create and design website templates. 

I'd encourage you to practice saying this. It might sound cheesy, but give it a try—stand in front of a mirror today. Whether you're washing dishes in the kitchen, at the gym, in the car, or walking, say out loud what you do. It could be "I own a wedding photography business" or "I'm a web designer." Learn to confidently say your answer. Remember, it's for your benefit, not the person you're talking to. Viewing yourself as a business owner will help you treat your business seriously, not as a hobby - which is the point of this entire episode.

5 shifts to go from freelancer to ceo

Ready to start taking your business more seriously?

Here’s a quick recap of the 5 things I believe you MUST do to take your business more seriously:

  1. Start marketing your business and creating valuable content
  2. Use a LEGITIMATE way to accept payments
  3. Separate your business and personal bank accounts
  4. Have a legitimate website presence you are proud to show off
  5. Start calling yourself a business owner

Before you go - are you in the Breakthrough Brand All Access Facebook Group yet? It’s free to join, and it’s where we take conversations like this one about stepping into a CEO mindset and go even deeper. Pop in and ask questions, share insights, and even peek behind the scenes of my own business and what I’m trying lately. I would LOVE for you to join!

 

Join breakthrough brand all access group

Links Mentioned:

Shop All of My Showit Website Templates (use code BBPODCAST for 10% off!)

Get Your Next Client ASAP With This Guide

Listen to Episodes 219 + 220 Where I Break Down My Profit First Finances

Sign up for a free Showit trial and get a month free

Check out the Capital One credit cards I use in my own business

Join my FREE Breakthrough Brand All Access Facebook Group

Connect with Elizabeth on Instagram

Join me inside Booked Out Designer

The post 5 Shifts I Made To Go From Freelancer to CEO When I Started My Business appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/freelancer-to-ceo/feed/ 0 7024 Steal my 8 Step System to Profit First Each Month (Part Two) https://elizabethmccravy.com/profit-first-steps/ https://elizabethmccravy.com/profit-first-steps/#respond Tue, 27 Jun 2023 06:00:00 +0000 https://elizabethmccravy.com/?p=6896 Get a behind-the-scenes look at the 8 step process I do at the end of every single month to manage my business' finances.

The post Steal my 8 Step System to Profit First Each Month (Part Two) appeared first on Elizabeth McCravy.

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Last week, I shared my honest review of Profit First, since implementing the Profit First Steps into my own business just over six months ago. If you haven’t listened yet, go back and listen to it because I share all about the percentage breakdown, how I set up my accounts, and how I use it to get an “at a glance” view of my business finances.

Today, I'm excited to share with you my detailed process of using Profit First accounting in my business each month. My system of doing it might be slightly different from what author Mike Michalowicz suggests in his book, and I’m also going to share a few extra things like my sales tracker in ClickUp. Essentially, I am going to take you on a deep dive of my process, sharing each step along the way. 

And listen - before I go any further, please remember that I'm not a financial advisor, accountant, or bookkeeper. I'm simply sharing my experience with using the Profit First steps in my business in a way that I hope will be helpful to you. I like to use Profit First FOR me, as a way to get a better understanding of my business's financial health in a more high-level way instead of always referring to a detailed Profit and Loss statement or IRS statement from my bookkeeper. 

Want these 8 steps in a step-by-step guide format with screenshots and examples? Get the FREE guide below! 

 

Before we dive in - are you in the Breakthrough Brand All Access Facebook Group yet? It’s free to join, and it’s where we take conversations like this one about business finances and go even deeper. Pop in and ask questions, share insights, and even peek behind the scenes of my own business and what I’m trying lately. It's a good time!

Join breakthrough brand all access group

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 220!

I’m very vulnerably sharing the 8 steps I go through each month now, because I know some of you may think some of these steps are weird or way too much - but this episode is EXACTLY what I do each month. I do have a task in ClickUp reminding me to do this on the last day of the month (or close to it) but to be honest - I usually don’t need the reminder because I’m so EXCITED to do it. 

I mentioned this in the last episode but again, this is different from bookkeeping/traditional accounting. In fact, what I see in my bank accounts as the income/revenue for the month is actually often going to be different than what my official bookkeeping books say because of money hitting accounts and leaving accounts at different times. But that’s okay for me! I don’t believe the effectiveness of the Profit First method needs to get everything down to the dollar. I have modified it in a way that works for me, that combines the Profit First accounts and percentages, my Profit sheet, and ClickUp (I have both a private space for me, and one I share with my team) to come up with a system that works for me!

how I use the profit first steps in my business

Step 1: Screenshot My Bank Accounts Overview

First I take a screenshot of my bank accounts dashboard BEFORE moving the money around at the end of the month. So for example, if I was doing money movement for May, I’d screenshot my accounts overview on May 31st when my income account is more flush because I have literally all of the money from that month in it. 

Some people move their money around multiple times a month but personally, while I DO like to check in more often (usually weekly), I like to move the money around just once consistently at the end of the month. 

I start a new document in my own private hub in ClickUp, and that’s where I save these screenshots each month (each month gets its own document). So that’s the first step!

Step 2: Write Spending/Income Notes 

Then, in that month’s ClickUp document, I put in notes from the month (basically anything I want to remember about how things went that month). Was it a good month? Did I have any sales or launches? Was it a low month? Did I make a big investment that month? The list goes on! I like to have a general notes section where I can jot everything down.

 Here’s an example, in February, I went to a mastermind retreat in Florida and spent a lot on travel. I flew there and probably shouldn't have. I broke down exactly how much I spent because of flying and decided (based on the math) that next time here’s a list of what I would do differently.

Step 3: Complete My Sales Tracker in ClickUp + My Sales Goal Analysis

This doesn’t have anything to do with Profit First but it is a step I do monthly. SEPARATELY, in another part of ClickUp that my team can see, I also have a sales tracking setup with Zapier where every time I make a sale it goes into ClickUp and then I categorize it. I go into our sales tracker and categorize things a few times a month so it doesn’t build up. In there, I can quickly see how many different types of sales I made that month, where that person found me, what payment plan they did, etc. 

Then, during my monthly Profit First steps, I do an analysis of my sales data. So for example, in May, my top referral for NEW sales was Google (with this podcast being a close second!). How fun that is to see?! And interestingly enough, sometimes I will see one month that paying in full was the most popular way people were buying from my templates. For Booked Out Designer, the 12 payment plan was the most popular. But that changes too!

Read More: How To Take Your Design Business From Burnt Out To Booked Out With Dream Clients

Aside from that, I make sure to set monthly sales goals for each of my products and keep track of them in the sales goal section of ClickUp. I update this area with the actual numbers to see if I have hit the mark or not and compare it to the prior month. As I do my updating, I add some sales notes, where I analyze the data, and see what clicked and what didn't. I also analyze my marketing efforts, such as how I presented myself on Instagram and the marketing tools I used. 

Doing this helps me understand the trends in my business so that I can make the appropriate changes and predictions going forward. My team can see all this information, and we often discuss it in team meetings. Additionally, I create private notes just for myself in the ClickUp area to use as a reference next year or even the year after!

Step 4: Pick Your Profit First Percentages For The Month.

 Although this deviates from what is recommended in the Profit First book, I've found that my percentage allocations have varied greatly every month within the 6 months I've implemented this system. While I do agree that it's important to determine your business' base numbers over time, I believe it's ok to slightly modify them based on the needs of the business that month and the next. 

For instance, in March when I had a lower month, I allocated 50% of my earnings to expenses in order to boost that account, whereas in normal months I allocate 25-30% to expenses. Then, April was a big month for me, so I did: 20% to tax, 35% to owner's comp, 35% to expenses and 10% to profit.

Read More: How To Think Like A 7-Figure CEO With Rick Mulready

A Summary of Profit First Account Types

Just as a reminder, the Profit First system has five different accounts:

  1. Your income account is what ALL revenue goes into
  2. Your tax account holds the money you set aside for taxes 
  3. Your owner’s comp account is money set aside to pay yourself 
  4. Your expense account is just like it sounds, a place for all the money you spent to come out. 
  5. Then finally, your profit account holds the money you choose to leave in your business for emergencies, larger investments, or yes - PROFIT. You can pay yourself a quarterly bonus from here too!

profit first steps using 5 recommended accounts

Step 5: Make Transfers

Once I decide on percentages for the month, it’s transfer time! I use a percentage calculator to calculate the amounts based on the total number in my income account. Then, I write it down in my private ClickUp document what went where (ie. I put 20% to taxes which was [insert the amount of money moved]).

After calculating it all, I add up the number and it should be just shy of the total in the income account! Basically, I then move ALL the money somewhere which leaves about $1-$2 in my income account (because I round the numbers). 

Because I have all of my accounts with the same bank, internal transfers are instant. It’s fun to watch the account balances change in real time!

Step 6: I Take Additional Screenshots

Once everything is moved, I take another screenshot for my document to show what it looks like now “after money movement”. Sometimes I will have already paid myself from owner’s comp prior to money movement, in that case, I’ll note that in the note section. Otherwise, I’ll do a third screenshot of where all the accounts are after I pay myself again. 

Step 7: Document in my Profit Sheet Spreadsheet How Much I Paid Myself That Month and Look at Totals Compared to Last Year. 

I have my Profit Sheet embedded in ClickUp so I can have everything all in one place. One of the things I love about Clickup is the ability to embed sheets, so I don't have to open Google Drive to view and edit my Profit Sheet. From there, I'll look at how much I've paid myself month-to-date and over the quarter. This helps me understand how much I should pay myself this quarter and how it compares to the last quarter or the same quarter two years ago.

To keep my husband informed (because he keeps track of our “personal” books, I'll text him with the month-to-date amount I paid myself. Although my salary tends to be consistent, I may have fluctuations due to bonuses, big launches, or lower months (which would then come out of my owner’s comp accounts.

Read More: Exactly How Our Real Estate Business Did in 2022 (Financial Numbers, Investing Strategy, and Working Together in Marriage)

calculating profit first steps each month in my business as a web designer

Step 8: Bookkeeper notes added and wrap up analysis all the way

While Step 7 technically wraps up my Profit First steps, later in the month once my bookkeeper gets me my financial numbers from the actual books being done, I add her notes to the document from that month too along with my official P&L (profit and loss statement) from the month so it’s all right there and easy to digest and reference over time! Like I said at the beginning - Profit First is less about getting everything to the dollar and more about getting a better overview of the financial health of your business regularly.

Read More: Ask My Bookkeeper Anything! Let’s Talk $$$ with Madison Brown

profit first steps monthly - using a calculator for percentages

Are you ready to try these Profit First Steps?

I hope these past two episodes about Profit First help make finances a little more fun and introduce you to the concept of Profit First again. If you missed last week's episode, go back and listen to it now. That way, you can gain more clarity about what I just explained and get a deeper dive into the Profit First method. If you need help tracking your finances and predicting your income, make sure you also check out my Profit Sheet. It's a financial spreadsheet that I personally use in steps 7 and 8 of my process to keep track of my numbers (and honestly - it’s a game-changer!). Enjoy!

Are you looking to upgrade your website without redesigning it from scratch?

You need to check out my Showit add on templates! In my template shop you’ll find podcast pages, sales pages, a landing page bundle, and the all-new quiz template and speaker page. These templates can be added to any showit website in just a few clicks and integrated into what you’re already doing. With you purchase, you also get access to tutorials where I’ll show you exactly how to set everything up and customize your new pages with ease and in under an hour. As a thank you for reading until the end - use code BBPODCAST for 10% off at checkout! Shop our Showit website templates now!

Links Mentioned:

Buy The Profit First Book

Looking for a better way to know your numbers? Check out my profit sheet

Join my FREE Breakthrough Brand All Access Facebook Group

Shop the Elizabeth McCravy Website Templates 

Check out Booked Out Designer

Sign Up for ClickUp to Start Tracking Your Finances

Connect with Elizabeth on her Instagram

The post Steal my 8 Step System to Profit First Each Month (Part Two) appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/profit-first-steps/feed/ 0 6896 6 Months into Using the Profit First Accounting Method: My Honest Review! (Part One) https://elizabethmccravy.com/profit-first-review/ https://elizabethmccravy.com/profit-first-review/#respond Tue, 20 Jun 2023 06:00:07 +0000 https://elizabethmccravy.com/?p=6887 Considering trying Profit Sheet? Or maybe you don't even know WHAT THE HECK that is, but you know you need a shift in your biz finances.. this is for you.

The post 6 Months into Using the Profit First Accounting Method: My Honest Review! (Part One) appeared first on Elizabeth McCravy.

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Hey friend, I'm SO excited you're reading this because I've been wanting to share my honest Profit First review for the last six months! When I started using this accounting method in December, I knew I had to share it with my podcast community. In this episode (part one of two), I'm going to share what Profit First is and how I set it up for my business. But listen - if you're new to Profit First, that's okay! I'll explain it all to you. And if you're not a fan of accounting, I get it. But I promise that in this episode I am going to make it practical and share what's working for me financially right now. 

