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Therapy For Your Money
Welcome to Therapy for your Money, a podcast about all things money and finance for private practice owners! If you are ready to feel confident and in-control of your financial life, then you are in the right spot. Therapy for our Money is hosted by Julie Herres, the CEO and Founder of GreenOak Accounting. She and her firm specialize in working with private practice owners across the United States, and have assisted hundreds of private practices with increasing their financial stability and profitability. She is on a mission to share her best practices she's learned along the way through her successful career as an accountant, discusses financial topics with a wide variety of guests, and help her listeners make data driven decisions to help their businesses.
Therapy For Your Money
Episode 29: Dave Ramsey's 7 Baby Steps - How can they help your business?
Today, we're tackling a polarizing topic - Dave Ramsey's Baby Steps! We're looking at how each step can be applied to your personal life, as well as your business.
Episode Highlights:
- Dave Ramsey's 7 Baby Steps:
- Step 1: Save $1,000 for a starter emergency fund
- Step 2: Pay off all debt using the debt snowball (with the exception of your house)
- Step 3: Save 3-6 months of expenses in a fully funded emergency fund
- Step 4: Invest 15% of your household income into retirement
- Step 5: Save for your children's college fund
- Step 6: Pay off your home early
- Step 7: Build wealth and give
- How to apply each step to your business:
- Step 1: Having at least $1,000 set aside in a separate account could help during a slow period, to pay an unexpected bill, etc.
- Step 2: Start with paying off your lowest debt first (not the lowest interest rate), to pay off your credit cards or open loans
- Step 3: Calculate how much your expenses are for a 3-6 month period to keep your business afloat - don't forget about payroll!
- Step 4: Taking extra draws from the business and investing into your retirement will help you better prepare for your future
- Step 5: This step can be used to offer extra benefits to your employees, such as PTO or a 401K match
- Step 6: If you decide to purchase an office space instead of lease, focus on increasing your payments in order to reap the benefits of ownership early
- Step 7: Watch your profits grow and give back to your community!
Links & Resources:
GreenOak Accounting
Therapy For Your Money Podcast
Dave Ramsey's 7 Baby Steps