Meet Joanna Barrett

[00:00:00] Joanna: Make that commitment. I still track my numbers in the spreadsheet. I chose the spreadsheet from our course, and I still track it every day. It’s part of my biggest takeaway that’s most helpful for me. I’m dedicated and devoted to that. Now it’s being dedicated and devoted to a stable paycheck and lowering some of the operational expenses. 

[00:00:29] Linzy: Welcome to the Money Skills for Therapists podcast, where we answer this question: how can therapists and health practitioners go from money shame and confusion to feeling calm and confident about their finances and get money working for them in both their private practice and their lives? I’m your host, Linzy Bonham, therapist turned money coach, and creator of the course Money Skills for 

[00:00:48] Therapists. Hello, and welcome back to the podcast today. I have a coaching episode with Joanna Barrett. Joanna is a therapist in private practice. She is a graduate of Money Skills for Therapists. And today we dig into something that I know many of us know very well in the private practice space, which is how you manage and tolerate these highs and lows, right?

[00:01:12] Like you have that high month in your practice where you feel like I have so much money. I can buy whatever I want. I’m rich. And then you have a low month where there isn’t enough money. And Joanna shares how she’s really kind of riding this roller coaster emotionally, and also financially. So today we dig into how to create evenness.

[00:01:32] In this case, Joanna and I talk about implementing some of the things from the end of Money Skills for Therapists. She took Money Skills for Therapists when her practice was just brand, brand new and there wasn’t a lot of money. So we talk about how she’s implemented certain parts of her systems and put certain foundations in place, but this budgeting piece is what we get into today.

[00:01:49] How to identify the numbers that her business can already give her and pay her… Getting her tax numbers set up well, looking at what’s possible in her practice now. I’m a big fan of looking at your numbers today and zooming out, like getting out of those ups and downs and understanding what can your private practice do for you now?

[00:02:09] Now, what numbers are possible with the way that things are now, and Joanna and I get into that today, as well as some of the practicalities of how to start to create that evenness and start to look at places where she can be spending less so that more money goes home to her. So this episode today is all about evenness.

[00:02:27] If you feel like you’re on an emotional roller coaster, and a financial rollercoaster, with your business, the things that we dig into today are going to help you start to think about how to create more stability. And I will say today, too, our podcast is on YouTube. And if you are a podcast listener, this would actually be a great podcast to watch on YouTube because we are going to pull up a spreadsheet.

[00:02:50] We’re going to look at a Profit First calculator together, look at Joanna’s numbers together, on that spreadsheet You’re still going to be able to get everything you need from listening, but sometimes it might not be as clear as if you had it in front of you. So, you know, if you’re cooking dinner right now and you’re listening on your phone, if you pull up and watch this on your computer, instead of on YouTube, you’ll also be able to see the numbers that Joanna and I are talking about.

[00:03:11] Here is my coaching conversation with Joanna Barrett.

[00:03:30] Linzy: So Joanna, welcome to the podcast.

[00:03:33] Joanna: Thank you, Linzy. I’m excited to be here.

[00:03:35] Linzy: I’m excited to have you here. So we were just saying off the mic before we started that it’s been about a year since you were in Money Skills for Therapists, which doesn’t feel like that long for some reason. I don’t know why, but it is lovely to see you again and to dig into what has come up recently.

[00:03:51] So Joanna, what did you want to get into today in our time together?

[00:03:56] Joanna: What comes up for me… yes, it’s been a year since I completed Money Skills for Therapists, and I’ve stayed connected with you and your work and your offerings. And so maybe that’s why it doesn’t feel as long. The challenges still in some ways are the fluctuating income that I have in my private practice and how to navigate, you know, when we have slower months, or I have busier months.

[00:04:26] And, you know, I still have the same expenses or additional expenses and spending. So that’s still something that I’m grappling with and I would love some help. 

[00:04:37] Linzy: Absolutely. Okay. So, tell me about what is challenging about that. What do you notice is happening during those high months and those low months? 

[00:04:46] Joanna: During the high months, I definitely get excited and I am thrilled that the revenue, the income is, is high, is good. And I might be spending more during those months. And then on the low months, I still have the same amount of expenses or I might have something that comes up that’s unexpected in my personal life, like getting my car fixed that was unexpected. So it’s how to navigate that when I still don’t have much of a safety net.

