In today's episode, Jesse discusses his net worth tracker, a basic spreadsheet in which he records the balances of his investments and other assets quarterly. For Jesse, net worth is the scorecard of personal finance -- it's a way of keeping track of what direction you are going with your money. However, scorecard is an impersonal way to describe net worth, perhaps even suggests that one's value is tied to net worth. This could not be further from the truth! There's a lot more to a person...

In today's episode, Mark and Jesse discuss money as a concept, why it exists, and how trade (using money) has created tremendous value for humans throughout history. On the YNAB Podcast, Jesse has spoken about money being far more than a tool, however, and really an extension of one's self -- one's energies and desires. Mark and Jesse then attempt to connect the dots to our modern monetary system, where debt and inflation loom large. What exactly is it about money is essential to human...

Mark kicks off today's episode with a handful of words, hoping to weave them into a broader discussion: vision, goal, strategy, plan, and tactics. Mark and Jesse discuss how many small business owners look for tactics first, various tasks focused on operations: posting on social media, starting a YouTube channel, building an email list. These may or may not be worthwhile activities -- you really need a strategy to understand the big picture of where the business is going (or needs to go), and...

In today's episdoe, Mark and Jesse discuss the importance of developing good systems, not just in business but in life! Mark shares a recent experience in which his wife left for a few days on a retreat, leaving Mark to handle her usual duties. Mark was faced with a lack of systems in day to day tasks, and enough friction to sit her down after the retreat and have a talk about family systems. Kate agreed, and, within a few weeks, became a systems expert, looking for every avenue she could...

Mark and Jesse ponder the question -- what do you do when growth slows and the business plateaus? Mark recalls a story about a successful businessperson who failed at several ventures before striking gold, and notes that the "gold" business was never hard. It grew a lot early on, and continued to grow steadily from there. He juxtaposes this result with some of his clients who spend hundreds or even thousands of hours working on a business, yet never really take off. There were signs of sucess...

People have been hemming and hawing over the value proposition of college for years now, and in 2024, the value that a bachelor's degree offers is more questionable than ever. Mark and Jesse, both with teenagers staring down the barrel of college (or not) in the next few years, share their thoughts on the subject. As Jesse argues, the purpose of education is "to learn how to do something, when you don't know how to do something." As Mark points out, the resources for self-education are more...

We usually talk about stress as something you need to reduce, or recover from. But there are different types of stress -- good stressors and bad stressors -- and sometimes stress drives us to accomplish things and innovate when we otherwise wouldn't. To that end, Mark and Jesse discuss Morgan Housel's book Same As Ever: A Guide to What Never Changes, in which Housel outlines the way stressors and risk taking drives us to grow achieve new things. Mark also shares a recent story about how the...

Jesse defends the New Years resolution, and offers up of his own resolutions for the year, namely being kind. Mark resolves to try really hard, and be a better friend.   Harvard study on men's happiness (started in 1938!): https://www.health.harvard.edu/blog/the-secret-to-happiness-heres-some-advice-from-the-longest-running-study-on-happiness-2017100512543   Musical interlude courtesy of Kevin MacLeod: "Investigations" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By...

Mark shares a trend he has become aware of in his business: his highest revenue clients are also his least time-consuming clients, and thus his most profitable clients. On balance, the clients who pay the least under his sliding scale fee structure end up taking the most time to process. This discussion begs the question -- when do you fire a client?   Jesse hashes out some ideas for a new fee structure so that Mark can retain higher-touch clients while incentivizing them to comply with the...

Mark shares a recent conversation with a client fixated on "diversifying" her business, which to her meant expanding her coaching services from 1-on-1 to group coaching. Diversification is one of those concepts that sounds wise (of course you should diversify!) and is a bedrock concept of investing. However, as Jesse points out, what most people think of as diversifying is really just expanding -- expanding product and service offerings, introducing new price points. The expansion still...

Jesse shares a conversation he had with the YNAB executive team about spending (and giving) with joy, and Mark relates how many business owners struggle with this problem. Mark also shares a recent talk with a client agonizing over an upcoming vacation, which he believes will require him to make poor financial decisions. As Mark has coached him through the process of planning for the vacation and saving cash beforehand, he has been able to navigate through his all or nothing feelings -- the...

