This ONE Money Mistake Can Destroy Everything

Speaker A00:00:00

Hey, friend, let me give you a warning most creators never hear until it's too late. One single money mistake can destroy everything you're building. Not fraud, not tax evasion, not even scams. Just confusion.It's the same mistake that triggers IRS audits. It's the same mistake that wipes out thousands in deductions.And it's the same mistake that can legally expose your savings, your car, and listen to this. Even your home. And the scary part is most most creators are doing it right now without even realizing it.So today, I'm going to show you exactly how to fix it before it destroys everything you've worked for. But before we go any deeper, let me give you three quick wins that protect 90% of creators instantly.If you do these this week, you'll feel a shift almost immediately. Number one thing, give your creator money a separate home. This is a great time to open a second checking account. Do it today.I don't care if you're an LLC or not. An LLC and root all of your creator income to that account. No more blending it with your groceries.Second thing, pick one business card, write business on it. If you have to, put it in a separate slot in your wallet and use it only for creator expenses. This stops the IRS number one suspicion point.And number three, do a 10 minute weekly money reset just once a week. Just 10 minutes. Tag those expenses, match that income, scan your accounts. This eliminates tax season panic and keeps you audit ready all the time.If you do these three things, you're already ahead of most creators. Now let me show you why this matters so much and how One creator lost $8,000 because he ignored it. Break the chain. Psych. The dream. I'm a creator.A creator on. Hey, friend. I'm Ralph Estep Jr. I've been a licensed accountant for over 30 years. I work with creators.I work with business owners and people who are building something meaningful from scratch. And guess what? I'm a creator myself. So I know the juggling. I know the late nights. I know that I'll fix it Money later Trap.Every creator falls into those things. But later is where creators get hurt most of the time. And I've walked people through audits.I've walked people through lawsuits, expensive financial mistakes that could have been avoided with just a little Clari. So today, I want to talk to you like I would talk to a creator friend sitting right across from me. No jargon, no shame. Just clarity and direction.Here's the mistake. Mixing creator money with personal money. That's it. Your YouTube income hits the same account you use for groceries.That camera you bought is on the same card that pays for Netflix. And your brand deal is sitting between DoorDash and Target. And to you, that feels normal. But to the IRS auditor, it looks like chaos.It looks like suspicion. It looks like you're hiding something even when you're not. And to a judge can make your LLC worthless. I'm talking about worthless.Let me show you what I mean with a real quick story. I work with a podcast. Let's call him Mark. Amazing guy, vintage guitar show, very cool. Sponsors rolling in. Patreon was humming.Merchandise was selling like crazy. He was doing great. But behind the scenes, it was a money tornado. All of his creator income landed in his personal checking account.Same account that paid his mortgage, same account that paid his groceries, his Amazon, his kid's school stuff.And buried inside all that mess were his business expenses, his microphones, his editing software, his travel to podcast events, and hey, even a two thousand dollar guitar he used for content when the IRS audited him. He thought, I've got the receipts, I'm fine. But the auditor didn't want receipts. She wanted clarity. And she didn't see any.The micro charge was between Whole Foods and Target. The podcast conference hotel looked like a family vacation. And hey, that $2,000 guitar looked like a personal toy. She didn't trust any of it.She disallowed the travel, she disallowed the gear, the guitar, and several things he absolutely used for his show. And by the end, he had lost over $8,000 in deductions. Not because he lied, not because he even cheated, but because everything was mixed.I remember he looked at me and said, ralph, I feel like I'm being punished for trying to build something. And I told him, you're not being punished. You're being invited to run this like a real business. So today I want to show you exactly how to do that.Here's my step by step system for audit proof stress free finances. Number one thing, you've got to give your creator money, its own home. Your business needs its own house. Not fancy, just separate.First step, open a new account today. I don't care whether you're an LLC or not. If you got an llc, open a business checking and a business savings account.And listen, if the bank gives you an attitude, use an online option. There is Relay Bluevine Novo. If you don't have an llc, here's what you can do.Just open a second personal checking account and dedicate it only to creator business. This is fully allowed and it's massively helpful. Second thing I want you to do is is route all your creator income into that account.If you're like me, creators have income coming from YouTube and Patreon and Snapchat, spotlighting, TikTok, creator rewards, brand deals, affiliates, PayPal, Stripe, Gumroad, Shopify, Ko Fi, Etsy. It'll make you mad