2139: [Part 1] An Emergency Fund Can Save You from Financial Disaster and Even Grow Your Business by Dustin Heiner on Entrepreneur Mindset

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[00:00:54] This is Optimal Work Daily. An emergency fund can save you from financial disaster and even grow your business. Part 1 by Dustin Heiner of MasterPassiveIncome.com

[00:01:08] Do you need an emergency fund for yourself and your business? Yes. You do need an emergency fund, no matter if you have a business or not. I learned this lesson quickly. The business was doing the opposite of what it was supposed to do and was losing money, quickly. Instead of making me money,

[00:01:25] business was costing me money. Business was costing me money. Month after month, the paycheck I earned from my job was being poured into the business as I was trying to keep it afloat. No matter what I did or how much money I put into the business, it continued to eat up cash. An emergency fund will help you weather storms. Life is like a dream when a business is making money, but it can be a nightmare when it is not. The day I sold my business, I was relieved.

[00:01:51] The expenses, time burden, opportunity cost, and the responsibility of employing people were a lot to manage. Add on to that, the business was taking money out of my pocket every month. If I had not planned for potential future problems for Downtown Express, I may not have been able to hold onto the business long enough to sell it. Even though I believed my business was going to make me money, I was prepared for it not to. Praise the Lord, we had enough money saved for emergencies such as this.

[00:02:20] If we didn't have the next month's rent, the new buyer may not have followed through with the purchase, or the landlord may not have extended the lease to the new buyer. Many things could have gone wrong if we didn't plan for hard times. Emergencies happen. It's a fact of life. Plan for it with an emergency fund. How you prepare for those emergencies will prove how successful you are at being an entrepreneur. Planning for your future income, expenses, and emergencies just might be what saves you from closing down your business in the end.

[00:02:49] The best time to plan for hard times is when things are going well. It is already too late to plan once things are going bad for you and your business. Learn from my mistakes and plan ahead. If you fail to plan, you plan to fail without an emergency fund. Without an emergency fund, I would not have had enough money to hold onto my business, Downtown Express, long enough to sell it. The emergency fund should only be used in case of an emergency. Think of it as an emergency parachute.

[00:03:18] It's better to have one and not need it, than need it and not have one. Those ups and downs in business can be beat with an emergency fund. With a passive income business, your one income does not depend on the hours you work. Your income will vary from month to month. Some months may be so rough that you will need extra money to pay your bills. This is where an emergency fund comes into place. An emergency fund is an account with designated money set aside for emergencies.

[00:03:45] It can be cash under your mattress or a separate bank account. Either way, having money set aside for a rainy day will help you to get past these. Don't go into debt when times are tough with an emergency fund. Bad debt, or money taken out of your pocket, will be the death of your business. Unless that debt is good debt, in other words, putting money into your pocket, your profits will be eaten up and the business will be dead.

[00:04:11] By having an emergency fund, you will be able to weather the storms that come in life and business. Being an entrepreneur, we tend to be optimistic and can hope for the future. Everything is going great when you are making money, but life is hard when you are not. Even worse when you are going into debt over it. Sudden large expenses. No matter what type of business you run, sudden expenses come up. Not only that, what about sudden family expenses? Your teenager needs braces.

[00:04:42] Your dog is sick and needs to go to the vet. Your family reunion is a $2,000 plane flight away. All of these things will come up eventually, and you need to make sure you can afford them. If you run a rental property business like I do, you may need to replace a main waterline, and that could cost $2,000 to $4,000. Be ready for those expenses by saving for them and keeping your money in a savings account. I suggest CIT Bank Savings Builder. To be continued.

[00:05:14] You just listened to part one of the post titled, An Emergency Fund Can Save You From Financial Disaster. And even grow your business. By Dustin Heiner of MasterPassiveIncome.com This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales. Using automation, analytics, and smarter workflows to simplify campaign delivery

[00:05:42] and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web. Like restoring a vintage motorcycle from a 50-page restoration block. Or finally break down that long article you've had open for weeks.

[00:06:11] Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required. Compatibility and availability varies 18+. And a big thank you right now to Dustin, who is the founder of Master Passive Income, Real Estate Wealth Builders Conference, and Successfully Unemployed. Dustin is a real estate investor who was able to make enough passive income from his business to quit his job when he was just 37 years old.

[00:06:38] With his podcast, YouTube channel, books, courses, and coaching, he now helps other people quit their job by investing in real estate rental properties to live the dream life. You can check out his website, again, masterpassiveincome.com to learn more. And thanks so much once again to Dustin for letting us share his work. But that is going to do it for today's episode. I thank you, of course, for being here. And please join me again tomorrow where we're going to wrap up this post with part two. And that is where your optimal life awaits.