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Business Finances

Consider Renovating Your Finances

Oct 07, 2022

The word renovate is often used for a kitchen, a bathroom, or even the entire house. What if you had a way to renovate your finances? Let's look at how this can help you get on top of those flipping digits. 

Now I'm no expert on renovation, but I've watched The Block. And for anyone that's not familiar with The Block, it's an Australian renovation, competition, and reality TV series. I'm just going to share with you what I know and how we are going to connect renovations with finances. 

The first step of renovating your finances is demolition. It's the same as renovating a house, first, we need to pull everything out. We've got to take away all of the existing bits and pieces that we no longer need. 

In translation, it's really about stripping away our previous mindset.

How do we feel about our finances?

How are we treating it?

Is it important?

What are we doing with it?

Are we doing anything with it?

All of those things need to be completely removed. Once the demolition is finished, then we've got the bare bones. 

However you want to look at it, in finances, it's really about the money. When we look at the bare bones of our finances, things like having our business and personal finances separated are important. The foundations of our finances can be the bank accounts, and how our money is structured. 

I've spoken about bank accounts before for your business, about having inbound accounts, outbound accounts, and savings accounts. Once we have the foundation of those bank accounts in place, that's the home of our money. That's where it all lives. And this is where we can start to rebuild our finances. 

Now that we step back and look at the renovation, we might see new walls, a fresh coat of paint, floor coverings, tiles, curtains, and blinds. With this part of the renovation complete, we can make a fresh approach to the next stage. 

Do we need new appliances? With our finances, this may be, a notebook, a spreadsheet, or an accounting platform. Chances are that you'll be changing your system, using a different method to control your finances. Something that's going to make things easier after the renovation is complete. 

And last, but not least, is the new decor, the final touches, maybe a new painting or some plants. In finances, this is the time to set yourself a schedule. Set a regular time in your calendar to sit down and take advantage of your newly renovated finances.  

And that's it. Your financial renovation is complete. You can sit back, relax and enjoy this beautiful space that you've created. Now you can look forward to working on your finances. 

I would just like to finish with this great quote from Benjamin Franklin, "Beware of little expenses. A small leak will sink a great ship". That's my final decor!