How I Manage Wealth: Yearly to Daily
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What do you think of when you think of Wealth?
In this week's episode of the Magnetic Woman podcast, we dive deep into the importance of talking about wealth and wealth management.
Why? Well the online space is full of revenue successes and yes, women making more wealth for themselves and the world is worth celebrating, I believe the bigger conversation is what are we doing with it?
In this episode I talk about my earliest memories of money growing up, and how that shaped how I think about money now, along with what wealth truly means to me.
In this episode we cover:
The key to creating long-lasting impact and multidimensional wealth
Strategies for increasing revenue and profit margin
The Profit First business model
How to approach money mindset work and incorporate it into my meditations
Don’t forget to subscribe or follow The Magnetic Woman to get notified when new episodes go live.
Resources:
Learn the Profit First method and read the book HERE
Check out my free Magnetic Money Mapping Handbook HERE
Discover Female Invest and their resources HERE
Enrol for the April cohort of The Expansion Accelerator HERE
Check out my free resources to support your business growth HERE
Find me on Instagram @pandorapaloma_
Transcript
Hello, hello and welcome to this week's episode of the Magnetic Woman podcast, where I am talking you through how I personally manage my wealth and revenue - everything money - yearly to daily.
The reason why I think that this is so important in the online space, in entrepreneurship, for women and the conversation of money is that certainly in the online space, so many people talk about the revenue goals that they meet, but I genuinely am more interested in what we are doing with the wealth that we're creating to have long lasting impact, impact on the world, and really how that builds what I consider multidimensional wealth, which is wealth in every area of your life.
Time wealth. Financial freedom. Wealth in purpose. Wealth in love. Wealth in feeling rich, feeling full in every area. So, from your self love, to your bank balance.
This is important, you know?
It doesn't matter how much money you have in the bank.
If you are not fulfilled, you are not in alignment.
And alignment and vibrancy and fullness is such a powerful, powerful gift, for ourselves living in that way, but such a powerful gift for others to see us living in that way, and that's how we shift the paradigm.
I think I'll give you some context first on my relationship with money from day dot, from being a child.
So, the context is that I was a child of a single parent. My mum had three children and was on her own. My mum worked very, very hard and put in a lot of hours to support us as a family, being a solo parent. My dad left when I was six months old, and actually left my mum in a lot of debt that he had put in her name - it was around £20,000, which back then was a huge amount of money. My mum worked really hard for the money that she made and is incredible, obviously, to have got herself out of that debt.
I don't really remember it, but I was told a lot of stories about how we had bread and jam a lot of the time for our dinner because there just wasn't money in the pot. We rarely went on holidays. I often drive past the house that I grew up in, which is this is little three bedroom house.
It was tight, you know? There was there was debt, there was not a huge amount of abundance in our family. When my mum remarried when I was seven, we moved in with my stepdad, and at that point there was a lot more abundance. We would be able to go on holidays once a year, and we moved into a bigger home and there was just a lot more available to us, obviously, them being in a partnership and having two people with an income. So, my mum was around a little bit more from that age. She was able to do pick up and drop off and was just more present for me and my stepsisters. So, that's the context. That's what I grew up in.
When I was sixteen, I moved to London. Actually, before that, I got my first job. I was working from the age of probably around thirteen. I used to do my mum's ironing for five pounds. At fourteen/fifteen, I got my first job waitressing before school on a Friday. And then at fifteen, I got a job. My first job was Tony and Guy, the hairdressers, and I worked there as a Saturday girl.
So, that ambitious personality, that ambitious streak in me has always been there. I really always very much enjoyed earning money.
I remember my first job at Tony and Guy, I would get paid £15, and with that £15, I would go and get an outfit, maybe spend £5 in a shop, on something that I'd seen in the sale, and then I would use the other £10 to to go out with friends that evening. So, yeah, so funny to think back on those days, like, who I am now, I always was really.
My North Node is in the 10th house, which is all about entrepreneurship, being seen, business related matters, so my most purposeful, clear, and in flow life is meant to embody entrepreneurship, being seen, and business related matters. So, it's so funny, as I've grown and healed over the years and really understood myself through astrology and human design, that, you know, that ambitiousness was always within me.
At sixteen, I moved to London, and I went to train as a makeup artist. I got my first job in London. I worked in Office, the shoe shop in Covent Garden, and I worked there three shifts a week. So, I would work every Saturday, Sunday, and then I would do a day in the week. So, that was me. That was my my early days in relationship to making money, building wealth.
And then, of course, I worked my way up to director level in PR and marketing. And at 27/28, I had my Saturn return and just didn't love that industry anymore. And I started my business - so that was ten years ago. And in the beginning, I was teaching yoga, doing vegan food delivery, and a little bit of PR on the side. And then about five years ago, I moved from intuitive eating and living coaching and into business coaching, and that is what I have been doing since.
