Beginning Balance

We usually talk about stress as something you need to reduce, or recover from. But there are different types of stress -- good stressors and bad stressors -- and sometimes stress drives us to accomplish things and innovate when we otherwise wouldn't. To that end, Mark and Jesse discuss Morgan Housel's book Same As Ever: A Guide to What Never Changes , in which Housel outlines the way stressors and...

Jesse defends the New Years resolution, and offers up of his own resolutions for the year, namely being kind . Mark resolves to try really hard, and be a better friend.   Harvard study on men's happiness (started in 1938!): https://www.health.harvard.edu/blog/the-secret-to-happiness-heres-some-advice-from-the-longest-running-study-on-happiness-2017100512543   Musical interlude courtesy of Kevin Ma...

Mark shares a trend he has become aware of in his business: his highest revenue clients are also his least time-consuming clients, and thus his most profitable clients. On balance, the clients who pay the least under his sliding scale fee structure end up taking the most time to process. This discussion begs the question -- when do you fire a client?   Jesse hashes out some ideas for a new fee str...

Mark shares a recent conversation with a client fixated on "diversifying" her business, which to her meant expanding her coaching services from 1-on-1 to group coaching. Diversification is one of those concepts that sounds wise (of course you should diversify!) and is a bedrock concept of investing. However, as Jesse points out, what most people think of as diversifying is really just expanding --...

Jesse shares a conversation he had with the YNAB executive team about spending (and giving) with joy, and Mark relates how many business owners struggle with this problem. Mark also shares a recent talk with a client agonizing over an upcoming vacation, which he believes will require him to make poor financial decisions. As Mark has coached him through the process of planning for the vacation and...

Mark and Jesse actually read the book (almost)! After completing most of the book recommended by a listener,  10x Is Easier Than 2x: How World-Class Entrepreneurs Achieve More by Doing Less by Dan Sullivan and Benjamin Hardy, Mark and Jesse share their thoughts on organizing your business and your life to harness your "unique ability."    Mark Butler, Virtual CFO The Money School: https://moneysch...

A listener requested Mark and Jesse comment on the book 10x Is Easier Than 2x: How World-Class Entrepreneurs Achieve More by Doing Less by Dan Sullivan and Benjamin Hardy -- and they happily oblige! Except... they haven't read the book. Yet. Nevertheless the title is thought provoking, and they debate the merits of growing a business slowly vs growing quickly, as well as the difference between doi...

Mark and Jesse share a snippet of a long conversation about the nature of opportunity cost in budgeting. They broadly divide people into two different personality types: the accumulators who diligently follow the rules of budgeting and amass cash, and the spenders who focus purely on what that cash can buy them -- experiences, memories, mementos, etc.   Both camps face a hard challenge in budgetin...

Mark explains his unique system for managing his day to day tasks after years of struggling with ADHD. For Mark, it's all about managing his energy and honoring his mindset in the current moment. If the "dirt pile" calls (his affectionate name for an ongoing earthmoving project in his backyard), then that's what he does, whether or not it's the "best" or most important use of his time in the momen...

Mark and Jesse answer a listener question about how to run more effective meetings, particularly for introvert-heavy groups. Jesse talks about the importance of ice breakers (although you don't have to call them that) and standardized meeting structures across the company. Mark and Jesse also discuss some new books on their reading list, including a book about the keys to longevity.   Mark Butler,...

Mark poses a question -- how much knowledge about money does someone need? As in, how much time and energy should one devote toward investing, planning for future needs and problems, and other future considerations? Jesse offers some examples of how people often seek assurances, guarantees that their future income (and circumstances) will be safe. The reality, however, is that if you are in busine...

Mark provides an update on his son Charlie and his budding mechanic career, and voices some concerns about his continuing to work at the auto shop. Charlie made some good money replacing brakes on a family friend's vehicle, and is considering making the jump to a mobile auto service business (as Mark and Jesse first discussed in Episode 79).   Mark Butler, Virtual CFO The Money School: https://mon...