I’m sharing all about setting up Profit First accounts, my different percentages, how I close out my finances each month, and more. There's a lot to cover… so let's get started! And hey, if you love this topic, be sure to tune in next week for part two, where I'll go even more in-depth and walk you through exactly how I manage my finances at the end of each month.

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 219!

Join breakthrough brand all access group

Before we dive in - are you in the Breakthrough Brand All Access Facebook Group yet? It’s free to join, and it’s where we take conversations like this one about business finances and go even deeper. Pop in and ask questions, share insights, and even peek behind the scenes of my own business and what I’m trying lately. It's a good time!

What is Profit First?

Profit First is a book by Mike Michalowicz, but honestly, it’s more than a book… it’s an entire money management system for businesses. In fact, many people who do “Profit First”, don’t even read the book. You just figure out how to do it and go for it! I have to be honest with you, even I’ve only read SOME of the book. I think maybe I will come back nd finish it at another time but I personally feel like I took what I needed and was ready to run with it. In my Profit First review I have to say - the book is good but the system is GREAT. 

Here’s what he says on his website:

“I created the Profit First system to eradicate my own financial struggles. And I am honored to say, that as of writing this, over 175,000 companies have implemented the system. The method is simple. Every time you get a deposit from sales, take a predetermined percentage of that money as profit. Of course, there are a few more steps than just that. But even with the simple first step, of taking your profit first, you will become permanently profitable. Profit is not an event. Profit is a habit. This book will show you exactly how to do it.”

Doesn’t that sound good? Another way to explain it is that traditional bookkeeping describes profits as “what's left over” after you pay everything else. As the name suggests, the Profit First accounting method prioritizes profits before dealing with operating expenses. Small business owners take profits out of the cash deposits from sales.

Now if that all sounds complicated, I promise you that it’s way less complex than it seems. Before implementing and writing this Profit First review myself, it felt like this far off thing that I heard other people talking about, and then when you start doing it, it all makes sense and clicks together. 

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Setting up Profit First Bank Account

I’ve always been one to pay myself first, but for me, what really defines Profit First is the way that you use multiple bank accounts and move your money around before it gets spent. It kind of feels a bit like putting your business on a budget!

And listen - before I go any further, please know that I'm not a financial advisor, accountant, or bookkeeper. I'm simply sharing my experience with using the Profit First system in my business in a way that I hope will be helpful to you. While I'm no expert, I have figured out how to make the Profit First system work for me and my online business. And in the interest of full disclosure, I've put my own spin on some elements due to the type of business I have and the specific expenses I incur. If you are running an online business, I’m sure you will be able to relate.

Now - let’s talk about setting up Profit First bank accounts because the different accounts is a KEY part of following Profit First, and it’s personally what I have loved the most.

What my business accounts have looked like over the years

First, let me just say that for the first 6-12 months of my business, I operated everything through my personal accounts. Yes - I was that person! It wasn’t until I had more significant paying clients that I made the leap and opened a business bank account.

When I first opened my business account, it was ONE single account. All money came into and went out of that account. If I needed to set aside any amount of money for emergencies or taxes, I had to manually note it down in a spreadsheet or document. This was the way I did it for years, but I never really loved it. 

Not too long after, I opened another account with a different label - a savings account. However, I was still using only the primary account for all income and expenses. Consequently, my savings account became the place where I would “save” for emergencies and taxes, and it would also have my “profit”. While this did “work”, I always felt like I was missing something and I didn’t love that I could never see my high-level numbers “at a glance”.

Enter: Profit First. And my honest Profit First review is that I LOVE it. I love the way I'm doing it now I feel like I have new money confidence and clarity from this whole experience. I feel like I know what's happening in my business finances way more than I used to because I have this cash flow and I'm telling money where to go, I'm saving more directly and I just see everything really clearly at a glance!

Read More: Wealthy Women Know Their Numbers: Building Long-Term Wealth Through Money Mindset And Money Management With Erinn Bridgman

Choosing a Bank for Profit First Accounts

I chose to use my local bank for my Profit First accounts because I was already using them for my personal finances and for our real estate business. With this one bank, we now have 9-11 separate accounts for all these different aspects of our lives and businesses. So - it’s a lot. I have five bank accounts for this business alone. 

When I initially opened a business account, I was paying a monthly fee to the bank. Reflecting back, I should have noticed it sooner and talked to the bank about removing the fee. As soon as I reached out to the bank, they agreed to switch me to a type of business account that was fee-free. If you're getting hit with a monthly fee just for having the account, I would encourage you to reach out to the bank and ask to have it removed, especially if you're carrying a decent balance in your account. Most will do it (in my experience!).

Right now, I have 5 business accounts, nicknamed with my Profit First names, but they are all checking accounts. 

If you are struggling with managing your finances and want to try the Profit First system without opening separate accounts (which - full disclosure - he does NOT recommend in the book), you can try an app like YNAB (you need a budget). I personally preferred to follow the recommended method of having separate bank accounts. It gave me a clear-cut view of how much money was allocated to each category and made it easier to manage my finances. But I understand that may not work for everyone!

There is also a new bank called Relay which I just head about and I believe is going to be an official Profit First bank. So that would be cool too!

 

Are you ready to start Profit First but are thinking - wait, I need to get more paying clients first? 

Like I said - I waited until I had regular paying clients until I opened up a separate business account so I get it. But lucky for you, I have a very practical and very free resource to share with you. This guide walks you through eight key strategies for finding clients as a designer, including things like: great places to look for clients, creative ways to get new clients that you might have never thought about, practical tips for implementing these strategies and so much more. And it's absolutely free to you! Grab your copy here.

updating my website for 2024

My Profit First Bank Accounts 

When I went to open these new bank accounts it turned out to be a bit of a process, but it was totally worth it. I made an appointment with my local bank and went in to get it all sorted. I figured it would be a bit of a hassle, but I didn't know just how long it would take. I had to get a bunch of different numbers and documents, including my S corp numbers and proof of registration for my business (just as a heads up!). It ended up taking several hours over the course of a morning, but the bank representative who helped me was very lovely.

Despite the time it took, I'm really glad I went through with it. It's kind of like going to the doctor when you're sick or getting your car's oil changed: you dread it, but when it's done, it feels like a huge weight off your shoulders. Now I have five checking accounts set up for my business, which might sound like a lot, but I have good reasons for it. I want to be able to move money freely and without any fees or restrictions, which can sometimes come with other account types like savings or money market accounts.

5 Profit First Accounts:

  1. Income (where your real revenue comes in - this account ONLY receives money)
  2. Expenses (exactly what it sounds like!)
  3. Owner’s Compensation (money I’m setting aside to pay myself)
  4. Taxes (again - exactly as it sounds!)
  5. Profit/Emergency Fund (technically your profit account isn’t supposed to be used for emergencies but that’s what I use it for!)

Which is exactly how he recommends you do it in the book. After I opened these and everything was set up, I also had to switch over things with all the software I pay for and people that I pay. So I had to switch things so that PayPal and Stripe sales would go into my “income” account and because I do most of my purchases on my Spark Capital One card for my business, I had to switch that card to being paid from my “expenses” account. So it took like a month for me to get all of that hooked up right? Again, in the interest of transparency in this Profit First review, it’s a process to set everything up but that’s fine! It’s still totally worth it.

Read More: 8 Money Strategies That Every New Entrepreneur Needs To Know

How the Profit First Accounts Work 

PayPal transfers, Stripe transfers, or other payment methods should be recorded in the income account of your business. The income account should only contain cash inflows, and there should really be nothing coming out of it except for internal transfers. That’s one of the reasons I like it. If you use the Profit First system, you can easily track how much revenue has come into your account so far this month, which is so helpful as a business owner. 

Expenses such as credit card payments, payment processing fees, and payments to team members or contractors are all deducted from the expenses account. At the end of each month, the expenses account will show one significant transfer in (from your “income” and multiple small transactions out, which should add up to the total sum of your expenses for that month. 

At the end of the month, you are transferring everything that came in (into your income account) out to your different accounts based on the percentages you choose. So ideally, this account should start the month and end the month at $0.

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Profit First System (A Profit First Review)

It’s important to note here: Profit First is not like typical bookkeeping; it is more like financial management. Hence, the cash flow situation is monitored closely by the business owner, ensuring that there is always a positive cash flow in the business, regardless of the state of your current bookkeeping.

A Profit First system allows you to transfer money from the income account to the remaining four other accounts at the end of every month. The percentages of these transfers are dependent on the revenue earned by your business, but to give you an idea, he suggests if your annual revenue is below $250,000, your percentages should be:

  • 30% to expenses
  • 50% to owner's comp
  • 15% to tax 
  • 5% to profit

Knowing what the percentages “should be”, gives you such quick clarity and you can look at those numbers and see things like “oh - I’m making under $250K but I’m spending like 60% on operating expenses which is too high for what they recommend.” Of course, all businesses do things differently so you have to think about your unique business, but at least you have a jumping off point!

Here’s the chart from Profit First if you are curious!

chart breakdown of profit first review percentages

What personally works for my business right now is:

I have to be honest - I have made changes to these percentages in the last six months I have been doing this. Not big swings or anything, but I’ve adjusted accounts by 5% here and there based on what is going on in my business.

To give you some tangible numbers though, here’s how I broke my income down last month:

  • 3% to profit
  • 55% to owner's comp
  • 8% to tax
  • 34% to expenses

It seems like the mix I'm working with is really similar to businesses that generate 250K-500K and 500K-1mil but I’m actually taking a lower profit percentage because right now I feel like that account is flush with cash to be honest and I feel like the money I’m making is actually better used elsewhere. 

Read More: 7 Ways To Use Your Money To Get More Time Back In Your Life (Trading Your MONEY For Your TIME!)

Managing your money monthly

As a business owner with multiple sources of revenue, keeping track of my finances can be a bit daunting - especially before  Profit First. I’m sure you guys can relate - I use multiple platforms like Thrive Cart, Stripe, and PayPal to manage my sales, and each one has its respective revenue data so it’s hard to see how much money I’ve made in a month “at a glance”. Add to that the various expenses paid for by credit card or directly from my bank account, and it's a mess. I used to have to wait until the end of the month when I got my Profit and Loss report back from my bookkeeper to truly understand how the month went.

Using my Profit First accounts, I log into my bank accounts usually once a week and take a high-level view of where my finances stand for the month. I also pay off my credit cards a few times throughout the month in order to maintain an accurate representation of my expense account. 

someone holding their credit card after reading profit first book review

An Honest Profit First Review

To sum up my experience - I have to say, it's been a true game changer for me. This tool honestly feels like the missing piece I needed to really analyze and make decisions in the financial side of my business. It's helping me keep track of income and expenses, understand sales, and save up for important investments with more confidence than before. The best part? Setting it up was actually way easier than I thought it would be. I just love how intuitive and useful it is! If you loved this episode, make sure to DM me on Instagram and let me know! And come back next week for part two!

Elizabeth McCravy Showit Website Templates 

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Our SEO-friendly templates are more than just pretty; they have a strategic backend that's sure to help you book more clients and customers. As a thank you for reading until the end - use code BBPODCAST for 10% off at checkout! Shop our Showit website templates now!

Links Mentioned:

Buy The Profit First Book

Looking for a better way to know your numbers? Check out my profit sheet

Book Your Next Client ASAP 

Join my FREE Breakthrough Brand All Access Facebook Group

Shop the Elizabeth McCravy Website Templates 

Check out Booked Out Designer

Check Out The Official Profit First Bank

Connect with Elizabeth on her Instagram

The post 6 Months into Using the Profit First Accounting Method: My Honest Review! (Part One) appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/profit-first-review/feed/ 0 6887 Wealthy Women Know Their Numbers: Building Long-Term Wealth Through Money Mindset and Money Management with Erinn Bridgman https://elizabethmccravy.com/wealthy-women-money-management/ https://elizabethmccravy.com/wealthy-women-money-management/#respond Tue, 16 May 2023 06:00:00 +0000 https://elizabethmccravy.com/?p=6776 Today on the podcast, we are talking about becoming wealthy women. To be honest, I don’t believe this is talked about enough. So often, the focus is simply on making more money but what happens after that? After you pay yourself, what do you do with that money? I interviewed Erinn Bridgman, who has built […]

The post Wealthy Women Know Their Numbers: Building Long-Term Wealth Through Money Mindset and Money Management with Erinn Bridgman appeared first on Elizabeth McCravy.

]]> Reading Time: 11 minutes

Today on the podcast, we are talking about becoming wealthy women. To be honest, I don’t believe this is talked about enough. So often, the focus is simply on making more money but what happens after that? After you pay yourself, what do you do with that money? I interviewed Erinn Bridgman, who has built an empire in real estate investing, and is a money mindset coach for female entrepreneurs. She's not only shared her story, but has actionable tips and tangible examples how how you can become a wealthy woman too.