So, my relationship with money has grown a lot over the years, and I have done a lot of work on my money mindset, and specifically for me, really regulating my nervous system to feel safe to hold money. So, I've always been very, very good at making money, but not so good at holding it. And I think a lot of that has to do with my father and my father's relationship with money, which I won't get into. But it was very smoke and mirrors. So, he looked like he had a lot of it, but in fact there wasn't a lot of it, and I know that that has passed down through me in, it's not safe for me to hold it because is it really real?
So, I've done a lot of work on my own relationship with money and that has taken time, you know? Knowing or being able to discern what to invest in, when to hold money, and being a lot more responsible with money, so that I can physically see the overflow that I so desire.
So, I will share with you Yearly to Daily, How I Manage My Wealth. Like I say, I talk about my my revenue goals, and I've shared a lot about how much money I have made in my work, in my business as a coach and consultant. But I'm really interested in the the management of that and what we're doing to make more with the money that we have, what we're doing to make our money work for us ultimately.
Let's start with yearly.
On a yearly basis I will always always meet with my accountant, and we will look at the year past, and we'll look at the year ahead, and just see if there's anything that we could be optimising within the business, any systems that we're using that could be optimised, to make sure that we are time efficient. I always always look at our revenue for the year, and then I will look at our profit margin. I will look at, based on past year, what in the year ahead could we invest in, in order to increase our profit?
Profit is a really big thing I've been working on for the last, I would say, two to three years. I had a very, very big year in 2021, with a very low profit margin. And so since then, I have been nurturing, the profit margin that we have in the business. And, at the moment, this year, we're on about fifty percent. I would love for that to increase to sixty to seventy percent, in the coming years.
So I look at our revenue, I look at our profit margin, I look at all of our payments, what we're we're spending, and if there's anything that we can either take out or optimise so that the systems that we have in place in the business are supporting the profit that we make. I'm very much about a lean team, so I will think about the next year and I will think about what's required. Are we investing in something that we could potentially bring in-house? Or, on the flip side, based on the goals that we have and the growth that we know is coming in that year, what's required in terms of team?
So 2024, for example, well, at the tail end of 2023, we actually took Facebook ads in-house, knowing that that was something that did cost us a lot when we outsourced it, and we did have capacity to bring that in. But also in that, we also hired a VA to manage the podcast, and support me with social media, knowing that I wanted to focus on building more funnels and also building the newsletter this year.
So, we really look at what's required in terms of the growth in the business, and then who do we need to support that growth. At the end of every year, my team get a bonus, so that's something I do on a yearly basis.
In terms of building out and mapping out that financial forecast, that's something I do on a yearly basis. So typically in Q4 of the year, I look at the year ahead. I think about our launch plans. I think about what our overall business strategy is looking like, and I map out the financial forecast based on past launches, what we know is possible. And then I might go into, if we were investing X amount in Facebook ads, what's the return that we wanna see on that? So, I go really into the overall financial forecast for that year. We work with a yearly spreadsheet.
So, I'm a big fan of the Profit First model. I will link in the book, called Profit First that we have based this on, and we've simplified it. I've simplified it within the business because of the way that it makes more sense to me. But ultimately, what it looks like is that we know that we have X amount of revenue coming into the business, and we actually put five percent aside every single year, which breaks down into every single month that is just for profit. So we ultimately have income or revenue. We take our profit before we take our costs. Meaning that we are a profitable business. What typically happens is that we bring in revenue, we have our costs and then what's left becomes our profit. And the way that Profit First (as it does what it says on the tin!) works is that you actually put aside that money so that you become a profitable business.
So the way that we work this in the business is we have our revenue and we put a set put aside 5% profit. Then we put aside our 20% VAT, which we have to pay on every single payment that comes into the business, and then I put my tax aside. Then, we work out a percentage of our expenses, and then I typically, as CEO, take 25%. So 20 - 25% of our revenue, and that’s what then is my salary. I actually pay myself quite a low salary, and then I can always pay myself in dividends each year.
So at the moment, that looks like, VAT 20%, tax at 25%, expenses at 25%, and then my salary at 25% with 5% going for profit. So, the 100% of what we bring into the business is broken down into each of these different categories. And that's really, really worked for me in the last couple of years to build a profitable business, which is what I'm all about.
It's all very well us making our six figures and multi six figures,
but if we have no money in the bank, is it really worth it?
So, that's what I do, every year. And then from there, we work with a 3% pledge. So, 3% of our profit goes towards charities that are dear to my heart and that I care about - that 3% goes into the charities that I want to support, and that is something that as our profit grows, we want to increase as well.
