The Bad Money Habits to Break 


“It takes 21 days to break a habit.” That’s how the old adage goes. Unfortunately, experts have agreed that this simply isn’t true – but don’t be discouraged. In my two-plus decades of working with business owners from various industries, I’ve encountered quite a few bad money habits. And fortunately, with some diligence from the business owner alongside education and support from myself and the rest of their team of financial experts, I’ve seen those bad habits broken with big payoffs. What follows is a selection of some of the most common bad habits I’ve encountered during my tie as a cash flow specialist, as well as how to address them. 

1.Being complacent with the financials. I strongly encourage you to take “ownership” of your financials by educating yourself on how to read your Profit and Loss, Balance Sheet, Accounts Receivable Report and Accounts Payable Report.

2. Commingling money between business and personal finances.  It’s important for business owners to remember that the company is not their personal cash bank account. Keep business and home separate! One of the easiest ways to break this habit is by opening a business credit card account that you use exclusively for business needs and expenses. This will help you avoid intermingling expenditures and simplify matters related to budgeting.

3. Racking up loans or credit card debt to buy what you “want”. While it can be tempting to use your line of credit to invest in things like new software or technology, this kind of spending can quickly get out of hand and leave your business in a cash flow crunch. If you cannot pay off your credit card each month, it is a red flag that you are spending more than your monthly budget can support. Create a proactive debt servicing strategy to eliminate credit card debt before buying things when you want them, at least until you can afford them.

4. Trying to do it yourself.  Many business owners try and tackle their financial situation alone with the notion that they’re saving money. The truth is, hiring a team of financial experts (bookkeeper, CFO, CPA), can save you more money than the fees of its respective members. Doing your own bookkeeping is not the highest and best use of your time.

5. Relying only on your CPA. A CPA is focused on taxes, therefore relying solely on one will not help you with understanding your financial story.  A CFO should be focused on increasing your bottom line to optimize your cash flow.  This takes proactive thinking (CFO); not reactive thinking (CPA).


Don’t let these bad money habits stifle the success of your business. Take back financial control and learn how to be proactive by scheduling a complimentary consultation by clicking the button below.

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