[00:05:21] Linzy: Yes, when you say how to navigate it, do you mean kind of like how to navigate the actual money, like how to manage the money or is it the emotional piece, too?

[00:05:31] Joanna: Oh, definitely both. Aren’t they tied together?

[00:05:35] Linzy: They are. Always, always, always. Okay. So let’s start by talking about the practical piece first, like managing the money.

[00:05:42] So partially what I’m hearing is what happens during those high months is there’s like this excitement, this like, I don’t know what the story is for you. The kind of joking story that I have is like, I’m rich, like, ah, and then there’s probably more spending that’s happening. Is it spending that’s happening in your business or spending that’s happening at home? 

[00:05:59] Joanna: Both. 

[00:06:00] Linzy: Okay. Yeah. And I am curious, Joanna, like, what do you find you end up spending on during those high months?

[00:06:07] Joanna: Oh, it might be office supplies that maybe I need, maybe I don’t, but I want. It might be training or something to advance my education. That I’m like, oh, I now have the money. I can spend on a particular course, or in my personal life, it might be shopping, just buying a new clothing item or a purse, or saying, yes, we can go on a vacation.

[00:06:37] Linzy: Okay. And so I’m curious, like, how are you paying yourself right now? Like what is your system for taking money out of the business? Yes.

[00:06:52] Joanna: I love the theory of profit first. And I learned that through the course last year and I have been putting everything into the percentages, into the, you know, the formulas, I’m not actually doing. 

[00:07:09] Linzy: You’re not doing it. Okay. 

[00:07:12] Joanna: So I pay myself, in terms of, okay, let’s pay off the credit card so that there’s no debt on my business credit card.

[00:07:21] Make sure that’s all taken care of. And then whatever is kind of left at that time, I can pay myself and I write myself a check and put it into my personal account.

[00:07:33] Linzy: Okay. You’re hurting my heart just a little bit…

[00:07:36] Joanna: I know. That’s why I’m here. 

[00:07:40] Linzy: Yes. Yes. Because, as you mentioned, like Profit First. So you’ve got profit first buckets set up then, like you have the different accounts set up. Okay. And that credit card you’re paying from your operating expense account.

[00:07:52] Okay. But then I’m hearing the money that’s left, you’re taking it. So then are you taking it out of all the different buckets to pay yourself? Tell me what that looks like.

[00:08:00] Joanna: Yeah. Because I’m not actually saving for retirement. I’m not actually saving for my business. Mostly I think because. I just don’t have money coming in and also to cover the personal expenses.

[00:08:22] Linzy: That’s it. Yeah, like when there is this, it’s almost like home can become… It’s like a bit of a vortex where there’s like, like so much need for money at home. That what I’m hearing is though, even though you’ve set up systems and you probably know what you’re supposed to be doing with those systems and you’ve had a plan, you’re not sticking to that plan because the need for money at home is so great that you’re just pulling the money out and sending it all home.

[00:08:45] So that makes me curious, too, is there tax money that you’re setting aside?

[00:08:49] Joanna: Yes,

[00:08:50] Linzy: Okay. So tell me, tell me about your tax system.

[00:08:54] Joanna: So I am definitely setting my estimated taxes aside. I am paying them. I make sure I have money for that.

[00:09:00]  Linzy: Beautiful, so I’m curious, what allows you to do that? Why are you able to save for taxes?

Joanna: I think it’s because it’s a value of mine that is important. It’s something I have to do. I don’t want a penalty. I don’t want to not be able to pay or to have to pay more at the end of the year. I’d rather do it in smaller increments.

[00:09:24] Linzy: Okay. Yes. And what is that value?

[00:09:28] Joanna: Doing the right thing, or the moral code of society.

[00:09:32] Linzy: Okay. Okay. So because there’s this larger, you know, societal force there of like paying your taxes as the right thing, you’re able to uphold that part of your system.

[00:09:44] Joanna: Yes.

[00:09:45] Linzy: Okay. So thinking then about the other parts of your system, I mean, there’s a couple of things that are coming to mind for me.

[00:09:53] One is, I am curious. about those highs and lows, and what the average is, right? Because I’m hearing emotionally what you’re experiencing is that high, the big month, the like, Oh, I get to buy all the stuff that I’ve wanted that I can’t get. But then there’s like the low month, the next month. And I am curious, Joanna, do you know, let’s say from a six-month perspective, looking back on the last six months, what is the average between those numbers?

