What is James Smith's head-above-water rule for business owners?

James Smith calls head above water the most important financial metric for a business owner. You add up what you need each month, such as rent, car finance and a holiday fund, and work towards that number. Once it is hit, he says, you are effectively invincible for the rest of the month. Smith said he has cleared that line since starting his business around 2014 or 2015, which is why he could turn down his first brand deal with only £1,300 in his account.

• Smith described a rowing coach and his wife who open champagne each month on the day they hit their survival number.
• Smith said most people set their line far ahead of them and fill the gap with anxiety.

▸In their words

“I've got 1,300 pounds in my Monzo, mate.” James Smith · at 1:05:25 — open in the transcript →

Source: our own transcription of the episode. The full conversation is on Modern Wisdom (2026-10-31). Read the whole episode summary →

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