Pay Yourself First! The 1 Ultimate Financial Tip For Business Owners

Pay Yourself First

Pay Yourself First! The 1 Ultimate Financial Tip For Business Owners

Picture this, it’s the end of the month and your reviewing your businesses financial statements. It was a great sales month and the income is looking good! You see all of the expenses your business paid, tax money set aside for your quarterly payments, and then you notice the bottom line is not exactly what you expected for profits.

Not a pretty picture, huh? This is why it is important to remember to pay yourself first!

In this article, we will explore why this is such an important financial tip for business owners and how you can apply this practice in your life to ensure you are always able to pay yourself first.

What does it mean to pay yourself first?

Paying yourself first simply means that you should put aside a portion of the money that you earn into savings or investments. You’re paying your future self so you don’t have to work after you retire. When you pay yourself first, you are working towards securing your future as well as your family’s future.

Here are some of the ways you can pay yourself first:

  • Creating an emergency fund
  • Investing your hard-earned money in different investment vehicles such as stocks, mutual funds, or real estate
  • Buying insurance
  • Investing in retirement accounts
  • Working towards paying off your debts

These are some of the few ways you can start paying yourself first. There are many other ways to do the same, you just have to do your research and find ways that suit your situation.

Why Is Paying Yourself First Important?

There are multiple reasons why you should pay yourself first! As we mentioned above, this financial tip will help you secure your future as well as your family’s. The earlier you start, the better off you and those who depend on you will be.

Here are some of the other reasons why paying yourself is so important:

  1. Improves your personal finances: Paying yourself first will help you have a better understanding of your finances. You’ll have a better idea of how much money you are making, which gives you the opportunity to budget where your earnings are going
  2. Helps you make better financial decisions: When you pay yourself first, you’ll be more motivated to earn more money and will know how much cash flow your business needs. This means you’ll make wiser choices when it comes to your finances, including setting aside money to invest.
  3. Peace of mind: When you know that you have money saved up in case something goes wrong, like losing your job or getting into an accident, then you’ll be more at ease. You’ll also sleep better knowing that everything is taken care of.
  4. Pay off debts fast: When you pay yourself first, you’ll have more money to put towards paying off your debts. This will free up your cash flow so that you can avoid using credit cards or taking out loans.
  5. Helps you achieve your business goals: When you have a healthy cash flow, your business will run more smoothly. You’ll have the ability to hire and retain employees, improve business processes, or give back to your community.

Conclusion

So there you have it! As a business owner, you’ll have a lot of responsibilities and find ways to prosper and save money. By paying yourself first, you’ll be able to meet your personal and professional goals as well as create a better future for you and those who depend on you.

When you start applying this financial tip in your life, it will become part of your daily practice. You’ll eventually start seeing the benefits of setting aside a portion of your income for your future. You’ll also see how quickly you can pay off your debts and save money.

Not sure where to start! Click here to schedule your complimentary business consultation with one of our AMAZING MVB’s!

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