It's hard to know what you SHOULD be paying yourself as a self-employed business owner because likely no one told you what the best percentages are to; pay yourself, use for expenses, save for taxes, and use for profit.
(Yes, paying yourself salary and profit are TWO DIFFERENT THINGS!)🤯🤯🤯🤯🤯
Here's how I increased my salary AND Profit in 2022
1. I stopped spending 60% of my revenue (all the money you get from services without anything taken out- your TOTAL) on stupid things I didn't need. I cleaned up my account and figured out what I was spending per month and threw out the expenses that didn't need to be there.
I found an extra 30% that I was spending on ridiculous things like decor for my salon, subscriptions I had forgotten about, ebooks I didn't need, and products I wanted but didn't NEED to help my business run.
I basically started to only pay for things that were ⚡️ESSENTIAL⚡️ to my business- and anything that was UNNECESSARY I gave a really long hard thought about if it would contribute directly to making me more money.
2. The next thing I did was open up a separate checking account and skimmed 10% of my monthly income off the top of my revenue and put it in this account. This is my profit account. Just fucking leave this and don't touch it. Watch it build.
THEN, every quarter or every year (your choice) you can take this money out as a *BONUS* for yourself! 💃🏼
And if you're thinking "I don't have enough money to put away for that" 😥
If you made $300 in one day of work- that's only $30.
It's honestly not that much. 😘
Once I started doing these 2 things, I basically gave myself a ✨40% increase in income. ✨
I know managing your finances can be scary and something easy to avoid all together... but if you want to have profitable business... You have to make changes and educate yourself.
DM me on Instagram @pacificbeautycove if you want me to talk more about how I manage my money., and what ways you can make small changes to increase your revenue + profit consistently!