When you brush your teeth, stop for a second and notice the amount of toothpaste you place on your toothbrush when the tube is full, and then again when the tube is empty. Chances are that you will place a greater amount of toothpaste on the brush when the tube is full and begin to aggressively ration your remaining supply when the tube is nearly depleted of fresh minty paste.
It’s human nature to place a greater value on something that is scarce as opposed to something that we have in abundance . Often times we fall into this trap of managing our finances much like we manage our toothpaste. When business is booming, or you just nailed a big sale, you’re actively dreaming of ways to spend the incoming cash-flow. Unfortunately, this can lead to disaster, due to the obvious reasons that…
1. Business income is not as predictable as the supply and cost of toothpaste of your local supermarket.
2. A day without brushing your teeth will make your co-workers and friends keep their distance until you brush again. Missing payments to creditors because you overleveraged your finances will negatively impact your credit for years.
It’s natural for all of us to look for guidance when we have a desire to improve an area of our lives. You educate yourself or hire someone with experience when you spot a weakness in your business. Yet somehow, the desire to improve can stop when you exceed your expectations.
When you achieve success, it’s important to remember the self-discipline and habits that got you to where you are. Deviating from this can cause your sales projections to veer off track, and soon, if you’re not careful, you will be right back where you started.
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