[00:10:19] Like what is your average revenue and your practice?

[00:10:22] Joanna: Average, I mean, the basic average month is probably, I’m bringing in from private pay clients maybe 8,000s.

[00:10:32] Linzy: Okay. That’s the average. So some months then might be like 10 and some might be six just to give easy numbers, but like it settles out at eight. Okay. And at 8, 000, how much are you setting aside for operating expenses? What’s your operating expenses percentage?

[00:10:48] Joanna: It varies. It has varied a lot in the last year. And, I try to keep it around 30%, but you know, if I purchase training, or an extra course, I’m way above that.

[00:11:10] Linzy: Okay. Okay. I want to pull up a Profit First calculator and look at it with you. Do you have a profit first calculator, Joanna?

[00:11:19] Joanna: Yes. I have the spreadsheet from the course that I use.

[00:11:24] Linzy: Do you have that set up with the numbers as you use them or should we do a fresh one?

[00:11:29] Joanna: Could we do a fresh One? 

[00:11:30] Linzy: I think a fresh one is a good idea. So, To zoom out on your numbers then, Joanna, let’s take a look at them from the zoomed-out perspective because part of what I’m hearing is it’s like, you’re really riding this roller coaster emotionally, right? It’s like the high months are high. You feel all the good feelings, and like feel like you have all the extra money.

[00:11:49] The low months are low where there isn’t enough, right? Let’s zoom out with this, this average number that you’ve identified to see on average what your numbers can do for you. Right. Cause this is, I think the first thing that we want to look at is like, what is your practice able to do for you in your life right now?

[00:12:07] So the tool here, we’ve got like just the standard average percentages with profit first, the starter percentages, and I’ve put your 8, 000 in the top. Operating expenses, Joanna. What do you need to see in this line? This is the operating expense. What number do you need to see to pay for just your normal monthly operating expenses?

[00:12:29] Joanna: Usually around 3, 000. So close to the, yeah, close to the 30%, but a little bit higher

[00:12:35] Linzy: Okay, so I’m just gonna play that a little bit 38%? 3, 040? 3, 040? Yeah. Okay. Okay. Now looking at our other numbers here, then your taxes, how much are you needing to set aside for those quarterly estimates that you’re making?

[00:12:54] Joanna: So in my Profit First for taxes, I’m setting aside 24%.

[00:12:59] Linzy: Okay. 

[00:13:00] Joanna: Which is through one of the calculators that I saw for state and federal for my tax bracket. So 24 percent is your tax percentage. Have you lowered that number yet to fit it into profit first? I have kept it at 24 percent Profit.

[00:13:18] Linzy: First, Tell me about that. Is that a choice that you’ve made to make it higher?

[00:13:22] Joanna: I’m not really sure. I thought it was just, that was the number I was supposed to be doing. 

[00:13:27] Linzy: I have good news for you. That number is too high.so the, 24 percent like this is in module five of the course. So you can, you can go back and spend some time with these videos, you know, after our conversation today. But the 24%, like if that’s the average tax rate that you have to pay, does that also include your self-employment tax portion, Joanna?

[00:13:49] Joanna: Yes, believe so.

[00:13:51] Linzy: Yeah. And there’s also the calculator in the course that like shows you your, helps you look at, your tax rate and your self-employment tax. But let’s say 24 percent is the total number for you that you need to be setting aside. You only need to set aside income tax on your income and your income is what’s left after your expenses, right? So you don’t have to set aside 24 percent of everything. You only need to set aside 24 percent of what’s left after operating expenses. 

[00:14:18]   Joanna: Mind blown. You know, I had heard that I think I knew that, and it didn’t really click.

[00:14:23] Linzy: Yes. Yes. Okay. So we are tuning up your system right now, right? You’ve got a system in place, but what I’m hearing now and what I’m understanding is you’re prioritizing taxes too much, which is good. You have this strong, moral sense of paying taxes. So this part of your system has really been working.

[00:14:40] But right now the way that your numbers are set up is you’re putting too much towards taxes, which means there’s not enough for you. So to get your tax number, I’m just going to take the number 100. I’ve just got it on my calculator here. I’m going to subtract 38, which is what you’re spending on operating expenses, which leaves me the number 62 because 62 percent of what comes in the door, Joanna, is what actually goes to you.

