How can we make money and create wealth at the same time? Terri Levine talks to Heartrepreneur Karen Ford on today’s show. Karen is a master financial coach, author, a business owner and a real estate investor. With years of being an entrepreneur herself, she has identified the biggest things that business owners typically do with their money finance. Today, she shares to us her key observations from this and tells us how we can take control of our own finances. Differentiating creating wealth from making money, Karen explains how we can grow our managed money.
Listen to the podcast here:
Growing Managed Money With Karen Ford
I’m glad that you’ve tuned back in and remember that Heartrepreneur is a cause. It’s a movement. It’s about transforming the way business is done so that business is no longer transactional. Business occurs one heart to another heart doing business by a relationship with authenticity, transparency, and integrity. I have a Heartrepreneur with me that I’d like to introduce you to. Her name is Karen Ford. She happens to be a master financial coach and she’s even more than that. She’s an author, a business owner and a real estate investor. Her goal is to motivate and inspire business owners like you, not only to budget correctly but to demolish debt and build wealth. We’re all here to build wealth. She provides a sense of peace and that empowers businesses to operate smoothly in the area of finance. This is an important episode, so make sure you’re fully present. Karen is a Heartrepreneur. She has heartfelt principles that provide business owners to lead from a position of gratitude and what better position to lead from. Karen, welcome to Heartrepreneur Radio and TV.
Thank you, Terri. It’s a pleasure to be with you.
I’m excited to have you. How did you get led down this path? What brought you to where you are?
I’m a registered nurse, but I haven’t practiced as a nurse for several years. I had a friend who told me, “You’re great with money. You’re great with numbers. You ought to get some more training.” I became a master financial coach and then it all transpired from there.
I love things like that because I have a similar story. I have a Master’s degree as a speech-language pathologist. I figured that was what I was meant to do until I woke up to the areas of coaching and consulting and realized what I’m great as is building businesses. I changed careers completely for many years. I’m doing what makes my heart sing. Is it similar for you?
Absolutely, it is. I enjoy helping people, especially helping people win with money, whether it’s personally or in their business. That’s a Heartrepreneur type thing.
What are the biggest things that you see in terms of business owners with their money finance? What would you say is the number one “issue,” Karen?
Their number one issue, I would have to say, is they need to learn how to budget, to be honest with you. I think sometimes when people have a business, they think, “I’ve got all this money coming in. I’m going to blow it or spend it.” That isn’t what we do. We need to plan it out.
I’ll share something embarrassing and true that may help others. One of the first years in my coaching and consulting business, I hit $1 million. I remember going to my accountant and we’re going over my finances and he said, “You have to change something in your business. This was a horrible year.” I’m thinking, “What? Is he out of his mind?” He said, “You literally are taking home less than $50,000.” I almost fell on the floor. I bought anything and everything that came along. I was like, “Here’s something. Here’s an event. Here’s a class. Here’s another coach, another consultant, another training.” I spent and spent. What you’re saying is true. Now, I budget. I look at what’s coming in. I look at what’s going out. Why is it that we don’t do that? What is that about?
Sometimes people hear that word ‘budget’ and it has a bad rap like it’s a four-letter word. A budget is you’re telling your money what you want it to do instead of wondering where it went. You’re in control of it. When you don’t have a budget, you’re not in control of your money. Simply put.
What if somebody isn’t a good budgeter in their life and now, they own a business? How do they get started? Where do they begin?
They need to get someone that’s going to hold them accountable, whether it’s a financial coach, an accountant, somebody that’s going to hand them money and say, “This is your allowance this month.” If they’re like that, then you want to change things when you’re in business because you know, as well as I do, the business can change in the blink of an eye. We want to be well-prepared.
What is it that you do exactly to help business owners?
I’ll meet with them one-on-one, face-to-face, Skype, Zoom, whatever the case may be. I want to find out what their vision, their dreams, their hopes are first of all. If I can see the goal, then I can give you the steps to reach that goal.
How do people contact you? What’s the best way to get in touch with you?
Social media is a great outlet as well as I have my website. A number of ways they can reach me.
I happen to follow Karen on social media and her posts are thought-provoking. They’re brilliant. I highly recommend that you do that. Karen, what’s your website?
