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Cash Flow Planning for Beginners: A step-by-step Guide (2023)

Cash Flow Forecasting Model

Cash Flow Planning is KEY to running a successful business. 

This is how you determine how you’re going to pay your bills, hire someone or even have to fire someone. You have to have a good gauge of what’s coming in and what’s going out if you want your business to have a future.

Do you have a good grasp on your finances?

If not, don’t worry. In this article we’re going to break it down so you’ll have a clear understanding on cash flow planning and how to use it for your business. 

But wait, there’s more! 

We’re also going to show you how to get your hand on other people’s money to grow YOUR business, so stay tuned for that!

Here is everything you need to know about Cash Flow Planning

Let’s start with the basics:

What is Cash Flow Planning?

Cash flow planning gives a company a view at its incoming and outgoing cash to ensure it can meet it’s expenses. This includes cash flow from investing, operations, and financing activities.

Why is cash flow planning important?

Having a cash flow plan will make it that much easier to qualify for business financing, and predictably grow your bottom line. You can think of it as a budget for a business.

So let’s talk about how to get this. Here are 4 steps to effective cash flow budget planning:

  1. Establish your cashflow goals. Think about your business and where you want it to go. Then write down the steps you’ll have to take to get there. Does it require outsourcing more tasks so you can work on more strategic areas of your business? Does it require investing in more equipment or education? What will it take and cost to get you to the next level?
  2. How much money do you have coming in? Take a look at what’s coming in. You should have a full understanding of how much money is coming in every month. Even if some months are different than others, you should know what to expect. Look at trends from previous years but also think about the difference in what’s going on in the world (No one saw Covid coming).
  3. Calculate your business expenses – both short and long-term. These expenses might include operating expenses like salaries, rent, taxes, loan payments, equipment purchases, raw materials, business permits, etc. Subtract the money you expect to come in during the month by the money you plan on spending. This is how you calculate your cash flow plan.
  4. Know your number.  Now that you know how much you’ll have left it might not be enough to get to where you want your business to go, and that’s OKAY. 

This is where we want to show you how to get OTHER people to pay you to grow your business, and the way to do that is by getting Business Credit.

Business credit allows business owners to fund expenses they have and pay it back later as profits roll in. This allows the business to create flexibility with their finances, while you grow sustainable cash flow. 

With sustainable cash flow, this opens opportunities for bigger business credit lines, better credit terms, and better rates.

85% of businesses fail because they don’t have enough money. 

The GOOD news is that so many banks and lenders want to give to people but unfortunately so many small business owners have no idea where to go, what to do, or how to qualify. 

Business credit is not only good to help you fund your business, but even if you don’t need it right away, it’s still good to have as a safety net. If anything ever goes wrong, you can always use your business credit to keep your business running. 

You can even use business credit to pay yourself. Many small business owners do not pay themselves, and many don’t know that you can use business credit to get paid.

It’s hard to build your business if you don’t have any money. 

Business credit is fairly easy to get IF you can pay your bills on time. There are other factors to consider, but generally it can be easy to get. Even if you’re new in business or have been denied before. 

If you’re looking to obtain business credit, a great way to further educate yourself is by attending one of our most popular Master Classes on the topic.

In this Master Class you’ll learn

  • How to start, grow and leverage business credit without using your SSN

If you’re concerned about business credit and fear that you may not be able to manage it properly, this is the Master Class for you. 

We even cover what to do if you’re not making enough money to pay it back in time, or not making any money at all. We’re going to cover it all.

Click here to join us for this Business Credit Master Class.

Advantages and disadvantages of cash flow forecasting?

Some advantages of cashflow planning are to include the ability to balance costs, revenue and beneficial for businesses that are working to gain profits. 

Some disadvantages may include lack of flexibility. Some businesses without stable cash flow and growing expenses can find it hard to stick to a plan or forecast properly. 

This is the power of having business credit. You want to have a cash flow strategy if you want your business to grow. 


Now that you know how to calculate your cash flow planning and how to access business credit to grow your business, the sky is no longer the limit for you.

If you enjoyed this article, you’ll love the information we share with our members and subscribers about Mindset, Investing, Business and Personal Finance. Learn more ways to build your business credit and buy automated income streams, take our Financial Autonomy Quiz at MindsetToMoney.com, and identify your path to retire yourself in 5 years or less. 

FICO Score = I Love Debt Score!

If you missed story #6 in the series, “One Late Payment Drops Your Credit 50 Points!”…

Click —>> HERE or click the image below to read what happened when a Macy’s store credit card started calling Danielle’s name…

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STORY #7: FICO Score = I Love Debt Score!