 

In this episode, we talked about:

  • How she used funds from her photography business to fund her real estate business in the beginning 
  • Her journey in real estate investing so far (from her first home flip to now managing 20 doors)
  • How our money mindset affects us as women especially
  • The difference between being profitable and being wealthy
  • How (and when) we can raise our salary as business owners
  • Advice for going into real estate investing with family and friends

 

And so much more. Seriously, I LOVED this interview and I know you will too. Whether you are interested in real estate or not, I loved having her share her perspective on building long-term wealth on the podcast today!

LISTEN TO THIS EPISODE NOW:

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Search for episode 214!

About Erinn Bridgman

I’m a money business coach for creative female entrepreneurs. I help the entrepreneur who knows how to make money - so generally they're making at least $100,000 in business revenue - but they know they have some skeletons in their closet around how they think about money and how they manage the numbers inside of their business and in their life. I want to help them become wealthy women. That’s the kind of work I do within my coaching business. 

 

Erinn’s investment in real estate

Back in 2014, we made an investment into our first property. We did that through the excess we had through our photography business. Since then, we've scaled. Now we have 20 doors and we have about 3.4 million dollars right now in flipping. For us, real estate is how we are working to build long-term wealth and also cash flow into our lives. Our goal is to be able to retire in five years. I love this term someone used, they call it “Desirement”, not Retirement. I’m an enneagram 3, so I’m not going to stop working, but I will no longer have to work for money.

 

For readers not in real estate, what do you mean when you say you have 20 doors?

Yes, a single family home would have one door, a duplex would have two doors, a triplex would have three doors. For us, it’s a mixture of single family homes and duplexes that make up the 20 doors.

 

At the time you invested in your first property, you and your husband both had student loan debt but you chose to invest in real estate instead of pay off debt. How did that feel?

I grew up with Dave Ramsey. Brett and I did financial peace university before we got married. I do think some of his advice is very valid and very helpful. I like to stir the pot though and remind people that his main audience is somebody who works nine to five, who has a very particular salary, and who has a very particular take home. He’s not speaking to the entrepreneur. At the time, we did a very anti-day Ramsey thing and it ended up being something that I teach and now live by. 

That being said, we didn’t make the decision flippantly either. We knew there was risk and reward, but ultimately we felt comfortable investing for a few reasons like:

  • My husband’s dad had knowledge around investing in real estate
  • It wasn’t as expensive to get into real estate in my city compared to others
  • I grew up in a college town and had connections that would help me fill rentals.

My first investment into real estate was around $20,000 - which was my annual salary at the time. It felt like a LOT of money. But we had big devotion to our goals which were mainly to be debt-free and live a more expanded lifestyle. But it was also the most money I had made at one time and part of me did just want to roll around in it and enjoy it.

One of my own stories that I’m constantly trying to reframe is, “I have to work really hard to make good money”. I’ve had to really embrace this idea that your money can work hard for you.

 

How has your journey in real estate looked from the first property to seven million dollars in investments overall?

It sounds more glamorous than it is! Every door and/or milestone comes with joy and comes with pain. Brett and I like to say “education is expensive” and we are constantly trying to take that perspective with it.

High level: we started with one property which built our confidence. My dad has to cosign with us. We got a typical Fannie Freddie loan. Then, we started to house hack. 

For people who are interested in getting into real estate, I like to ask: How can you be super savvy with your primary residence? Or, if you’ve already bought your first home, maybe you can get a HELOC and use that money to invest in something else.

When I say we house hacked, I mean our first home was a really crappy home, worth like $150,000 and then we funded the flip through sweat equity and cash from my photography business. Then, through a reappraisal the home was worth $300,000 so we were able to borrow more money because of that. We eventually sold that home for $500,000. Obviously we put money into it, but I think we made a couple hundred thousand dollars on just this one property, which we then rolled into other investments.

When I say each flip comes with pain, I mean we were spending weekends painting and extra money was spent on countertops instead of going out with our friends.

Around the time we sold this first home, we started to tap into hard money lending. I think a common myth is that you need a lot of money to get into hard money lending and it’s just not true. When it comes to real estate, $40,000 is a great amount of money to start being able to invest in real estate. And it doesn’t have to be all cash! You can use money from your HELOC or something like that too.

Read More: Exactly How Our Real Estate Business Did In 2022 (Financial Numbers, Investing Strategy, And Working Together In Marriage)

 

wealthy women know their numbers in order to become a wealthy woman

 

What is the day-to-day look like managing 20 doors?

You are finding me in the messy middle! We are still trying to figure out our long-term vision and deciding how we want it to look like. But we do work very collaboratively with the team we built and we feel supported by that. We have three full-time employees that are absolute rockstars at what they do. Right now, we are doing the EOS style referenced in Traction. My advice is to empower your employees and hold the vision. Eventually, I want real estate to take up about 8-10 hours of my week so I can focus more on my coaching business.

 

What does “money mindset” mean to you as a money mindset coach?

Simply put, it’s your thinking around money. It can be very woo-woo but personally, my background is very science-oriented. While I try to lean into the woo, I am logic-focused first. 

In the coaching side of my business as a money mindset coach, I blend money mindset and money management. Besides “just” thinking about how our thinking creates our actions, it’s also important to look at how we actually manage our numbers to become wealthy women.

Many creative entrepreneurs are amazing at what they do. They're incredible photographers, designers, illustrators, etc, but they sort of inherited the business. To me, if it’s a business, not a hobby, that means that you're profitable, that you know your numbers, and that you're paying yourself a consistent salary. Yet many times money was a skeleton in the closet and it felt like I talked to people who were closing their eyes or hoarding their money instead of investing in their team or equipment and just hoping for the best. 

 

Money Mindset is MORE Than Money Stories

Our brain is designed to keep us safe. I heard this stat once that was like “you have between 6-60,000 thoughts a day and 80% of your thoughts are negative”. But the good news is - we CAN change the actual composition of our brains. 

We have all inherited individual money stories, but there are patterns with women and money specifically like:

  • Women invest 40% less than men
  • Most women have no emergency funds
  • 71% of women hold their assets in cash instead of investing 

Women couldn’t open their own bank account without a man until the 1960’s and couldn’t have their own credit card until the 1970’s. This is a deeply systemic issue that women face, beyond just our personal stories. So grace is needed!

Women listening to this episode right now, are on the frontlines of this change. We have the ability as women to make the most money that we've ever made in history. As entrepreneurs, we have the ability to go to the market and raise our prices and make more money.

If you feel like you have a “bad” money mindset, let me just say: you are gutsy enough to go out into the world and say my product or service deserves an energetic exchange of money. That’s ballsy. Give yourself credit! 

 

What is a Money Loop?

The money loop, put simply, is this: Our thoughts create a feeling, that feeling creates action, and that action creates a result.

 

Whatever we are thinking about right now is neutral. 

 

For example, you have X dollars in your account. That’s neutral. But your thought could be, “I have this many clients now; what if I don’t have them in the future” and that might make you feel like clinging to your money and feeling fearful. That might lead to an “action” of cutting down your marketing spend or lowering your prices. Then, the result might be then having fewer clients or money.

Another perspective could be you have the same amount of money in your account, but your thought could be, “I have enough right now and I know I’m a creative and resourceful person who can bring more in at any time”. If you think like that, you’ll feel more abundant and flowy. Then the action could be showing up on social media more and because your vibe is high, the result will be that your business will see more success.

Often, it’s hard to catch yourself in a negative thought so sometimes it’s easier to reverse engineer the feeling. If you want to feel abundant, what does your thought need to be? If you find yourself in a result you don’t like, what actions and feelings got you there? What could you think instead? 

 

What’s the difference between profitable and wealthy?

Profit and wealth fuel each other. To me, wealthy is when money transfers over from your business into your personal world. A business can’t have a wealthy identity. A profitable business can make us a salary that can make us wealthy women. Wealth can’t just be quantified in money either, it can be time freedom as well. 

Read More: How To Increase Your Profits In The New Year With A Quick Evaluation Of These 4 Things

 

Erinn shares the difference between profitable and wealthy

 

Steps to Raise Your Salary as a Business Owner

Every business is different, but here are 4 simple steps to figuring our how you can raise your salary as a business owner.

  1. Put your current salary on auto-pay
  2. Monitor your business’ profitability and cash flow. 
  3. Learn how to calculate your projections beyond a Profit and Loss Statement which only shows you present and past. 
  4. Once you get confident in knowing what you truly have coming in as profit, readjust to a higher salary.

Read More: Ask My Bookkeeper Anything! Let’s Talk $$$ With Madison Brown

 

Why did you choose to invest in real estate? Do we need to invest in real estate to become wealthy women? 

Brent had watched his father do it, so it was an attractive way to build wealth to him, and he was also very handy, so it was accessible for us to do a lot of work ourselves. We also have a low barrier to entry in Indianapolis because our average real estate purchase is around $175,000. 

Something we say is this: do you want to be the unicorn who makes a lot of money in a random way or do you want to be the 9/10 who builds significant wealth through real estate?

Everyone needs a home and it’s one of the biggest investments most people will make. On top of that, because it’s a popular way to build wealth, many people making decisions around the law and tax breaks have their money in real estate as well. 

 

Is real estate passive income? 

I wouldn’t say it’s passive income but it is very scalable income.

 

Advice if you feel like the barrier to entry in real estate is too high

If you feel like the barrier to entry is too high, the first step of investment is always in knowledge. Think of ways you can get resourceful: maybe that’s getting a HELOC or living on one side of a duplex and renting the other. Maybe it’s renting through Airbnb. Maybe you can improve your own residence and add value, or maybe you even borrow money through one of your connections. Those are great ways to dabble into making money through real estate.

 

Advice for investing in real estate with a partner or a family

When considering something like that, consider if you need unsecured debt (not tied to an asset) or if you are seeking hard money lending (tied to an asset). When we invested with a family member early on, it was hard money lending and he made 12% interest annually on the money he lent us. 

With a partner, I feel like you have to assess these things before deciding whether or not it’s a good fit:

  • What is the value I'm bringing? 
  • What is the value they're bringing? 
  • What is the vision?

And it’s really important to be on the same page for all three and make sure you are both bringing equal value to the table. You also need to understand that the partnership will be long-term.

I have some of my closest relationships working with me in my business (my sister works for us full-time, I run the business with my spouse, we have our dads investing) and there is so much joy and pride in that. 

And also… it can be very messy. Not always, but sometimes situations with money can be icky. I think Brene Brown says “clear is kind” and that resonates with me. Overcommunicate when it comes to money or working with family/friends.

Read More: 5 Properties Later… What Wish I Knew Then That I Know Now — Real Estate Investing Edition!

 

Erinn Bridgnab answers rapid fire questions about building wealth

 

Rapid Fire Questions with Erinn Bridgman

What’s a purchase of $100 or less that has positively impacted your life in the last six months?

Lululemon underwear. If you are looking for small upgrades that can make you feel like a wealthy woman now, start with linens, towels, or lululemon underwear.

What is your favorite failure?

Our most recent flip. It was the biggest real estate piece we ever put on the market and we kept getting negative feedback about it. We just took it off the market, which was super humbling, but it just went pending off-the-market yesterday. It taught us a huge lesson about doing things excellently.

What’s your goal retirement age, and what are you most looking forward to?

Our goal is to retire in 5 years. We currently have 20 doors, and we would need about 50-60 doors to retire based on our lifestyle and how much we are currently cashing in per door. My lifestyle won’t change that much but I won’t have to make money.

 

Want more from Erinn Bridgman?

Make sure to follow her on Instagram and listen to her show The Wealthy Woman Podcast! She also has a wealthy woman checklist you can download FOR FREE here. 

Ready to Build Wealth? My Profit Sheet is Here to Support You!

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  • What is my profit margin?
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All in a convenient Google Sheet form (that you can download and use in excel - if that’s your preference. Did I mention it’s only $37? Get instant access here.

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Links Mentioned:

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The post Wealthy Women Know Their Numbers: Building Long-Term Wealth Through Money Mindset and Money Management with Erinn Bridgman appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/wealthy-women-money-management/feed/ 0 6776 5 Properties Later… What Wish I Knew Then That I Know Now — Real Estate Investing Edition! https://elizabethmccravy.com/real-estate-properties/ https://elizabethmccravy.com/real-estate-properties/#respond Tue, 24 Jan 2023 05:00:21 +0000 https://elizabethmccravy.com/?p=6051 We are back for part two! If you missed our episode last week, make sure to check out that one first (we share real numbers for three of our five properties in 2022). Once you have, you are ready for the good, the bad, and the ugly - which we will share here! We’ve learned […]

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We are back for part two! If you missed our episode last week, make sure to check out that one first (we share real numbers for three of our five properties in 2022). Once you have, you are ready for the good, the bad, and the ugly - which we will share here! We’ve learned a LOT since buying our first real estate investment property in 2021. Now five real estate properties later, we are sharing 7 things we wish we knew before purchasing our first home! 

