She Swore She Couldn’t Run Her Business Without a Credit Card—Now She Has $143K in the Bank | 446

0:00Today we're bringing you real life stories and lessons from our private coaching sessions. If our clients are dealing with it, chances are you are too. So we're breaking it down to help you avoid the same mistakes, feel less alone, and walk away with some quick wins for your budget. Do you make good money but have nothing to show for it? Are you tired of living paycheck to paycheck? Do you have big dreams for your financial future? Do you want to get debt-free but you don't want to live on beans and rice? Or you don't want to give up those pumpkin spice lattes? Hey, it's okay if you don't already know how to budget or if you're using credit cards to get through the month.

0:31Hey, it's okay if you want to seem like you have your finances all together, or you're not on the same page with your spouse when it comes to finances. We know what you're doing probably isn't working, but guess what? You're in the right place. We're Shana and Vanessa. We're best friends, business partners, and master financial coaches trained by Dave Ramsey. We've been in business since 2019, helping hundreds of amazing people like you create budgets, get out of debt, stop living paycheck to paycheck, and know exactly what to do with their money. In this podcast, we'll share with you everything we know, plus everything we're working on with our clients so that you have the best chance at reaching your financial goals.

1:07We want to help you take the guesswork out of your budget, improve your marriages, and even bring your kids in on the conversation. We can help you no matter where you're at, whether you're the single mom who's never had$500 in her savings account or the millionaire who's paid off four real estate mortgages. And we're not going to shy away from the tough love. We'll tell you what you need to here and encourage you at the same time. This is the Financial Coaching for Women podcast. The client that we are talking about today, she was so used to floating her expenses with a credit card. Like it was so much easier to just put it on a card and figure out how she was going to pay for it later.

1:43It just made sense to her because they were always a month behind, right? So that's how you charge, charge, and then you figure out how to pay it off. Then you charge, charge, and then you figure it out later. And then when we had the conversation of, hey, we're not going to do that anymore. And we were just talking to her about like the power of paying for cash and stopping the credit card use. And that was really hard for her. I think we talked about this, I think it was like four months before it truly fully took place because it was that hard. Now, I will say I'm specifically talking more about her business because of the way that, and a lot of our listeners have businesses, they're entrepreneurs, and it's just easier sometimes before that maybe like you have a sale or or you sell something but the money doesn't come in until later so they're floating expenses so for her it was easier to just put everything on a card but it was also happening in her personal life and again it was just a system a way of life that she created for her sons because they're in the business as well her husband all of that there's a whole family thing here but when we talked about stopping it i said this is harder like using cash to pay for something and not using credit and paying in the moment for it is way harder and i think that that sunk in for her and she's oh it is way harder like she didn't under she couldn't correlate it and she couldn't figure out why she couldn't stop using their credit card and I was explaining to her it's because it's harder and that made sense and so when we finally got like through with everything this month actually the month of June this is her sixth month of coaching she's going to continue on again because she has a very successful business that we're trying to finish and get things going with are getting get going she finally stopped using the credit card the end of May and June was seeing the result in her business bank account of using cash and only using cash and it was like mind-blowing to her to see how much extra money she had in the account because she wasn't just frivolously just swiping here or swiping there.

3:33Yeah I think that there is like a whole mindset it's like how we don't really know about the Amex is like the prestigious credit card mindset yeah there is a mindset just put it's business so I can have a credit card don't worry about it. My business needs credit. It's just a thing. And no, it's actually not. Your business also should be cash flowed. It should grow at the speed of cash. And I do think, I love the point of saying it's harder. There's this meme going around on the social media where it's, this is harder. It's like a budget of a comment. And then it says it's supposed to be. Harder is better.

4:06Usually the thing that doing the sport is hard, but that's good. It's supposed to be hard. Same here. It's supposed to, the harder way is supposed to be that way, but it's going to, like Vanessa said, it's going to pay off. It's going to, when you start seeing money stacked up, like she said, in actual, you have cash. You're not just hoping you're not budgeting based on a hope. That's great. That's going to be great. But also I think about the phrase, like your future self will thank you because what you're doing in what she was doing is making, is giving her future self a problem to solve over and over again and being behind and putting that anxiety and that decision making and that problem solving on your future self.

4:41You don't know what your future self, we've already talked about two clients that had their AC go out. What if your future self who has to deal with this has an AC go out? Don't do that to her. That's not nice. Don't be that way to your future self. Do the work of figuring it out now so that you don't, the future self just doesn't worry about going on vacation. That's what we're here for. Right. And yes, it's going to be uncomfortable. You're probably going to hate it at the beginning because you're not used to it. You're so used to just, Shayna said, doing the easy thing and charging it and figuring it out later, but this is growth by you changing that habit and that mindset.

5:09You're growing as a person. You're growing in your financial literacy of understanding how to properly handle your finances the right way by paying for cash or paying using cash and not putting it on credit and figuring it out someday. Yeah. Someday. I love that, which is also no day, but we know that. But I also think it's, if you want to be a serious business person, you need to know your numbers. And that comes down with all of this, using a credit card and just like putting off the knowing of your number, like you should know for, I don't know what business they have, but for my products, for my employee payroll, whatever, for what I know I have them.