So Dave Ramsey says that your credit score = an I Love Debt score. He says that the actual scores are irrelevant and not a true indicator of your financial well being…

Is he right?

Well…I mean, kinda yes and kinda no. 

He’s right in the sense that the FICO score does measure your ability to acquire and repay debt. 

Not even 6 months ago, I received an alert that my score was lower due to NOT having mortgage debt lol. (I’ve since remedied that by the way). 

I have also received alerts warning me that my score was suffering because I wasn’t using the only credit card I had at the time.

To be honest, at times, it feels like there IS no way to figure out what these scores want lol. 

Now, where I think Dave is wrong is in the blanket assumptions that all credit cards are worthless debt traps. 

Just like anything else, there is no one size fits all solution. 

If you’re cash strapped, juggling credit cards, robbing Peter to pay Paul and carrying thousands of dollars in credit card debt, then please go listen to Dave.

But on the other hand, if you’re managing your finances well, have some disposable income, understand and pay attention to statement dates vs reporting dates, and you actually study the credit cards available and choose them for specific strategic reasons…the sky is the limit. Literally.

I’m in some of the credit groups on Facebook and some of these folks are MASTERS at the credit game. 

Some have collected six figures in credit to acquire real estate and other investments. 

Some use sign up bonuses and transfer bonuses to collect free travel and hotel stays for FREE

There are levels to this.

And the one thing I didn’t fully understand when I filed bankruptcy is that your score can and will recover but that stigma does linger. 

For the last year or so, I could not get a SINGLE quality credit card even though I’d reached a 700+ again. 

I kept getting denied for the bankruptcy which was discharged and paid off 4 years early. 

Most recently, I was denied an Amazon Prime card backed by Chase. I was so damn irritated considering how much money of mine Chase is holding lol.

So, I decided to try the reconsideration line and plead my case with an actual human. 

And that denial was reversed and now ya girl has crossed over the threshold into the Chase ecosystem….again.

Join us for our next 90-minute Mindset To Money Master Class will be led by Dominique Brown – a bonafide credit and personal finance expert.

Dominique knows about TONS of tricks just like the one I used above to get back in the good graces of Chase. 

If credit is your jam or you want to have a stellar score, come check it out. 

He’ll be showing us how to repair credit scores utilizing automated AI software. Imagine just sitting back and poof…letting AI do all the disputing work on your behalf.

Learn how simple it is to start the automated process to build a clean and optimized credit profile at the click of a button.

As always, Mindset To Money paid members attend for free. 

Everyone else pays a one-time fee of $147 bucks. 

Click the link below to learn more about the Master Class.

We start at 7:00pm CST on Tuesday, May 30th. 

Click —>>> HERE or click the image below to register.

At Your Service,
Danielle Pierce

—————

Complete Your Registration:
https://MindsetToMoney.com/dominique

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Ready for story #8 in the series? Click —>> HERE to read our definitive viewpoint on whether or not tradelines are a scam…

An Instant 20 Point Increase Into The 700 Club!

If you missed story #7 in the series, “FICO Score = I Love Debt Score!“…

Click —>> HERE or click the image below to read why Dave Ramsey says your FICO Score = I Love Debt Score!, and what we think about that…

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STORY #8: An Instant 20 Point Increase Into The 700 Club!

When I think about the Internet, my sincere feeling is that it is both one of the greatest tools ever invented while simultaneously being one of the worst things ever lol. 

We all know that you can find anything on the Internet. That aspect has been a massive improvement to humankind. 

But, the QUALITY of that information is what makes all the difference. 

And avoiding the cesspools of bad, outdated, and outright illegal credit information is a true challenge.

I’ve heard about buying tradelines for years. 

But, when you try to find a legit company to buy a tradeline, all you can seem to find is rabbit hole after rabbit hole.

You could be mere seconds away from throwing away hundreds of dollars (best case scenario) or having your identity stolen (worst case scenario). 

Fortunately, my brother actually came to my rescue and recommended a Texas-based company that sells tradelines. 

I bought a tradeline November 8th, 2022 for $950 bucks. 

Scores increased by 17, 19 and 20 points respectively. 

#Boom #Pow

And of course, I always got proof cuz why not lol?

Fortunately for you all, you ain’t gotta pay $950 bucks to learn about strategies to raise AND maintain a killer credit score. 

All you need to do is register for our Mindset To Money Featured Master Class with Dominique Brown.