If you are new here, welcome! I’m raising my hand to say I am not a real estate educator by any means and neither is my husband. In fact, I’m a website designer and business mentor. If you are an aspiring (or current) branding and website designer, you’ll love my signature course Booked Out Designer. If you own another type of business and want to have a presence online, you’ll love my ready-to-use Showit website templates. 

If real estate investing is something you’ve gotten into or have thought about getting into, this episode is definitely for you!

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 198!

For Adam and I, real estate is a side hustle and a big part of how we are spending the “extra” money from my online business. While the last episode was more granular, this one is more big picture, conceptual oriented lessons we have learned five real estate properties later. Let’s dive into it!

1. Finding Good Tenants is so Important and so Hard

Finding good tenants is one of those tasks that have the most potential for pain. While it doesn’t always have to take a long time, it definitely can be hard to find the right tenants at times. Don’t get me wrong, we knew this “in theory” but living it two years later is a lot different. We’ve worked with 8-10 tenants in the last two years and most of them have been great. We don’t want to come across as negative, at all. In fact, last Christmas one of our tenants gave us handcrafted ornaments for our Christmas tree which was really meaningful and sweet. 

So far, we have had two bad experiences (but neither was a catastrophe). By catastrophe, we mean have not received money due or have had our real estate properties damaged. We have chosen to self-manage our properties while Adam has the time right now, and we’ve had two tenants create more work than should be necessary. While this makes our profit better because we aren’t paying someone else to manage it for us, it does make finding good tenants from the start even more important.

husband and wife buy 5 real estate properties and self manage them from their kitchen

We talked about this in the last episode about how the mental load of real estate investing is much greater than any of the “hours” worked. I want to also stress this here: the credit scores and financial status of the two tenants could not have predicted the problems we had getting money from them. Finding good tenants is so much more than checking their credit scores.

The worst tenant we’ve ever had is also the tenant that had the most money. What was difficult about them was that they were very needy. We like to think we are good landlords but we felt these people kind of took advantage. In retrospect, there were signs from the start that we ignored from the beginning because we focused too much on the money and their credit score. 

You can read more about screening tenants and how we use “My Smart Move” here.

At the end of the day, we want to encourage you to trust your gut. 

Your gut is never wrong. Your brain can talk you into anything but your gut does not lie. Try to tune into that when you interact with potential tenants.

Another tip we have if you are investing in real estate (or even in the business you have now!) is that with every interaction, you are teaching your customers how to treat you. For that reason we like to discourage texting from the hop otherwise it becomes too easy to text over every little thing on a Sunday night. 

Obviously, we are talking about small things here and not things like “water is leaking in the basement” or “we have no heat” that might be true emergencies. We are talking about things like “one kitchen light isn’t working” kind of messages.

If you’ve ever responded to emails quickly on evenings and weekends in the past, you know that your customer will quickly start to expect that from you. Owning real estate properties and dealing with tenants has been the same! You are the one that sets the norms and expectations so be intentional about that from the start.

 

2. There are resources available that will make your life easier.

We wish we had known about these 3 resources a lot sooner!

  • Turbotenant: This is what we use now to collect rent digitally without paying fees. 
  • My Smart Move: this is the software we use to find credit scores and run criminal record checks. 
  • Create a list in Google Docs with a list of vendors. When you find a good vendor, keep track of their information. 

While the last one is less of a resource, it’s made our lives a lot easier. You’ll need a plumber, painter, electrician - the list goes on and on. Don’t forget to price check too. Adam saved us $2000 earlier this year just by making a second phone call. 

 

things to make buying real estate properties easier

 

3. Buy for the price, not the interest rate.

When you look at getting into real estate investing, you’ll likely be looking at your monthly mortgage payment. Keep in mind, the price of your mortgage payment is largely made up of your interest and principal (cost of the house). In the beginning, we were highly motivated by low interest rates. That worked because they were at a historic low - so maybe it was the one time in history to buy for interest rates - but if you have to prioritize focusing on one or the other, we believe the price of the home is more important. 

At the end of the day, interest rates change. You can always refinance when interest rates change in your favor. The price of the house never changes and this matters when you go to resell. When we purchased during a time of low interest rates, we still made sure we felt we were getting a good price.  

If you tune into the episode, you’ll hear us talk about the Alabama house and how we may have had our eyes a little too focused on the interest rate when we wish we had focused more on the price. While ultimately it will still lead to profit eventually, I love the way Adam put it when he said “it won’t be a catastrophe, but I won’t be adding that purchase decision to the highlight reel”. 

Read more: Thinking of growing your real estate business on the side? Here’s why I think side hustles are a truly wonderful thing.

 

4. Calculating Capital Expense (+ The Age of HVACs).

Next, we wish we had known a little more about calculating the capital expense on our real estate properties. Capital expense is real estate jargon for big-picture renovations that add to the value of the home. We aren’t talking about leaky faucets over here. This is more about renovating a total kitchen or (in our case) buying a new HVAC. 

Capital expense is the sneaky thing that makes your profit less than you think it will be. These are big expenses that don’t happen all of the time. The simplest way to calculate this is to add up everything that needs to be replaced over time divided by the number of years it will last. For example, if a roof costs $20,000 and should last 40 years, you’ll have $500/year for capital expenses on the roof alone.

This also might just be bad luck, but we have only been in this two years and we have replaced two HVAC systems which take about $12,000 from our “profit”. In two years. While we did know capital expense was a thing, we focused more on things like the roof and less on things like an HVAC system.

Read more: If you are stressing about your profit year over year and need a little encouragement, read this. 

 

5 & 6. It’s easier to rent out a townhome than a stand-alone single-family home (and vacancy is a KILLER).

Of our five real estate properties, three of them are townhomes and two are stand-alone. One of the stand-alone properties used to be our personal home so it is a little big to be an “easy” rental property. To date, it’s been the house that’s taken the longest to rent out. It sat empty for about 6 weeks which doesn’t sound like a lot, but trust us, it is! This is when you start negotiating with yourself about whether you should lower the rent just to rent it out faster or if you should hold out. Both cut into your profit margins. 

In the past, we had always found tenants for our townhomes within a week. When we look at townhome renters or condo renters (typically), they are more transient. They are likely renting your townhome mostly for location, and they don’t want to commit long-term necessarily but they want something close to work. Overall, they tend to be less picky about which particular townhome they rent. 

Now, let’s compare this to a stand-alone home where you are likely going to attract tenants who are ready to set down some roots. They are pickier. They are looking at the yard, the street, the neighborhood, and the finishes/colors. It takes more time. 

There is also just more expense when it comes to single-family homes. In a townhome, you don’t need to think about the roof or the windows or any part of the exterior really. The expenses really are so much less (and you carry less mental load too). The amount of time we have thought about the lawn on the rental properties might surprise you!

husband and wife talk about their real estate properties

If you are looking to get into real estate investing, we ultimately believe townhomes are a lot easier. But in the interest of transparency, stand-alone houses also appreciate more over time.

 

7. Rent Increases Every Year (Yay!)

We thought we would finish with an upside! A lot of people talk about this in real estate, but when you are crunching your first year numbers, your potential rent is the lowest it will ever be. We raise our rent with every lease. Just as there is inflation every year, your rental income will increase every year but your biggest expense (the mortgage) will likely be fixed.

 

say yes to real estate properties

 

Did any of these real estate properties lessons surprise you?

You know I don’t skim the surface around here and I would love to hear if any of these 7 lessons surprised you the way they did for us! DM me on Instagram and I will be sure to share your feedback with Adam too! While I won’t be creating a real estate investing course anytime soon (haha!), I know in my annual survey this year you all mentioned you love to peek behind the scenes. If you have any questions about our real estate ventures so far, we would love to hear that too!

 

My Showit Website Templates (+ How we Started Our Real Estate Business)

I know this episode was all about real estate but I wanted to take a second before I let you go to talk about your website. Our real estate business is funded almost entirely from my website (where I house my courses, my templates, and the podcast!). How you look online matters. If a picture is worth a thousand words, I would say a good website is worth a million. Having a strong online presence is INVALUABLE. 

If you are looking at your website (or lack of) and know that something needs to change this year, you can shop my fun, personality-packed, easy-to-use Showit website templates here. A new website doesn’t have to mean coding (or crying). A good website doesn’t have to be frustrating. In fact, it can be a place that you can’t wait to send potential customers to. A recent template customer recently told us they actually can’t wait to start blogging now that they have something to show off!

Links Mentioned:

Check Out Booked Out Designer

Binge Our Other Real Estate Episodes: Part 1, Part 2, Part 3

The Book Mentioned: How to Invest in Real Estate

Spark Cash back Card

Connect with Elizabeth on Instagram

Shop Showit Templates 

The post 5 Properties Later… What Wish I Knew Then That I Know Now — Real Estate Investing Edition! appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/real-estate-properties/feed/ 0 6051 Exactly How Our Real Estate Business Did in 2022 (Financial Numbers, Investing Strategy, and Working Together in Marriage) https://elizabethmccravy.com/real-estate-business-2022/ https://elizabethmccravy.com/real-estate-business-2022/#respond Tue, 17 Jan 2023 05:00:02 +0000 https://elizabethmccravy.com/?p=6043 When I sent out our annual survey for the last year, so many of you mentioned that you would love to hear more about investing, financials, and most specifically: real estate. I won’t be turning this podcast and blog into a real estate business hub (don’t worry!), but I know that you may be wondering […]

The post Exactly How Our Real Estate Business Did in 2022 (Financial Numbers, Investing Strategy, and Working Together in Marriage) appeared first on Elizabeth McCravy.

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When I sent out our annual survey for the last year, so many of you mentioned that you would love to hear more about investing, financials, and most specifically: real estate. I won’t be turning this podcast and blog into a real estate business hub (don’t worry!), but I know that you may be wondering as you grow your business what to do with the money you are making (other than to just spend it on your lifestyle). For Adam and I, we made the decision to start investing in real estate and that’s what we want to talk a little bit more about today!

If you are reading this and already thinking, “I don’t have any properties and I’m not ready to invest in real estate”, I want to just pause a moment and encourage you to read on anyway. If you told me ten years ago I would have five properties now, I wouldn’t have believed you. If you don’t think it’s possible for you, I really want to use this episode to encourage you today.

Joining me on this week's (and next week’s) episode is my husband Adam! I always love chatting with him and having him share his perspective, and today, we went deep into the REAL numbers of three of our properties. While I won’t list out all of the numbers he mentions here on the blog, I want to encourage you to tune into the episode when you have time to catch those figures. I know you all appreciate real numbers and honesty and transparency around money and I do too. Adam and I joked that this could have very well been a shareholder’s meeting with you! We don’t hold back.

Besides sharing the figures, we also talked about working together in our marriage, macroeconomics, the house market right now, and a little advice at the end from Adam if you are excited about the opportunity but are still on the fence.

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 197!

Before I dive in, I just want to say this: one of the most beautiful things about running a profitable business is being able to invest in other profitable businesses. If you are interested in investing in real estate one day but you are thinking - wait, I need to make money in my own business first - you need to check out my course Booked Out Designer. If you love the podcast and feel like you learn a lot here then trust me, you’ll learn even more inside the course. 

I’ve poured out absolutely everything I know about running (and growing) a profitable business including pricing to make a profit, running a client project from start to finish, discovery calls, booking clients, marketing your business, and so much more. I even share real meetings with my clients so you can really see behind the scenes! On top of that, there are tons of templates and swipe files you can use today to save you time and money. No matter what stage of business you are in, if this sounds like something that would help you hit your goals this year, I would love to welcome you inside Booked Out Designer today. 

Now, let’s dive into my conversation with Adam! This episode was really just to update you all on how things are going now (since the last time we talked about real estate was before Colin was born - a literal lifetime ago!). In case you are interested, you can find that three-part conversation here:

 

 

As you can imagine, a lot has changed! We have learned a lot and we can’t share a little behind the scenes with you today.

Today, we are sharing our numbers, what it’s been like, and how the business has grown. 

The last time we talked, we had 3 properties that were all purchased in early 2021. One of our properties is almost hitting its 2-year anniversary! What’s really cool about that (compared to the last time we recorded a podcast), is that we have complete numbers for 2022 since these properties were up and running for an entire (normal operating) year. 

In the first year, it’s really hard to get numbers on how much each property is making. There are starting costs and closing costs, as well as an assortment of things that might need to be fixed, HOA fees, time the property is vacant while we were fixing things up, and so much more. 

This year, we also grew our real estate portfolio by adding one property out of state (in Huntsville, Alabama) and purchasing a new primary residence (and keeping our old home as an investment property). We won’t dive into the numbers of our two newer properties today, but I wanted to share that in case you are interested.

Read more: If you love to dive into financials, you may also want to check out this interview with my bookkeeper last year! 

 

Our First Rental Property 

We anticipated about $9144 in free-flowing profit looking at the amount it rents for and deducting the mortgage costs, property tax, insurance, and HOA. This would have been about a 16.5% cash-on-cash return. If you are familiar with the world of investing, this would have been a fantastic return! The US Stock Market averages tend to fall between 7-9% over time.

