[00:00:00] Speaker A: Bienvenidos al ingrediente secreto.
[00:00:03] Speaker B: Soy ol?
[00:00:03] Speaker A: Gurtado yo y vamos ade jubrir lo desa fillos y ha sierto reales que en frentan quienes emprende en con proposito est? Albiendo Naomi at Elevis.
[00:00:20] Speaker C: Welcome to El Gradiente Secreto. I'm ol? Gortado. On this show we talk about the ingredients that allow a business to become more profitable, sustainable and scalable. But before we talk about growth, we need to ask a more basic question. How healthy is the financial foundation underneath the business?
My guest today is Dr. Wendy Labatt, the financial healer, CEO of the Financial Cures LLC, creator of the Financial Cures system, best selling author, business strategist, international speaker and host and producer of financial cures with Dr. Wendy Labatt. Her focus on helping people identify the financial habits, knowledge gaps, debt patterns, protection needs and decision making behaviors that can stand between them and greater financial stability.
Dr. Wendy, welcome to Secreto.
[00:01:26] Speaker B: Well, thank you for having me. I appreciate the opportunity.
[00:01:30] Speaker C: Dr. Wendy, so you use the language of financial health when you look at an entrepreneur or a small business.
What are the first signs that the financial foundation is healthy? Like what are the early warning signs that something is wrong?
[00:01:49] Speaker B: Well, the first sign and. Well, the first thing that I, I guess determine or try to determine is the mindset. Because if you're not thinking right, if you don't have the right mindset, then the decisions you make aren't going to really align with what they should be for your goal and your objectives for your company. So you have to have the right mindset and then the next thing. And what I ended up finding out from personal experience when I was a rookie entrepreneur was cash flow. You know, I had all these sales on the books, you know, numbers were high, but I didn't have the money in the bank because I wasn't collecting my receivables. So, you know, there's certain processes and principles that you have to know and if you don't know them, they'll definitely impact your business.
[00:02:37] Speaker C: Definitely. I agree with you because sometimes people think that profits equals cash flow and when you, when they see the bank account, it's empty, it becomes a chaos.
So Dr. Wendy, you talk about financial ills like, such as anorexic income or obese debt, which I love by the way, spending addictions and knowledge deficiencies. How do those patterns show up differently when the person is also running a business?
[00:03:07] Speaker B: Well, like I said, I start out with the mindset knowledge deficiency because there are a lot of people that are in business, but they don't act like business owners or entrepreneurs, you know, and then you have to have, you have to. My neighbor, I'm gonna give you a quick example. He's a medical doctor, but he opened his own practice after working for, you know, a hospital for years. And then when I kind of pointed some things out to him, he said, well, I'm a medical doctor, I'm not a businessman. It's like you were a businessman because your name is on all these leases and all this debt you're getting into that makes you the businessman and you better, you know, wise up to that. So I would say, you know, again, the mindset and then the fact that people don't always, they look at sales. You know, I've had people come to me, so I have a million dollar company, but their, their expenses are a million and one dollars. So you have to make sure that you have a profit margin that supports the actual business. And that's where you get into, like I said, the anorexic income. Because, you know, you got the sales, but you don't have the profit, which is a whole different thing.
You know, obese debt. You know, people get into debt big time just to try to compensate for that, you know, negative cash flow. So there are things like. So you have to understand the process of your industry. You know, what it takes from getting the sale to delivering the sale. You know, what the process is, what the costs are. And a lot of people just overlook that. They just look at the sales and they delivered and I'm getting, you know, there's an invoice, but they don't look at the actual true cross or profit. They don't look at the real numbers.
[00:04:48] Speaker C: Yeah, and it's definitely like the ills. It's something. It's not like one person is having that illness. It's like a bunch of entrepreneurs having the same illness. I feel you so much. If, if an own feels financially overwhelmed and does not know where to begin, what should they diagnose first? Before trying to grow faster, they need
[00:05:15] Speaker B: to look at their income, their expenses, their spending. Those are three crucial categories because a lot of people look at their income and their expenses, but they don't factor in the spending. And that's where you find the money to pay for things you think you can't afford.