I want to give you an example of one of my clients, family members, then I’m going to ask you to see if you can give us some advice because our audience will relate to. This is her third year in her own business and she never had her own business before. She’s new as an entrepreneur. She’s gone from the first year a little over $100,000. In the second year, she did a little over $300,000, which is great. She’ll probably do close to $600,000 in the third year. She has a rapidly growing business. However, she is literally in debt all the time. Her bills are laid. Her credit cards are past due. She said to me that she had enrolled in some specialized training certification that she wanted to get. She’s a healthcare professional. She doesn’t have enough money to finish paying for the certification. Give us some advice because I think some of our audience will relate to these aspects.
I would ask a series of questions and find out where is all this spending because there’s a sieve where the money is going out in her hands. I want to see where and why are we spending. Sometimes, people feel good, therefore they spend. Sometimes people feel bad and they spend it. I want to find out emotionally, where are you? I would advise this person to get an accountability partner. She may have to have someone hold those purse strings so that she can get control of that money. They have to get an accountant to pay the bills for her, so they’re not late.
I’m going to relate this to eating. People eat emotionally. Sometimes people eat because they’re happy. Sometimes people eat because they’re stressed. It sounds like there’s a correlation between that pattern and the spending pattern.
I’ve coached people where they feel good and they have that, “I deserve it,” attitude and they’ll go on a shopping spree. Maybe they’ve had a rough week and they’re stressed. They know they shouldn’t spend, but they’re throwing that out there the window and think, “I’m going to go ahead and spend anyway.”
Who is an ideal person for you to work with? If someone is reading and they say, “I may need some help,” who’s perfect for you?
I can coach anybody that has any type of money related issue, whether it’s debt wanting to demolish it, maybe they don’t know how to budget or maybe it’s someone that wants to build wealth or have better control of their money. Any of them, I’ve coached people from $500 in debt all the way up to $800,000 in debt.
Do you recommend that business owners use any worksheets or software or anything to track their money in money out?
Yes, whatever format you choose. The important thing is to choose a format. Don’t just use your check register or your bank account to keep track. You need some type of money tracking system, whether it’s a software system or paper, but you need a tracking system.
That’s what changed things for me after that year, where my accountant said, “This was bad.” I am using an Excel form that I created and every Friday, it’s clockwork. It’s on my calendar. It’s scheduled to do a review, what’s come in, what’s going out, and to make sure as I would in my personal expenses that I’m not overspending. Before I make a decision to spend, I make sure that we’re bringing money in. I make sure that 20% of everything that’s come in is put in an account that I do not touch. That money gets used for marketing and business growth. That 20% is allocated, it’s put away and it goes directly to marketing. What do you think of that idea?
I think that’s a great idea because you can budget all of those areas. Maybe you’re going to use much for marketing, to help other people giving things away. The important thing is making sure you have a line-item budget for those particular items.
Again, where can people find out more if they’re getting interested in Karen Ford, which they should be?
Let’s switch gears a little bit and I’m going to ask you about wealth. I talk at a lot of events and there’s a lot of other speakers there and many of them are talking about making money. I think there’s a difference between making money and creating wealth. What do you think?
When you’re making money, I take that to mean you’re working to get the money. When you’re creating wealth, that money is put to use. That money is working for you. Wealth automatically occurs even beyond what you’re working for.
I’m glad that we mentioned that and that you verified what I believe. It’s interesting to me because making money is when I had a job. I was the president of a national healthcare company and I was making money. I was a wage slave. I put in a certain amount of hours every day and I got money. I got paid. When I began to run my business coaching and business consulting, I said clearly, “I want to create wealth and legacy. I want to have money for my family, for a foundation that I support, and I want my money to keep working and to keep creating more money.” For me, there was a big difference between, “I’m going to go out and I’m going to make money,” which a lot of entrepreneurs talk about making money versus a clear intention, “I want to create wealth so I can be of greater service to the world.” Anything else you want to say about wealth?