[00:15:01] Not a hundred percent goes to you, that’d be nice, but it’s actually 62%. So I’m going to take the number 62 and I’m gonna multiply that by 0.24. 24%, which brings your tax percentage here down to 15%. So now we have another 8% here to play with right away.

[00:15:20] Joanna: That’s great because I could really use that money in my personal life.

[00:15:23] Linzy: I think you could. Okay. So looking at this, we’ve got our OPEX at 38 percent and folks who are listening to the podcast, this is a great time to check out the podcast on YouTube because it’s definitely easier if you can see it.

[00:15:34] So we’ve got 38 percent then going towards your operating expenses, 15 percent towards taxes. Now that we’ve adjusted your tax number. And so now we have this extra…we’re at one Oh eight. So let me just bring this down a little. The profit number, Joanna, does the concept of profit resonate with you? Like, do you like having that extra money, or right now I think you’re just taking everything, right?

[00:15:54] Joanna: I’m getting close to everything. I like to keep a little bit in case there is something, but typically my profit is. It’s close to very little.

[00:16:07] Linzy: Do you want to make it like one percent?

[00:16:09] Joanna: Yeah.

[00:16:10] Linzy: One percent. Okay. So then we, unfortunately, we’re still over. So I’m going to show you what the numbers look like right now. And the numbers right now, if I bring us back down to a hundred, is 3, 680 is available to go home to you as your cash paycheck on average.

[00:16:27] How does that number land with you?

[00:16:30] Joanna: That, I wish, I mean, I wish it was higher, however, that would cover the expenses like my rent, utilities, and the basics.

[00:16:43] Linzy: Because this is helpful for you to see now. So there are a couple of pieces here that we’re doing that have come up at the same time. One is when we put in your average number, your average of 8, 000, you know, between the highs and lows, does actually give you enough money right now to pay for your basic life.

[00:17:00] Right. But what it would be doing is like, and what I’m going to really encourage you to do is implement that paycheck system that we teach in the course to give you that evenness. Thanks. Right? So it’s like, so you’re not going to have the highs of like, I have so much money. I can buy whatever I want, but you’re also not going to have the lows of like My business is failing, right?

[00:17:19] I’m not where I need to be. And that number right now that the business could give you with your percentages as they are would be about 3, 680, let’s say 3, 600 a month. You could pay yourself that every month on the months when you make more in the business. You would still only take 3, 600 total as your cash paycheck, and on the months where you make less, you’re going to be able to pull from that little bit of a buffer that is starting to build from your higher months to still pay yourself like 3, 600.

[00:17:47] How does that sit with you?

[00:17:49] Joanna: I like the idea of it and the practicality is that I might not do it, right? That there might be times when I need more money in my personal life.

[00:18:04] Linzy: Okay. So one curiosity that I have here, too, looking at these numbers is this operating expense number, right at 38%. I’m curious, what is going into this, this number, this 3, 000.

[00:18:18] Joanna: So I’m spending I think I have some money leaks that I need to clean up I’ve been thinking about that over the last couple of months about what is not serving me that I’m spending Monthly on

[00:18:33] Linzy: Great. I’m glad you’re thinking about that. And what have you identified so far or what do you suspect might be able to go?

[00:18:41] Joanna: So I have an online fax that I subscribe to so that I have a fax number, but I never receive faxes. I never send faxes. I don’t accept insurance and therefore they, never send anything. I really don’t think I it. That would be like 14 dollars.

[00:19:00] Linzy: Okay. There are 14 dollars there. Yeah. What else have you identified or are you contemplating that you might not need?

[00:19:07] Joanna: I am on four directory sites. So, the therapist directory sites are online, and there are a couple of them that I haven’t received referrals from. 

[00:19:22] Linzy: Okay. Okay. You’re not at all seeing a return on your investment?

[00:19:26] Joanna: Correct

[00:19:26] Linzy: Yeah. Okay. And how much would those sites be if you took, like, just walked away from those two directories? Okay.

[00:19:33] Joanna: So one is thirty dollars and the other one, I think it’s more expensive, I think is close to sixty dollars.

[00:19:46] Linzy: And anything else that you’ve identified? What are your big things? Because these are, these are things that will add up, but they are smaller. What are the big things you’re spending money on?

[00:19:57] Joanna: am spending money on things or, so I have an obsession with office supplies Okay. Yes. Things for my office. 

[00:20:09] Linzy: Okay. 

[00:20:10] Joanna: So things that I purchase, online or at the store that I could use in my office space and that cost varies month to month and then also spending on training or courses.