You know, spend and you want to write off as, you know, as a tax deduction, which is okay, but make sure it's not dipping into your profit and your actual Operating expenses, Those are the key things, you know, your cash flow.
You got to have that money coming in to cover whatever has to go out. You know, having sales on the books is good, but if the money is in the bank, that's not so good. So those are, you know, the key things to start with and write it down. Don't just say in your head, okay, I think I made this or I sold that. You know, make sure you have concrete numbers. Because a lot of people, you know, want to go by what they think they have and when they put it down on paper, it's not the same picture that they have in their heads.
[00:06:17] Speaker C: Yeah. Why do you think people are always checking on revenue or income instead of checking on the cash flow? The cash flow I, in my opinion is way easier because you're seeing the bank account every day. Right. Sometimes people don't do their bookkeeping on a monthly basis. So why do you think people are always focused on, you know, the sales or the revenue compared to the cash flow?
[00:06:42] Speaker B: Yeah, well, I think it's a couple of reasons. One, because they think the sales is a good indicator of what their cash or what they think their cash flow is, but it's not. They're two, you know, mutually excuse exclusive things. You know, you can have, like I said, all the sales on the books, but if you don't have the money in the bank, if they're stuck in accounts, you know, receivables and not getting paid, that's, you know, that's a no. No because it, you know, it cost you because you're financing your customers business, you know, you're financing them to do business with you. And that's not how business works. You know, you're not, you're supposed to be in business to make a profit and not, you know, finance someone else to do business with you. And then two, your payables, you know, they're going to, you know, they're going to come after you when their invoice is due. So you need to have that money available.
So people need to separate the two, you know, and say, okay, these are my sales. You know, keep track of your sales, but more importantly, keep track of your cash flow because that's what's going to keep you functioning and operating the doors open.
[00:07:49] Speaker C: So how much of financial instability and based on all these conversations, which is, which I love by the way, how much of financial instability is a number problem and how much is like a mindset problem or a decision making problem?
[00:08:05] Speaker B: Well, I think the main, I think the I would say 80% is mindset or maybe even 100%, but at least 80% or more is mindset. Because if you're not thinking right, the decisions you make aren't going to be in alignment with what your goals are. And the money is just, you know, like a by product. You know, I, I don't worry about money, but you have to be aware of the money. But that shouldn't be your main focus. You don't want to focus only on money. You want to focus on satisfying your customers who will in turn refer you and you'll get more business, you know, repeat customers, you know, loyal customers. And those are key things. But like I said, a lot of that is based on your mindset and having that right thinking.
You know, you want to make sure your numbers are right. But you know, if your mindset isn't right, if you're not providing good customer service or solutions to your customers problems or satisfying their needs, then that's going to make a big difference in whether that you're going to be able to retain that customer. So I would say mindset is maybe 80% and then the other 20%. If you have the right mindset, make the right decisions, you know, and know the processes and the principles of what you know, your industry demands, then the money will come, the money will flow. Right? But you have to think right, speak right and do right in order for that money to flow right.
[00:09:31] Speaker C: I, I love the 80 mindset because sometimes we just focus on technicisms when we are running businesses. So having the right mindset to, to run your business is definitely key. And I completely agree with you, Dr. Lavat, because I think that mindset is definitely what is going to drive you to the right path when you're building a business. So to complete a simple financial health check, what is coming in, what is going out, what obligations are growing, what are risks are unprotected, what financial question have I been avoiding?
Because financial problems rarely become easier because we ignore them. We need to have clarity. That's the first treatment after the break. Dr. Wendy and I are going to go deeper into cash flow, debt, inflation and the decisions that can move a business from financial stress toward greater stability and control. We'll be right back.
