When it comes to managing your personal finances, you’ve heard it before “Pay yourself first”. (Giving priority to savings, investments and personal goals before other expenses.) It’s what you can do with your regular wage.
But what if I told you for business owners, there’s a way to take this principle even further? That’s right, it’s not only possible to pay yourself a regular wage…
It’s time to pay yourself twice! Effortlessly. Every quarter.
This approach isn’t just a vague idea; it’s proven in practicality and outlined in the book “Profit First.”
It’s about paying yourself for working in your business (your regular wage) as well as for working on your business (your profit distribution).
The core concept? If your business can operate smoothly on 100% of its deposits, it can surely manage on 99% as well. Enter the Profit bank account – the crucial tool in making this a reality.
Gone are the days of waiting until tax time to discover you’ve made a profit, only to wonder where it all went.
There is a way to intentionally take home your profit. You may like to call this, your Quarterly Bonus.
So, here’s the challenge: Let’s commit to pulling just 1% of your sales deposits each week and stashing them away in a separate bank account. It may seem like a small percentage, but the impact over time can be profound. And with the convenience of online banking, setting up a new bank account is easier than ever.
Now, here’s where the magic happens. Every quarter, take half of the balance in that account and treat yourself to a well-deserved bonus. Whether it’s something small like a coffee date, a weekend getaway, investing in personal development, or anything else, the choice really is yours.
That’s it. This strategy alone is saving families, marriages, sanity, businesses.
Be warned. After a few rounds you may start to get eager and want to increase your percentage, hold off, this is where you can unintentionally damage your success.
Remember this challenge is for three months. If you need some inspiration to stay on track, this is a great time to listen / reread the book Profit First, or to reach out to a certified Profit First Professional firm, like the Butterfly Bookkeeper. We will guide you through this process so that the Profit you cash out is sustainable and encourages your business growth.
So, to everyone taking on the world of entrepreneurship – it’s time to embrace the power of paying yourself twice, and effortlessly! With a quick review of your cash income for the week, you can turn this simple concept into a game-changer for your business and your life.