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How Do You Know How Much To Pay Yourself In Your Business
Have you ever wondered how much you can actually pay yourself as a business owner?
Where’s that line between reinvesting in your business but you need to eat and of course, the IRS is out there wanting their cut too! Let’s talk about the framework I use and share with my clients to help you know exactly what your business can sustain
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Podcast Key Points
0:00 – Episode Overview
1:41 – Prosperity Simplified
3:03 – Still Investing In Your Business – reel
3:39 – Sponsorship – Preregister Cashflow Unlocked Workshop
6:45 – Profit & Savings Fund
7:20 – Your 2 Main Categories
9:50 – Hardest Part To Do – Gaining Momentum
11:20 – How Much Can You Pay Yourself – reel?
12:20 – Challenge – What’s Your Biggest Takeaway
Frustrated that you aren’t making the progress that you should within your finances? Create an unshakable money mindset with the Money Mindset Mastery Checklist
How Much Can You Pay Yourself as a Business Owner?
Have you ever wondered how much you can actually pay yourself as a business owner? Where’s that line between reinvesting in your business and you need to eat and of course the IRS is out there wanting their cut too. Let’s talk about the framework I use and share with my clients to help you know exactly what your business can sustain. So let’s do this!
Welcome to the Your Money Your Life podcast. I’m your host Aimee Cerka. After over 10 years in the personal finance industry and multiple personal financial and medical crisis, I was fed up with the lies are being shouted from the rooftops by the Guru’s and the media. So now I help you, the ambitious woman step into unstoppable finances.
When you step into unstoppable finances, you create financial abundance that aligns with your personal values and goals. Without working 80 hours plus work weeks, without pinching pennies, without worrying how you’ll handle the next curveball. life throws your way. And as simple to the point kind of way, being married, having four kids at home, homeschooling, being a CEO running the household, I’m kind of busy. And I know that you are too. So here, we get straight to the point. If you’re ready to eliminate fear, stress, struggle, frustration and guilt, from your finances, and all the areas they affect. You’re in the right place. Welcome. I’m so glad you’re here.
A Simpler Alternative to Profit First
Welcome back to another episode of Your Money, Your Life podcast, we are talking about how much can you pay yourself as a business owner. So, you might have heard of Profit First, it’s a pretty popular system. If you have and you’re using it, and it’s working for you fantastic. Keep at it.
I’m not here to tell you to change anything if you’re using a system like that, and it’s working for you. Okay. But often what I hear and what I see is that it’s complicated. It’s not that it doesn’t work, but I’ll hear I don’t get it or I love the concepts. But that’s about as far as it went. I love reading the book, but I never actually did anything with it.
Prosperity Simplified: The Seamless Transition for Your Business
So, if that is you, then I am pretty excited to tell you a little bit about the framework. But like I mentioned, I use myself and then I’m teaching for my clients. I call it prosperity simplified. If you haven’t noticed, I’m all about the simple. And it’s based off a percentage-based budgeting, which Profit First is as well, if you’re not familiar with that system.
It is a percentage-based budgeting system designed to help you pull the profit that you need to from your business. And again, it works well. That it’s fantastic. And everybody wants to have that profit, right.
But the thing that I love about the prosperity simplified system is it works even if you’re still having to invest into your business. And that is a place that a lot of us start out we hear so much about those overnight successes and they made really good money really quickly in your business. And if that’s you fantastic, great. But the person I’m speaking to, you’ve been working in your business for a while and maybe it’s not quite yet profitable. Prosperity simplified still works if that’s the case.
Unlock Your Cashflow
Hey, I wanted to jump in real quick and tell you about the Cashflow Unlocked Workshop. If you’re tired of being scared of tax time and want to finally hit those income goals without sacrificing relationships in time with your family. Even if you just don’t have the time for one more thing, this free workshop is probably going to be just for you.
Inside Cashflow Unlocked, I’ll give you the five essential keys to increasing your cashflow so that you can make more money, understanding your numbers and gain financial control and confidence, again without adding a ton to your plate because you just don’t have the time, right? This isn’t just one of those classes where you get part of the information and zero help.
I’m calling it a workshop for a reason. Yes, we’ll go over those five essential keys. But then we’ll walk first steps you need to take together so that you aren’t left in information overwhelm. The event will start on April 18. But right now, all you need to do is to get on the waitlist. Just text me cashflow to 817-969-46.
Why three, I’ll let you know as soon as you can register absolutely free. And there’s a link in the show notes. If you click that, it’s going to take care of all that for you and puts the text in there, types of my number, all that stuff, all you have to do is hit send. Again, that link is in the show notes, keep it simple, hit the link, be on the waitlist. Now back to the episode.
Making Profit Even When Investing in Your Business
Because we all know, within five years, most businesses go bankrupt. So, if you are funding your business, still, there is nothing wrong with that. That is quite the norm. And as a home-based business owner, we luckily don’t have as many of the expenses as a brick-and-mortar business does. But you might still be investing in your business. And I want you to know, there’s no guilt; no shame here no matter what for that.
The thing that I love, though, is it’s a seamless transition from you having to fund your business, to you paying yourself from your business. It’s all set up. It’s simple to sustain. And of course, we’ll help you set it all up inside the Academy. That’s all taken care of.
I wanted to kind of give you like a glimpse into the framework today, set the foundation for you of why this works. Because this system I found, takes care of so many different things. Of course, we’re gonna go into that inside the Cashflow Unlocked workshop. So, if you haven’t already, make sure that you’re registered, so you’re the first to know, or you’re on the waitlist so that you’re the first to know when registration does go live.