when you think about it. But today I want you to update every single platform. So deposits, hit one account, all income, same home.Next thing I want you to DO is move 25% to that savings account automatically. And every single time you get paid, move 25% to your business savings account. This is what I'm going to call your tax money. And this prevents that.And ends at April Surprise. All right, here's the second thing I want you to do. Use one card only for business. This one shift stops 80% of IRS suspicion.Here's what goes on your creator card gear.I'm talking about cameras, mics, lights, tripod software, Adobe Final Cut, Canva, Descript, Cap Cut Pro, any AI tools you're using, like ChatGPT, Jasper, Midjourney subscriptions like Epidemic Sound, Artlist, Envato, Dropbox, Put your travel there. Your airfare, your hotels, your Ubers, your meals during shoots.Any help you've got those editors, Those designers, those VAs, those thumbnail artists, any business tools you're using, website hosting, email platforms, CRMs. And if you swipe the wrong card, fix it immediately.Transfer that money back, label it reimbursement to personal, or move money to business labeled owner contributions. It's clean, it's documented, and it's safe. There's nothing I'm going to encourage you to do. Route every single income stream to the right place.This is a step that most creators forget.Make a checklist in your phone titled this where my money comes from and list every platform you make money on and check them off as you update these deposits. You'll make it feel so much more in control than just doing this one thing. And number four, pay yourself on purpose.Stop borrowing money from your business account. Stop just swiping the business card for groceries. Here's the exact method. Step A. Choose your pay cycle.It can be weekly, every two weeks, twice a month, monthly. It doesn't matter to me. But pick one step B. Decide your draw amount. Maybe you take revenue minus your tax sweep, minus your expenses.Whatever's left is available to pay yourself. Step three. Transfer the money. Take it from your business account to your personal account.Label it owner, draw it's clean, it's simple, and it's audit friendly. Here's an example. Let's say you made $1,500 this month. $1,500 you start with. You take $450, put it in that tax sweep account.Maybe you spent $250 on tools and subscriptions. That leaves you 800 bucks available. You might pay yourself $600, maybe reinvest $150, maybe put it in a savings account.Keep $50 in the account for the buffer. This is how creators go full time, safely. And number five talked about this earlier. The weekly money reset. This habit changes everything.Set a weekly reminder. What I'll call your money reset. 10 minutes. And here's exactly what I want you to do. Step one, open your business banking app.Look for anything strange. Look for anything odd. Second thing, open your accounting software.Whether you use QuickBooks Online, Wave FreshBooks, whatever works for you, import those transactions, automatically. Tag them. Maybe it's equipment, maybe it's software, Maybe it's travel, income, contract, labor, advertising. Step number three, snap those receipts.Use the app. It's done in seconds. And step number four, check your three vital signs. How much income came in this week? How much spending did I have this week?And how much cash is on hand in the Runway? And last but not least, Write yourself a 10 second note. What happened with my money this week?When you do these things, it builds awareness and it gets you out of the guessing game. Let's make this real. A lot of creators say, I'm fine. I got an llc, Ralph. Well, friend, you're only protected if you act like a real business.If you mix your money, a lawyer can say, your honor, the LLC is a shell. It's a sham. And if the judge agrees, guess what? They pierce the veil. Meaning your personal life is now under attack.Your savings, your car, your paycheck, your house. All of it's on the table. Separation is not just nice, it's protection. And at the end of the day, this isn't just about taxes or audits.It's about identity. Messy money makes you feel like a hobbyist. But clean money makes you feel like a CEO. And when you feel like a CEO, guess what?You make better decisions. You invest wisely. You understand your business. You stop being scared of the irs, and you start building something that lasts.Clarity builds confidence, and confidence builds businesses. So here's your mission for the week. Number one thing, open your separate Creator account. Number two, pick your business card.And number three, do your first 10 minute money reset just three steps, one hour. But it's life changing.And creators, if your money feels messy, I'm going to give you a way to fix it in 10 minutes with the blueprint that I built for you. It's what I call the five Creator Money Moves checklist.It shows you how to protect your income, separate business and personal, avoid personal tax bills, pay yourself consistently, and stay on top of the numbers every week. And you can get it right now by going to content creators accountant.com blueprint. Again, that's contentcreatorsaccountant.com/blueprint.Your creativity deserves protection. Your purpose deserves clarity. Your business deserves structure. I'm Ralph Estep Jr. I'm the content Creators Accountant. God bless you.And I'll see you next week. In the next episode.