[00:20:27] Linzy: Yes. And how much are you spending on courses?

[00:20:31] Joanna: Well, I just several months ago signed up for something that really matters to me and will really advance my career. 

[00:20:40] Linzy: Okay. 

[00:20:41] Joanna: But that being said, it’s pretty expensive. In my eyes, the actual training for a week-long is, I think, two, 3, 000 plus flight and a hotel for one night cause, and you know, it… So it’s turned into like 5,000… 

[00:21:04] Linzy: Okay. So there’s that like 5, 000 investment. Has that money gone out yet? Some of it? Or is some of it still coming?

[00:21:11] Joanna: Some of it has gone out. I’m doing a payment plan. So, you know, some of it has come out, the plane tickets have been purchased. The hotel has not been charged.

[00:21:22] Linzy: Okay. Okay. So, how much is that payment plan for a month?

[00:21:26] Joanna: I think it’s 850, around there. 

[00:21:28] Linzy: Okay. So that’s a big portion then of this 3,000 would be like, you know, a monthly investment like that. And like this course is an example, but just continuing education, right? Like 850 a month. Just to give us some perspective here, Joanna, as we’re thinking about what you want expenses to look like in the future, these things like between what you just listed off and this training, this is just under 1,000.

[00:21:54] of stuff per month, right? That is going into the business. Now, I’m definitely not saying that you shouldn’t do professional education. As somebody who teaches business courses, I think they’re very valuable. But it’s thinking about what is your… We can use different words here, what is your budget?

[00:22:11] What is your pacing? Even like what is your capacity to actually take in the benefits of these trainings and actually implement what you are being taught, right? So that it is benefiting your business. I think a limit around this could be really important because this is a big portion. That itself is almost a third of your monthly operating expenses. How does that land with you?

[00:22:37] Joanna: It makes a lot of sense, and some things that I haven’t thought about is really, what is my budget for training or courses? Because I love, I love all that and so, when I started my private practice, I told myself I would take one training a year,  one retreat a year, more, you know, so maybe it doesn’t have like the CEU component.

[00:23:05] Maybe it’s more for self-care… And one vacation in my personal life a year, but I never said how much I would be spending max.

[00:23:16] Linzy: And those numbers could vary wildly, right? Because like training could be anywhere from 100 bucks to 10,000 bucks, right? 

[00:23:24] Joanna: Exactly. 

[00:23:25] Linzy: That’s something for us to think about as we’re thinking about this, because just to start to give you a sense of what’s possible with your numbers as they are right now, even if you didn’t get more clients, which I think you’re going to do, but with this 8,000 average.

[00:23:38] Let’s just say you could bring down your expenses to like 2, 500 a month, right? That would bring our expenses down to more of the 30 percent operating expenses. It brings up your taxes a little bit, right? Because now that means more money is going home to you. Which is good. Which is a good problem.

[00:23:55] So if I do 70, your tax rate, I think it was 24%. We would bring up your taxes just a little bit to meet that. But it still means that there’s this extra 6 percent to go into your salary. Again, folks listening to the podcast, it’s a great time to check us out on YouTube. We’re just playing with numbers to see where we land.

[00:24:13] So if I add another 6 percent here. Now, it’s 4, 000 a month that you can pay yourself by bringing down your operating expenses. How does 4, 160 land with you as a monthly paycheck?

[00:24:27] Joanna: That excites me more.

[00:24:29] Linzy: Okay. Yeah. What do you notice? Like, tell me about that excitement.

[00:24:33] Joanna: Well, that I could use that money in my personal life more, for things that are requirements and needs, and everything has gotten more expensive in recent time, from groceries to gas to, really everything.  I would like to have more of a cushion and be able to… I have some personal debt on a credit card.

[00:25:03] I’d be able to pay more towards that too and pay that off.

[00:25:06] Linzy: Like what I’m hearing is right now in your business and your personal life, there’s still this kind of feast and famine roller coaster that you are riding, right? Which emotionally has its impacts, but also financially has its impacts, right? So it’s like if the money is gone each month, then it’s like the next month you’re basically starting over with trying to make enough money to cover your needs.

[00:25:30] Right. And that might happen. You might have a great busy month where all your clients are around and everybody wants to do weekly sessions, or you might have a month where like a bunch of your clients are on vacation or a bunch of folks graduate at the same time or drop off and then suddenly it’s like, you’re poor that month.

