Blog By Erika Navarette- Navarrete Accouting LLC
Hello, my name is Erika Navarrete and I am your Money Mentor!
I am the accountant for Josh and Denise Corona, the owners of The Sweatshop Dallas and Irma Vargas the owner of Bella Med Spa. I also work a full-time job as a Sr. Accountant for an Oil and Gas company. I have been in the field of accounting for 10 years and recently graduated with my MBA from University of North Texas at Dallas. My next step in my career is obtaining my CPA and I will start studying for in January 2019.
I have a passion for studying money because of the lack of it in my childhood. My mother was a single mother of three kids. Life wasn’t always a struggle for her. We lived in a nice neighborhood and she was even attending Dallas Baptist University. My father was very physical and verbally abusive with my mother and one day he decided to leave our family. My mother had to drop out of college and they both had to filed for bankruptcy to leave the house.
The instability my mother had after the split caused her so much depression. She couldn’t get a better job so got stuck with minimum paying jobs and waitressing at hotels in downtown. Looking back and being aware of my money history helped me get out of that cycle. I knew education was the key to success….as so I thought. Now that I do have my education and continuing to educate myself on money I am realizing that money problems hits every home. So, it doesn’t matter if you are a lawyer, doctor, business owner, or even a homemaker, debt does not discriminate. I have been on a recent hunger of growing my relationship with God and learning more about the bible. When you can manage less, God will bless you with more.
Matthew 25:23 “His master said to him, ‘Well done, you good and faithful servant. You have been faithful over a few things. I will make you ruler over many things. Enter the joy of your master.’ Luke 16:10 “He who is faithful in a very little thing is faithful also in much; and he who is unrighteous in a very little thing is unrighteous also in much.
I recently had the opportunity to speak to a group on Entrepreneurs and I wanted to share some of that with you today.My focus with this group was on “How to eliminate Money Blocks and solving your Cash-flow problems.
“The only people that budget their money is Rich people and Poor people.”-Grant Cardone
Why do you think that is? I believe it is because the middle class is the biggest group of consumers. We over consume and over spend. Rich people budget because they are intentional with their money and poor have no other choice but to budget.
Ways to eliminate Money Blocks- You must change your MIND-set around Money.
Motives– What is your purpose for money? Why are you saving money? When you have a purpose for money you will get focused on your goals. As TD Jakes said “Why should God fund your confusion? You need a purpose!
Identify– What is your money history? Usually your money history can cause a money block, so you must get real with yourself. Why do you spend money? Are you spending money because you are trying to feel a void? Do you have an emotional attachment to money? Are you an impulsive buyer?
Network– Find people that are like minded. If you have a vision, goal, or a huge dream and you share it with negative people, they will cause a money block. You need to keep your dreams away from those scary-cats, balloon poppers, nay-sayers, etc. Find people that fuel your fire and cheer you on, regardless if they are on the same level of thinking. Also find mentors that are in a position in which you want to see yourself. A good tip is sacrificing your time to intern for them to get some knowledge. Usually mentors don’t have one on one time to have with you, but interning is usually a win-win for you both.
Decide– Make a decision that you want more in life. Where you are in life right now, is a direct result of what you put in the last ten years of your life. Where do you see yourself in the next ten years?
Two client scenarios;
Client #1 I created her family budget since she was in the process of buying a home and she knew that she needed a plan in place considering her expenses will increase. She already had her personal and business bank accounts separated. She told me that she has 10k saved and already has the date of when she is leaving her 9-5 job to pursue her own business. She is a mom of two, works 9-5, has a side business, and is going to school at night to get her business degree! There is power when you are focused on your goals!!! (I can’t say this enough.)
Client #2 He has had his business for 5+ years and called me for help since he knew I studied accounting. “I make 2K to 5K a year and generate 6 figures of income a year, but ask me how much I have in my bank?” $800 dollars.
Biggest tip for small business owners is separating both personal and business accounts!!! You have separate purposes for both if you want to scale yourself to the next level. Mixing the two will confuse those goals. Especially if you have money problems right now, more money will not solve it.
5 Ways to Boost Cash flow
- Analyze expenses quarterly. Usually providers tack on extra fees or your promotion ends. Take some time to call those providers to lower your bills.
- Invest in yourself and increase your rate. More education, buying higher end products, getting another certification are ways to increase the value you provide your clients or your 9-5 job.
- BUDGET! You need a structure and a plan for your money. When you get intentional with your money, you take control of your future. “Don’t tell me what you value, show me your budget, and I will tell you what you value.”-Joe Biden. When you look at your bank statement and see how much you spend on each category; Groceries, Clothes, Maintenance (women), Eating out, Entertainment, etc.) You can see what you prioritize. I am at a point in my own financial freedom journey where I Save more than every category in my budget except my mortgage payment.
- Hire professionals- As a business owner you will need to let go of that ego and hire professionals that will get you to the next level. You should not be the smartest person in the room.
- Don’t spend more than what is coming in! If you are not a business owner, you should not be spending more than what is coming in.
To change your money situation whether to get out of a financial crisis or get to the next level, you must be intentional. You also need to have the discipline to say “No” when you have a budget. Being successful with money is 80% behavior and 20% knowledge! More money does not change you, it makes you more of who you are. The biggest fulfillment I get is when I mentor young girls. People matter not things. My pursuit of generating more income is not a chase of happiness or buying more material things. Money is not evil it is the love of money that is.
If you’re interested in learning more join me for Money Mentor Boot Camp @The Sweat Shop, November 9, 2018.