At Your Service,
Danielle Pierce

—————

Complete Your Registration:
https://MindsetToMoney.com/dominique

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Ready for story #9 in the series? Click —>> HERE to read why my credit scores DROPPED after paying off over $60K in student loans. What the WHAT!?!?…

My Credit Scores DROPPED After Paying Off My Student Loans

If you missed story #8 in the series, “An Instant 20 Point Increase Into The 700 Club!“…

Click —>> HERE or click the image below to read our definitive viewpoint on whether or not tradelines are a scam…

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STORY #9: My Credit Scores DROPPED After Paying Off My Student Loans

Remember, I told y’all about my 2019 bankruptcy, right? Since going through that horrendous process and rebuilding my credit again, I have paid attention to every single aspect of my credit.

Obviously, student loans aren’t included in bankruptcies, so I still carried that debt on my credit reports.

Back then, I had the brilliant idea that I’d pay off those student loans and my scores would see an increase, right?

After all, Dave Ramsey is right to a certain extent when he says that your credit score is your debt score.

So, tell me why I paid off $60K+ in student loan debt only to see my scores DROP?. The biggest drop was a 13 point drop from Transunion.

I.WAS.LIVID.

You mean to tell me I done volunteered to pay off my entire student loan balance and these stupid scoring models gonna punish me for it?

I didn’t understand that paying off accounts which have been reporting for decades actually reduces the overall length of your credit history.

Kinda silly but also it kinda makes sense lol.

So, yeah, I came to my senses about a year later after talking to Thomas and I requested that money back.

I found out that student loan payments made during the pandemic were 100% refundable.

It took like 5 months for them to do it, but I received the money back.

And no, my scores didn’t increase once the debt was added back.

I was pissed off again lol. But, hey, such is life.

As you can see a lot of my credit woes have come from knowing just enough to be dangerous…mainly dangerous to myself!

You can avoid all of the mistakes I made by learning from our next Mindset To Money Master Class featured expert Dominique Brown.

Dominique has 1,000+ testimonials and he’s an actual, accomplished credit and personal finance expert.

At Your Service,
Danielle Pierce

—————

Complete Your Registration:
https://MindsetToMoney.com/dominique

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$145K Salary At 30 Years Old?

IMPROVE YOUR CREDIT WITH AI

Take control of your personal credit

In the spirit of our Master Class with Dominique Brown, entitledHow To Use AI To Repair Personal Credit,” this series of stories is all about PERSONAL CREDIT.

Click —>> HERE or click the image below to learn more about the Master Class.

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STORY #1: $145K Salary At 30 Years Old?

Our next Mindset To Money Master Class will be facilitated by esteemed credit and personal finance expert Dominique Brown.

Remember that one Kanye song that goes like this: “Laaaaaa, la, la..wait til I get my money right!”

Well, this song was a perfect soundtrack to Dominique Brown’s life at the tender age of 30 years old. See Exhibit A below:

And in a sudden twist of fate that I’ve heard described DOZENS of times in my life, Dominique started to feel the weight of his golden handcuffs for the first time.

It started when his beautiful wife Sheena gave birth to their first daughter…

And all of a sudden, he wanted OUT.

You’ll have to let Dominique break down how he went from middle management in corporate America in 2014 to winning the two comma award from Clickfunnels in 2021.

Trust me, it is one heck of a story.

In the meantime, what I can tell you is that Dominique is a personal finance expert and entrepreneur who has dedicated his life to helping people improve their financial health.

He’s the author of two books: “How To Fix Your Credit” and “Olivia Learns Credit.”

Over 30,000 people have benefited from his programs.

He’s the creator of the CRA and Credit Repair Business Blueprint. Students inside of this program have generated anywhere from an extra $1K to $50K per month

Oh and Dominique’s impact extends beyond individuals to organizations. Over 6000 companies have utilized his platform, DisputePanda.com, to run their credit repair businesses, highlighting the effectiveness and scalability of his strategies.

In the last 18 months, Dominique has raised the bar, AGAIN, with his programs by integrating artificial intelligence with personal credit repair.

Unless you’ve been under a rock, you’ve likely heard folks raving about the wonders (or shortfalls) of chatGPT and other artificial intelligence software.

I won’t hold you, there is still so much that I don’t know about all of these AI apps. For example, everyone swears that you can use AI to write dozens of perfectly crafted emails in minutes. And yet, guess who’s sitting on the floor, drinking apple freshly squeezed apple juice and writing this email now lol? Oh, it’s still me lol – Danielle Pierce.

Anyhoo, Dominique is spilling the tea about how to repair your personal credit using AI. All the info is below.