There’s a variety of ways in creating wealth. There are lots of different ways, but it all goes back to the heart. Terri. We’re Heartrepreneurs. It all has to do with the heart. What’s our passion? What’s our vision? Is our end goal to make money? Is our end goal to help as many people as we possibly can achieve their dreams, achieve what they’re wanting in life, and helping people because we have the heart to do so?
I’m going to ask another question and take us to another area. I have another client, a family member and she is all about budgeting, which is great and that’s awesome. Yet, she budgets tightly sometimes that she doesn’t always work with people who can help her. To give you some ideas, she doesn’t have an accountant. She doesn’t have a financial advisor. She doesn’t have a wealth coach. I’m concerned because while I’m helping her grow her business, I’m not looking at her money and her wealth. I keep saying to her, “You need someone to help you.” She keeps saying, “I don’t have a budget for that.” What would you say to that?
You have to make a budget for that. We can’t budget ourselves to the point where we won’t coach other people. There are times I have coached people for free. I’ve given thousands of dollars away because to me, it’s more important that they get the help that they need than to me to receive money from them. It’s wonderful to create wealth. It’s wonderful to get paid for something that you’re a service you’re providing, but the end game is to help this person that needs your help. I look at it as sowing seed. If I’m giving something away and I’m sowing that seed, so to speak, I’m going to reap a harvest. It might not come from that person. I’ll get it some other way.
I am constantly giving help, giving advice, doing free webinars and different seminars. Sometimes, I even speak at events where I have nothing to sell and I’m not getting paid. People say, “Don’t you have other things to do with your time?” “Yes, and?” I believe that the more you are of service as Heartrepreneur, the more you come from a service mentality. What Karen says is true, it comes back to you and it’s not always equal like, “I gave this person all of this and I’m not expecting anything from them in return.” I know that this is an abundant universe and the more that I’m willing to give and the more that I’m willing to share, the more that people give and share back with me. Karen, what you’re offering is true and it’s great to hear someone who talks about creating wealth also understands that there’s reciprocation and of giving to the universe.
That’s where the heart comes in. If I’m able to help somebody and I’m not going to get paid for it or receive something from them in return that I look at it like, “I helped him.” It’s up to them to take the tools that I provided and to use them and that’s rewarding to me. That’s where the true reward is because there have been times, I’ve got paid to provide this service and they didn’t use the tools.
It is the beauty of it. It’s funny to me. When a client takes action, they do something and a result gets produced, even if it’s a smaller result, it doesn’t matter. I am happy and excited. I call it my happy dance. Yet, when another client is not going to use the tools, the strategies, the suggestions, I’m frustrated. I was like, “If only you do this, it works. It’s proven.” That’s how you know that you’re working with someone who cares, like Karen, because it’s not about, “Let me share and hope that you do something.” Your intention is clear for people to get transformed by the service you provide.
The key is the transformation. We can give out information after information, but where the heart comes in is when it becomes imparted to them. Information to impartation, then the transformation comes. They were transformed from where they were to where they are. That is powerful. That is rewarding to see that they didn’t receive the information. It became a part of them.
When it does become a part, that’s when the transformation has happened. You’re not sitting there going, “I want to miss this and do this.” All of a sudden, the behavior change, things change, and going back to the “diet mentality.” When people go on a diet, usually they’re not transformed. They’re temporarily eating a new way. When healthy habits become a part of who they are and unconsciously, they’re following that, that’s transformation. It’s the same financially.
Financially, I can tell the people what they need to do, but when it becomes a part of them, it goes right into that behavior change. That’s powerful.
What’s a great place for someone to start if they’re sitting and reading and saying, “I probably could do better at amassing wealth or controlling my finances,” or “I don’t want to have any more debt?” What’s the first action they should take?
The first action is to write down their vision or their dreams. Where do they want to be in 5, 10 and 20 years? The second action is to budget because you can have a vision, but if you’re not budgeting for it, it’s probably not going to happen.
I’m going to add a third action. Get in touch with Karen. She’s on social media, KarenFord.org and she has tips, tools, strategies. Karen, can you give us an example of a client that you’ve worked with and where they started and where you’ve taken them to?