So then, in terms of six months,
I will build out our reoccurring revenue. Majority of my containers are six months or a year. so we have a lot of reoccurring revenue that comes into the business. I will map that out as every client comes in on every payment plan that gets mapped out. So I can see money that we've already got coming into 2025 already, recording this in March of 2024. So, I map that out, and then I typically will go into more of a detailed structure of what I think will be coming in each month based on our business strategy, our launch plans and the funnels that we have in place.
So, I go into a little bit more detail on a six month basis, but mostly going then into quarterly, this is where I do a lot of the more detailed financial forecasting.
I dial in on the forecast for that quarter and I will review the last. The way that I do this is I look at what revenue is coming in, what I believe our costs will be based on that Profit First and the percentage that we've aligned, I make sure that we're not going above that. And if we have gone above that, do we need to put some money into that pocket, to support that. And then I will obviously look at our launch plans and what revenue I see coming in, additionally to the reoccurring revenue that we have, and I will look at the past quarter as well.
Is there anything that we spent that actually we could refine or systemise, to increase our profit?
Is there anything that I think that we could wait on?
A lot of the time, I will sit and I will build that money, and then once we have that pot, that's when I'll say, okay, now we're gonna do the next shoot, or now we're gonna do the rebrand. So I'm really factoring in our basic costs and then any additional costs that I would like to spend over the coming weeks or months.
If we didn't hit a target, I think about how we can make that money up, that revenue up, in the next quarter. If we surpassed it, I'll look at why and how we can optimise that. I make a note of all of these things so that year on year on year, I'm able to see ultimately what the trends were, within the business, and then also, what were the things that really supported us in increasing that revenue.
I also have, as I'm building out our spreadsheet, I have month to month, year on year, what we took in. So, when it gets to August, for example (which tends to be a quieter month for us), I don't freak out about it, because I know that that is just part of the cycle of our business.
It's really, really easy to think that we need to be
increasing our revenue month on month on month.
Personally, for us in the business, that's not it. We do have like a baseline income. And then oftentimes we will go way way beyond that. And sometimes, we might go back down to that baseline. That's normal. We're not growing every single month. I very much see business growth and revenue growth as year by year and then breaking it down quarter to quarter. We're never starting from zero in the business and that's obviously what I support a lot of my clients clients with as well.
I look at each quarter, and I will look at the revenue and then I will look at the profit. And then I will have a chat with my accountant every quarter as well. Obviously, being VAT registered, if you're in the UK and you earn over £86,000, you will be VAT registered. Something I always say to my clients is, if they're they're working towards that six figure year, take note. If you are based in the UK, once you go past that £86,000 threshold, you will need to start paying 20%. So, it really isn't worthwhile you going to the six figure mark, unless you know you really want to expand to the multi six. Because either you will have to absorb that cost, or you will have to charge more, and that can obviously impact the business model and the and the prices that you charge.
I will have a VAT ritual that I do every quarter where I pay my VAT, and that just really looks like being present, lighting a candle, I'll often sit and meditate and really be in a gratitude practice for all of the revenue that we have received in the business that quarter, and then I very lovingly pay my VAT, and giving thanks to all of the people that are in my world, that have made that possible. So, I do create such a ritual around paying anything like VAT or tax, because for me it has to feel good, and the the better it feels and the more grateful I am for it, of course, the more I get to attract from that space.
So then we have a monthly.
So we have money coming into the business most days, with people on various payment plans. Every month, I will set aside our tax and our VAT money. We have pots in our Starling account for that. I pay myself, and then from that money I put that into pots. So I have a travel pot, a food pot, a self-care pot, my investment pots (and that comes out every month), and then I have my Mallorca house fund pot, and if there's anything specific that I'm saving for, then I create a pot for that as well, and I put money into that every month.
On a monthly basis, I personally invest in my pension. I have an investment pot and then I also invest in an ISA for Romilly, an investment ISA. So all money goes into that on a direct debit every single month.
In terms of the business, I map out the month ahead based on any launches that we're running and I might go into even more detail than that. So, quarterly is the detail, and I might just play around with some numbers. So, typically once a month, you will see me, do what I consider, money mapping. I will put a link into the shownotes for a money mapping handbook that you can use, but I'll just have a play, you know? What does the baseline already look like? What is, beyond that? What's beyond that? So, I could play with a, good, better, best.
Like, what would be really good for us to earn this month? What would be better? And then what would be the best? And certainly, if we've got launches coming in or, obviously for us, we have funnels built. So, there's potential every single day. So, I play with that. I play with that potentiality.
This is what good looks like.
This is what better looks like,
and this is what best looks like.
And I really play with that on a monthly basis. I will look at the past month, calculate any costs for the month that we have coming out, and just make a note of it in that master spreadsheet.
