I've been doing this "thing" since 2010 and I'm pretty frustrated. Frustrated with myself for not realizing I was managing or rather, not managing the financial side of my business correctly.

Here's the way I handled my finances -

1. I'd get a check from a client and then I'd transfer over 30 percent to a business savings account to pay my quarterly taxes. Every single check.
2. When I had enough in the bank I'd take out my operating expenses. IF there was anything leftover I'd then pay myself.

The correct way to do things is WAYYYY different from this according to "Profit First" by Mike Michalowicz. Get this book!! It will make you see the light and how to save your business. I'm lucky that I'm still operating to be quite honest because most businesses would have gone under and I know if my household depended on my income then we'd be in serious trouble.

In 2018, I'm turning over a new leaf and I'm actually going to turn a "profit." I didn't even know what a true profit was. Isn't that what it was when you paid yourself after everything else? God, no!! I'm really showing you my ignorant side right now and that's called being vulnerable, but if it helps even 1 person then so be it.

My client/friend, Gwen Daubenmeyer, of the Integrity Team, recommended this book. She has no idea what an influence she is in my life. When certain people recommend things to me I don't walk, I run to see what it is all about. Gwen is one of those people. Linda Hall and Nicole Mickle are two other women who fall into this category.

Here's what I need to be doing, but for the worksheets and the percentages, you will need to buy Mike's amazing book. I got the Audible version and the worksheets I printed online from his website.

Profit First is just that. The most important thing is to set aside a set percentage of the money coming in. There's a profit sector, your pay & employee's pay, taxes, and operating expenses. IF you cannot separate the money out and pay your bills LAST then you're overhead is too high or you need to find a way to bring in more each month. I think a combo might be good.

He explains we spend what we make. It's part of human nature and I see that. If you don't see it or have it readily available then you won't spend it AND you'll turn a profit. There's way more to this book than this simplified version, but it is life-changing.

Comment if you've read the book and want to share your viewpoint. Buy it for someone. Share it. I've already recommended it to another client of mine. A great way to start off the new year!!