Treat Cash Like Oxygen: Why Making It Before Spending It Is the Golden Rule
Pause before you swipe that card or finalize the online order—does this purchase move you closer to survival or does it just feel good right now? In business, especially when you’re starting out, the comfort of ‘having enough’ often depends on a few behind-the-scenes choices. Cash isn’t just for buying things; it’s protection against sudden storms. Countless entrepreneurs have emptied their accounts on office plants, fancy marketing swag, or extra inventory, only to scramble for rent or payroll when sales unexpectedly dip. The wind howls a little louder when your savings are thin. People who make a habit of earning first—and spending second—not only outlast lean times, they stay in control when opportunities or crises come calling.
For the next week, track every dollar—coffee, supplies, everything. Ask yourself before buying anything: will this directly keep me afloat or is it just a perk? Save a little from each win, no matter how small, so when the unexpected arrives (a slow month, broken laptop, surprise fee), you’re not left gasping for air. Celebrate what you do spend—when the money’s already been earned and stashed for the tough days. Try it, and feel how much calmer your mornings are, even when the world throws you a curveball.
What You'll Achieve
You’ll gain financial breathing room, break the stressful paycheck-to-paycheck cycle, and feel more secure and prepared for unexpected setbacks.
Retool Your Spending So You Always Have Breathing Room
Track exactly where every dollar goes.
Log all spending for one week, both business and personal. Use categories like must-haves (rent, supplies) vs. nice-to-haves (upgrades, decorations).
Pause before any new purchase.
Ask: will this directly help you earn money, or can it wait until profits are in hand? Postpone any discretionary spends until the cash is available.
Save a portion automatically.
Each time income comes in, set aside even a small percentage (10% if possible) for emergencies before spending on anything else.
Plan purchases after profit.
Once you have enough set aside, reward yourself or your team—but only if it won’t disrupt bill payments or basic needs.
Reflection Questions
- What unnecessary purchase have you regretted before?
- How do you feel when savings are low?
- What’s the smallest change you could make to start building a cash cushion?
- How might your mood shift with even a little financial buffer?
Personalization Tips
- A student waits to buy a new phone case until she’s received payment for tutoring sessions.
- A small shop owner resists flashy signage until after reaching break-even for the current month, opting for homemade signs in the meantime.
- A nonprofit leader delays upgrading software until fundraising goals are met, ensuring vital programs stay funded first.
The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up
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