I’ve decided to launch something new. As you know every other Monday I send you a Monday Morning Commute email letting you know what podcast I’ve just released on the Wealthy Wellthy Podcast. Up until now, the WW Pod has been over 200 episodes of me interviewing amazing guests on various though leading topics. Well, I do far more than podcasting 😉
Mainly, I run a life-altering money school: Sovereignty Academy. All students of our flagship course, CURBS™ receive two private one-on-one coaching calls with me. I record these calls for the students to keep afterward. Well guess what…These calls have been SO valuable for our students that we’ve decided to start releasing some of these private coaching calls to YOU!
Is the intention to have as little business write-offs as possible to grow the profitability of the company?
The client was paying off her business credit card with her personal money. This is a big N.O.
Are you doing the same? My advice is for you to take a full weekend and go through your books. Clean it up. Go back to your credit cards and go through all of your expenses. Get a view of what the following year will look like. Hint… they should look BETTER.
Create two columns.
First column: write down the total of your business expenses…legit business expenses.
Second column: write your personal expenses.
Got it? Good.
Now, calculate what the total is of your PERSONAL expenses and that could be looked at what you paid yourself.
Next, create a budget for your business. And personal wouldn’t hurt, either.
Create a Marketing expense and a Travel expense— because you are going to be actively utilizing both of those things.
“If I was living on what I shouldn’t have been spending— that $76-80,000— that’s a very, very different lifestyle than I am living right now. I am living as if I have $200,000 to spend— like a year! And that doesn’t even exist. That wasn’t even a number because of the team and everything!” (Payments to the team were alone $100,000). It’s just amazing to me that nobody thinks this way.” — Client; 27:30
Let Me Ask You This:
1 a. Do you care how Apple spends their money?
1 b. Do you want them to write off every coffee appointment and every this or that that technically they could write off?
—> No, you want Apple to be financially truthful with what real business expenses are… (4:00)
“You are not your business.” — Krisstina Wise
“You can only be paid the value of your role to the company.” — Krisstina Wise; 3:25
“You are paying yourself for whatever your market value is, but your profit share is the reward you get for as a business owner for taking that risk of being an owner. That’s what profit is, it’s your bonus.” — Krisstina Wise 39:05
Tax strategy is not about writing money off on your business. Tax strategy has to do with whole life insurance and how you set up your company so that you can pay yourself different ways. It’s not based on keeping your expenses down— real tax strategy has very little to do with that.” — Krisstina Wise; 38:45
Have your CPA takes care of business then see if is more to add— AFTERWARDS. After the fact is key.
Myth: Tax write off is the goal.
“I was shocked that $100,000 went out to team…I don’t even have invoices on that $100,000! — Client; 22:12
“Nobody ever gets paid unless they send me an invoice.” — Krisstina Wise
“We’re spending like 70 cents to save 1 dollar — it doesn’t work. You will actually OVERSPEND on your business, because you’re having this mindset of: I can swipe this card for all these coffees because hey, it’s a write off!” — Krisstina Wise
“When you see what percentage of your income is going towards restaurants and coffees and you see your profit in loss and you see the number, you’re like f***, that [money] could go to my other buckets?!” — Krisstina Wise; 9:30
To LISTEN and see the show notes to this Wealthy Wellthy Podcast Episode — CLICK HERE!
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