#475 Phil McGilvray - Financially Fit Entrepreneur

Financially Fit Entrepreneur is Phil's positioning - the substance of which is about making finances easy for people using the laws his grandma taught him about budgeting with glass jars as a teenager… Phil started off helping young couples budget their money, get out of debt and save for big life goals. Through his Grandma’s Jars 1:1 Coaching and Workshops he has helped thousands of people achieve financial security and success. But it was during his 15 years as a stockbroker and financial adviser that Phil honed his cashflow expertise and learned how to apply it to the business world. Over the past 20 years Phil has worked with hundreds of entrepreneurs and small business owners to help them multiply their profits and create financial certainty… not to mention achieve incredible life goals.Summary of the PodcastKey TakeawaysPhil's "Grandma's Jars" approach uses a simple system of allocating money to different purposes, modernized for digital bankingProper cash flow management is critical for both personal and business finances, requiring discipline and purposeful allocationEntrepreneurs often struggle with financial basics; getting clarity on current position and goals is an essential first stepRegular review and adjustment of expenses, including occasional "no-spend months", helps maintain financial health TopicsOrigin of Grandma's JarsPhil learned budgeting from his grandmother using physical glass jars for different expensesEvolved system from physical jars to envelopes, paper budgets, Excel, and now online appsDeveloped own software after leaving high-paying finance career to focus on teaching financial basics Key Financial Principles for EntrepreneursTrack 5-6 key numbers monthly: revenue, salary paid to self, expenses (cost of goods + overheads), tax set aside, profitUse a "cascade" system to allocate funds purposefully through business and personal accountsMaintain 1.5-2x monthly expenses in operating account; excess flows to reserves and other purposesBuild 3-6 months of operating expenses as a rainy day fund before major reinvestment or expansion Common Financial PitfallsEntrepreneurs often lack clarity on basic financial position and profitabilityTendency to increase expenses as revenue grows, reducing margins and financial stabilityDiscretionary spending in business often less scrutinized than personal spendingLifestyle inflation can trap entrepreneurs in need for high income, limiting flexibility Strategies for Financial HealthConduct regular "no-spend months" to reset expectations and identify core vs. discretionary expensesReview all expenses line-by-line periodically to eliminate unnecessary costsAlign business finances with personal life goals and visionBuild purposeful reserves to enable creativity and reduce survival-mode thinking Phil's Coaching ApproachFocuses on transparency and creating a safe space for entrepreneurs to face financial realitiesUses visual tools like the "cascade" concept to make financial management more intuitiveEmphasizes learning from past patterns to plan for future fluctuationsHelps clients get clarity on both current position and desired outcomes. The Next 100 Days Podcast Co-HostsGraham Arrowsmith Graham founded Finely Fettled ten years ago to help business owners and...