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Welcome back. I'm Ol Gurtado and I'm here with Dr. Wendy Labatt.
Before the break, we talked about diagnosing financial health.
Now I want to get into the pressures business owners actually feel.
Things like inflation, inconsistent cash flow, rising costs, debt, and the temptation to make short term decisions just to get through the month.
Dr. Wendy when inflation and operating costs arise, what is the difference between reacting emotionally and responding strategically?
[00:12:23] Speaker B: Well, reacting emotionally cause you to stress and worry and you can stress and worry if you want to, but there's enough things to stress and worry about. But actually, you know, trying to strategically deal with it because, you know, inflation is something you have to deal with.
I shouldn't say long term, but not just overnight or just not just this month. It's something especially now in today's economy, you don't know what it's going to be in the future. So you have to strategically position yourself to be able to accommodate the increases without, you know, causing too much confusion, especially with your clients. You know, you may have to rise, raise prices, but you want to look at where you can cut back on your end. Because when you start looking strategically and do that spending challenge, I, you know, I get my clients to do you find the money to pay for the things you think you can't afford. There are a lot of things that you're spending money on that you don't have to to or you don't have to spend at that level.
So you need to really evaluate, you know, where your money is going, you know, you know, how much is coming in. But like, so you have to know those numbers. You know, what is your profit margin, how much has inflation dipped into your profit margin? And if it's dipped a lot, can you look at your expenses and your spending to determine if you can absorb some of that or do you have to pass some of that on to your clients? And if you do have to pass it on, you need to kind of prepare them for it because, you know, you don't want them to think you're just, you know, trying to gouge them or anything. And I don't think a lot of people would think that. But then you just have to, you know, articulate that to them, kind of keep them in the loop when it comes to making any kind of price adjustments.
[00:14:17] Speaker C: Right. And definitely inflation is something that is out of our control.
But you know, following the Right direction for the pricing for your clients could be like a lifesaver for you and your business.
So, Dr. Wendy, what, what cash flow habits help owners recognize problems early instead of discovering them when the, the bank account is already under pressure?
[00:14:47] Speaker B: Well, monitoring, you know, your cash inflow, your receivables, you know, are your clients paying on time, and if they aren't, you have to do like, you know, your, your providers do to you, you know, they all slap on that late fee, you know, and have that out there anyway as part of your policy. You know, if your terms are net 30 and they don't pay in that 30, there's like 1%, 1, 2, or whatever you determine would be a late fee fee. And make sure that you emphasize that if the invoice is paid late, you know, make sure that they know that that will come.
And you don't want to just, you know, let them think, okay, I can pay her 60 days and there's no penalty. You want them to be a penalty for them not paying on time.
And you monitor, you know, your receivables, not just your sales, because, you know, everybody. I don't know, some clients may have a different set of terms. They may be doing that 10 or net 20 or cash on delivery. So you really have to see what the time frames or what the increments that your cash should be coming in and monitor that with your accounts receivable, with your bank statement, you know, so you'll know before it gets to where it's all negative and you're stressing because you don't have no money to pay your bills and all that. And then look at what your payables, when they're due, how much they are, and, and make sure everything is aligned, you know, make sure their money coming in is aligned with the money that needs to go out. So, you know, you have to look at those things. Don't wait till you know your, your account is negative or your creditors are calling you because you're late. So you don't want to get to that point. You want to catch things early and be proactive about everything, especially in this economy.
[00:16:32] Speaker C: Well, here the lesson would be be proactive and not reactive.
So yes, even for taxes. Right.
So, Dr. Wendy, how should entrepreneurs think about debt? What distinguishes debt that supports a thoughtful strategy from debt that is making a business model or a spending problem?
[00:17:05] Speaker B: Well, from one, you have to distinguish between your debt and your expenses because a lot of people will lump those two into one pot. And they're two different things. You Know, your debt has a finite time that, you know, you can pay it off.
