#184 Get Good With Money

There are three patterns that create cash flow chaos in a business. Learn what they are, why you get stuck in them, and what you can do to build healthy money habits in your business.

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Track: Positive Motivation
Author: AShamaluevMusic (ASM)
Publisher: CD Baby (IPI 700570289)

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Transcript

Ilonka Ras (00:01.314)
Welcome to the effortless CEO podcast, the only show that teaches South African business owners how to improve their operations and design a business that can run without them.

If you're interested in leading your team more effectively, creating more operational efficiency, delivering with excellence while getting some of your life back, then you're in the right place. Here's your host, strategic intervention coach and operations specialist, Ilonka Ras. Welcome back to this week's episode of the podcast. Today, we are talking about something that affects nearly every business owner at some point, and that is...

cash flow. Now, whether you are brand new to business or you've been doing this for years, the truth is your business needs cash to survive. It's the oxygen of your business. And yet, according to research, over 72 % of small businesses in South Africa struggle with cash flow. That's the majority. And here's the thing, fixing your cash flow isn't just about learning to budget or forecasting better. It's also not as simple as bringing in more money.

Why? Because more money doesn't fix unhealthy money habits. Now if we want to fix our unhealthy money habits, we need to understand what is sitting underneath them. We need to understand how we think about money, that internal dialogue that's running, because that is the root cause of our money struggles. It's also where we have the most influence and power to turn things around. So in this episode, we're not going to be diving into any spreadsheets.

we're actually talking about money psychology, the unconscious ways we sabotage our own cash flow, why we do it and what you can start doing differently. Now, this isn't the first time I've talked about cash flow. And if you haven't already, I highly recommend going back and listening to episode 144. It's titled The Cash Flow Cure. That episode gives a great foundation into all things cash flow, because if we want to manage our money better,

Ilonka Ras (02:09.058)
We need to also understand how it works and specifically how it flows through the business. That episode dives into exactly that. But today we're digging deeper into the patterns I see that quietly cause cashflow chaos because of how you think about the money in your business. So let's start here. As entrepreneurs, we are hopeful, optimistic. We believe we are going to figure it out.

That mindset is part of what makes us resilient and it can also blind us to an extent. We think things like next month will be better. Once that invoice clears, everything will be fine. We've had worse months. We spend money we think is coming in. We say yes to things we hope we'll be able to afford. And instead of looking at the actual numbers, we look at the potential. We make decisions based on

Hope, not facts. Now, I'm not saying that we shouldn't be optimistic. We just want to be careful not to stake it all on some future event that hasn't happened yet. We don't want unchecked optimism to quietly become denial. Now, it's actually easy to spot the optimism. You will hear yourself saying things like, things always work out, or I've had worse months. I'll get through this. So instead of only living in the land of optimism,

We want to also be intentional and strategic, which means we believe things will work out. Yes. And we also ask what needs to happen now to ensure that things work out. Instead of comforting yourself with I've had worse months, I'll get through this. We want to also ask how can I create a system that helps me to avoid this situation altogether? When you're intentional.

You're not just hoping for a good month. You are creating it. You're staying close to your numbers. You're making decisions based on reality and not wishful thinking. Now, there are actually three patterns that I see with business owners that create cash flow problems. Patterns that are rooted in money beliefs that over time become unhealthy money habits. The first one is using one project to fund another.

Ilonka Ras (04:32.422)
This happens when you don't have a financial cushion. You're borrowing from tomorrow to fund today. Now this often comes from believing that business is supposed to be unpredictable. You've bought into the feast and famine narrative as normal. You think that this is just how business works or maybe you think that planning is for big corporate companies. I'll plan when I have more money coming in.

So instead of creating a system for consistency, you are continuously operating in survival mode and as a result, react to whatever is urgent in the moment. The second pattern I've noticed is delegating the money to the accountant. This one sounds like I'm not good with numbers. My accountant handles all of that. Finances just aren't my thing. And underneath that, there is often shame or fear.

Maybe no one ever taught you how to manage money, so it feels really intimidating. Maybe you've made a few money mistakes, maybe a lot. Now you believe you aren't good with money and you avoid looking at it altogether. Maybe you are worried that if you do look, you will realize that it's worse than you thought. So you hand it off. But in doing that, you are also handing off your power.

The truth is you don't need to be a finance expert, but as the CEO, you do need to understand your numbers enough to make smart decisions and to stay in control. The money responsibility isn't something you want to outsource. The third pattern is blurring the lines between business and personal money. Now this one is so common. You use the business card for personal expenses. You top up the business from your own personal savings when things get tight and

Soon the lines are so blurred that you don't know what's yours and what belongs to the business. Why does this happen? This happens because you believe that the business is you. Your identity is tied to it. And when you're in deep, it's hard to separate your worth from the business's bank balance. Now the root of all three of these patterns is a reactive, emotionally driven relationship with money. And it's not your fault.

Ilonka Ras (06:53.888)
It's what most of us are taught or not taught about how to handle finances in business. But it's also something you can change. And it really starts with an awareness, right? A willingness to look at your money and to not judge yourself, to look at it objectively. As an entrepreneur, a business owner, you have to believe that you are in fact good with money, even if it doesn't feel like it right now.

even if you've avoided your numbers, even if you've made mistakes in the past. Those things don't make you bad with money. They just mean no one showed you how to build a healthy relationship with it yet. Because being good with money isn't about being a math whiz or an accountant, it's about awareness, a willingness to learn and consistency. It's about choosing to engage with your numbers regularly, not just when a crisis hits.

It's about creating a sense of safety and control through small, doable routines. You don't need a massive overhaul. You actually just need a tiny shift. As James Clear says in Atomic Habits, you do not rise to the level of your goals, you fall to the level of your systems. That has become my mantra. Big change doesn't come from big action. It comes from small, consistent action over time. That's what builds confidence.

That is what is going to make you have unshakable belief in yourself and how you manage the money inside of your business. That is what is going to rewire your relationship with money. One simple weekly habit is enough to shift everything. And that is what I'm going to teach you in my upcoming workshop, the 15 minute CEO money routine. I'm hosting a free live workshop on 12 June, 2025.

where I'm going to teach you the exact 15 minute weekly routine I use in both of my businesses and that I teach all of my clients in my coaching practice. It's a simple routine that's going to help you to understand where your money is going. It's going to help you to make confident financial decisions to stop the panic and the anxiety that comes with money and

Ilonka Ras (09:06.872)
to improve your cash flow once and for all. This is the routine that takes the fear out of your finances and gives you clarity quickly. So if you sort of know your numbers but not well enough to make confident informed decisions, if you feel at all uncomfortable with money and rely on your accountant to tell you what's going on, if you are unsure what numbers matter or how often you should look at them,

If you're just done winging it and ready to feel calm, clear and in control of your money, I want to invite you to join me on this workshop. You can head over to ilonkaraz.com forward slash WMR, that is for weekly money routine to grab your spot, or you can just tap the link in the show notes. Remember being good with money isn't a personality trait. It's a skill. And like any skill, you can learn it.

Thank you so much for tuning into this week's episode. Share it with a friend in business and I'll see you in the workshop. Have an awesome week.