 We don’t include capital tax in that figure but we will talk more about that in a later episode!

If you are interested in learning more about how to calculate cash-on-cash returns, we highly recommend How to Invest in Real Estate by Brandon Turner and Joshua Dorkin. It’s not the only way to calculate your ROI but it’s a great place to start.

We had initially invested about $55,000 into the property back in 2021. This particular property did not need a lot of work, so this figure was almost exclusively the down payment and closing costs.

Now let’s share the actual numbers! The actual free-flowing profit from this property was $9026. What this means is: what we thought would happen actually happened (which definitely is not always the case in real estate!).

 

nailed it gif to show we got lucky in real estate

 

Our Second Rental Property

For this one, our projections were $7116 for the year and in reality, it made $902 in free-flowing cash. The reason we were a little farther from our projections this year was that the HVAC system needed to be replaced which cost us about $6000. Fortunately, we used the Spark Cash back Card (which if you are in Booked Out Designer you’ve heard me talk about before) so we did get a little cash back on that large, unexpected purpose.

If you’ve purchased a home, you know that investments will often need to be made into the property. The positive side of replacing the HVAC system is that it won’t have to be replaced for the next decade (we hope!) and we can use that expense as a tax write-off this year.

 

Our Third Rental Property

For our third rental property, we anticipated a profit of $7464, and fortunately for us, that ended up being pretty close to our reality finishing with an overall profit of $6750. We did buy a refrigerator but we didn’t have any larger unexpected expenses.

 

What We Made in Our Real Estate Business in 2022

With just these three properties (not including the two new properties we acquired this year), our overall real estate business made $16,679. In case you are curious, this is just about 10% of our initial investment. Between the down payments on the property and closing costs, our initial investment was about $164,000.

I also want to add this: the profit we are talking about here doesn’t include any of the other ways you can make money in real estate which we can talk more about in the future. This is JUST the money we made from renting the properties after expenses.

Read More: Although not specifically about real estate, if you want to make more money you need to check out this episode on How to Increase Your Profits in the New Year.

 

Is Real Estate a Good Side Hustle?

Bringing in over $1000/month for us, we do believe real estate investing is a good side hustle income but one of the myths we want to bust here is that it is still work. It’s not just sitting around and getting checks in the mail. Adam was constantly working on this throughout the year with minor repairs and tenant turnover. With that said, we both admitted it was more of a mental load than physical hours most of the time. You are likely going to be thinking about your properties all the time, so you need to prepare for that.

 

Is Real Estate a Good Family Business?

We think so! Adam really does do a majority of the work but I act as a sounding board and help make the bigger business decisions. We truly believe that with a family business, it’s natural that not everything is going to be “equal” all of the time. In a lot of ways, it shouldn’t be either, because then you may end up doing twice the work for absolutely no reason. 

We had a lot going on in 2022, so this was a busy year between real estate investing and just life. Colin didn’t have daycare for the majority of the year, Adam goes to school and was also working on the side, and I continued to grow my business as well. It was a BUSY year.

 

husband and wife team discuss real estate business in 2022

 

Real Estate Investing and Your Marriage

One of the principles Adam and I live by is “Win together, lose together”. It’s not fair to have one person making all of the decisions because eventually, something isn’t going to work and one person shouldn’t shoulder the blame. Our real estate business is a true partnership and something we enjoy working on together, the same way that we both enjoy equal parenting roles with Colin. Neither of us wants to “win alone and lose alone”.

Want a little more encouragement to start a side hustle with your partner next year? Just last week I shared 6 reasons why a side hustle is a beautiful thing.

 

Other Ways to Make Money in Your Real Estate Business

Below, we want to break down two other ways we are making money on our real estate investments, above and beyond what we are collecting for rent this month.

Loan repayment (Amortization): Every time you make a mortgage payment, some of the money is going to principle which is profit above what we listed here. It’s delayed, it’s deferred, but it is real. For these three properties, we have about $750/month (TOTAL) going toward the principle.

Appreciation: This is less predictable than the amortization, but we bought these properties before the peak of the real estate market hit (which we believe, we aren’t at the peak yet). Although the market has seen a dip, if we sold all three properties today, our conservative estimate of profit would be an additional $108,000. That does take into account the down payment (money in the door). 

Keep in mind, we haven’t even had these properties for very long! While you may feel we have gotten relatively lucky in the first year and haven’t had any expenses that have dipped beyond our profit, we could also argue that we didn’t buy at quite the right time either. There are pros and cons to looking at our numbers less than two full years in but I hope this episode still gives you a good idea of what our first “full” year looked like.

 

A Note on Macroeconomics

We also want to note: the reason that housing prices are going down is that the federal reserve made an intentional decision to make them go down. There still aren’t enough houses in America. If you look at investing into a real estate business now, we want to encourage you to not sit around waiting for the market to be just right. It’s ALWAYS changing. A little behind the scenes, when we bought our first house, we were told to wait and we are so glad that we bought it anyway. Prices have skyrocketed since then. Ultimately, there is no “perfect” time and all we can do is make strategic decisions with the information we have at the time.

 

Eventually, you have to just say yes!

You have to say yes at some point. As Adam so aptly put it, the only way to guarantee you don’t make any money is to just do nothing. Doing nothing guarantees a zero return. We believe the risks associated with investing in real estate, are less than the risk associated with doing nothing.

We hope you enjoyed this husband and wife episode about investing in real estate. This was such a fun way to kick off 2023. Make sure to tune in next week for part 2 (and listen to the podcast if you want even more of our “real” numbers!).

This episode was sponsored by Booked Out Designer! Like I said earlier, if you are wanting to invest in real estate but need to make more money in your own business first, I truly believe this is where you need to be. I share absolutely everything I know (from pricing for profit to running a client project from start to finish) to help you build a business you not only love but one that makes you money too. 

moira rose encouraging you to start a real estate business

This episode was sponsored by Booked Out Designer! Like I said earlier, if you are wanting to invest in real estate but need to make more money in your own business first, I truly believe this is where you need to be. I share absolutely everything I know (from pricing for profit to running a client project from start to finish) to help you build a business you not only love, but one that makes you money too. I would love to welcome you inside!

Links Mentioned:

Check Out Booked Out Designer

Binge Our Other Real Estate Episodes: Part 1, Part 2, Part 3

The Book Mentioned: How to Invest in Real Estate

Spark Cash back Card

Connect with Elizabeth on Instagram

Shop Showit Templates 

The post Exactly How Our Real Estate Business Did in 2022 (Financial Numbers, Investing Strategy, and Working Together in Marriage) appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/real-estate-business-2022/feed/ 0 6043 7 Ways To Use Your Money To Get More Time Back In Your Life (Trading Your MONEY For Your TIME!) https://elizabethmccravy.com/use-money-to-get-more-time-back-in-your-life/ https://elizabethmccravy.com/use-money-to-get-more-time-back-in-your-life/#respond Tue, 05 Oct 2021 05:00:00 +0000 https://elizabethmccravy.com/?p=5404 We’ve all heard the advice “stop trading time for money”, and I agree. But in this episode, we’re talking about ways you can trade in your money to get time back in your life and in your business. I’m sharing ways to automate things, get help, set up systems, and so much more so that […]

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We’ve all heard the advice “stop trading time for money”, and I agree. But in this episode, we’re talking about ways you can trade in your money to get time back in your life and in your business. I’m sharing ways to automate things, get help, set up systems, and so much more so that you can have more time back to do the things you really love! 

The majority of these are things I personally do right now, so get ready for an insider peek into some of my systems. Plus, a few of these things are things we don’t do in our family, but I think are totally worth adding in! So, let’s get yourself some time back to do more of what you love in your life!

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 138!

Previewing 3 of the 7 ways to get your time back:

Be sure to check out the full audio episode to hear the other 4!

3 of the 7 ways to spend your money to get time back in your life.

1. Ditch the grocery store, and get your groceries delivered to you.

This is probably my favorite way that I have found to get time back in my week! We’ve been using grocery delivery consistently for about 2 years now. I rarely go into grocery stores unless I’m running in to grab something quick. 

Every time I get groceries delivered, I am so grateful for that time back! I place the order and then watch on the app as the shopper goes through the store and buys things from my list. 

I don’t like grocery shopping. I love meal planning and cooking and I certainly love food, but I hate grocery shopping. So when someone else is shopping for me I always feel the benefits of that time back whether it’s time I spent working, hanging around at home, at the gym, or whatever! It’s worth it. 

For this, we use Instacart. They deliver it straight to your door. I used to do grocery pick up before I found Instacart. it’s so much better than picking it up! This is definitely one worth trying for yourself if you haven’t before. You’ll be hooked. 

2. Set up Subscribe and Save for items you need on a recurring basis.

Subscribe and save on Amazon has been a GAME CHANGER for me in 2021. Basically, you set up subscriptions at any increment, and then they just show up at your house. You don’t have to remember to order them when you run out. It’s just done for you! 

You can save up to 15% on the items when you get enough things in each delivery box. I tried a few different brands on Amazon for some of the things I knew I wanted to set up on auto-delivery to see what brands I liked the best. Then I figured out how long it took us to go through the item, and I set up the subscription-based on that amount of time. 

We use this for things like toilet paper, paper towels, vitamins, toothpaste, Ziploc bags, contact solution, laundry detergent, dish detergent! These are all things you are going to buy it all anyway. Now you can free your mind from remembering to do it. 

You can always pause or skip a subscription round if you don’t need something so you are not permanently locked into anything. 

Check this out if you want to see some of the things on my subscribe and save list.  

3. Having a “set it and forget it” style yard care service for your home.

This is one that we don’t do exactly but do some version of! I think this is a brilliant way to save time and energy by trading money for your time back if lawn care isn’t something you want to be doing. 

One of my neighbors does this really well, and since I work from home, I see it play out every week from my office window. At the same time on the same day every week, they have a company that comes and mows their yard as well as some other lawn care needs.

They set this up, probably once, and then were able to just forget it. Awesome! 

For us, my husband Adam does most of our lawn work. But when he can’t for whatever reason, we have someone else who comes to mow. 

We do however have an “automated” lawn service that comes and treats our grass once a month. We also have another that treats our yard for bugs (like wasps) once a month. 

This is really important to us because Adam is seriously allergic to stings from things like yellow jackets and wasps. 

So even though this is a basic one, if you are looking for ways to get time back and feel like you’re spending so much time doing lawn care that you aren’t able to relax with your family or work on your business, taking the time to get help with this so you can get your time back will be so worth it! 

7 Tips for tading money for time back in your life or business with host of the Breakthrough Brand Podcast, Elizabeth McCravy.

Be sure to listen to the full episode to hear the other 4 ways I’m sharing to help you get time back in your life! I hope you have enjoyed these tips and can benefit from choosing one or some of them to incorporate into your life to “buy time back”! 

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Get on the Booked Out Designer Waitlist

Shop Showit Website Templates

Instacart

Subscribe and Save on Amazon

Trading your money for time back in your life on the Breakthrough Brand Podcast.

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]]> https://elizabethmccravy.com/use-money-to-get-more-time-back-in-your-life/feed/ 0 5404 Real Estate Biz Q&A – Part 3: Strategies for Getting Started, Other Ways to Invest Your Money, How to List Your Properties, and the Challenges We’ve Experienced Along the Way https://elizabethmccravy.com/real-estate-investing-part-3/ https://elizabethmccravy.com/real-estate-investing-part-3/#comments Tue, 21 Sep 2021 05:00:00 +0000 https://elizabethmccravy.com/?p=5384 It’s the final episode of our 3 part series on real estate! We’ll have to do a part 4 sometime down the line with updates, but I hope you have absolutely loved these so far and learned a lot from them. If you’re new here and missed the first 2 episodes, highly recommend going back […]

The post Real Estate Biz Q&A – Part 3: Strategies for Getting Started, Other Ways to Invest Your Money, How to List Your Properties, and the Challenges We’ve Experienced Along the Way appeared first on Elizabeth McCravy.

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It’s the final episode of our 3 part series on real estate! We’ll have to do a part 4 sometime down the line with updates, but I hope you have absolutely loved these so far and learned a lot from them. If you’re new here and missed the first 2 episodes, highly recommend going back and listening to those as well. 

For context, we own 3 long-term rentals in the Middle Tennessee area. We are far from being “real estate gurus” or anything remotely similar. We’re just regular people, who actually have other jobs outside of real estate investing, who are doing this on the side and learning along the way! 

Want to catch up on the other episodes?

Real Estate Q&A Part 1
Real Estate Q&A Part 2

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 136!

