Passive Income For Therapists Step 2: Deal with Your Money Issues
I know… I know… your money issue is that you need income coming in… But, is that it? Whatever issues you have with money in your personal life, in your business finances, and your business plan- those patterns tend to track to any new venture including one relating to passive income.
How do money issues show up?
Let’s go back to our example of the classic passive income strategy- rental income. What are ways that money issues could show up and keep that sweet rental income property from being a good investment?
Not researching all the fees associated with the purchase
Not projecting for future fees, emergency funds, etc. for the property
Not having a clear plan for collecting rents and dealing with problem tenants and non-payments
Ignoring the bookkeeping, expenses, and income of a property
Not understanding the limitations or restrictions on the property you purchased
Charging a rent fee that feels fair to you, but that doesn’t allow for current, projected, and possible unexpected expenses
Putting your renters needs before your own financially
Not having a marketing plan in place to rent your property quickly so you keep putting out money, without any income coming in.
What are your money issues?
What are your money issues? You need to get real and honest about what they are, and start to face them head on if you want to be successful in your business- passive income or not! It is time for some adulting in your business and your money life before you move to passive income strategies. Here is a hot list of things to manage before moving on to passive income
Get clear about your business and personal finances
Do an overview of all of your charges for the last 3 months. Cancel any recurring charges or expenses that you aren’t using or you don’t need. You might find a few hundred dollars in “passive” income each month just from that act alone! Go through your closet and take back any items you purchased that you meant to return or that still have the tags on them.
Get clear about your business and personal budget
Get clear about your budget and how you choose to spend your money. Are you overworked and burnt out? Do you ever use shopping or spending as a way to soothe yourself or take care of yourself? You could easily be overspending personally and professionally and end up needing to work MORE and find yourself in an endless cycle.
Have the money: conversations you avoid
Talk about money with anyone that you share money or expenses with. I know those conversations can be uncomfortable and scary, but they are powerful and helpful. This means getting clear with your business partner, employer, employee, etc. Let them know that you are just looking to get more clear and make better financial decisions moving forward.
Run the numbers for the different scenarios
Is your goal with passive income to not need to work 3 jobs? What would that REALLY take? In fact, now that you went through your finance and made a clear budget- could you get make things a little lean and give up one of your jobs RIGHT NOW? Could you use that freed up time to make a bigger and better income from your business? Get clear today about how much profit you need to make to reach your next milestone or goal. Profit is the amount of income you take home AFTER all of your expenses.
You will expand to fill the space
If you don’t get clear about the exit strategy or plan, it is easy to take that “extra” money you are receiving and simply have your expenses expand in such a way that you don’t ever really get ahead. Have a clear plan of action, get used to looking at your finances regularly and often so that you know when you are hitting those milestones and it is time to let go of the 3rd job, or reduce your caseload, or drop that insurance plan.
I asked some of our coaching clients how their money issues have impacted their business expansion goals and profits. I realized I had to work on my money issues when…
“I put pen to paper to determine my REAL profit.”
“I realized I was paying my employee more than I was paying myself.”
“I entertained and delivered a raise to the shittiest and most entitled employee I’d ever had.”
What about you? What are the money patterns from your family of origin or past that may be repeating themselves in ways that aren’t serving you today in your business? Would you be vulnerable with us? Will you make a commitment to yourself? Comment below with one thing you can do this week to get your money house in order and get prepared for passive income as a therapist!