Mark and Jesse discuss the process of setting compensation, salaries, bonuses, and communicating those effectively to the team. Compensation is a touchy subject. Businesses want to incentivize employees to perform at a high level and reduce turnover by compensating them well. Employees need to feel like they have space to grow their skills and capabilities in the organization, and be compensated a...

...probably comes from doing more of what you're already doing, not a new venture or even a new product. But Mark and Jesse have talked about digging trenches already. Today they ask the question, is it enough for a business owner to put their head down and just dig more trenches? When do you look around, observe broad trends in your industry, and react to those? It's a balancing act, with risks o...

Mark and Jesse dissect the culture of striving that pervades American society, in businesses and consumers alike. There seems to be a tacit assumption that all business should be about more -- growing more, making more money, etc -- and you don't have to look far to see the same mentality in consumer culture. In fact, it's the heart of the economy! The desire for more is endless, a hole which can...

Mark shares a difficult personal situation he and his family have been dealing with, that has signficant financial ramifications. Recently Mark's wife was diagnosed with cancer, and she has undergone chemo treatments and a litany of medical tests. As the medical bills continue to pile up, Mark finds himself having to float tens of thousands of dollars in costs while he waits to be reimbursed by th...

It's happening! Mark's son is taking the step toward business ownership. His plan is to leave his job at the auto shop behind, and start a mobile oil change business. Mark and Jesse discuss some of the challenges of pricing his service, establishing a recurring revenue model, and marketing to the most influential groups he has access to.   Mark Butler, Virtual CFO The Money School: https://moneysc...

Jesse shares a recent situation that would have sent shivers through most owners. Following a revision in the tax code regarding software R&D costs, YNAB discovered it would be facing down a huge tax bill, over triple what they anticipated for the year. While this might bankrupt some companies, Jesse and the executive team were able to take the news calmly, and use the company's cash reserves to e...

What if all your spending... was actually borrowing? Ok, well not ALL your spending, but those situations in which you pull money from one category of your budget and apply it to another. Jesse gives the example of going to a special dinner at an exclusive restaurant. Reservations are very difficult to get, and you finally get one when someone else cancels -- but it's tonight. And you don't have t...

Mark and Jesse answer a question from Beginning Balance listener Allison (thanks for listening Allison!). Allison asks: what do you do when you get paid? How much should you set aside for taxes and retirement savings?   It's a great question, and many business owners struggle with this. Mark and Jesse explain the concept of "profit first" and why the business should pay you first, then take care o...

On the previous, Mark shared a recent experience about letting an employee go. Not long after, another team member left for a great opportunity at another company. On a small team like Mark's, the loss of two employees back to back poses a big problem, as the workload gets spread to the remaining employees (a BIG increase) and some institutional knowledge is lost. Even with great systems and docum...

It's not a fun part of the job, but sometimes you have to let employees go. Mark discusses a recent experience, and why, in retrospect, he should have acted much sooner. Jesse shares his thoughts on when, and why, you should let go of team members, when it's clear they aren't a good fit with the organization.   Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler...

Mark and Jesse consider the wave of AI technology that is rapidly being deployed in a number of industries. Whether it's the dreamlike collage-art of Midjourney or ChatGPT's pedantic essays based on conversational prompts, AI seems to be on everyone's lips these days. What remains to be seen is how quickly -- and broadly -- it will impact businesses. Mark and Jesse both agree, though, that now is...

Jesse and Mark return to their credit card debate from episode #69 (recorded last year in 2022) and discuss how business is going with using a credit card. Jesse went cold turkey and stopped all use of credit cards, while Mark kept a card for just a couple recurring transactions, but greatly reduced his usage.   The consensus? Even though YNAB attempts to treat credit card spending the same as cas...

Mark and Jesse share their New Year's resolutions for 2023, and why their goals and plans are getting simpler as time goes by. One common goal for 2023? Mark and Jesse are recommitting to YNAB, and ditching the credit card.   Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler.com https://letsdothebooks.com   YNAB https://www.youneedabudget.com