Budgeting and managing finances are a sore spot for so many entrepreneurs (me included).
I think part of it is because it seems rare for creatives to have been really properly taught how to do it, whether it’s for our personal expenses or business expenses.
And it’s super uncomfortable to just “wing it” with money! Yet so many of us do it.
So I’m stoked to introduce you to Isaiah Goodman. Isaiah is the founder of BecomingFinancial.com and MoneyVerbs.com. He is a Certified Financial Education Professional™ and a Certified Financial Educational Instructor™.
Isaiah loves to empower others and help them think about becoming better every single day. His dream is to help people get a good grasp on their finances, how to budget successfully and just how to be better with money.
Whether you’re a creative entrepreneur or not, all of the tips and tools that we cover in the episode can make a huge impact.
- [03:15] “Get rich the safe way.”
- [05:12] Isaiah describes his two businesses—one-on-one financial coaching and the MoneyVerbs app with 240 lessons on personal finance and 300 lessons planned for business owners.
- [07:56] Isaiah talks about your personal and business budget and how to determine when you’re ready to go full time with your side gig.
- [11:31] MoneyVerbs has a spreadsheet template called Flex Flow Budget to help you with budgeting expense flows AND fun money.
- [16:20] Set a profit margin for yourself and pay that money first.
- [17:53] A common mistake is that people want to avoid paying taxes but forget that taxes are only payable on profit.
- [20:23] Isaiah explains more details on the MoneyVerbs app—where it is now and where it’s going.
- [23:50] A common mistake business owners make is that they don’t save what they could in retirement and not set up a solo 401K.
- [31:31] Set a cadence for monitoring your finances—determine what cadence feels comfortable for you (daily, weekly, monthly), and find a way to do it efficiently.
Rapid Fire Questions
What is your best time-saving hack?
So there’s a phenomenal book called Procrastinate on Purpose. It’s by an author named Rory Vaden. And what he talks about is how to intentionally procrastinate on certain tasks. What you do is you kind of look at that grid of, is it important and is it urgent? If it’s not important or urgent, you just eliminate it. If it’s not super important, but it’s kind of urgent and maybe you can delegate it or automate it. So as you build a team, you can say, Hey, I’ve got a virtual accountant or a virtual assistant who can help. Or maybe I just don’t need to do this task anymore. If something is pretty important, but it’s not urgent, that’s when you kind of procrastinate on purpose, like, okay, I’m going to need two hours to do this task. So let me do that on my Friday afternoon when things slow down and if it’s important and it’s urgent, then you concentrate, you focus on it and get it done.
What is the best advice you’ve ever been given?
When you have a kid and you’re with your partner or spouse or co-parenting, whatever your situation is it’s your kid, and everybody’s gonna have their own opinion, but at the end of the day, you’re going to do the best that you can to do the best for your kid.
But one bit of advice I think I can think about for all of our business owners out there. When you come to do a business, of course you have all your different reasons and values wrapped around it. And for a lot of us, some of those reasons are different. Some of them are very personal and I know some families that give people a hard time, like, Oh, why would you leave that good job to go start your own business? So I think for a business owner, it’s really important to think about why are you doing this? And what’s important to you? It’s just kind of connecting it to your values—what’s important. That for me, it was some of the best advice where it was like, if you’re going to do this and go all in, the person told me, you’ve got to love doing this. Even if it was like, you’re not going to get paid as much as you could before, because I left Target to go start financial planning at Northwestern Mutual. And it was like, yeah, I’m not going to make as much right away, but longterm I will, but I’m going to enjoy doing it so much more. And so that for me as a business owner was the big thing was, can I enjoy this? Does it align with my values? The things that are important to me.
What is something you’ve learned about yourself this last week?
I’m kind of on a fitness journey. I’m really trying to make sure I focus on my health and eat right. And workout because especially as a business owner, there’s always another email. There’s always another thing to do, or as a startup founder of trying to apply to these accelerators and VC pitches and what was so important was to think about how I need to take care of myself first for my health. Because especially with COVID, you’re seeing all this stuff happen where there’s probably so many business owners that had such huge dreams and then they got sick and they’re not here anymore. And you know, of course COVID is something that you want to be as careful as possible with, but still, tomorrow and next year and the year after the bigger things that are going to kill more people or things like heart disease, diabetes, right. Stuff that we can kind of control a little bit more if we eat a little bit better and work out a little bit more. Right. And so that, that for me was like the big kick in the pants where it was like, I got to eat a little bit better, workout a little bit more and be more intentional because then I can do better at my job and be here to do it down the road.
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Episode 31: Building Good Money Habits for Your Business with Justine Lackey
Episode 21: The Legal Crash Course Every Business Owner Needs to Hear with Grant Atkinson
Episode 12: Pricing Woes? The Formula for Developing YOUR Price
Episode 5: What No One Tells You About Being Your Own Boss
Episode 6: Secrets to Recurring Revenue as an Artist