As we’re sure the title gives away, this is the last in a three-part series. If you haven’t read the last two parts, we suggest you go back and do that now.
We’ve now looked at the three businesses you should be running as an entrepreneur. We’ve looked at the overlap between each of these and how they interact. Today, we want to focus specifically on that connection between your Now business and your Asset business, as this is the one, we see entrepreneurs screwing up the most! This is how they end up like those entrepreneurs we talked about in the first article, in their 70s and still working away instead of getting to relax and enjoy the tail end of their lives. That’s not what we want for you, so we’re going to break down the important connection between your current business and your asset business, so you don’t make the same mistake.
The most common issue we see in entrepreneurs, is that all the profits their current business is generating, are just feeding into their current lifestyle. Not just that they’re using the business to pay their everyday living expenses, but they’re seeing any extra income on top of that as simply a bonus to enhance their lifestyle. They start going on the big holidays, going out for all these extra fancy dinners, and they use their business as the tool to do that. Now, sometimes you can get away with that, but a lot of people don’t. What we encourage to stop this, is to separate some money out from your business that goes into assets. These assets can be a whole mixture of different areas. It can be property, investments, and even (importantly) just cash. This is what you then use to pay for the lifestyle. Not the business directly, but the assets that you’re allowing yourself from it. It basically just comes down to setting a budget and allocating a certain amount of funds to your lifestyle, as opposed to letting the lifestyle dictate the funds.
The big challenge here is figuring out what that ratio should be. What we always recommend here, is a method of reverse engineering. First, you’ve got to figure out what your ideal lifestyle is, and how much you need to maintain that. From there you can do the calculations on how much you need to be putting into your assets, and how hard you need to be making those assets work for you! This is going to be a different number for everyone, but it’s vital you figure it out. If you’ve made it this far but are worried, you’re going to get stuck in this fine-tuning, please reach out to us! We’ve worked with hundreds and hundreds of entrepreneurs over the years, helping them set, stick to, and improve their budget so they can keep all three of their current, future and asset businesses successful, and most importantly, sustainable.
Book your free 15 minute coaching call with us today to get started!