I coached a couple one time. Between this husband and wife, they had 86 credit cards and every one of them had a balance on them. The sad thing is they had many credit cards between them, but she had some he didn’t know about. He had some that she didn’t know about. All the cards were on the table and we worked with them. They have paid off over 50 of those. They are still working on it, but that is a reward to see them apply and do it.
It’s all about the action and the results. For one who may be starting out in business, would you advise that they instantly start working with someone like you or should they wait? Where should they be?
If they’re already in business, they probably need to get someone like me. If they’re getting ready to start a business, they need to meet with someone. All their ducks will be in a row at the beginning of the game.
As you’re growing a business, you need to work with someone like Karen. I watched clients that started in the allegiant $50,000 and all of a sudden, they do $150,000. For whatever reason, I see this as a repeated pattern. They start to spend more money because they’re making more money. If you start going to $300,000, $500,000 and there’s a world of difference when you hit a million and beyond. I see spending patterns, which is what I was guilty of, “I’m making a lot of money. I’m going to go buy this and do this and get this.” To me, as you’re growing your business, you want to do what I didn’t do back then. You want to work with someone who can hold you accountable, who can help you budget. Any thoughts around that, Karen?
I want to say that if you are a smaller business, maybe a $100,000 or $150,000, get the spending habits under control because as your business grows, those spending habits are going to be natural to spend more. Get a hold of those spending habits early on.
That’s why I was transparent. I’m a clear example of that. I don’t spend a lot in my personal life. There’s not a lot of material things that interest me. I am good about that. The minute I started to make a lot of money in the business for whatever reason, I was free. I do agree with Karen, get some help. Managing to me is the optimal word. We want to create wealth. People who create wealth, in my experience, I spent a lot of time reading the autobiographies of wealthy people. Consciously, they are looking to grow their wealth. They’re conscious of making money from money and many times, entrepreneurs don’t think about that. It’s there in the make money game, not create wealth. Any last words around that, Karen?
Managed money grows, unmanaged money goes.
Those are good words of wisdom. If you remember one thing from this entire amazing interview with Karen Ford, remember those words. This is why you want to manage your money. You want your money to grow and we certainly don’t want our money to go. I have to tell you, Karen, I loved chatting with you. First of all, you have wonderful advice. You’re a wealth of resources and what you do blends perfectly, not only with Heartrepreneur but also with the business and marketing and sales consulting that I do. I feel all of my client, family members need someone like you. You’re the ideal choice. Karen, thank you for being here.
Thank you for the opportunity. It is my pleasure.
Don’t forget to go to Karen’s website, KarenFord.org. She’s totally aligned and I invite you as our reader or viewer, to join our Facebook group or I have Heartrepreneur like, Karen. I’m inviting Karen to join also, which is on Facebook under groups, #Heartrepreneurs with Terri Levine. You’re going to find advisors, strategists, coaches, consultants, mentors that are free in there sharing their tips, tools and wisdom. Anytime that you’re looking for help with your business, with your life, with true transformation, this is where the Heartrepreneurs hang out. There’s about 5,000 of us in the Heartrepreneur Cause. One last thing, because you are here reading and a part of the Heartrepreneur family, I have put together an educational webinar with a lot of free tools called The Seven Deviations. This will change everything in your business. It’s my gift to you. You can access it at TLWebinar.com. Thank you for tuning in here at Heartrepreneur Radio and TV.
- Karen Ford
- KBF Money Managing – Facebook
- #Heartrepreneurs with Terri Levine
About Karen Ford
Karen is a Master Financial Coach, Public Speaker, Entrepreneur, and Author who has coached people with a variety of money issues: from just $500 in debt to $800,000 in debt. She has coached folks with up to 86 credit cards and taught them how to pay down and pay off those credit cards in record time.
Karen’s mission is to inspire others to rid themselves of debt and build wealth. She encourages others to break the shackles of debt and gives valuable insight into building wealth so they can experience financial freedom!
Karen Ford’s #1 Amazon Best Selling Book “Money Matters” is a discovery for many.
This book is not only motivational but practical.
She is an avid real estate investor, who enjoys buying, selling, and flipping properties. She has even bought properties for as little as $10 and turned a few dollars into thousands!
In “Money Matters” she provides keys to demolishing debt, shares how to budget correctly, and gives principles in wealth building.
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