138: Why You Should Pay Yourself First

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In this episode of Boosting Your Financial IQ, Steve Coughran emphasizes the importance of proactively managing finances in both business and personal life by following a simple yet powerful principle: pay yourself first. He guides listeners on how to set aside profit consistently by calculating a desired profit percentage, establishing a separate profit account, and making monthly transfers. Steve explains that if transferring money isn't possible, it acts as an early warning sign of potential issues like insufficient working capital or low profitability. He discusses managing accounts receivable, inventory, and accounts payable to maintain healthy cash flow and sustain business operations. Applying this approach enables smarter financial decisions, enhances long-term growth, and avoids common pitfalls that can undermine profitability. Steve encourages listeners to adopt this method to secure their financial future and make disciplined spending choices that contribute to lasting success.

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