(FORTUNE Magazine) – From his media pulpit--such as regular gigs on public television--Jonathan Pond, a certified public accountant turned financial planner, preaches the gospel of how hard-working stiffs (including small-business owners) should manage their cash. His sermon is simple: "To spend is human, but to save is divine. If you can't marry or inherit financial security, spend less than you earn." Using as many comic one-liners as possible, Pond injects humor into the otherwise agonizing subject of how to manage personal finances. His Tom Green act seems to have produced results. Besides advising celebrities like Katie Couric, Pond guides wealthy business owners on subjects like estate planning. When he's not producing TV shows or working with clients, he writes books that can help die-hard spendthrifts. Notable among his 11 tomes are Your Money Matters: 21 Tips for Achieving Financial Security in the 21st Century (G.P. Putnam & Sons, $22.95) and 1001 Ways to Cut Your Expenses (Dell Publishing, $10.95). According to Pond, who drives a clunker (a 1986 Toyota Camry), his puritanical philosophies are back in vogue because of the dot-com blowout. His tips:

How is your planning approach different?

As you know, I'm not a certified financial planner, I'm a CPA, even though I dole out lots of advice. Unlike most planners, I'm not into long, ongoing relationships with individuals. I meet with clients on a one-shot basis, size up their situation, and send them on their way. Of course, about 40% come back for an annual checkup. I believe that most people can manage their finances themselves once they get the right instruction. They do not really need a high-priced advisor to run a computerized financial analysis for them.

Why are you a penny pincher?

I guess it's because I believe most individuals spend more than they earn to support a lifestyle that's unrealistic. Lots of these folks have trophy homes and fancy cars. Although many have high incomes, they have trouble educating their kids and saving for retirement. I just don't have a lot of tolerance for that. No one can be financially secure that way.

In an economy where millions have been thrown at startups, is it harder to have a realistic view of managing cash?

Yes, and woe to the entrepreneur who has developed a lifestyle consistent with the paper wealth he has in hand. That's because paper wealth is tenuous: Once the value of your stock plummets, you can be financially devastated. Recently I've met a couple of entrepreneurs with such near failures. Their net worth has been cut to one-200th of what it was from the time they were strutting around their great idea to investors. Having consuming optimism about your business is fine, but you need to be realistic about your financial future and diversify by investing elsewhere.

How should business owners start developing a financial life outside their business?

They should start by putting money aside to invest in personal financial assets--whether through a retirement plan or on their own. Just as important, they need to insure their wealth. Besides life insurance and a good disability policy, every business owner needs liability coverage. I met with a surgeon recently. He didn't have an umbrella liability policy, and he lost a lot of money in a lawsuit due to a car accident. That could have wiped him out.

So what do you think are some of the biggest mistakes business owners make?

Basically they don't plan. Many just believe their businesses will provide everything for their financial future. They feel once they sell their company, the cash will keep flowing. But many businesses--especially service firms--don't fetch much.

What percentage of a company's cash flow should be invested in an entrepreneur's personal account each quarter?

It's difficult to generalize. I'd rather the entrepreneur go to a financial-planning Website, such as Quicken.com or Financenter.com, that is equipped with a calculator to help him figure out how much he needs to save for a comfortable retirement. Fill out the numbers realistically, and throw in Social Security estimates and the assets you have. When you're asked what your business is worth, put zero. Then all your surprises will be pleasant ones.

What should an entrepreneur's investment strategy include?

The main thing is that the risk an owner embraces in his business should not cloud his financial judgment. Many entrepreneurs tend to invest in their own industry and go overboard on stocks in their niche, and that's risky. If the industry falls on hard times, you've really got a problem. While the average working person might have 70% in stocks and the rest in bonds, I advocate that the entrepreneur have 60% in stocks and the rest in bonds to reduce portfolio risk as much as possible.

Can you offer any money-saving tips for small-business owners?

There is nothing shameful about operating out of your house to cut expenses when you're starting out. Afterward, negotiate hard with the landlord to get the best deal on rent. Also think about leasing furniture and equipment, because if you start buying all this stuff, you'll suddenly have a lot of overhead. And once you're up and running, forget the lavish trappings. What kind of impression will you convey to clients if you have this grand office and an expensive car while you're desperately trying to build a profitable business?

Do you think entrepreneurs should be careful about debt and the way they borrow?

Yes, because leverage is a double-edged sword. If it works for you, you can really build something. If you borrow too much, it can drag a business down faster than anything else. Banks are good at assessing credit risk. The problem is that entrepreneurs often don't follow their advice.

How should a small-business owner prepare for unexpected events, such as divorce, that could put his plan in a tailspin?

These are difficult issues. If you go into a marriage with a substantial business interest, you certainly should have a prenuptial agreement. But even then divorce can financially crush all parties. If you are running a business with a partner, you have to have strong provisions in your partnership agreement in the event of disability or death. The most popular is the buy-sell agreement, which stipulates that a founder or other shareholders can buy out the deceased or disabled partner's interest.

How should they plan their estate?

Entrepreneurs should use an estate-planning attorney who knows the challenges of small business. You'll need to worry about the transition of the business and the security of your family upon your demise.

What money values should they abide by daily?

Above all, they should avoid any temptation to overspend. Remember, you can be bankrupted by success as much as you can from failure.