Your expenses come around every month or every, whatever the cycle is, and you have to, you know, plan for that and you have to act, you know, your money has to flow for that.
But your debt, you know, once you pay off a debt, those funds are available to be used somewhere else. So you need to be able to distinguish between your debt and your expenses. And you also need to distinguish between necessary debt and just unnecessary debt. You know, some people go into debt just to get. And then again, another distinguishing meant you have to make is needs versus want.
Are you buying this or going into debt for something you want? Are you doing it for something you need? If it's a need, then, you know, it factors in and that's okay. But if it's a want, if times are tight, you got to put that aside and hold off until your cash flow or your sales or revenue or profit margin will allow for that. So, you know, the key is to look at, distinguish between your debt and expenses, your needs versus your wants, and then, you know, go from there.
[00:18:35] Speaker C: Well, you know, needs versus wants, I think that's key for every single entrepreneur.
Dr. Wendy, when income is inconsistent, what financial disciplines can help owners protect both the business and the household from constant instability?
[00:18:57] Speaker B: Well, if it's inconsistent, you have to kind of identify why is it inconsistent. Inconsistent because you don't have enough sales, you don't have enough income coming in. Your, you know, cash flow is not on point with what your sales are. You have to kind of find out the reason for that inconsistency.
If it's about not enough revenue coming in, you know, you have to increase your sales or your profit margin from the sales you do have and, you know, revisit those numbers and see are you pricing your product or service correctly based on the current economic conditions? You know, some people want to, you know, just be bid low to get in the door to get the business, but they don't realize that the cost of, of that contract or that product is more than what they bid in the number that they use. So you have to, you know, look at those factors on a regular basis because your cost could go up just like you need to go up on your price for your product or service. Your vendor is doing the same thing. So you have to really evaluate those, those factors and that can help, you know, solve the consistency problem.
[00:20:10] Speaker C: One, yeah, definitely increased sales or increased profit margins. I'm, I'm taking that.
What is financial.
What is financial habit that can Create immediate visibility and help a business owner feel more in control this week.
[00:20:30] Speaker B: Okay, you say increase the visibility. Their visibility.
[00:20:34] Speaker C: Yeah, that. That can create immediate visibility. And how can help the business owner feel more in control Just this week, one financial habit.
[00:20:44] Speaker B: Well, I would say get up to date on all your books. Get a real picture of where you are right now financially in your business, you know, because a lot of people have it in their mind from a year ago when everything was fine and think that's the same scenario now. Look at where you are now, you know, Take a look at your. The real picture, you know, not what you have in your head, but what's really happening in your business. And then make your decisions and strategies based on that information and not what you think it is or thought it was or what it was a year or even six months ago. You know, things are changing daily. Gas prices are going up daily. So you need to have to look at that on a regular basis and be real about.
[00:21:34] Speaker C: Even with the AI, every eye is changing overnight, like every minute.
So we as business owners are always thinking that, oh, I'm falling behind. Because whatever you're implementing today is like last year's or one month behind of whatever is happening right now.
So make sure that you are looking at your business right now as just Dr. Wendy Labat is saying.
Create a weekly financial appointment review, cash on hand receivables, upcoming obligations, discretionary spending, and one decision that could improve cash flow or reduce unnecessary financial pressure. That's our main takeaway from this conversation with Dr. Wendy Labatt.
Financial freedom is not built by earning more. It also requires control, discipline, and protection.
Next, we will talk about the risks entrepreneurs often overlook and why protecting what you have built is part of building wealth. We'll be right back.
[00:22:42] Speaker A: Jabol vemos con mas historias her ramientas y con sejos qu Tel uiderana transformarto negocio. Esto es se el ingrediente secreto por Naomi ateledicion.
Y o gurtado y estadriendo el inrediente secreto Porno Media television Sigamos con la conversacion de hoy.
[00:23:07] Speaker C: Welcome back to l' ingrediente Secreto. We've talked about diagnosis, cash flow, debt, obese debt. I love that. And financial pressure.
