I have worked with financial survival with both companies and individuals for over 40 years. The best advice I can give is a Paradigm change is always needed. The daily grind of the crisis wears on you and typically calls your attention to the wrong thing!!!! The deeper in; the worse the call for attention will be. The call is — ‘Pay attention to me, I need paid, I will do bad things, etc.’ Collectors are trained to play on fear. So you pay attention to the loudest voice, issue, problem and notice over time the debt snowball rolling downhill keeps getting bigger and bigger

Look at the Infographic with this Blog Post.

The only solution is – change your Paradigm from solving every problem to “I am going to create NO NEW PROBLEMS!”

That happens when you get to zero based cash management– you get to break-even.

A tool to help with NO NEW PROBLEMS – is a cash budgeting worksheet -weekly that should be prepared 6 to 8 weeks in advanced and rolled forward every week. This can be prepared in Excel and updated weekly with an actual results tab and extended for future periods.

By looking at actual results each week and comparing to the previous projection, the forward plan keeps getting better and better- especially the first few weeks.

Expenses should be listed by – who can put you out of business first– payroll, fed and state tax payments, major vendors etc.

This weekly plan is a great tool for further planning — associated with getting to breakeven!

blessings

Cash Budgeting Worksheet

Great leaders make great choices and they make these choices based not just on brainpower and experience.

They have principles in which they believe and adhere to even in the midst of crisis.

These principles are a solid footing when everything around them is shaking and confusing.

Here is a short list of 7 key Principles for Principle Based Leadership with brief explanations (fuller understanding can be gained going through the L4L Leadership Curriculum.):

1. TFA

Thoughts need to lead feeling before action is taken. This leads 100% to better choices! In crisis situations this means facts will outweigh fear when making decisions.

2. Plan not React

Strategic thinking put the future in focus. You can not do much about the past except learn lessons. You can change the future! Who wouldn’t want to do that; instead of letting the future change and control you?

3. Survive then Flourish

Business is about the survival of the fittest. Recessions, disasters, crisis all weed out the weaker players in every industry niche. When the sun comes out, those left enjoy surprising positive results due to reduced competition.

4. Balance the 5 F’s

Faith; Family; Finances; Fitness and Fun are amazingly integrated. Weakness in any area can wreak havoc in the others.

5. Know the Heroes of Your Stories

Successful business leaders know they are the Yoda (the helper) to the Luke Skywalker (the customer) in their business story. The same is true in the other 2 other areas in a balanced life: Faith & Family. When it comes to Fitness and Fun, the hero shift to YOU.

6. Sowing & Reaping

There is a basic law of the Universe; you sow and then you reap. If you sow bad choices, pride, selfishness, etc. the reaping will take a big negative toll. On the other hand when you sow blessings, love, empathy, wisdom, service the reaping will follow in kind. Sometimes we will see negative reaping while we start positive sowing because the law says reaping follow sowing.

7. Compounding

Everyone has seen the compound interest tables with low returns early then a hockey stick curve building after many years. Compounding is another immutable law of the Universe. Sow positive things for years and be consistent and reaping will follow the hockey Stick curve. But you say why is there so much pain in the world? There are many more people sowing negative and few sustain positive sowing over long frames that the deck can be stacked on the negative side- but…. With a long term perspective, even when positive reaping is being overshadowed, I firmly believe in a God who has eternity in His hands and the hockey Curve will extend forever forward.