[00:25:46] Right, when you were wealthy the month before. What these numbers are showing us is that we’ve had 8, 000 average, you know, between those highs and lows, that 8, 000 revenue that is the middle, your business can pay you, let’s say for a very simple, easy number, 4, 000 a month, right? And you can have those operating expenses.

[00:26:06] These are a little bit lower. So this would be you starting to think about: what is my budget for training in the year? Right? Like, what are my base expenses? What are the fun extra things? But having some boundaries around those things, like the word boundaries because that’s a word therapists understand.

[00:26:23] But like this, what I’m seeing here is your business, even as it is right now, would be able to give you a number that excites you on a monthly basis.

[00:26:35] Joanna: Yes. It would. 

[00:26:36] Linzy: Yeah, and the other piece here, Joanna, that you might also have a little bit of breathing room that you can now dig into is your taxes. 

[00:26:44] So what you can do now is now knowing that that 24%, which it’s funny, like sometimes we have to hear something a few times before it’s like, Oh, okay.

[00:26:52] And this is, I think what just happened today with us with taxes. It’s like now that it’s clicked that that 24 percent is only on what you make, right? So the money you’ve spent in the business, you don’t have to pay 24 percent taxes on that. That money’s gone. I encourage you to take a look at what you’ve made this year, right?

[00:27:08] Like what has been left for you? Income, revenue coming into the business minus expenses, what has been left? And then apply the 24 percent to that number and see, have you overpaid taxes? Have you over-saved taxes? Is there some extra money there? Could you take a breath on taxes and make your next installment?

[00:27:26] lower? It also is possible that there is money there that really should have been going home to you that instead was going to taxes. But what I’m hearing is you need it at home.

[00:27:37] Joanna: Yeah, personal life and, just because of, you know, you got to live and

[00:27:44] Linzy: Yeah, of course. Yes. The next piece about this, Joanna, is implementation. Because you have a Profit First system set up. Right? In the course, I also teach about making, and paying yourself that regular paycheck, right? So it’s like not just having the salary bucket, but also you pay yourself that same amount every month.

[00:28:04] So as we talked about a little bit earlier, those buffers build up, the high months there’ll be money left, but then the next month you can still pay yourself that exact same amount, right? Something has been in the way of you implementing that system. So I’m curious, what was in the way? Is it still in the way?

[00:28:22] of being able to actually stick to Profit First and stick to paying yourself the same amount every month?

[00:28:28] Joanna: I think what was in the way was the fluctuations and the uncertainty of how to deal with that. And for a few things that got more expensive in my personal life, and I needed more money. So I took more money. However, now I think it’s a little clearer to me about what I actually need to do to implement that. 

[00:28:52] Joanna: And not fluctuate all the time. I need that stability. The structure and the stability work really well for me. 

[00:29:01] Linzy: Yes, and it does for most people. Most of us, even if we might love the highs, we don’t love the lows, right? The price that we pay for like one month feeling like you’re, you know, a millionaire. The price you pay the next month for feeling like, Oh shit, I shouldn’t have done that.

[00:29:17] Where am I going to get this money from? How am I going to pay this bill? That’s not worth it, right? Like the cost is too high. So like this evenness piece from a systems perspective, you know, I’m going to encourage you to go back to module five. Cause the other thing is you work through the course, at the very, very beginning of your practice, right?

[00:29:36] And like, for folks who take money skills for a therapist at the very beginning of their practice, sometimes it’s like you’re kind of making a plan, but it’s not real yet because you don’t really have the money coming in yet to go to different buckets, right? And so you now do, right? You’ve kind of gotten to that place where now you can really implement.

[00:29:53] And so I’m going to encourage you to go back to module five and look at it with that like, okay, the money is there now. It’s not totally even yet, but it almost never is in private practice. We’re always going to have some fluctuation, but recommitting to some of these systems and strategies. What will allow you to put these things in place, like to give yourself this stability? What do you need to do this?

[00:30:18] Joanna: I think definitely going back to module five, to refresh everything. Yeah. Yeah. And. Make that commitment. I still track my numbers in the spreadsheet. I chose the spreadsheet from our course, and I still track it every day. It’s, it’s part of my, you know, biggest takeaway that’s most helpful for me.

[00:30:41] And so I think, you know, I’m dedicated and devoted to that. Now it’s being dedicated and devoted to a stable paycheck and lowering some of the op-ex. 