Here’s the scoop on the questions we’re answering:

  • I’d love to know more about how you’ve set it up as an LLC. We have one rental property that we have been renting for 7 years & we want to make the move to owning another in the next year or so, but we don’t have it set up as a separate business currently.
  • I’d also love to know the toughest / most challenging aspect of it so far, or something that came up that you didn’t expect.
  • How do you find tenants to rent your properties?
  • Have you considered two tenant properties? Why/why not?
  • Would love to know how you guys went about “studying/learning” about real estate. Books? Course? Google
  • Do you think real estate is the best place to invest your money?
  • When deciding where to invest money… What other options do you like outside of real estate?
Elizabeth-McCravy-Maternity-Photos-Full-36

Episodes Mentioned:

#129 | Passive Income Isn’t What You Think … BUT Scalable Income Is What You’re After

#134 | Part 1: How We Got Started In Investing, Buying In A Seller’s Market, Working With Your Spouse, Picking The “Right” Property, And AirBnbs Vs Long Term Rentals

#135 | Part 2: How Much $$ Do You Need, Screening Tenants, Management Companies, Buying Multiple Properties At Once, And Financing!

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Get on the Booked Out Designer Waitlist

Shop Showit Website Templates

Bigger Pockets

How to Invest in Real Estate by Brandon Turner and Josh Dorkin 

The Only Investment Guide You’ll Ever Need by Andrew Tobias 

I Will Teach You to Be Rich by Ramit Sethi (Not about real estate investing, but we love this book and recommend it!)

Chatting all things Real Estate inveting with Adam and Elizabeth McCravy.

The post Real Estate Biz Q&A – Part 3: Strategies for Getting Started, Other Ways to Invest Your Money, How to List Your Properties, and the Challenges We’ve Experienced Along the Way appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/real-estate-investing-part-3/feed/ 1 5384 Real Estate Biz Q&A – Part 2: How Much $$ Do You Need, Screening Tenants, Management Companies, Buying Multiple Properties at Once, and Financing! https://elizabethmccravy.com/real-estate-investing-part-2/ https://elizabethmccravy.com/real-estate-investing-part-2/#respond Tue, 14 Sep 2021 05:00:00 +0000 https://elizabethmccravy.com/?p=5374 I hope you loved the first episode with part one of all of this real estate investing talk. We’re back in this episode with part TWO of three parts chatting all about our rental properties and answering your questions! We were asked so many good questions about the financial side of this business and we […]

The post Real Estate Biz Q&A – Part 2: How Much $$ Do You Need, Screening Tenants, Management Companies, Buying Multiple Properties at Once, and Financing! appeared first on Elizabeth McCravy.

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I hope you loved the first episode with part one of all of this real estate investing talk. We’re back in this episode with part TWO of three parts chatting all about our rental properties and answering your questions! We were asked so many good questions about the financial side of this business and we are going over everything we know!

If you missed part one, go back and listen to it! It’s a bit more “foundational” content and here we’re getting into more specifics. Let’s dive in.

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 135!

Here is a little peek into the main questions we’re answering:

- How much money should you have upfront when investing in rental properties?

- Do you need 20% down for an investment property?

- Would love to know why rentals vs a flip?

- Would love to know how you found your properties and how you are planning to finance them!

- How much are you going to cash flow from each?

- I’d love to hear how much profit you think you’ll be able to make from them!?

- Are you planning to be the landlord/maintenance person or hiring that part out?

- How do you plan to screen tenants?

- Are you furnishing your rental properties?

- I would love to know how you decided to go for two properties right away? We have gone back and forth about whether to do just one or two.

Answering your questions about real estate investing with Elizabeth and Adam McCravy on the Breakthorugh Brand Podcast.

Episodes Mentioned:

#127 | How My Business Makes Money (+ 3 Additional Ways We Make $$ In Our Personal Life)

#134 | Real Estate Biz Q&A – Part 1: How We Got Started In Investing, Buying In A Seller’s Market, Working With Your Spouse, Picking The “Right” Property, And AirBnbs Vs Long Term Rentals

#136 | Real Estate Biz Q&A – Part 3: Strategies For Getting Started, Other Ways To Invest Your Money, How To List Your Properties, And The Challenges We’ve Experienced Along The Way

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Get on the Booked Out Designer Waitlist

Shop Showit Website Templates

Realtor.com

My Smart Move - Check Your Tenant’s Credit Score

Spark Cash Card By Capital One

Breakthrough Brand Podcast host Elizabeth McCravy and husband Adam chatting all about their real estate investments.

The post Real Estate Biz Q&A – Part 2: How Much $$ Do You Need, Screening Tenants, Management Companies, Buying Multiple Properties at Once, and Financing! appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/real-estate-investing-part-2/feed/ 0 5374 Real Estate Biz Q&A – Part 1: How We Got Started in Investing, Buying in a Seller’s Market, Working with Your Spouse, Picking the “Right” Property, and AirBnbs vs Long Term Rentals https://elizabethmccravy.com/real-estate-investing-part-1/ https://elizabethmccravy.com/real-estate-investing-part-1/#respond Tue, 07 Sep 2021 05:00:00 +0000 https://elizabethmccravy.com/?p=5348 My husband, Adam, and I have a real estate business side hustle. And... we LOVE it. If a real estate business is in your #goals list, then this series will help! We are pulling back the curtain on our business!

The post Real Estate Biz Q&A – Part 1: How We Got Started in Investing, Buying in a Seller’s Market, Working with Your Spouse, Picking the “Right” Property, and AirBnbs vs Long Term Rentals appeared first on Elizabeth McCravy.

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This starts our 3 week series on real estate investing – get excited because within the next 3 episodes on the Breakthrough Brand Podcast, there is over 2 hours worth of really tactical advice for you on the topic of real estate. WOOHOO. I’ve been anticipating these episodes since the end of 2020 when we first got started with all of this and when I first started asking you guys what questions you had. Now here we are! 

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 134!

For this episode, you’ll hear myself and my husband Adam answering questions you sent in on Instagram about real estate investing! If you haven’t met Adam on the podcast previously, he’s the best. He’s been a guest on my podcast a few times over the years — some to talk about personal finance in an early episode and to talk about our “we’re pregnant” announcement as well! 

You’ll hear me say this on the episode, but we aren’t “real estate experts” and certainly don’t pretend to be! We are regular people like you who decided to invest in real estate. I am all about more people who aren’t “experts” teaching what they’ve found works for them. (Often we feel unqualified to do that, and I don’t think we should!) So, know that is where we are coming from. For context, we live in Nashville, we own 3 rental properties all in different parts of Middle Tennessee. 

Take a look inside!

Take a look inside one of the McCravy's long term rentals.
A look inside a long term rental investment property.

In each of these 3 episodes, we’re tackling completely different types of questions. So, be sure to listen to all 3 episodes for the “full scoop”.

Here’s some of what we’re answering in part 1 of this series: 

- I’d love to just know more about what got y’all interested and whether you were nervous buying during a seller's market? 

- Tips for going into business with your spouse? 

- I’m curious if you have already purchased a house for yourself to live in? I’m currently renting a house but I want to buy a rental property this year! It feels weird to buy my first house that I wouldn’t live in, does that sound silly? 

- I would love to know if you bought these properties while having a mortgage on your current home and if so did you find that that was a complication! I’m also super curious if you saved to be able to buy these outright or if you chose to take mortgages on these two properties! Basically, I want all the money details  

- Are you buying them ready to go or doing work to them?

- The biggest question I’m dying to know is whether you actually purchased these properties. I’ve heard about people getting into Airbnb etc by leasing places! I think it’s so fascinating!! 

- I’d love to know how you decided between Airbnb/long term rentals, and how you (or Adam) knew it was the one to offer one? 

… and some other stuff as well! 

There’s a lot about personal finance in general throughout these 3 episodes, so even if real estate doesn’t sound like a way you’d like to invest, I still think you’ll learn sooo much from this series! And, if you’re seeing this title thinking “I don’t have money to do that, I’ll pass.”... seriously tune in because there is so much for you here even if you’re in that boat! Whether you’re doing real estate now or wondering how you can grow your wealth in the future, you’ll take away a lot. 

Episodes Mentioned:

#135 | Real Estate Biz Q&A – Part 2: How Much $$ Do You Need, Screening Tenants, Management Companies, Buying Multiple Properties At Once, And Financing!

#136 | Real Estate Biz Q&A – Part 3: Strategies For Getting Started, Other Ways To Invest Your Money, How To List Your Properties, And The Challenges We’ve Experienced Along The Way

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Get on the Booked Out Designer Waitlist

Shop Showit Website Templates

The Only Investment Guide You'll Ever Need By Andrew Tobias

Real estate q&a with Elizabeth and Adam McCravy on the Breakthorugh Brand Podcast.

The post Real Estate Biz Q&A – Part 1: How We Got Started in Investing, Buying in a Seller’s Market, Working with Your Spouse, Picking the “Right” Property, and AirBnbs vs Long Term Rentals appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/real-estate-investing-part-1/feed/ 0 5348 How My Business Makes Money (+ 3 Additional Ways We Make $$ in Our Personal Life) https://elizabethmccravy.com/how-my-business-makes-money/ https://elizabethmccravy.com/how-my-business-makes-money/#respond Tue, 20 Jul 2021 05:00:00 +0000 https://elizabethmccravy.com/?p=5225 Let’s talk about how we make money! I have personally always LOVED these types of podcast episodes when I’ve heard them on other shows because we all love to know what other people are doing to find success right? What revenue streams make up a business? And, what additional streams make up PERSONAL income? So, […]

The post How My Business Makes Money (+ 3 Additional Ways We Make $$ in Our Personal Life) appeared first on Elizabeth McCravy.

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Let’s talk about how we make money! I have personally always LOVED these types of podcast episodes when I’ve heard them on other shows because we all love to know what other people are doing to find success right? What revenue streams make up a business? And, what additional streams make up PERSONAL income? So, I’m breaking it down for you today. 

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 127!

giphy (2)

First, we’re talking about the various ways my business makes money, and I’m even sharing some percentages of overall revenue in some of these ways! Plus, a few ideas for income streams I plan to add in the new year. Then, we’ll talk about my personal life, so outside of our actual work, 3 additional ways my husband and I bring in money to our personal lives. They might not be what you’re expecting — especially the 3rd way! 

Be sure to tune in to this fun and quick episode to hear all of the business revenue streams I have going on right now as future ideas!

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Etsy Shop

Amazon Influencer Shop

Shop Showit Website Templates

Join The Booked Out Designer Waitlist

Media Vine

Shop LikeToKnowIt

Hear how Elizabeth McCravy makes money through her business and in her personal life on this episode of the Breakthrough Brand Podcast!

The post How My Business Makes Money (+ 3 Additional Ways We Make $$ in Our Personal Life) appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/how-my-business-makes-money/feed/ 0 5225 Stop Using Apps Like Venmo to Avoid Fees When Accepting Money in Your Business https://elizabethmccravy.com/stop-using-venmo-in-your-business/ https://elizabethmccravy.com/stop-using-venmo-in-your-business/#respond Fri, 16 Oct 2020 05:00:00 +0000 https://elizabethmccravy.com/?p=4598 Are you wondering if you can use Venmo for business or how to accept money in your business without payment processing fees? This is for you!

The post Stop Using Apps Like Venmo to Avoid Fees When Accepting Money in Your Business appeared first on Elizabeth McCravy.

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If you have wondered “Can I use Venmo for business?” or “How can I accept money in my business, BUT avoid processing fees?” This blog post and podcast are for you! I’m diving into the question of payment processors. Which payment processor should I use? Is there one that won’t give me transaction fees? Can’t I just use Venmo or Cash app instead? This is kinda a soapbox of mine, and if you’ve been listening to the podcast for a while you’ve heard me talk about this in other episodes. 

I think it’s such an important topic and one that I WISH someone would have told me when I was a new business owner. You see… I made this mistake, and have some stories to tell from it! And, I want you to learn from my early business owner mistakes! 

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 88!

In Facebook groups, I often see this type of question: “Does anyone have a good recommendation to get around not paying fees for receiving money? I know it's the cost of doing business and is more convenient for clients, but I hate the fees! Thanks!” And, it’s a problem!

If you’re asking, “Is it okay to use Venmo for business?”, the answer is no! Oftentimes new business owners only accept payments via Venmo, Cash App, PayPal.me, or checks in the mail. All of these are ways to avoid the 2.8% - 3% processing fee. People do this to save a little cash.

When you allow people to pay you online through their own payment choice, the payment platform takes a very small percentage of the total. These fees happen with any normal online payments —  debit card, credit card, and bank payments all take a fee.

Here’s the thing though…  payment processing companies are businesses, just like you are. In order to operate, they have to make money. Instead of charging you a monthly flat fee for using their service, they take a small percentage of what you earn. Instead of whining about the percentage, be a business owner, and set your pricing to where you aren’t “hurt” by the fees.

I can speak bluntly about this because I have been there! When I was a new business owner, I took payments only on Venmo, Cash App, or checks in the mail. And, it wasn’t cool of me! It cost me more time. Plus, when I was earning less money, I was really only saving $10 or less per transaction. The $10 was not worth the hassle on me or my customers.