But a healthy business also needs protection.
Growth can create more assets, more obligations, more employees, more family dependence, and more exposure if the owner has never stopped to ask what could financially derail everything they're building?
Dr. Labatt, you emphasize having proper protection to help prevent financial ruining.
What Risks do entrepreneurs most often underestimate until a crisis forces the conversation?
[00:24:00] Speaker B: Well, there are a number of things, but I would say the first thing, and you know, this is from my story, is health, you know, the health of the owner. They never think they're going to get sick. They think they're going to always be there, always be in a position to take care of the business.
And that's not the case, you know, not always the case. So you have to have that proper protection on the key person. That means life insurance, health insurance, you know, to make sure that if they're out, they still can maintain personally as well as professionally. If you have to fill that void with someone else. You know my story, I'm a breast cancer conqueror. I was diagnosed, you know, nobody in my family had breast cancer, but I was diagnosed.
But in 2014, when everybody, you know, when the government mandated everybody have health insurance, I expanded my business to include insurance and financial services.
So in 2017, I was diagnosed with a very aggressive form of breast cancer. And that breast cancer, you know, I'm like, okay, you want to be aggressive, I'm going to be aggressive because I'm kicking your butt. But that aggressive treatment cost almost a million and a half dollars. But thank God I practiced what I preached because my insurance paid all the medical bills. And then I got had supplemental coverage that provided me with multiple six figure tax free financial shots in the arm that allowed me to focus on my recovery without worrying about medical bills, my personal expenses or my business expenses. So it really, you know, that was a factor because that could have ruined me financially. It could have ruined my business financially, but it didn't. Then you want to have asset protection. You know, you don't want to take a chance or assume that nothing will ever happen. You know, if there's a fire at your location or one of your employees, you know, crashes your vehicle, or even if they don't crash, if they're in an accident, those kind of things. You know, if your equipment malfunctions, you need to have those protections where you're not coming out of pocket, you know, for the full amount. You know, a premium is nothing compared to having to pay to replace a vehicle or a piece of equipment.
So those kind of things. And then you want to be sure that, you know, your family is protected as well. Because if something happens where the business does go under and you have to, you know, that's your only means of support, then you want to make sure that you're covered to be able to still get income Even once the business, something has happened with it. So you know, your life, your health, your legacy, those are in your assets. Those are the things that need to be protected.
[00:26:45] Speaker C: What an inspiring story. I am so happy that you overcome your cancer and you are a warrior because having cancer is not easy. I lived with my family. My dad, he passed away. But hearing you and you know, but you know what, everything happens for a reason. He, he was surrounded by his family. And what you're saying, it resonates with me a lot because people don't talk about these things like you need to be prepared for the worst outcome because life happens and you can get sick and your family can get sick and you know, you have to be ready and you have to be prepared. And I'm so glad that you were Dr. Lavat, because otherwise we wouldn't have this conversation today with you and learning a lot from you. So I'm happy that you're here with us and you know, turned out to
[00:27:43] Speaker B: be a profitable business. The financial cures came out of my breast cancer, you know, so it's, you know, it wasn't a death sentence, thank God. But you know, it was an opportunity. But I could have, you know, been down and out, but I wasn't because I'm not that kind of person. And the spirit told me, look, it's not a death sentence, but you're gonna go through some stuff. And I did. But like I said, look at me now. Look at the financial cures and the financial cure system, how it's helping other people. And that was, that's. I'm on a crusade. I'm, you know, was empowered to start this crusade. And that's what I'm doing.
[00:28:20] Speaker C: I love that. And listen, I love the name of your company, by the way, because sometimes we need to get cured not only in our health, like literally, but also our finances. And having people around like you, it's, it's, it's super relevant for business owners.