5:43I know how much it costs. And I know if I want to increase that or not, like I know how I'm going to get there. Like you need to, as a business owner and as the CFO of your household, you need to know your numbers, not just be okay with like them being ethereal. Like that is, we're going to take ourselves seriously and know the math. Yeah. She told me when I just met with her yesterday, she said, we have$143 ,000 are sitting in our business account. I don't think I've ever seen that. And that was huge for her, but it was all because we were only using cash. And when you use cash to pay for stuff, you are way more mindful of what's going on.

6:14And we see that over and over again with our coaching clients coming in. They're like, oh my gosh, I was actually aware and I cared about where I was spending my money and how much I was spending because I was using cash. And it's not even like in the spending, it's in the bills. Once you see everything and you see what you're doing, you can actually make decisions. But if it's just going on credit card, you never have to worry about it. You never have to see it. You never have to understand it and make those decisions. Those decisions are good decisions to make and you should be making them. That is how you get $143 ,000 in the bank.

6:43You don't get that by just swiping and putting it, continue to put all those decisions off to the future. All right, budget besties, it's time for some real talk. You don't need another budget. You need a budget system. Our simplified budget system is what you've been looking for. It's going to allow you to be bougie on a budget. You'll be able to easily set up a system that runs automatically and shows you exactly where your money is going. And it's going to give you permission to spend. Everybody loves that. Yeah. It's straightforward, pretty, and packed with walkthrough videos that break down the exact methods we use with our clients to get out of debt, set up a bills account, separate spending, build savings buckets, and end the paycheck to paycheck feel.

7:24If you're new to budgeting, this is the perfect way to jump been. And if you're already a budget nerd like us, you're about to meet your new obsession. This is the upgrade to your finances that you need right now. Yeah. So head on over to budgetbesties.com forward slash budget and grab yours. Now back to today's show. So I have a client that we are firing her bank. Okay. We are so firing her bank. I am so over her bank. Her bank is getting on my last nerve. So she's a teacher and she's going, I think she's going to move to a teacher credit union, we're going to, I'm just hoping that's going to be better, Vanessa.

7:59I don't know. I think about the public's credit union and I have hope like maybe because they're really great. I don't know about the teacher credit union, but the current bank is so fired. Okay. First of all, she's only allowed two debit cards per person. And it's even worse than that. The bank didn't even know that. So she goes in, right? We have our system. We're like, go get your bills account, get your spending account, your gas and groceries. And then for her, she has restaurants. We want all of those. Okay. Go ahead and go in and order them. and then the lady's there trying to get it. There's an error.

8:27I don't know what's happening. And eventually they figured out that they only let you have two debit cards per person for this bank. And it's like, oh, that's stupid. So she's been having to make it work a little bit and that's not the point of the system. That's what I told her. This is not the point. The point is not still trying to have to figure it out. It should be super simple, easy, clear. So that was one hit. Then we come up with, they have transfer limits. There are only so many automatic transfers that let her set up. and obviously we don't have that many so she hit that already i was like what is going on with this bank and then two months she's been coaching two different times she's had an unauthorized charge that she had to go in and say this isn't mine and they're like oh and they took it off two months in a row so i'm like look we're done it's time to go when we were talking earlier about how people have anxiety about opening up extra accounts for some reason people have anxiety about switching banks.

9:18They're like, I've been with this bank. I don't want to, I don't know. I don't do not. There are better banks. There is a better bank out there for you. There's a dream bank. They're just like lovely and here for you. And they do all the things that you want. They do not be afraid and do not put off switching banks because you might hurt their feelings or it might take you all Saturday morning one time. That is okay. It's worth it. This is going to put you to where you have more time, more energy, more brain calories saved because you took the time to do it. So don't be afraid. I think it's interesting how I've had some people say that they don't want to switch banks because they're, they have loyalty, whatever with this bank or credit card that they've had forever.

9:59And I want to question that. And if you know this answer, please email us at hell about budget besties.com. Cause I'm actually really curious. Is that a thing? Like when people go pull your credit to go buy a house, do they look and see the longevity that you've been with a bank and that counts in the positive? Is that really a thing? I think bank accounts might be more for mortgage, like when they do your stuff, but certainly credit cards, the longer you've had the credit card is better. Yes. You have better credit because you've been with them longer. Yep. Okay. That, do y 'all understand that this is like a game that they are playing and you were losing at?

10:30It's not, and I understand people get so frustrated when we say close these cards because what we've heard is that it hurts your credit the exact same, whether you have it open and you're not using it or it's just sitting there and you're using it. So just get rid of it. And then you can move on and your score will go up eventually because I'm sure you have a mortgage and that's the best credit you could ever have. Right? So it's fine. So your score will go up. But listen, why are you staying with a bank that's not serving you? It's not helping you. It's hindering your success on trying to set up a system that's going to help your family.

11:00Find another bank that really do your research. We have a couple of podcasts on that. Do your research, find a bank that is going to help you and then be with them a long time. And then you can get your longevity points or whatever that is with them. I think it's just, it is, you talked about the game. This is part of the game that they're playing. And I want you to know that they don't, you don't matter to them. Like you might, you, they may matter to you and your loyalty to them and how long you've been with them. They will cut you off on a dime. They don't care. Honestly, they don't. They will tell on you.

