Built Online Podcast Summary
Episode: "How To Manage Your Money Like The 1% | ft. Mark Willis"
Host: Cody McGuffie
Release Date: July 21, 2025
In this enlightening episode of Built Online, Cody McGuffie delves deep into the financial strategies that distinguish the top 1% of entrepreneurs from the rest. Special guest Mark Willis, a Certified Financial Planner (CFP) with nearly a decade of experience working alongside e-commerce entrepreneurs, shares his expert insights on managing business and personal finances to foster sustainable growth and wealth accumulation.
1. Understanding the Role of a Certified Financial Planner
Mark Willis begins by outlining his role as a CFP, emphasizing his dedication to helping entrepreneurs achieve financial control and predictability. He states:
"I get to work with people who want to grow their wealth in ways that make sense for them, add sanity and predictability back into their lives, not just their portfolios."
[02:00]
Mark's focus is on empowering business owners to navigate the financial complexities of running an online business, ensuring they build a solid foundation for long-term success.
2. Common Financial Pitfalls for E-commerce Entrepreneurs
Cody and Mark identify several common mistakes that budding entrepreneurs often make, particularly in managing cash flow. Mark highlights the importance of separating personal and business finances:
"Many people mingle their bank accounts together… There should be a business side of yourself and a personal side of yourself."
[04:06]
Key Points Discussed:
- Separate Bank Accounts: Avoid mixing personal and business expenses to maintain clear financial boundaries.
- Incorporate Your Business: Protect personal assets by establishing a personal limited liability entity.
- Cash Flow Management: Implement Mark's "Four Rules of Cash Flow Management" to prevent business failure.
3. The Four Rules of Cash Flow Management
Mark introduces his comprehensive strategy for effective cash flow management, designed to ensure business longevity:
-
Give Every Dollar a Job:
"Have maximum full employment of those dollars. Otherwise, they're going to be unemployed and they're going to go look somewhere else to go to work."
[06:15] -
Be Ready for Irregular Expenses:
"Save for the rainy day… Preparing for annual expenses by setting aside monthly provisions."
[07:05] -
Roll with the Punches:
"Adjust your budget as needed to accommodate unforeseen expenses instead of sticking rigidly to a perfect plan."
[08:00] -
Live on Last Month's Income:
"If you lived on the money you earned last month, this month… Then everything just comes down."
[09:00]
These rules collectively aim to create a resilient financial structure that can withstand the inherent uncertainties of running an online business.
4. Living on Last Month's Income: A Game-Changer
One of the episode's standout discussions revolves around the concept of "Living on Last Month's Income." Mark explains this philosophy as a means to stabilize cash flow and reduce financial anxiety:
"Whatever you earned last month is now allocated to this month… give every dollar a job for this month."
[07:45]
Cody seeks clarification to ensure understanding:
"If the business earns $10,000 last month in profit, what does that mean?"
[08:33]
Mark elaborates by illustrating how this approach forces entrepreneurs to plan and prioritize expenditures based on previous earnings, thereby fostering disciplined financial habits.
5. Rate vs. Volume: Rethinking Investment Strategies
Mark challenges traditional investment wisdom by contrasting the focus on high rates of return with the importance of saving volume:
"Rate versus volume, and volume will win every time."
[14:45]
Using a practical example, he demonstrates that consistent saving—even at modest interest rates—outperforms volatile high-return investments over time. This perspective encourages entrepreneurs to prioritize liquidity and steady growth over speculative gains.
6. Whole Life Insurance as a Financial Tool
Transitioning to more advanced financial strategies, Mark advocates for the use of whole life insurance as a means to "bank on yourself." He explains:
"Whole life insurance can be used for the banking function… borrow against your life insurance cash value and the equity or cash value in your policy continues to earn interest."
[24:29]
Benefits Highlighted:
- Cash Value Growth: Policy's cash value grows at a conservative, tax-free rate (~5-6%).
- Accessibility: Funds can be borrowed against without market dependency.
- Wealth Transfer: Facilitates tax-free wealth transfer across generations, as exemplified by families like the Rockefellers.
7. Critique of Universal Life Insurance
Mark differentiates whole life insurance from universal life insurance, cautioning against the latter due to its high lapse rates and dependence on market performance:
"89% of universal life policies will lapse before the person passes away."
[32:55]
He underscores the reliability and strategic advantages of whole life policies for entrepreneurs seeking financial autonomy and stability.
8. Rapid Fire Insights
Towards the end of the episode, Cody engages Mark in a rapid-fire segment to glean personal insights:
-
Favorite Business Book:
"The Road Less Stupid by Keith Cunningham."
[34:03] -
One Thing Mark Wishes He Knew Before Starting His Business:
"Give every dollar a job. Don't just let money sit stagnant in your bank account."
[35:13] -
Worst Business Advice Received:
"Paying cash was the answer. Being the bank is the best way to buy that car."
[35:24] -
Hours Worked Per Week:
"About 36 hours a week… I keep trying to fire myself as much as I can."
[36:02]
These responses offer listeners a glimpse into Mark's personal philosophy and professional priorities.
9. Defining a Creator and Ideal Business Owner
Mark articulates his vision of a "creator" and outlines who would thrive as a business owner:
"A creator is someone who has the bravery to develop something out of their own inspiration and potential."
[37:11]
"Anyone who does not desire just to be that tennis ball floating down the gutter of their own life… be a salmon swimming upstream."
[38:05]
He emphasizes that successful business owners seek agency and balance in their lives, striving to manage chaos and influence their destinies positively.
10. Connecting and Continuing the Conversation
To wrap up, Mark shares resources for listeners interested in exploring these financial strategies further:
- Website: Kickstart with Mark
- Books Authored:
- How to Be an Amazon Legend and Fire Your Banker
- Secret to Lifetime Financial Security
- Real Estate Investing for Women
He also invites listeners to his podcast, "Not Your Average Financial Podcast," for more in-depth discussions on innovative financial strategies.
Conclusion
This episode of Built Online offers a treasure trove of financial wisdom tailored for e-commerce entrepreneurs. Mark Willis's practical advice on cash flow management, investment strategies, and innovative financial tools like whole life insurance provides listeners with actionable steps to elevate their businesses and personal finances. By challenging conventional financial norms and advocating for disciplined, strategic planning, Mark equips entrepreneurs with the knowledge to build resilient and prosperous enterprises.
For more insights and to connect with Mark Willis, visit Kickstart with Mark and explore his array of resources designed to empower creators and business owners alike.