[00:30:52] Linzy: Yes. You’ve built that foundation. And when I think about financial skills, first, I think about that emotional piece of committing, starting to get to know your stories, being able to be with what’s happening with you. Next, like the practical piece is tracking, just keeping some order around things and you’ve got that, right?

[00:31:11] So this is the next level. You’re just, you’re adding the next level on your, Private practice building, we’ll see, pyramid, which is budgeting. You’re at the budgeting phase, right, which before you didn’t really have money to budget. Now you do, right, and now kind of some of these theory things that we’ve chatted about in the course of these highs and lows, you actually get to now implement this.

[00:31:31] System, right? And like, I’m going to encourage you to take some time to think about that professional development budget, like what, for your operating expenses, how can you bring them down? Like, what do you really need to operate each month? What are those extra things? And then like, if we again, spell that out over the whole year, it’s like, okay, if you want to do 3, 000 in training.

[00:31:53] In the year, right? Let’s say that’s your budget. Or should it be higher than that? Because you like to do fun stuff. What should your training budget be? What is a number that would feel good?

[00:32:03] Joanna: Oh, that would be endless. I mean, my ideal would just be to do training and course retreats. And not work. Like a professional student. If I won the lottery, that’s what I would do.

[00:32:18] Linzy: Okay, in this version of your life, what is a number that would give you what you want and need in terms of those professional development experiences, but still leave money for your life?

[00:32:30] Joanna: I mean, ideally I would have more money to spend on it, but realistically, definitely scaling back and also doing things that are either online or local, because I realized the travel expenses. For, the program I’m doing later in the year is very expensive. And that was actually something I didn’t think about when I initially purchased something across the country.

[00:33:01] Linzy: Yeah. Yeah. So just to play with the number. 4, 000? 5, 000? For the 

[00:33:09] Joanna: I would like 5,000.

[00:33:11] Linzy: Well, let’s just use five as an example because I’m going to just get you thinking about how to engineer this into your Profit First system. So for 5, 000 a year of professional development, which would include flights and hotels, by the way, it would be 416 a month.

[00:33:26] Let’s say 417. So it’s like every month when you think about your base operating expenses, whatever that number is, let’s say that’s like 1, 500, you would add another 417. Let’s say 420. We’re just gonna make it super simple. 420 a month also gets added to the number that you want to get into your operating expenses each month so that when you have these training opportunities come along, you’ve already been building this professional development buffer, right?

[00:33:48] Like the money is building up and it’s there. So yeah, it’s like that 420 a month gets you to the 5,000 a year of training. But that’s how we kind of, again, make that just an even regular part of how you’re thinking about your money each month.

[00:34:04] Joanna: Yeah, I like that because it is much more predictable and stable, and then I don’t have the emotional piece of highs and lows and also worrying so much about where the money is coming from. Do I have it? And do I have enough this month? What do I need to do? Shuffling money between accounts to make it work.It takes up so much time and energy in my life.

[00:34:28] Linzy: It does. Yeah. And like, I mean, from a business growth perspective, that is time and energy you could be using doing like a couple of key networking meetings that are going to like, get you a bunch more clients or like, yeah, arranging a group somewhere that’s going to like to get your name known and get you some more clients.

[00:34:43] So yeah, that energy is much better served actually taking care of your business. So

[00:34:49] Joanna: Absolutely.

[00:34:50] Linzy: Joanna, coming to the end of our conversation today, what are your next steps?

[00:34:57] Joanna: The next steps are definitely to look at my Profit First spreadsheet and adjust some of those percentages. Also, go through my spreadsheet from the course that I’ve been, you know, really tracking expenses and look to see where the money leaks are and actually take care of those and see where else, maybe even see how much I’m really spending on things like office supplies.

[00:35:27] Linzy: Yeah. Yes. That’s another spot where boundaries probably come into play.

[00:35:31] Joanna: Yes.

[00:35:32] Linzy: Okay. Okay. So yes, spending some time spending with, and I find it like doing a simple somatic check of going through and looking at each thing that you’ve spent and noticing. Does that feel like, Oh, I love that thing? Or does it feel like, Oh, yeah, that wasn’t really worth it?

[00:35:45] Or like, Oh, I actually realized when I got back to my office that I had 10 more of those already. You know, that kind of simple somatic check can be a way to start to see where there are opportunities to set more boundaries. But yeah, what I’m hearing right now is like, your business has really been prioritizing taxes.

