When it comes to using our money, a lot of times it’s not something we consciously think about. It’s just something we’ve been taught “This is the way you do it.” Interest is bad. Pay off the debt as soon as possible. But that’s not always the case, especially when you start thinking about things through the lens of control.
How can you be in more control of your money, your cash flow, your finances and how do you experience the freedom that comes with that control?
Today, we’re going to talk about how to put yourself, your family, and your business in greater control of your finances. So you’re not on autopilot. So you’re not just doing things because “that’s how they’ve always been done.” Instead, you’re able to make a conscious decision to put yourself in a better position going forward.
We see this pretty much every day people trying to get out of debt as quickly as possible, paying it off on a short amortization schedule, even throwing extra payments at it to save a few bucks on interest. But today, we’re going to talk about why that’s not necessarily always a good thing and how to position yourself better going forward.
What people see is: “I’m paying less interest.”
But what they feel is: “I don’t have any money. I’m working so hard. All I need is more revenue, more sales, more business… How do I do that so I can finally feel some cash flow relief?”
What we’ve found is that more sales is not the solution to the problem. Instead, the real solution is looking at how you’re using your money on a monthly and daily basis and breaking that down in a way that puts you in control.
We bring a unique perspective: viewing every financial decision through the lens of control. What we’ve found is that when people shift to this mindset, they begin making better decisions with greater clarity.
It’s simple:
If I do this, will it put me or my business in greater control of our money and cash flow?
If the answer is no, don’t do it.
If the answer is yes, go for it.
It seems simple, but it’s often hard to implement because we’re fighting against financial habits that have been ingrained for generations.
Especially when those habits are passed down, right? If your dad or grandfather did things a certain way, and you respect them, you assume that’s the right way. But that doesn’t always mean it’s the right way for you or for your situation today.
A lot of people are feeling that pinch, especially as we head into a recession. The economy is tightening, and these financial habits are going to be tested. It’s becoming increasingly important to look at your money decisions through a different lens to take control, and make financial choices that give you more freedom and flexibility on a monthly basis.
It reminds me of a story. There’s an old tale about a young woman who was recently married and hosting Easter dinner. While preparing a ham, she cut off both ends before putting it in the oven just like her mother always did. Curious, she asked her mom, “Why do we cut the ends off the ham?” Her mom replied, “I don’t know, that’s how my mom did it.”
Grandma happened to be there, so she asked her, and Grandma replied, “Well, back in my day, my oven was too small to fit the whole ham. So I had to cut the ends off.”
The point is many of us do things out of habit, without realizing the context in which those decisions were originally made no longer applies.
If you’re a successful business owner today, your financial circumstances might be very different from those of your parents. But your kids are watching you now. You have the opportunity to pause and reflect: “Is this the way things actually should be done or is it just the way things have always been done?”
Again, viewing decisions through the lens of control changes everything. It’s been a game-changer for our clients. Every decision now has a purpose. You’re no longer unknowingly or unnecessarily transferring away wealth and cash flow. You’re keeping it where it belongs with you.
Recently, we met with a business owner in his 60s. His children now in their 40s work in the business too. They’re doing very well, bringing in about $7 million in annual revenue. But they feel cash-flow poor.
Why? Because they’re trying to pay off all their debt as quickly as possible. That’s what the first generation did, and it’s what the second generation learned. It feels like the right thing to do avoid interest at all costs. But let’s talk about the symptoms that come from this mindset.
First, the cash flow pinch. Every month they’re racing to meet payment deadlines. That creates downstream pressure on the sales team to close deals faster. Installers feel pressure to cut corners to increase profit margins. Everyone is rushing so they can get paid faster and avoid interest charges.
But every splash creates a ripple. And those ripples are creating even more stress and financial strain.
As a business owner, this is incredibly stressful. You have so many responsibilities to your staff, to your customers, to your family. One financial decision is affecting all of these people. So the question becomes: how do we put you in a stronger position where you have access to capital and flexibility?
We see this all the time whether it’s a family or a business. People think, “If I just had more money, I’d feel better.” If I got that raise, that bonus, that one big sale… I’d be fine.
But more money isn’t the solution. You likely already have enough flow coming in. The real issue is: where is that money flowing and how?
It’s like you’re trying to fill a bucket with water, but the bucket has holes in it. Until you plug the leaks, it doesn’t matter how much more water you pour in. The first step is honest introspection. Have I been a diligent steward of my cash flow? Have I been making intentional, efficient decisions?
Once you plug those leaks, your bucket will begin to fill even if it’s just a slow trickle. You don’t need a tidal wave of cash. You just need a steady stream flowing into a system that keeps it there.
You’re creating undue stress by constantly saying, “We need more sales.” But if you’re losing money through inefficiencies, those sales won’t fix your problem. They’ll just accelerate the drain.
Just because you’ve done things one way in the past and it’s gotten you this far doesn’t mean it’s the best path forward. Especially in today’s economy. As recession pressures mount, it’s more important than ever to build a private pool of cash a reserve you can tap into when needed.
That pool of cash can be used to buy discounted inventory, cover payroll, or seize opportunities. But you can’t build that reserve if you keep making the same financial decisions that take you out of control of your money.
If you’d like to learn more about how to put your business in a stronger financial position especially as we head into uncertain economic conditions check out our website at www.tier1capital.com and click the “Schedule Your Free Strategy Session” today. We’ll talk specifically about your unique situation and how to make it stronger for generations to come.
Thanks for reading, and remember it’s not how much money you make, it’s how much money you keep that really matters.