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Here’s why using those apps to save a little cash was a mistake:

1. I was creating every invoice in Adobe Illustrator from a template I made.

This is because I wasn’t using a legit payment platform. I did this EVERY TIME.  This was not very efficient for creating invoices or remembering due dates. 

2. My clients probably hated it (and yours probably do too) because it’s less convenient.

Plus, it might be costing them potential rewards from their credit card companies and the peace of having well-tracked payments.

For example:
When I’ve paid contractors who use Venmo for business, it has to come out of my personal checking account. Apps like Venmo and Cash App only allow one bank account from each banking institute. (Both my personal and business accounts are at the same bank.) 

So, as a buyer, I have to go find that Venmo cost and transfer money from my business account to my personal finances to cover it. Then, I have to remember to categorize that specific transfer as a contractor payment in QuickBooks. It’s more challenging. Your clients don’t like it. 

3. You’re making your clients miss out on the convenience of paying how they want to.

I’m very big on using a credit card in my business to put all my expenses on, and then I pay it off at the end of the month. ALWAYS pay it off. I know most of my clients have the same preference. When I get to put expenses on a credit card, I get more rewards points which equals savings on travel or actual cash back depending on the card. I get actually excited about big expenses sometimes BECAUSE OF THIS. I’m like YAY more points, more cash! When you don’t let people use cards you make them miss out on these bonuses and conveniences. (Here’s a link to the Spark credit card by Capital One that I LOVE!)

4. The big reason: You might get penalized for it.

I actually got kicked off Cash App early on in my business and got in trouble with Venmo. The two companies realized I was using their app for business and kicked me off. It’s against their policy because when it’s a business expense you SHOULD pay for processing. Since those companies are meant for friend to friend transactions, they don’t have a processing fee. So, don’t risk getting kicked off over saving a few dollars! START NOW with professional payment systems and don’t use Venmo for business.

So, what payment processors should you use?

First of all a payment platform and an invoicing company are different things. So, you can use something like Dubsado for example and accept payments through different payment platforms — like Stripe, Square or PayPal. But, Dubsado is the invoicing system you’re using. 

Here are invoicing systems I’d recommend:

If you want something easy and free, I recommend Wave. Wave is an invoicing system. You can create and send invoices from the platform, send automated reminders, and more. The invoicing is free, but just like everything else, payment processing is NOT. (Which remember we are ok with, because we are being CEOs not hobbyists!) 

For something more robust, I recommend Dubsado. It’s so much more than invoicing. It does contracts, questionnaires, emailing, calendar management, and more. You can use “ELIZABETH30” to get 30% off your first month or year. And go to episode #18 to learn about Dubsado more. With Dubsado, you can accept digital checks, Stripe, Square, and PayPal payments. I used Wave when I was a new business owner, and then switched to Dubsado when I wanted more features. 

For online shops: Shopify, Shopify Lite, ThriveCart are great! If you have a course or membership site, use the payment processor that comes with it. As far as what processor to use, in my shop and in my 1:1 work, I get a lot of payments via Stripe and PayPal. I love both. Both take an almost equal fee. You can also accept payments via digital check, which is the lowest cost option and is typically a flat $5. 

But, what if I still really NEED to avoid payment processing fees?

Switch to one of these platforms I’m recommending. Be a professional business owner. You’ll save time and create a better experience for your customers. You can consider asking clients to pay via check (digital or mail) and tell them WHY — that it saves you hundreds in fees.

I used to request checks, but have since stopped. But, I always appreciate it when a client pays with a check! But again, I have decided not to push it and I let people pay however they want. Factor the fees into the cost.

You’ll set yourself up to succeed more in the long run if you don’t use Venmo for business. Instead, start being more professional with your payments and invoicing now. I know early on, avoiding the $10 fee can feel HUGE. You don’t want to pay the $10. But, trust me, once you accept the fees for what they are and work them into your costs of doing business, you’ll feel better and your clients will appreciate it! 

Bonus Tip

Don’t charge your customers extra for using credit cards. I’ve seen this suggested and again, it’s unprofessional on your end. They should be allowed to pay how they want. 

Also, you can write these fees off on your taxes. They are tax-deductible. I write mine off as miscellaneous and categorize them as “credit card processing fees.'' This reduces the amount of taxes I have to pay, which is great! So you don’t need to use Venmo for business anyway!

Links Mentioned:

Listen to the Breakthrough Brand Podcast

Connect with Elizabeth on Instagram

Shop EM Shop Templates

Spark Credit Card by Capital One

Dubsado

Stripe

Square

PayPal

Wave

ThriveCart

Episode 18: How To Automate And Systematize Your Service-Based Business

Stop using apps like Venmo and Cash App to accept payment in your business.
Don't use apps like Venmo and Cash App to avoid processing fees when accepting money in your business.

The post Stop Using Apps Like Venmo to Avoid Fees When Accepting Money in Your Business appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/stop-using-venmo-in-your-business/feed/ 0 4598 7 Money Mistakes You Might Be Making as a Creative Entrepreneur With Dondrea Owens https://elizabethmccravy.com/7-money-mistakes-creative-entrepreneur/ https://elizabethmccravy.com/7-money-mistakes-creative-entrepreneur/#respond Tue, 28 Jul 2020 05:00:00 +0000 https://elizabethmccravy.com/?p=4448 It’s time we talk about our creative business finances! Today’s guest is Dondrea Owens! She is the owner of The Creative’s CFO. As a certified public accountant, she specializes in helping small business owners know their numbers, so that they can grow their profit, up-level their life, and keep more money while doing it. This […]

The post 7 Money Mistakes You Might Be Making as a Creative Entrepreneur With Dondrea Owens appeared first on Elizabeth McCravy.

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It’s time we talk about our creative business finances! Today’s guest is Dondrea Owens! She is the owner of The Creative’s CFO. As a certified public accountant, she specializes in helping small business owners know their numbers, so that they can grow their profit, up-level their life, and keep more money while doing it.

This content is specialized to YOU. This isn’t some advice for restaurant business owners or manufacturing businesses. Nope — she’s sharing common mistakes that creatives make — designers, photographers, artists, wedding industry pros, copywriters, and even coaches. You’ll walk away from this episode with a better understanding of your business finances and the confidence to make smarter money decisions going forward.

She’s sharing 7 common money mistakes that creative women make in their businesses, and some of these mistakes you might be making RIGHT NOW. I certainly resonated with a few of these as being mistakes I’ve made in my business early on. We’re also giving you key ways to correct the mistake going forward. 

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Search for episode 76!

Episode PREVIEW

Dondrea has a special perspective that is so important for us because she used to own her own wedding stationery business so she understands the creative side hustle AND she understands the professional side of the creative business finances as well. Tune in to the full episode to hear all of the mistakes, ways to fix them, and WHY they are important.

Why is it so important to know your numbers?

So many creative women entrepreneurs think that they don’t have a financial mind so they actually just ignore their finances altogether. Dondrea says that it is so important for you to know your numbers because “you are either running a business or you have a really expensive hobby.” Or maybe you think that you shouldn’t be making money on your project or at least not a lot of it. She encourages you to get to the root of what is telling you that so that you can reframe your mind to actually be a business owner and not just run your business like a freelancer or hobbyist. 

4 (out of 7) mistakes you money mistakes you might be making right now 

1. Taking on too many expenses

We have all been there! Those shiny objects like courses that promise amazing results or bringing on extra help can really add up if you aren’t paying attention. Taking on too many business expenses is one of the easiest mistakes to make.

Dondrea suggests checking in with your expenses monthly to see what you are spending and how that is lining up with what your business is bringing in each month.

You must have an eye on what your business expenses are and WHY they are necessary. If you are having to ask why an expense is necessary, chances are you don’t need it and it might be driving down your bottom line. 

Dondrea says that your first benchmark for profit margin with your creative business finances should be around 50% which is often easy to hit when you are an online or service-based business. 70% is your next benchmark. 

Listen to the full episode to hear Dondrea’s ratio for what we pay ourselves, taxes, and business savings.

Are you running a business or an expensive hobby with Dondrea Owens on the Breakthrough Brand Podcast.

2. Spending down to the last dollar in your business

Have you ever gotten that notification that you just spent the last dollar in your business? That is not a good feeling! Dondrea says that an easy way to fix this is to set a “new cash zero”. You set a number that you DO NOT go below in your business checking account. For a lot of clients, she says she recommends 1 month of expenses.

This makes a huge difference mentally because you tell yourself that you don’t have any more money to spend, but there is still money in your account for next month. If you find that you are needing to spend more than what you have allotted, you know that you need to reevaluate those expenses or make more money.

3. “Investing” without setting benchmarks for a return 

This may be a hard thing to swallow but your investments are not an investment if they don’t produce a return. This return can be defined in many ways. Some examples that Dondrea gives us are a return in dollar amount, time, or clarity in your business. But the important thing is that you have to define that return before you make the investment. You need to set the expectations.

A mistake that is a common misconception is thinking that you need a full website before they can get started with their business. You might really need a clear, cohesive brand first, getting clear on your copy and offers first.

Your creative business finances may not be able to take on a full website, high-level coaching, or as much marketing (Facebook Ads) as you want right from the start. 

Ask yourself these questions:

  • Is this an expense or an investment?
  • How can I measure the return on investment that I am expecting?
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4. Using a spreadsheet to maintain your finances

It might feel satisfying to manage your finances in a spreadsheet for a little while. I know that seeing everything together at one time can feel like it makes the most sense. But Dondrea reminds us that there is amazing bookkeeping software available that does this for you! 

Exchanging your spreadsheets for bookkeeping software will save you so much time. Time is money and you don’t have to waste time doing things that can be done for you. It also saves you the headache of trying to remember the context of each expense or invoice later. 

The 2 best bookkeeping software options in our opinions are Wave and QuickBooks. Wavve is free and great for starting out. Quickbooks gives you access to so much more reporting, which is one of the biggest tools you can use to evaluate your creative business finances. 

The biggest thing that Dondrea encourages you to do is to take a look at your numbers. It can be really scary to dig into the reality of what you are making vs what you are spending. But if you can overcome the fear of looking at what the numbers actually say, then you can make educated decisions on what to do next. Until you know those numbers, all of your decisions will appear to be hard ones. But they don’t have to be!

I hope this episode resonates with you and helps encourage you with some ways to make managing your business finances feel easier! Make sure you listen to the full episode to hear the other 3 mistakes that Dondrea teaches us about and how to fix them!

Dondrea is the founder of The Creative’s CFO and she is a certified public accountant specializing in helping women entrepreneurs.

Meet Dondrea!

Dondrea is the founder of The Creative’s CFO  and she is a certified public accountant specializing in helping women entrepreneurs. She helps them know their numbers so they can grow their profit and keep more money. For years, Dondrea was a CPA by day and ran a wedding stationery business in her spare time! She lived in Georgia with her husband and two kids.

LINKS MENTIONED:

Shop EM Shop Templates

Listen to the Breakthrough Brand Podcast

Checkout Dondrea’s Website

Connect with Dondrea on Instagram

Connect with Elizabeth on Instagram

Dondrea’s Attending a Conference Blog Series

Dubsado (Get 30% off)

Wave

QuickBooks (Get 55% off for 3 months)

The Morning Millionaire Book by Lewis Howes

LastPass

You might be making some of these 7 mistakes with money as a creative entrepreneur. Learn from Dondrea Owens on the Breakthrough Brand Podcast.

The post 7 Money Mistakes You Might Be Making as a Creative Entrepreneur With Dondrea Owens appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/7-money-mistakes-creative-entrepreneur/feed/ 0 4448 Marriage, Money, & Entrepreneurship – An Interview with my Husband! https://elizabethmccravy.com/marriage-money-entrepreneurship-interview-with-my-husband/ https://elizabethmccravy.com/marriage-money-entrepreneurship-interview-with-my-husband/#respond Tue, 16 Apr 2019 04:00:59 +0000 https://elizabethmccravy.com/?p=3403 I’m so excited to have my incredible husband, Adam, as a guest on today’s podcast! Y’all are going to love this conversation about personal finance, budgeting, saving, tithing, and all things money. We had so much fun recording this, and we hope you gain so much from the financial tips we share! We walk through […]

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I’m so excited to have my incredible husband, Adam, as a guest on today’s podcast!

Y’all are going to love this conversation about personal finance, budgeting, saving, tithing, and all things money. We had so much fun recording this, and we hope you gain so much from the financial tips we share!

We walk through 5 main categories of money: budgeting, paying off debt, tithing, retirement, and short-term savings.

Marriage, Money, & Entrepreneurship - An Interview with my Husband!

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

Episode Highlights:

    • Our budgeting story - where we started + what we do now
    • Our tips for getting along when it comes to money and marriage
    • All the categories in our budget that we spend within
    • What are individual roles are within managing our finances as a family
    • Our thoughts on credit cards and what we recommend
    • How and WHY we paid off over $20,000 worth of student loan debt rapidly
    • Why we believe tithing is so important and how we manage our monthly tithing
    • How to save well for retirement as a self-employed person
    • How we saved up for our first home

Episode Links Mentioned:

[A quick note: We are certainly not financial advisors! We are just two twenty-somethings sharing what has worked for us when it comes to personal finance, marriage, and business. We recommend consulting a financial professional if you want more info to find out what strategies are right for your life and business.]