[00:36:01] You’ve been prioritizing office supplies, but it’s time to prioritize your household needs and your own life.

[00:36:09] Joanna: Yes, and one thing that I have really been thinking about is I am the CEO of my business and my personal life, and I wear all the hats and I love it. I love taking on those roles and learning about them. So this has been really helpful because the educational piece is very, very important. Much valued, and it’s important.

[00:36:36] Linzy: Joanna, can you tell me a little bit about your experience in the course, in Money Skills?

[00:36:41] Joanna: Yeah. So I did it at the start of my private practice, and I really learned so much. I learned everything I needed to know to be successful in this realm. I had done other courses, not necessarily financial ones, but other types of courses for my private practice, and Money Skills for Therapists was the most impactful.

[00:37:05] The takeaways, the, how the course is set up, the support, the accountability partner, and the community. Everything about it really resonated with me, and it had the greatest impact on my business. And still like a year later, since I finished the course. This is the one that I recommend to people the most.

[00:37:29] Linzy: Oh, I’m like, so glad to hear that, Joanna. And like what I’m so excited about now is now that we’ve had this conversation again today… Now you’re getting to apply those last pieces of the course, that highest level stuff to create that evenness and like have money going where you really want it to go.

[00:37:45] Joanna: Now you’re at that level. So I’m hearing like already, the earlier stuff has been so impactful, what you’ve implemented. And now you’re going to get even more, which makes me so, so, so excited for you to feel that final level of like, ah… That stability that you’re about to create in the business. Yeah. I’m so grateful. I mean, this course has set me up for success, and continued success even after the six months had been completed, the initial six months. So it, it’s the course that, you know, has really, really changed my life. So thank

[00:38:22] Linzy: Yeah, you are so welcome. Thank you so much, Joanna. And thank you, too, for coming on the podcast today, and letting us have this next-level conversation.

[00:38:29] Joanna: Yes. Thanks so much. 

[00:38:46] Linzy: In my conversation with Joanna, something that sticks out to me is how we can come so far and make so many gains. And she talked about all the great things that she’s already put in place, right? And like the tracking that she’s already doing., we were chatting a little bit after this recording, too, but how she has kept up the idea of money time and an accountability buddy, which I also, she also got from Money Skills for Therapists, of just having that regular time with her money.

[00:39:10] But there’s this next level now of creating that stability, that evenness, this paycheck system and really actually adhering to a Profit First system that is going to give her that much more clarity and relief. Right. So it’s kind of like we solve problems, and then there’s a new one that presents itself.

[00:39:26] So before where maybe she would have felt completely overwhelmed because she had no idea what was happening with her numbers, now she knows what’s happening with her numbers, but she hadn’t created boundaries yet to create any evenness. Now she’s going to go back, take a look at her numbers, see where she can tweak them to make them go where they need to go and create that evenness, like using her Profit First system as she’s already set it up, just using the system that she’s created and also starting to take that regular paycheck to give her that stability, and she’s going to have that much more.

[00:39:53] Relief. So it just makes me think, too, about how, like as humans, there are many, many levels to our struggling and suffering and pain and like we resolve something, and then we have like the next thing that we get to solve and improve. And Joanna’s very much at that place. She’s now going to be able to create that evenness for herself that she hadn’t put in place yet, but she’s actually got all the lessons and tools and money skills for therapists.

[00:40:13] So she’s going to be diving back into those things and implementing them now that they make sense. And now that it is, the most pressing problem on her plate. So I’m very excited for Joanna to create this evenness in her life. I think we all, we all benefit from that. You can follow me on Instagram at money, nuts, and bolts.

[00:40:33] And if you’re enjoying this podcast, I would so appreciate it if you could tell your colleagues, tell your friends, tell your officemate down the hall about the podcast. We’re having conversations here that are pretty specific. We have a very specific niche of humans that we are talking to here. And it’s so nice to have people who live in this space, being helpers and healers and therapists who are sensitive humans who want to take care of everybody else…

[00:41:00] Having these conversations about money and what it means and how we create evenness in systems that are aligned with our values. This is a very specific little world we’ve created. So if you know somebody else who would enjoy listening to these conversations, and being part of this world, I would so appreciate it if you would let them know about them, and give them a chance to check out the podcast.

[00:41:17] Thank you so much for joining me today.