It’s tempting, right? You open your banking app, see a number that looks “good enough,” and assume you’re on track. But here’s the hard truth: eyeballing your bank balance isn’t managing your money. It’s guessing—and guessing isn’t a strategy.
If you’re ready to run a creative business that grows sustainably, it’s time to move beyond the “bank balance approach” and start taking control of your finances. Let’s talk about what that looks like.
Why Your Bank Balance Isn’t Enough
Your bank account shows you what’s there right now—not what’s coming up. It doesn’t account for:
- Upcoming expenses like subscriptions, taxes, or supplies.
- Payments you’re waiting on from clients.
- What you need to reinvest in your business to grow.
When you rely on your balance to make financial decisions, you’re working with half the picture. And when unexpected expenses pop up, you’re left scrambling.
What Happens When You Start Tracking Your Finances
When you start managing your money intentionally, everything changes. Here’s what happens when you move beyond your bank balance:
- You know exactly what’s coming in and going out every month.
- You can plan for growth because you’re clear on your numbers.
- You stop feeling stressed about unexpected expenses, because you’re prepared.
Instead of hoping things will work out, you have a strategy that shows you where your business stands and how to move forward.
How to Stop Guessing and Start Managing Your Money
Ready to make the shift? Here are three simple steps to get started:
1. Start Tracking Every Dollar
This means knowing exactly where your income is coming from and where your expenses are going. Use bookkeeping software or a spreadsheet to record everything—it’s a game-changer.
2. Create a Monthly Financial Review
Set aside time every month to look at your numbers. Review your income, expenses, and profits, and compare them to your goals. This clarity helps you make better decisions.
3. Build a Financial Buffer
Unexpected expenses happen. By setting aside a percentage of your income every month, you can create a safety net that keeps you from dipping into your personal savings when surprises come up.
What This Looks Like in Action
One of my clients used to run her business by guessing. She’d see money in her account and assume she was doing fine—until tax time came around, and she realized she wasn’t setting enough aside.
We started tracking her finances monthly, created a clear budget, and set up a tax savings account. Within a few months, she not only had a handle on her cash flow but also felt confident about reinvesting in her business.
Now, she’s not just surviving—she’s thriving, with a clear plan for her finances and no more tax-time panic.
Your Bank Balance Isn’t a Strategy—But It’s Not Too Late to Change That
If you’ve been running your business by checking your bank account and hoping for the best, now’s the time to make a change.
When you stop guessing and start managing your money intentionally, you’ll feel more confident, less stressed, and in control of your business. Let’s make 2024 the year you take charge of your finances and set your creative business up for sustainable growth.
This Week on the Podcast:
Do you know the difference between profit and revenue? In this episode of Creative Minds Smart Money, I’m breaking down why knowing the difference is essential for running a thriving creative business. Spoiler alert: revenue might look good on paper, but profit is what really matters.
We’ll talk about how to identify what’s eating into your earnings, set pricing that actually pays you, and make decisions that prioritize your financial health. No boring accounting talk—just actionable insights to help you take control of your numbers and build a business that works for you.
🎧 Listen to the full episode here: Creative Minds Smart Money Podcast
Ready to stop guessing and start growing? Tune in now!
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