A safety net – if you don’t have one you need to create a plan to get one as soon as possible.
Arianne goes over how to create a safety net that will protect you in times when cash flow may be tight.
Transcript
How do you calculate your safety net? You’re going to take your needs expenses. This applies to personal or business. Like, what are the mission critical expenses you have that you need to pay? You get that number. Maybe, that number is $10,000. Then you multiply that by six months. This gives you a six month safety net that if for some reason things don’t go according to plan.
You sell properties late or you have to take a break for a family emergency. Then you have six months of a breathing room to delegate something higher something out or for you to just take a break and go back and figure it out. You don’t feel like you’re gonna lose your business tomorrow. Then you also need to figure out your personal safety net number. This applies to your finances too.
If the business isn’t working well or maybe you’re not getting clients right now. Then you don’t want your family to stress out about how you’re going to make the next mortgage payment or car payment. Make sure you have that personal and business safety net number. Also, actually keep it. Keep your personal and business safety net in an account or a line of credit account where you can draw on it if you need it.