Cash flow management is a complete field of knowledge for which professionals get degrees and certification. I do not plan to try and tell you everything about it here. But, I will tell you some things I am learning from experts about handling my own cash.
I know I am talking to a lot of artists who really are not interested in running a business. I can relate to that completely. For a long time I wanted to do just my art and not hassle about money. But I am learning that business can be a sort of artistic medium in itself, like a multi-layered theatrical work, a film, or a fully functioning symphony orchestra. So, do not let business chase the artists out. Artists have fresh perspectives on orchestrating projects.

I recommend that you get good help for cash flow management. Even though you should know enough to appreciate how it works, that does not mean you have to be the expert in charge of it. Find a bookkeeper and a certified public accountant who love your vision and invite them to be on your team. Notice I am recommending people who love your vision. Be careful who you pick. Interview them and present your vision. Ask them how they might be able to help and note the attitude of their answer. Do they have the attitude that you and the company exist to serve the bill collectors, or that money is to be your servant? The right accountant will catch your vision, and see how to apply their knowledge and skills to make your cash work most efficiently for you and your vision. The basic principle to keep in mind is for money to work for you and your vision, not you and your vision to work for the money.
Do you know that good money management actually makes the amount of money grow? If you give it the attention it requires to get the best use of it, new ways to gain money will open up. With diligence this can accelerate. One of the most basic ways to manage anything is to divide it into categories and deal with each grouping individually. In money these groups are called accounts and each account has its own task to accomplish. Keep them organized and on task.
Many experts say to divide your money into three accounts: giving, saving and investing. Others say to divide it into more accounts that address more areas of life. I like that idea. So, let’s talk about dividing income into six or seven accounts.

Let’s say, out of all the money that comes in, you put 50% towards all of your regular necessities. You say, “Wait a minute! Whoa! I need every penny I get to cover my bare necessities.” Well let’s just think beyond that. Think about if we only had to put 50% of it down for our regular necessities. This suggestion makes many people react angrily that they can’t afford it. Others just laugh like it is some impossible fantasy. I’m challenging you to use your imagination. Think beyond the boundaries you are accustomed to even if it is risky.
Imagine with me that if you only use half of your income for month-to-month necessities, you could start another account for investment. Put 10% into an investment account. This is an account where you are developing what we might call a nest egg, something that you never ever spend. You never spend this your whole life. Why not spend it? Because that money is going to work for you in bonds, stocks, banking policies, maybe real estate, other things that make your money work for you, instead of you working for it.
I know I am talking to a lot of artists who really are not interested in running a business. I can relate to that completely. For a long time I wanted to do just my art and not hassle about money. But I am learning that business can be a sort of artistic medium in itself, like a multi-layered theatrical work, a film, or a fully functioning symphony orchestra. So, do not let business chase the artists out. Artists have fresh perspectives on orchestrating projects.

I recommend that you get good help for cash flow management. Even though you should know enough to appreciate how it works, that does not mean you have to be the expert in charge of it. Find a bookkeeper and a certified public accountant who love your vision and invite them to be on your team. Notice I am recommending people who love your vision. Be careful who you pick. Interview them and present your vision. Ask them how they might be able to help and note the attitude of their answer. Do they have the attitude that you and the company exist to serve the bill collectors, or that money is to be your servant? The right accountant will catch your vision, and see how to apply their knowledge and skills to make your cash work most efficiently for you and your vision. The basic principle to keep in mind is for money to work for you and your vision, not you and your vision to work for the money.
Do you know that good money management actually makes the amount of money grow? If you give it the attention it requires to get the best use of it, new ways to gain money will open up. With diligence this can accelerate. One of the most basic ways to manage anything is to divide it into categories and deal with each grouping individually. In money these groups are called accounts and each account has its own task to accomplish. Keep them organized and on task.Many experts say to divide your money into three accounts: giving, saving and investing. Others say to divide it into more accounts that address more areas of life. I like that idea. So, let’s talk about dividing income into six or seven accounts.