The Power of Prosperity Simplified
But let’s talk prosperity simplified, okay. We often forget to pay ourselves. We had to pay our taxes. And what about that annual subscription that you signed up for last year and completely forgot about? Oh, guess what? That just builds your bank account, right? When you use Prosperity Simplified, this all takes care of all this.
We have our different categories, which is similar to Profit First, but there’s not as many. You do still have your profit fund; we have a savings fund for our taxes. And then beyond that, you have some flexibility. So, if you are paying yourself from your company, you’re going to have your own withdrawal. Okay?
Using Prosperity Simplified Categories
So that part or your personal disbursement, whatever you want to call that, okay? You have that fund. And then we break the rest of it into two different categories. We call them you, eat. So Y-O-U, eat because we are funding you, your business.
It’s something that I learned forever ago, and it’s stuck. So, we have a huge link, and then you have unique, your regular, okay? So, you eat is for your monthly transactions that bill each and every single month, okay? The things that you know, that are coming, we set all that up for you.
And irregular is the extra stock, maybe it’s the office supplies you needed. Maybe it’s a one-time payment for something. And we can add more categories if we need to. But at the core, this is what exist, you know what you have your regular monthly expenses.
And then you can plan for the other stuff, the irregular stuff, the annual expenses, all of those things. We also set you up so that you can track them and know when they’re coming. So, if you’re not using the software anymore, it’s set up so that you can take care of cancelling it beforehand.
And then you don’t have to mess with getting that refund because that is just one more hassle you have to mess with, right?
Combining Personal and Business Finances
When you’re using Prosperity Simplified, it takes care of that problem. Then you might be thinking, Okay, that sounds great, Aimee, but you didn’t mention if I’m still funding my business. That is where you’re using the personal side as well.
So, budgeting simplified, is the personal finance course that we’ve talked about, okay? Prosperity Simplified is the business side within budgeting simplified the personal side. You have the fun called You Eat. Guess what You Eat is designed to do is designed to fund you the thing that they cannot take away is your knowledge, which also is your business endeavor, okay?
You’re using fun from the personal side can be used to fund your business. We set that up again, with percentage-based budgeting so that you know that you’re taking care of. We talk all about that inside Budgeting Simplified is available right now if you want to dive into that personal side of things, you absolutely can.
Take the First Step: Join the Cashflow Unlocked Workshop
But we’re gonna talk about that both side within Cashflow Unlocked. So today, your challenge I want to hear what your biggest takeaway is. Have you heard of Profit First? And was it like that was just too complicated. I’m not keeping up with it.
What did you think of Prosperity Simplified? Does that feel a little bit more attainable? Now I know anytime we talk numbers and setting systems up, there’s a lot of work or there can be a lot of work up front.
And again, okay, that’s why I have all the tools and resources to help you set this up to make this sustainable and seamless for you. take the guilt, the judgment, all the negative emotions out of it. It doesn’t have to be there, when you have that system set up. That’s when you have the success.
But getting that system set up, getting to that top of that mountain, the Little Engine that could you know, when you are getting a train going the hardest thing to do. Like when you’re moving across country via train, the hardest thing to do is to get going that first couple of rotations are going like zero miles per hour, getting into momentum is the hardest.
So, if you’re struggling with that, do not worry. Click the link in the show notes for the waitlist to be on the waitlist for the Cashflow Unlocked workshop, we are going to help you unlock that cashflow make more money. You can do this, it does not have to be hard. That is it for today.
Embrace the Simplicity and Success
We talked about Profit First. You’ve heard of Profit First, great. If you hadn’t, you might want to check it out, absolutely go do it. There’s a book out there. But know that Prosperity Simplified has worked so seamlessly for so many of my clients. And I want this to work for you too.
And personally, myself like this, I use my own system, right? It’s simple to sustain. And of course, you know that I can help you with the setup and ongoing but I want you to have the system so that you know how much you can pay yourself. Because the answer really is let’s make sure that we’ve covered this.
The how do you know how much you can pay yourself is when you set up the system. And the system shows you what the percentage is how much you can pay yourself. That way you’re successfully funding your business helping it grow continually, because again, percentage-based budgeting as your business grows, the percentages grow, then you have more to expand on your team more than you can outsource more that you can put in ads.
But you’re also going to pay yourself more, you’re also going to set aside money for taxes all at the same time. It takes the pressure off of you. You don’t have to mess with it anymore. It’s sustained. And that’s really when you can step into that CEO role of your life both in your business and your personal life. They’re both important and you have to feel that you are in that role in both places.
Take the Challenge and Connect
All right. Your challenge again I want to hear on Instagram, What was your biggest takeaway from today? Or you know what when you get on the waitlist for Cashflow Unlocked. Just shoot me a text there. What was your biggest takeaway from today? What are you most looking forward to from the Cashflow Unlocked workshop. That link’s gonna be coming soon. I can’t wait to see you next time for another episode of the Your Money Your Life podcast. Bye for now
Learn More and Get Support
Thank you so much for listening to the Your Money Your Life podcast. Wondering what’s next? When you’re ready. There are different levels of support that you can use on the path to creating unstoppable finances and your unstoppable life. After all, your finances are unique and your support should be to. Ultimately, we’ll create a customized plan to ditch financial struggle for good that works for you. Your goals, your priorities, your life. Go to https://workwithaimee.com to get started with one of our most popular programs, or you can book a q&a call with me, and we’ll figure out what your next step should be.
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