Mark and Jesse actually read the book (almost)! After completing most of the book recommended by a listener, 10x Is Easier Than 2x: How World-Class Entrepreneurs Achieve More by Doing Less by Dan Sullivan and Benjamin Hardy, Mark and Jesse share their thoughts on organizing your business and your life to harness your "unique ability."    Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler.com https://letsdothebooks.com   YNAB ...

A listener requested Mark and Jesse comment on the book 10x Is Easier Than 2x: How World-Class Entrepreneurs Achieve More by Doing Less by Dan Sullivan and Benjamin Hardy -- and they happily oblige! Except... they haven't read the book. Yet. Nevertheless the title is thought provoking, and they debate the merits of growing a business slowly vs growing quickly, as well as the difference between doing it as a startup vs a mature business. Jesse shares his experience 10x'ing YNAB over the...

Mark and Jesse share a snippet of a long conversation about the nature of opportunity cost in budgeting. They broadly divide people into two different personality types: the accumulators who diligently follow the rules of budgeting and amass cash, and the spenders who focus purely on what that cash can buy them -- experiences, memories, mementos, etc.   Both camps face a hard challenge in budgeting. The accumulators may have a lot of cash, but at what cost to their relationships? What...

Mark explains his unique system for managing his day to day tasks after years of struggling with ADHD. For Mark, it's all about managing his energy and honoring his mindset in the current moment. If the "dirt pile" calls (his affectionate name for an ongoing earthmoving project in his backyard), then that's what he does, whether or not it's the "best" or most important use of his time in the moment. Over the years, Mark has learned that allowing himself space to indulge in physical tasks...

Mark and Jesse answer a listener question about how to run more effective meetings, particularly for introvert-heavy groups. Jesse talks about the importance of ice breakers (although you don't have to call them that) and standardized meeting structures across the company. Mark and Jesse also discuss some new books on their reading list, including a book about the keys to longevity.   Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler.com ...

Mark poses a question -- how much knowledge about money does someone need? As in, how much time and energy should one devote toward investing, planning for future needs and problems, and other future considerations? Jesse offers some examples of how people often seek assurances, guarantees that their future income (and circumstances) will be safe. The reality, however, is that if you are in business, or even if you are an employee in a business, you are taking risk, and that risk cannot be...

Mark provides an update on his son Charlie and his budding mechanic career, and voices some concerns about his continuing to work at the auto shop. Charlie made some good money replacing brakes on a family friend's vehicle, and is considering making the jump to a mobile auto service business (as Mark and Jesse first discussed in Episode 79).   Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler.com https://letsdothebooks.com   YNAB ...

Mark and Jesse discuss the process of setting compensation, salaries, bonuses, and communicating those effectively to the team. Compensation is a touchy subject. Businesses want to incentivize employees to perform at a high level and reduce turnover by compensating them well. Employees need to feel like they have space to grow their skills and capabilities in the organization, and be compensated accordingly. And many business owners want their employees to be happy and feel fairly...

...probably comes from doing more of what you're already doing, not a new venture or even a new product. But Mark and Jesse have talked about digging trenches already. Today they ask the question, is it enough for a business owner to put their head down and just dig more trenches? When do you look around, observe broad trends in your industry, and react to those? It's a balancing act, with risks on both sides of the question.   Mark Butler, Virtual CFO The Money School:...

Mark and Jesse dissect the culture of striving that pervades American society, in businesses and consumers alike. There seems to be a tacit assumption that all business should be about more -- growing more, making more money, etc -- and you don't have to look far to see the same mentality in consumer culture. In fact, it's the heart of the economy! The desire for more is endless, a hole which can never be filled. So, how do you figure out what is enough?   Mark and Jesse have encountered...

Mark shares a difficult personal situation he and his family have been dealing with, that has signficant financial ramifications. Recently Mark's wife was diagnosed with cancer, and she has undergone chemo treatments and a litany of medical tests. As the medical bills continue to pile up, Mark finds himself having to float tens of thousands of dollars in costs while he waits to be reimbursed by their health sharing plan.   While this can be a very scary proposition, he has found peace and...

It's happening! Mark's son is taking the step toward business ownership. His plan is to leave his job at the auto shop behind, and start a mobile oil change business. Mark and Jesse discuss some of the challenges of pricing his service, establishing a recurring revenue model, and marketing to the most influential groups he has access to.   Mark Butler, Virtual CFO The Money School: https://moneyschool.works https://markbutler.com https://letsdothebooks.com   YNAB ...