In this podcast episode, we walk through 5 main categories of money: budgeting, paying off debt, tithing, retirement, and short-term savings. Podcast episode with Elizabeth and Adam McCravy
Self-employement and retirement: How do I save for retirement when I'm a freelancer? This episode dives into all things personal finance, savings, retirement and more!

The post Marriage, Money, & Entrepreneurship – An Interview with my Husband! appeared first on Elizabeth McCravy.

]]> https://elizabethmccravy.com/marriage-money-entrepreneurship-interview-with-my-husband/feed/ 0 3403 How to Ditch the 9 to 5 Mentality & Correct Your Money Mindset https://elizabethmccravy.com/ditch-the-9-to-5-mentality-in-your-business/ https://elizabethmccravy.com/ditch-the-9-to-5-mentality-in-your-business/#respond Tue, 12 Mar 2019 03:00:59 +0000 https://elizabethmccravy.com/?p=3352 Today we are talking all about money, time and effort. If you’re interested in how you can be more productive, how you can scale your business, how you can work past mental blocks that are holding you back, then this podcast episode [and blog post] is for you. Two questions to start us out: Do […]

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Today we are talking all about money, time and effort. If you’re interested in how you can be more productive, how you can scale your business, how you can work past mental blocks that are holding you back, then this podcast episode [and blog post] is for you.

Two questions to start us out:

Do you believe that you have to work hard to have money?

Do you believe that money comes from your effort?

Hmmmmm… consider those questions as you continue reading.

LISTEN TO THIS EPISODE NOW:

Subscribe & download the episode to your device:  Apple Podcasts  |  Spotify  |   YouTube  |  iHeartRadio

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I’ve got a story to share as we kick things off…

When I was in my corporate job, I worked from 8 to 5. Everyday. No exceptions — except maybe even longer on occasion. I was expected to be in that room all day, even if there wasn’t work to be done. Well, as a new employee, I hadn’t “earned” any time off yet, and so to get time off when you had none meant you had to put in more time. An hour for an hour. Well, I needed some time off. My friend was getting married and I was a bridesmaid in the wedding. The rehearsal was on a Friday afternoon, 2 hours away, which meant, I needed significant time off that day.  So, every day for a week and a half, I worked 1 extra hour. I stayed til 6 instead of 5 or came in at 7 instead of 8, and I worked through my lunch breaks. I did this until I got the day off I needed for this wedding.

It was truly an hour for an hour. I was being paid to do the work obviously, but as an employee, I was also being paid to literally BE THERE — to exist in front of my computer, to answer the phone when a client called, and to be available for meetings. Although I was salaried, the hourly concept was still well established. I’m sure if you’ve ever worked a traditional job, you can relate. So, to get time off, I had to GIVE TIME. I had to make up for what I was missing with more hours.

Did you know that as the CEO of your business you won’t get paid more to sit at your desk longer? [Let that sink in, because although we know it we often don’t act like it.]

Did you know that as the CEO of your business you won’t get paid more to sit at your desk longer? [Let that sink in, because although we know it we often don’t act like it.] Do you know that when a task takes more time, it doesn’t mean more money? Those minutes spent doing pointless tasks, scrolling on the gram, and procrastination are not only NOT moving your business forward… but, they also are completely wasting your precious time. All because you think you need to sit at your desk longer.

Do you know that when a task takes more time, it doesn’t mean more money? Those minutes spent doing pointless tasks, scrolling on the gram, and procrastination is not only NOT moving your business forward… but, they also are completely wasting your precious time. All because you think you need to sit at your desk longer.

We come to the table from the employee perspective, where being a good employee means working “harder”, but that’s not what being a good entrepreneur is.

I believed for a long time that I needed to trade my time for money, even as a business owner. And, I felt a deep sense of guilt if I didn’t work from 9 to 5 because that’s what I believed I was “suppose” to do. After all, that’s what traditional jobs were like, and that’s what my friends were doing. I felt like I wasn’t worthy of the money if the hours weren’t put in.

When vacations were coming up, I’d “make up for it” in my mind by putting in more hours. Not completed tasks, HOURS. I’d say something like “I can take off tomorrow, only if I get in 10 hours of work in today.” But, how does that make sense?

Where in your life are you believing this money block that you HAVE to put in a lot of time to earn a lot of money?

Do you believe that you have to work hard to have money?

Do you believe that money comes from your effort?

 

NEWS FLASH: Money doesn’t come from effort. It doesn’t come from time. And, it doesn’t require working “really hard”. You might read that and think “WHAT?! Elizabeth, of course, it does! You have to work hard to earn money!” Think about it more… it doesn’t.

I’ve got 3 reasons why:

  • How many people do you know who are working their tails off, and have nothing to show for it? They put in so much time and energy, but are still totally broke? Working hard does not equal wealth.
  • Do you know of someone who works LESS than you and makes MORE money? Even if you don’t know someone like this personally, you can probably think of SOMEONE who this is true of.
  • How many times have you happened upon money with zero effort on your end? (Think about birthday gifts, inheritances, literally finding money on the street)

 

If there’s an exception to the fact (see above), then it’s not a fact, it’s a belief. The idea of “you have to work hard for money” is a belief. It’s the employee mindset: “The harder you work, the more you are rewarded.”

Let’s ditch the employee mindset. I’ve got 4 major ways for you to put this into action.

1. Work smarter not harder.

If you are working SOOOOO HARD in the wrong direction, it doesn’t count for anything. For example, let’s say you are in Nashville and you want to get to California. So, you put in a ton of energy walking, running, jogging towards the south to get there. You’re working really hard, you’re putting in the time, you’re putting in the effort. But, you’re going the wrong direction and you chose the longest, hardest way to do it when you could just book a non-stop flight and get there in a couple of hours. “Working hard” on the wrong thing counts for nothing.

When you start your workday, ask yourself “What tasks can I do today to move my business forward?” Put in the hours that really matter on the things that move your business forward. And I hate to break it to you, but mindlessly scrolling on Instagram is not moving your business forward. Doing the same tasks over and over again that you could easily automate doesn’t move your business forward. And, trading time for money doesn’t move your business forward. Just working hard for the sake of working hard doesn’t benefit you at all.

3. Push back against the culture of busy.

Being busy often seems like a badge of honor, especially in the business world where everything is about hustling. We can feel like success is equal to busyness.

First of all, I don’t want people to see me as “busy” because bo me busy is bad. Busy means I don’t have time for the people I love, that I’m stressed out, and that I don’t have my life under control. Also, have you ever noticed that EVERYONE is “so busy”? Regardless of their job, regardless of their life situation, America runs on busy. And, I think being busy isn’t really what it seems.

Busy is a mindset that you can choose to be in, or you can decide to ditch. I personally try to ditch the word busy from my vocabulary altogether.

We join the entrepreneurial world from the employee perspective, where being a good employee means working “harder”, but that’s not what being a good entrepreneur is. If you’re interested in how you can be more productive, scale your business, and work past mental blocks that are holding you back, then this podcast episode is for you.

Tim Ferriss says that staying “busy” is actually a form of laziness. Being perpetually busy is the same as being sloppy with your time, which is ultimately a form of laziness. Deciding to just “work really hard” means you’re not putting in the work of figuring out how you can actually run your business effectively.

Telling yourself “I’m going to work 10 hours every day until I get to where I want to be.” is a lot easier than putting in the work to figure out how you can run your business smart. Answering questions like “How can I not work myself to the bone?” and  “How can I make my time work for me instead of being a slave to time?” is harder.

It’s easy to confuse activity for productivity. Let’s trade lots of activity for a smaller amount of intentional, thoughtful work. Push back against the culture of busy.

 

3. Stop acting like an employee of your own business.

You are the boss. Even when you feel like you are too young, too inexperienced, or “TOO WHATEVER”, you’re the one in charge. So, act like it. When you run your business strategically and manage your time well, you can create more time for the things you love. Quit trading an hour of work for an hour of free time. Actually manage your own schedule. Plan your day. Do the harder thing. Because yes, whether or not you realize it, just sitting down and working until 10 pm is EASIER than planning your day. Quit choosing the easy option, choose the strategic option that actually will get you the results you want.

So, ask yourself on this one — what ways do you act like an employee? Are you acting like there’s someone else out there with the plan and vision for your business, so you don’t have to do all of that?

 

4. Use tools to get you there.

Managing your time well doesn’t just happen on its own. You need tools and resources to get you there!

My favorite tools for managing my time right now are my High-Performance Planner, Powersheets, To Doist, and Toggl. They all rock and work together beautifully.

Here’s how I use each:

High-Performance Planner: I use this on especially full days to schedule out my day, hour by hour. There are also morning and evening mindset questions that will help you stay focused on the BIGGEST goals in your business, not the little pointless tasks. I also love that it’s un-dated so you can start using it whenever, and skip a day on the weekends or other times when you don’t need the intense structure.

Powersheets by Cultivate What Matters: I use Powersheets to set my big goals for the entire year, and then smaller goals for each month, week, and day. Like the High-Performance Planner, this tool keeps me focused on the bigger goals! [Read more about why I love Powersheets here.]

ToDoist: This is a free computer/phone app that lets you make tasks list. You can make lists for things you want to do that day, or keep rolling categories for other things you need to remember! ToDoist especially helps me lately when I get distracted about something off-task. For example, I’m working on a client project and I remember “Ah, I have got to buy light bulbs!” and then I just quickly add that to my “To Purchase” list and get back to what I’m doing.

Toggl: Have you ever really looked at how you spend your workday or exactly how many hours you’re putting in? It can be EYE OPENING. I track my work each and every day using the free tool, Toggl. In Toggl, you can set up clients and projects and add descriptions for each work session you do. I can differentiate between my time spent on a specific client project and my time spent writing blog content for my own business. I can see how much time each week I spend in meetings and how much time I spend building websites.

Another tip about using tools: Don’t chase “shiny new tools” constantly. You could listen to a thousand podcasts and everyone will suggest something different. Try something and stick to it for a while. Then, only if that isn’t working, try something else.

To sum it all up:

Yes, starting a business is challenging. But, that’s not the same as working harder.

Is walking difficult or is learning to walk difficult? I’d say walking is easy, but learning to walk is not. It’s the same with a business. When you’ve been trained as an employee, learning to run a business is challenging. But, just because it’s challenging, doesn’t mean it requires “hard work” for you to make money.

You guys, the first step is a mindset adjustment! Consider the facts, consider that you may be living with a false belief, and work on it. I believe that SO MANY of our business problems are not about our marketing or our websites even, they are about what’s going on in our heads.

Thanks for reading! I hope this message helps you ditch the 9 to 5 mentality for good!

Share it:

Breakthrough Brand Podcast: In this episode, we talk all about money, time and effort. I go into some deep work that’s been happening in my own life around money blocks I used to believe. We join the entrepreneurial world from the employee perspective, where being a good employee means working “harder”, but that’s not what being a good entrepreneur is. If you’re interested in how you can be more productive, scale your business, and work past mental blocks that are holding you back, then this podcast episode is for you.

Listen & subscribe to the Breakthrough Brand Podcast on your favorite platform:  iTunes  |  Stitcher  | Google Play  |  Spotify 

We join the entrepreneurial world from the employee perspective, where being a good employee means working “harder”, but that’s not what being a good entrepreneur is. If you’re interested in how you can be more productive, scale your business, and work past mental blocks that are holding you back, then this podcast episode is for you.
Breakthrough Brand Podcast: In this episode, we talk all about money, time and effort. I go into some deep work that’s been happening in my own life around money blocks I used to believe. We join the entrepreneurial world from the employee perspective, where being a good employee means working “harder”, but that’s not what being a good entrepreneur is. If you’re interested in how you can be more productive, scale your business, and work past mental blocks that are holding you back, then this podcast episode is for you.
Telling yourself “I’m going to work 10 hours every day until I get to where I want to be.” is a lot easier than putting in the work to figure out how you can run your business smart. Answering questions like “How can I not work myself to the bone?” and “How can I make my time work for me instead of being a slave to time?” is harded. It’s easy to confuse activity for productivity. Let’s trade lots of activity for a smaller amount of intentional, thoughtful work. Push back against culture of busy.
Did you know that as the CEO of your business you won’t get paid more to sit at your desk longer? [Let that sink in, because although we know it we often don’t act like it.] Do you know that when a task takes more time, it doesn’t mean more money? Those minutes spent doing pointless tasks, scrolling on the gram, and procrastination are not only NOT moving your business forward… but, they also are completely wasting your precious time. All because you think you need to sit at your desk longer.

If you enjoyed reading this blog, be sure to check out the Breakthrough Brand Podcast, where you can listen to this episode with even more details and takeaways! 

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