posted in: Bookkeeping

Today I want to challenge you to change your money mindset.

Most businesses are run the same way – first, revenue comes in from selling your products and services. Then you subtract your expenses. What’s left over is your profit.

The worst part about this business model is the expenses tend to take over and you don’t have much money left over (if any) to pay yourself.

So, today I’m going to challenge you to change your money mindset.

What if you take your revenues (the money your customers are paying for your products & services). Then you PAY YOURSELF FIRST. After you pay yourself, the rest of the money goes to paying taxes and the leftovers are for paying your employees, vendors, suppliers, office space rent, etc.

This is a great way to cut back on frivolous spending and scale back the random expenses that tend to take over. Instead of scraping by on leftovers, putting yourself first guarantees you will be paid what you are worth. Then you can prioritize who deserves to get the left overs.

Give it a try! I bet this system helps you improve cash flow by forcing you to look long and hard at those non-necessary expenses that you’re used to throwing money at. Best part, you’ll start putting more money in your pocket, allowing you to build the wealth, and operate the business in your dreams.