And then on a weekly basis,
I check-in with my finances in greater detail every Monday morning. So I'll look at the past week, what went out. I'll look at the week ahead. I will check my Stripe account and see what's coming in. I pay my invoices, so I pay my team, and anyone who we outsource anything to, on a weekly basis. And then once a month, I will do a money focused meditation. They vary, but at least once a week, I will do a money focused meditation. So focusing specifically on the energy of money, and attracting at that level.
On a daily basis,
I check my bank balance every single day. Every single day. And I don't just check it. I check it, and I bring presents to it, and I thank all of the money that I hold for being with me. I really, really kind of do that money mindset work every single day.
So something I'm playing with right now is, impact over wealth will lead to extraordinary wealth. How can I activate more impact today? So, I don't necessarily focus on money. Money is important to me. I love money. Money loves me. I really embody that on a deep level. But for me, it really is about the the impact that I get to have.
How can I serve my clients today in a way that will be most impactful?
How can I support my audience today in a way that will be most impactful?
And I will sit with that, and I'll either journal with it, or I will just bring it in my meditation, and I just play with it throughout the day.
I do get payments most days, so I always take a moment. It always happens between 08:30 and 08:45 in the morning, and I typically at that time am out on my morning walk with the dog. So I breathe that energy into my womb space. The womb is where we can receive from, and create from, and I thank money for coming into my life.
So, something that I play with is I'm a really big believer that money is always circulating. It's energy, it's circulating.
It's not my money, it's not your money, it's our money.
And it's simply coming into my world to then be passed on to somebody else's. So, I'm very, very intentional with what I spend. If it feels good, then I spend it. If it doesn't feel good, I don't, as much as I can. So that is intention with the food produce that I bring into the home. It is intentional in how I spend money when it comes to clothing and things for the home. I'm very intentional with that.
And something that I really have been playing with of late is money only allows my already very generous heart to express itself in more ways. I really love being generous with the money that I have. I would be very intentional about presents that I buy for my clients or presents that I buy for my friends or just being able to be generous, you know? Obviously, I was explaining I do that on a yearly basis with the charities that I care about, and sometimes that looks like just allowing myself to be generous in that moment.
So, during Christmas of 2023, I left a few little £10 notes in Ramsgate town for people to find, because I just love the idea that people can be surprised and delighted by money. It was something that I listened to, Denise Duffield Thomas, was sharing of just being generous with wealth, knowing that the more generous you are, the more that you will attract from that space, and it's it's not my money, it's not your money, it's our money. I really love playing with that and being able to be generous where I can.
So what is next?
Well, I recently sold what I considered our family home. When my daughter's dad and I split up, I bought him out of that house, but it was very big, and it was a lot for me on my own. So I have recently sold that house. I rented for most of last year, and I have just bought a very tiny, but very perfect two-up two-down for my daughter and I. Less is often more. I know that in the context of building wealth, a lot of people think it's got to be bigger and better. Personally, for me that just didn't feel aligned anymore, and so I sold my big property. I bought a little property for my daughter and I to live in while we're here in the UK, and the plan is to buy a second home in Mallorca, which is where I know that I want to be long term. Obviously, I have a child here and we co-parent, so I do need to be in the UK until she's old enough to make a decision about where she wants to be. But, it feels really, really good to be able to start putting that vision in place. At the moment, the money I have for that is in a pot (of course, because I love pots!), and I add to that on a monthly basis.
I have some investments in traditional financial portfolios, ISA's, investment parts, but this year, I really wanna get my head around crypto. And I'm saying crypto again, because it is something I've played with before, but haven't bring bought a lot of attention to. So, crypto is something that I will be starting to invest in this year.
I'm all about a long term plan. I'm all about a long term plan. So, the money that I put into investment pots, I don't touch. It sits there, and it really is about riding it out long-term. At the moment, I'm using Female Invest as a platform to learn from. I really recommend it. I'll add it in the shownotes, and then, as well as seeing a financial advisor and a mortgage broker to support me in wealth creation in property, Mallorca, and long, long, long-term, that will look like some properties in the UK as well.
That is what's next for me.
I really am such a firm believer that women and wealth have the power to change the world.
And so, it's making sure that we are circulating money into the hands and the brands and the places that will be creating a world that we desire to see, which is why wealth creation and how we use and build that wealth is a big topic in my conversations with my clients because we get to do better. We get to do better and circulate money into good places.
I hope this episode has supported you in some way today, whether that is my personal relationship with it or an opportunity for you to optimise the wealth creation and wealth management that you have in your business.
As always, if you have any questions, please do share them with me on Instagram at @pandorapaloma_, I would love, love, love to hear from you if this episode has resonated with you, and if it has, then please do share it on Instagram or any other platform that you are on, tag me in so that we can share this conversation with more women worldwide.
I so appreciate you being here and listening to this today. Sending love and magnetism from my corner of the world to yours.
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