6 Easy Steps to Building and Enjoying Your Wealth When Your Practice Is Taking Off and the Money Is Rolling In
Automate. Reduce Cognitive Load. Enjoy Your Dough.
You’re starting to make real money.
More than you’ve ever made before. You’re a healer, coach, or therapist and your business is finally starting to take off. You’ve conquered your fear of selling, you’ve grown confident in your skills, and you’re finally charging enough.
Yet too much money can be as scary as too little.
It’s normal not to know what to do. You’ve never been here before. When we’re uncomfortable we tend to avoid the issues, undermine our success to revert back to comfort, spend like a drunken sailor, or channel Scrooge to manage our anxiety.
Here’s a better way to steward your newfound wealth:
Set money aside for taxes. So many newbie practitioners have a painful cash crunch when they get hit with a big tax bill they haven’t saved up for, and have to pay estimated taxes.
Track your spending with an app like Mint. My clients often feel like losers when they have a break-out income year, but have nothing to show for it in the bank. Sometimes, there’s a good reason (investing in the business, big unexpected expenses, paying off excess debt). Knowing where the money went is key to feeling in control.
Automate your savings and start investing. Build up your emergency fund (3 to 6 months of living expenses) and start to invest in a low-cost index ETF. Get in the habit of automatically socking money away. You’ll have a cushion when life throws you a curveball, and the sooner you start investing, the more you’ll benefit from compounding and dollar-cost averaging. Make one decision to save & invest automatically.
When you get a windfall, put it to work for you.
Enjoy your money, but spend it with intention on the things, experiences, or causes that bring you joy. Decide in advance how much will be your “joy tithe”, so you don’t overspend.
Your self-concept may take a minute to catch up to your finances. Lots of “stuff” may come up for you about wealth. Be kind to yourself, but explore this. Be aware people may treat you differently, and not always in a good way. It’s them, not you.
Good automatic money habits will make building wealth effortless as you build your practice. Start early, make it easy, and have fun!
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