Whether it’s related to your personal or business finances, it is always essential to go one step at a time when comes to planning. This week on Grow Money Business, we are going to talk about the small business owners' financial order of operations. Throughout the episode, we dive into Dave Ramsey’s seven-step checklist, as well as Grant's 10-step financial planning checklist for small business owners.
Show Notes
[03.50] Ten steps checklist – Grant explains the benefits of financial planning and introduces his 10-step checklist for small business owners.
[09.51] Step one – Grant shares the first step of his checklist and explains the importance of establishing an emergency fund of one month’s worth of personal expenses.
[11.28] Step two – Grant dives into step two of his checklist: adding an emergency fund of one month's worth of operational expenses.
[12.25] Step three – Grant explains the importance of paying off both personal and business high-interest debts in his third step.
[13.00] Step four – Grant outlines step four, which is expanding personal emergency funds from one month's worth of expenses to between three to nine months' expenses.
[14.00] Step five – Grant dives into step five: expanding the business cash fund.
[15.30] Step six – Grant shares the sixth step of his checklist, which is establishing a company retirement plan.
[15.35] Step seven – Grant explains the importance of financial flexibility, and why your next step should be paying off your other non-mortgage debt (student loans, auto loans, etc).
[17.00] Step eight – Grant reviews the eighth step of his check list, which is circling back to the retirement plan and maximizing your supplemental retirement saving options.
[18.00] Step nine – Grant dives into step nine: saving for your children’s education.
[18.40] Step ten – Grant shares the final step of his checklist, which is building wealth.
[23.27] Emergency fund – Grant shares some tips on choosing an amount for your emergency fund according to your current financial position.
Resources
Dave Ramsey’s 7 Baby Steps:
ramseysolutions.com/dave-ramsey-7-baby-steps
Financial Order of Operations Course
learn.moneyguy.com/financial-order-of-operations-course