So for, for my follow up question because I'm so inspired by you and what you just said, because we as entrepreneurs, we don't think about that. And this is an invitation for everyone who is listening today that and he was watching our show today that can get hands on and have these critical conversations and get your business ready if God forbid, something happens to you.
So how do a spending habits and lifestyle expansion change when business income grows? And why can higher income still fail to produce financial security?
[00:29:23] Speaker B: Again, it goes back to the mindset because people think, okay, I'm making more money So I can spend more money. And that's not the case. Just because you make more money doesn't mean you need to spend more money. And that's where a lot of people fall into that trap.
You know, when you look at people that are rich and successful, and I'm gonna use the example of Warren Buffett, you know, he's like gazillion times richer than most people, but he's still living more of a frugal lifestyle. You know, he's in the same house, I think he has the same car, even though he might have a, you know, upgraded version or whatever. But he's not living how he could live based on his finances. You know, you have to prioritize investing and making your money work for you.
I like Robert Kiyosaki's quote. It's not about how much money you make, but how much money you keep, how hard your money works for you, and how many generations you keep it for. You know, we want to start thinking about creating gin. Not thinking about, but part of our plan should be including creating generational wealth. We don't want to just die and then leave debt. We want to be an asset to, to our, our loved ones. You know, by creating, you know, the Bible says a good man leaves an inheritance for his children's children. So you want to make sure you're leaving an inheritance for your children's children by creating generational wealth. And that means when you get more money or make more money, you don't want to spend it. You want to make that money work for you.
[00:30:57] Speaker C: Right. But sometimes, you know, we are living in a different time, I would say, because now people in social media see a lot of things. So how can you, how do you help people that have the tendency of just watching social media and scrolling and see all these courses and you know, new tools and the shiny objects that still, like, impact your financials. How do you, how do you tell them, hey, stop doing that? Because that is actually, you know, helping you leak money from your business.
[00:31:37] Speaker B: Well, again, it's the mindset and it's determining your needs from your wants. You know, I tell my clients and it's okay to have designer things and to look fly and all that, but, you know, you don't have to pay regular price. You know, I fly first class if I'm going over two hour flight, but I have points with the airline and with my credit cards where I fly first class and only cost me like what, the $12 or $14 processing fee because I'm not spending $1500 for a first class ticket when I can cash in my points or my miles and just pay the processing fee. And then, you know, I like designer things and I, you know, like certain labels. But I go to thrift stores and consignment shops and I get that stuff. Stuff. For. Matter of fact, I was at an event with some of my church members Saturday and they were complimenting me on my outfit. And you know, my whole outfit from shoes, you know, head to toe, minus the jewelry was like 20 bucks, you know, for the top, for the pants, for the shoes. But that's because I get them at thrift stores, you know, because people give away and donate things to, you know, especially if you do it in the, you know, exclusive high class areas. You can find the best thrift stores with the best products and the best price. And that's, that's what I do. I'm a thrift store queen. That's what my daughter calls me. So you can still have those things, but you don't have to spend the price to get those things.
[00:33:04] Speaker C: You will be like a. The best friend. My daughter's best friend, she loves going to thrift stores.
[00:33:13] Speaker B: Hey, thrift store queen. Hey store friends.
[00:33:18] Speaker C: I love it because you know what, sometimes we think about that and we think about frugality and it's like, oh, you have to show what you earn and what you make. And sometimes that is not true. It's a detriment on your business financials. So make sure you follow Dr. Wendy Labat's advice because I follow it. And, and to be honest with you, we as business owners, we have to be ready for any situation that comes to our, to our doors because you know, Covid happened, nobody was ready and things could happen.
So protection is part of profitability because one unmanaged risk can erase years of progress.
After the break, we will bring everything together around the bigger goal. Financial freedom, sustainable wealth, and the legacy the business is ultimately meant to create. We'll be right back.
[00:34:17] Speaker A: Jabol vemos con mas historias her ramientas y consejos quetelana transformarto negocio esto e l Ingrediente secreto porno media telencion y estamo de vuelta soy ol Grutado y est Adriendo el in la conversacion de hoy.
