Three Smart Financial Planning Moves For Private Practice Therapists [182]

Money comes into your practice, the bills come out of one account, and whatever remains becomes your pay. There’s a better system for managing your wealth and putting your money to work. If you've ever felt stressed during tax season, wished you were making faster progress toward your financial goals, and want to give back without decreasing your own financial security, this episode is for you. Today I’m celebrating my 40th birthday! And I’m looking back at ten years with money, from student debt and skipped weddings to giving each dollar a purpose. This is financial planning for therapists through the lens of my own business. I’ll share why I give every dollar that comes into my business a specific job, how an accountant who understands our industry helps me make tax decisions without holding all the information myself, and what changed when I stopped letting a good month inflate the account I used for ordinary expenses. We’ll also talk about S corp filing, giving back, and high-yield cash cash savings. Topics covered on financial planning for therapists How a Profit First structure separates money for taxes, expenses, pay, and future opportunities How to never be behind on taxes again and why I think every therapist needs an accountant When you should transition to S corp status How a prudent reserve helped me fund a $15,000 business investment without draining monthly operations fund A way to give back that does not require therapists to under-earn or overwork Why I keep some cash in a high-yield account instead of checking or investments Resources from this episode Wealthfront, the high-yield cash account I use to separate earmarked money into categories, with a 0.75% interest boost for both of us when you use my referral link Liberated Business, my signature group coaching program for therapists who want to build a multi-six-figure private practice Connect with Felicia Get my freebie and join the email list: The Magic Sheets Instagram: @the_bad_therapist Website: www.thebadtherapist.coach Quote “Over the course of your career, over the course of running your private practice, millions of dollars will actually flow through your hands.” - Felicia