11:29Yeah. Yeah. Like maybe if you're, if you really have a small-town bank and all of them maybe they care a little bit. The rest of them is all about the numbers. And if you're not a good number, it doesn't matter. And part of that, we always say credit card companies, but it's banks, like banks, not just credit card companies. They have more money than we know what to do with. Their marketing is whatever. I remember Geico came out with their Gecko because they wanted all of the little kids that were watching those commercials to be loyal, brand loyal to Geico and eventually set up Geico when they got older.

11:58Like they're playing, as Vanessa said, a game, you don't need to worry about that game. USAA, which is direct competitor with Geico, they do put, thank you for being a member for 24 years or whatever. Like that's supposed to mean something because again, on a dime, they will turn on you. They don't care. They just want your money. And as long as it's good money to them, right? So don't think that you need to worry about being loyal to them. That it's like being loyal to an old shoe that's falling apart. What is that going to, what is that going to prove? What if you could get a new shoe and your feet stop hurting.

12:26Love that for you. There is a bank that has more modern features, has like, they want to give you some money just for joining. Let's go just take advantage of whatever different bank that you can come across that's going to serve you for what you want. I think it goes back to that point, Shana, we talk about you've probably been at the same bank since you were 18 because your mom or whatever walked you into that bank and that's the bank you got when you got your first job. But it's the 21st century, y 'all. There's so many more options out there and so much more available to you if you just do a little bit of research and find out what is serving you best.

12:55If you're at a bank that has all these stipulations and you don't like it, why are you there? Move. And that's the thing. Unfortunately, like you said, the banks that your mom took you to, they're not probably moving forward into the next generation or the next century, right? Because what reason do you have that I can only make so many transfers? Get over it. There's no actual reason other than you just have some arbitrary rule or some arbitrary break in the system that nobody knows how to decode, really, because you're using a two-decade-old system. That's really where we're at. I will say when I first started this system with my bank or my credit union, they called and they were like, why do you want to do that?

13:33You're going to mess it up. Multiple debit cards is going to mess you up. And I'm like, no, it's not. All of my debit cards have a different design. Our bank has 10 different designs you can choose from. So every single one of my debit cards has a different design. It's very easy for me to understand and label like which one is which. So what, and why are you telling me how I'm going to handle my money? That's not their job. That's my job. I will do just fine. Thank you very much. Yeah. Yeah. And I just think that a lot of these things are just old fashioned probably. If they want to join, if you tell them and bring it to their attention and they might want to join this entry, cool, stick with it.

14:05But if they're, if they just have rules and you can't make as many transfers as you want, you can't have multiple debit cards or you're getting random, especially, specifically if you're getting unauthorized charges often, let's not, We're all done with them. But you want to go find yourself a bank or a credit union that will work for you, that will make your budget easy, not harder. And so you're going to look, like Vanessa said, we have podcasts out there. But you want being able to have multiple checking accounts, multiple savings accounts, unlimited transfers. Apparently, we need to add that one in there because we didn't even know that was a problem.

14:33You need to be able to have debit cards for your checking account. We want all of these things and all of the other stuff that we talk about to be available to you with your bank. And if you are, like Shannon said, really loyal to your bank and you want to stay, ask them why. I'm a huge why person. I love to know why. So ask them, why is this a rule? And they probably don't have an answer for you because Shana said it's probably just a thing that they came up with and they stuck with it and they never changed it because nobody ever questioned it. Maybe if you question it, you can help them get better.

14:57And so ask them. I'm a huge advocate of, I always send things and say, hey, can you send this to your, I don't know, prototype team or whatever? Can you ask them if they can make this change to help better serve your customers? Me, I'm a customer, right? And they'll say yes here or they'll give me a link and ask me to submit it myself. So don't be afraid to do that either. Yeah. And actually that is what I started to tell her was go back and ask them, can they just change this, change it for you? Just give you more debit cards because, because you're asking, maybe it's just some arbitrary thing.

15:26But then we, we doubled down on that unauthorized charge. I'm like, nah, girl, not fan. We got to go. We're not going to. Three strikes real. And the last point here is don't delay. I know you think it's going to be annoying. It's going to take work. Yes, it is. But it's going to be, it's going to pay off. The sooner you do it, the easier your life is going to be to have the bank that will set up the system for you correctly. We call it the messy middle with our clients. Like when you do all this and you make the big switch to the banks and your accounts, it is a messy middle, but you will get out of it and it's going to serve you so much better in the long run.

15:54If you're tired of feeling like your finances are all over the place and you're ready for a simple set it and forget it way to budget, we have something special for you. Watch our automate your budget masterclass at budgetbesties.com forward slash automate. We'll show you step-by-step how to finally organize your money, how to set up your accounts and put your budget on autopilot. So your bills, saving, and spending run like clockwork. Imagine less stress, more savings, and the freedom to spend money without having to track every dollar or babysit your bank account. Go to budgetbesties.com forward slash automate to start today.