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Welcome back. We are Closing today with Dr. Wendy Labatt. And I want to move from financial survival to financial purpose.
A profitable business should create more than activity over time. It should create stability, choices, protection, and the opportunity to build something that can benefit the people and communities we care about.
Dr. Labak, how do you define financial freedom in a way that is practical for an entrepreneur rather than just aspirational?
[00:36:06] Speaker B: Well, I. My definition for me personally has been, you know, I can do what I want, when I want, how I want it, and money's not a factor. And when you get to that point, it's really true financial freedom because you don't want to have to be limited to what you can do because of money.
But with a business, you know the same thing. You really have to thrive toward that goal to be able to, you know, have a successful business. And when I say successful, I don't just mean money. I mean as far as your reputation and the integrity of the business, because that's more important than money. Because if you got the integrity, the, you know, money doesn't matter.
But, you know, you have to, you know, just learn the business, learn the processes, be a successful entrepreneur. Because my mentor used to say there are two types of entrepreneurs. There are those that play business, which means they show up looking good, talking good, but they don't follow up. Or they are, you know, about business, which means that they show up, know what they're talking about, provide good service to their clients, and they, you know, understand the process, they understand the business, and they deliver.
So you want to be on that, you know, being about business side, because when you're about business, all the other things kind of fall in the picture place. And that's the key, you know, because you can want to be successful. Like I said, I had people coming to me, oh, my company's $10 million company, but then, you know, their expenses are $10 million, $1, which means it's not a profitable company. So, you know, understand, you know, where your business is, you know, what the profitability factor is and cash flow and all the processes and principles that go with so that I think that's successful, you know, when you know, and doing what you're supposed to be doing, because you know what you're doing and you're doing it right, not right, but you're Doing it with integrity.
[00:38:07] Speaker C: Yeah. Let's talk about a little bit more about legacy because I love that concept. So I know, you know, our, our viewers would like to learn more about that. So when, when should an entrepreneur begin thinking about legacy and generational wealth?
After they feel successful or much earlier, early on?
[00:38:28] Speaker B: That should be part of your plan. You need to, you know, think about your legacy. And it doesn't always that mean it's got to be your kids, but you got to have somebody that's going to carry the torch, somebody that, the right person, because, you know, your kids aren't always the right people to do it, you know, but if they, if you train them right and teach them right and raise them right, they probably will be because you have to let them know this is your inheritance. So if you want to keep it and, you know, have it work for you and build it, you know, for your kids, then, you know, you have to be more serious about it. But you don't want to make your kids do what you do if they're, you know, if they're calling is something else. But you have to have that factored into the original plan, the original goal, because legacy is important. You don't want your business or your legacy to die when you do.
[00:39:21] Speaker C: Right.
That is completely true. Oh, my God.
We don't, we don't think about legacy, by the way, we, as entrepreneurs, we don't think about that. We're always thinking about the day to day.
So what role do mindset and financial education? I know we have been talking about a lot of mindset, but what role does it play in making sure, sure wealth lasts rather than disappearing as income arises?
[00:39:49] Speaker B: Well, like I said, it's key. Just like everything else, if you don't have the right mindset, the decisions you make aren't going to be in alignment with what you're supposed to be doing. So, you know, it's, it's key. You know, it's a key factor because like I said, my mantra is if you think right, so speak right. Not only do you have to think right, but you have to say the right things. And that means positive affirmations. You don't want to think, I'm going to be a millionaire and then say, oh, I'm broke. You know, that's negative thinking and that's canceling out you being a millionaire. So you have to think right, you have to speak right and you have to do right, which means doing the right things. You don't want to just, you know, think about it and Speak about it, but not do anything, because faith without works is dead.