At Your Service,
Danielle Pierce

————————————-

 

Join us for our next 90-minute Mindset To Money Master Class, as Dominique shows us how to repair credit scores utilizing automated AI software. Imagine just sitting back and poof…letting AI do all the disputing work on your behalf.

 

Learn how simple it is to start the automated process to build a clean and optimized financial profile at the click of a button. Click the link to learn more about the Master Class.

As always, Mindset To Money paid members attend for FREE.

Everyone else will pay a one-time fee of $147.

We start at 7:00pm CST on May 30th. 

 

Click —>>> HERE or click the image below to register.

Complete Your Registration: https://MindsetToMoney.com/dominique

 

Ready for story #2 in the series? Click —>> HERE to find out the tough lessons Danielle learned about credit, even after paying off a bankruptcy 4 years early.

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© 2020-2023 MINDSET TO MONEY LLC. All Rights Reserved.

Credit Monitoring For A 536 FICO Score?

IMPROVE YOUR CREDIT WITH AI

Take control of your personal credit

If you missed story #1 in the series, “$145K Salary At 30 Years Old?”…

Click —>> HERE to learn about how Dominique Brown went from making $145K at 30 years old, to watching his mama lose it all, to becoming an 8-figure credit repair Clark Kent, to now building one of the fastest growing AI Credit Repair platforms in the world.

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STORY #2: Credit Monitoring For A 536 Fico Score?

Some of y’all know that I filed a bankruptcy in 2019 which immediately tanked my scores to the low to mid 500s. 

Y’all it was the absolute ghetto.

I mean, I knew it was gonna happen but seeing it in real life was crazyyyy. 

I paid off the bankruptcy in almost exactly ONE year, which was 4 years early. 

And guess what happened next…

ABSOLUTELY NOTHING. Didn’t even get so much as a bump in the positive direction. Here’s my scores from April of 2020. Still trash lol.

I knew I had a long road ahead of me. 

Back in my early entrepreneurial days, I did some credit repair along with everything else. I figured I could be up 100 points for each bureau within 12 to 18 months. 

Along the way, I signed up for credit monitoring via myfico.com. Now, I had the pleasure of these folks sending me perfectly WORTHLESS alerts multiple times a month.

These messages would be like:

  • 🖕“Your balance decreased to zero and your Experian score dropped 3 points.”
  • 🖕“Your information is on the dark web. We recommend changing your passwords.”
  • 🖕“One of your card balances increased by $18 bucks, your Equifax score increased 14 points.”

For the grand total of about $43 bucks a month, I was basically paying to get trolled by the credit monitoring service daily, multiple times a day even, about how God awful my credit situation was.

I wish I was making this up, but it’s all facts. Sidenote – We’re gonna keep the joke on me for now, but don’t y’all try to act brand new like some of y’all don’t know
EXACTLY what I’m talking about mmmmkay.

Seriously though, credit monitoring just gave me data. I couldn’t make rhyme or reason as to WHY the scores would decrease or increase. 

I didn’t have a way of sorting through the data and making appropriate decisions along the way.

I was firing in the dark, which made the process of improving my scores much longer. 

Our next Mindset To Money Featured Expert, Dominique Brown, has created a platform that analyzes your credit data, tells you exactly what the best plan of attack is to improve your scores and create a clean and optimized credit file, AND implements the suggested solution within SECONDS, at the push of a button.

No more tryna Google the best ways to raise credit. 

No more scouting through multiple YouTube videos. 

No more paying for countless courses, coaches and programs to build your credit. 

Dominique is leading our next Mindset To Money Master Class, to show you exactly how AI has changed the game for everyday folks like you and me to repair our credit, build a clean and optimized credit profile, and proactively manage credit health day to day.

At Your Service,
Danielle Pierce

————————————-

 

Join us for our next 90-minute Mindset To Money Master Class, as Dominique shows us how to repair credit scores utilizing automated AI software. Imagine just sitting back and poof…letting AI do all the disputing work on your behalf.

 

Learn how simple it is to start the automated process to build a clean and optimized financial profile at the click of a button. Click the link to learn more about the Master Class.

As always, Mindset To Money paid members attend for FREE. 

 

Everyone else pays $147 bucks. 

 

We start at 7:00pm CST on May 30th. 

Click —>>> HERE or click the image below to register.

Complete Your Registration:
https://MindsetToMoney.com/dominique


Ready for story #3 in the series? Click —>> HERE to read how a $20/week payment taught Danielle the unforgettable difference between being able to buy something vs being able to afford something.

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