Let’s say, out of all the money that comes in, you put 50% towards all of your regular necessities. You say, “Wait a minute! Whoa! I need every penny I get to cover my bare necessities.” Well let’s just think beyond that. Think about if we only had to put 50% of it down for our regular necessities. This suggestion makes many people react angrily that they can’t afford it. Others just laugh like it is some impossible fantasy. I’m challenging you to use your imagination. Think beyond the boundaries you are accustomed to even if it is risky.
Imagine with me that if you only use half of your income for month-to-month necessities, you could start another account for investment. Put 10% into an investment account. This is an account where you are developing what we might call a nest egg, something that you never ever spend. You never spend this your whole life. Why not spend it? Because that money is going to work for you in bonds, stocks, banking policies, maybe real estate, other things that make your money work for you, instead of you working for it.
That account is going to be throwing off dividends and income that you don’t have to work for. That’s your “smart money.” So, you never spend it, but you get to spend what it creates for you. Thinking about it that way might motivate you to begin imagining ways you can cut back on monthly necessities in order to have more for the investment account.
Well, let’s keep imagining here.
Another essential account which also causes growth in your income is your giving account. 10% of everything that comes in to you, you give. Some people give it to their church, some people give it to charities. Whatever. You’re giving it away. You’re being generous. We’ll talk more in-depth later about the role of generosity in your financial health. For now I’ll just say that when the habit of generosity is established, as people all over the world for eons have discovered, more comes to you so that you can keep overflowing to others. So, 10% of your income into your giving account.
Now, these percentages are a goal. The important thing when starting this habit of dividing money into accounts is that you put something into each account. You’re gaining control of the money and you’re training your mind to make the money work for you, not for the bills and banks.
Another account is long-term savings. 10% of everything that comes in is put into long-term savings. This is for things like emergencies, or for large items that you need to save up for. But, I emphasize that this savings should not just sit in a bank savings account. If you leave it there, technically, it will shrink in value due to factors such as inflation. Banks do not pay enough interest to counterbalance inflation. So, keep savings in places that pay enough interest to make it grow faster than inflation.
What is another recommended account into which you should divide your income? Education. 10% of everything goes to education. This should be a lifelong discipline. You are made with the natural tendency to grow. You are made to grow wiser. The world and its rules never stop changing. Knowledge has been called the new money of this age: the information age. Because of this, you should intentionally keep learning in the many ways available: buying books, buying audio series, going to seminars, maybe enrolling in a class. Most things you do to keep growing and learning cost money. So, you should have an account for that.
Are you catching yourself thinking how you can cut back more on your 50% monthly necessities account so you can put into these other accounts? I think that’s a good sign. But, also be brainstorming on creating more streams of income.
Are you catching yourself thinking how you can cut back more on your 50% monthly necessities account so you can put into these other accounts? I think that’s a good sign. But, also be brainstorming on creating more streams of income.
Here’s an account that will motivate you to increase your income: the play account. I’ve been told that I am required to spend this account every month; required to spend 10% of everything that comes in on play, celebration, fun, parties, whatever. This is to reward you for keeping your discipline of the money management accounts. If you never allowed yourself any recreational spending, keeping these accounts would get boring. You would get tired of it and stop doing it. You need to reward yourself. Life is not drudgery and behavioral discipline. We allow ourselves to relax. It makes us do all the rest of it better if we know that we’re always allowed to go play on a regular basis.
Donna and I have another account that we thought about adding here. We thought, well what if we reduced our regular necessities account to 40% and put another %10 towards our mission? Our mission is Horizon Gate Productions and it’s part of our life’s passion. We want to be able to contribute a lot to that. Well that just spurs us on to create more income.
You see how using these accounts makes us think creatively about doing more than just breaking even every month. We’re not just mindlessly amassing more money for who knows what.
Now, we’ve been told that it’s a good idea to put these accounts in some kind of visible display and live with them in our home; maybe an envelope for each account kept in a jar on the kitchen counter. Living and interacting with these keeps reminding you of your concrete goals and this helps change your behaviors in handling your money. You begin to control the money and make it increase, or use it more strategically. The overall effect can be very positive.
I want to go back and say a few more words about giving: generosity seems to breed more abundance. You know, when I go to a restaurant and they’re really skimpy on portions, I kind of resent that and I don’t like to go back there. But when the portions are generous, I think, “Oh this is a good place.” I’ll think the food is better and the waiters are nicer. You know, generosity makes people come back and participate in your vision too. Generosity is also the basis for wealth building. Why get wealthy? Is it just to spend on all our appetites and desires? No. It’s to overflow, to get more than we need because some people at that time don’t have enough. So, generosity keeps us free from greed.
Many of the highest missions on earth are not profit making. Take, for instance, famine relief. You don’t expect those who are feeding starving people to charge them ten bucks for a 6 buck meal. No. They aren’t in it for profit. That’s one of the areas where your generosity overflows to fill the gap of that famine.
Another area that’s close to my heart is the arts which carry the inspiration to save people. The arts need the generosity of the world around them because, whether or not they make a profit, artists are working hard to provide inspiration and revelation which enriches the minds and souls of the masses. That’s why we maintain our non-profit organization Horizon Gate Productions.
If you go to the web site for Horizon Gate, you’ll see on the home page, a button to click labeled “donate”. You’ll find similar buttons on thousands of web sites of worthy, charitable organizations. That’s another way for your generosity to overflow.
If you go to the web site for Horizon Gate, you’ll see on the home page, a button to click labeled “donate”. You’ll find similar buttons on thousands of web sites of worthy, charitable organizations. That’s another way for your generosity to overflow.
Become a well-informed giver. Research where your money will do the good you want it to do. Make sure the organization is truly using your donations well. But, the main thing about giving is the attitude of letting go. Give away without trying to control it in the same way you control the rest of your cash flow.
The Next Installment
All this talk of accounts has been dancing around the big question of income. In an article coming up we are going to describe various kinds of income. But, before we can increase income we need to talk about maximizing what we already have. You might be surprised how far you can push what you have right now. I am going to give you some ideas. So, do not miss the next exciting installment.
Here is your assignment to get ready for it. I want you to set a goal for each of these money management accounts. How much would you like to have in each account? By when would you like to have that amount? You’re going to have to think about how much you need per month and then think of finding 10% more for one account and 10% more for that other account, on down the list. Let your imagination come up with ways to economize and ways to create new streams of income. You’re setting wonderful goals to aim for. Calculate your goals and imagine attaining them. You are not as far from your goals as you may think.
To help you with your assignments we have a worksheet which reminds you of important principles we have been talking about. You fill in the blanks with your personal details. To get this worksheet just e-mail markanddonna [at] horizongate.org. We’ll send you the work sheet in reply.
Does this installment challenge you? Please write and tell us about it in the comments box below. Don’t forget to check out the incredible debt elimination and wealth building tools on www.GraceProceeds.com. I look forward to our next time together. May God bless and prosper you.



