And then if you speak right, think right and do right, things will flow, right. And when I say things, I'm not just talking about money. I'm talking about your discernment, your relationships, your opportunities, your decisions. Those start flowing right, and then you'll optimize your financial health. So it's, you know, it's a combination. It's a, you know, a strategy should be think right, speak right, do right. So, so the things will flow right.
[00:41:06] Speaker A: Wow.
[00:41:07] Speaker C: So what is the relationship between business profitability and personal wealth creation? And where do owners sometimes confuse the two?
[00:41:18] Speaker B: Well, for one, sometimes business owners kind of, they may co mingle funds, which is a no, no, that means mixing your business funds with your personal funds. Or they may, you know, not pay themselves and not factor in a salary for themselves because they think everything has to go back in the business and a lot of it should go back. But you need to pay yourself. You need to factor that into your budget, you know, into your plan. Just like you pay your employees a salary, you need to pay yourself.
So you have to, you know, distinguish the two. It's just like your business or your expenses and your debt. You have to, you know, your needs and your wants. You have to distinguish between business finance and personal finance. And if you do things right, your business finances will be able to accommodate your personal finances when it comes to your salary and things like that. So, you know, you have to distinguish the two. But you have to plan for your personal finances as part of your business.
[00:42:25] Speaker C: Well, pay yourself first.
So for the business owner watching who want for the business owner watching who wants to move from financial survival toward confidence, disability, and sustainable wealth, what is the first discipline step you would ask them to take?
[00:42:45] Speaker B: Now, the first discipline is take a realistic look at, at your business and personal finances. I mean, I see a realistic look. Not what you think it is and not the facade that you want to portray, but the real picture, you know, what it is your business finances are. If they're in the red, you need to face up to it. You know, don't be ashamed. You know, we've all had those situations where our stuff was raggedy. But, you know, a lot of people don't want to face up to it. They want to bury their head in the sand and say, okay, I can't, you know, I can't deal with this. I don't want it to be, to be like that. But, you know, whether you want to be like that, if it is like that, face up to it. So look at your, you know, your finances, the realistic picture. That's what I say right now. Take your financial health vital signs, which is look at your income, your expenses, your spending, your debt, your just everything that you pay money out for. Look at that. Write it down. You know, don't just look at it on a bank statement but write it down in those categories. So you know, and then when you break it down, is it a need or is it a want? You know, your income? Is it just what you're bringing in as revenue from the company or do you get, you know, grants and you know, you have to factor all that stuff in. Some people don't want to factor in grants and loans and that those still revenue. So you have to take a realistic look and I want you to write it down on paper and categorize it and then read it and absorb it and then, you know, figure out a strategy. But first take a look at your real financial situation.
[00:44:29] Speaker C: Well, do a diagnosis. That's a plan for next week for your business.
So, Dr. Wendy, for viewers who want to learn more about the financial cures system, your books or your work, where should they connect with you?
[00:44:48] Speaker B: Well, they can look at my website. It's kind of all inclusive. That's the t H e financial cures with an s dot com. That's the financial cures with an s dot com. And it starts out where you can see that spending challenge. The spending challenge, you know, like I said, helps you find the money to pay for things you think you can't afford. Take a seven day spending challenge and you'll be surprised at the money that you're spending on things that could, you know, pay a bill or be invested in something else, you know, or help pay off debt or, you know, like I said, you'll be surprised to take that spending challenge. It's free, doesn't cost you anything, but it will enlighten you on where your money is going.
[00:45:34] Speaker C: Well, Dr. Wendy Labat, thank you for joining me on El inrediente secreto and for helping us look at business growth through the lens of total financial health.
[00:45:48] Speaker B: Thank you for having me.
[00:45:50] Speaker C: Thank you. To every entrepreneur watching, revenue matters. But revenue alone is not the goal. Know your numbers, Protect what you have built. Pay attention to the habits behind your decisions and create a financial system strong enough to support the business and the life you want to build. I'm old. Gurtado. Thank you for watching El ingrediente secreto on NOW Media tv.
