by Tina on October 10, 2013
This came at just the right time. As I’m working with a mentor and being
asked what I’d like my income growth to look like, I am working
backwards to figure out exactly what MY income is vs. my business
income. I hear you on the mental adjustment, and I think I’m doing well
there. But on the practical side, HOW do you calculate this or HOW do
you recommend separating your business income from your personal income?
this may seem like an overly simplified answer Ally, but all I do is make a list. I have a spreadsheet for all of my personal (life) expenses and likewise I have one for my biz expenses. Within that I usually have two columns of what I *need* at the very basic level + what I want – for both personal and business. ie: I may want to take a vacation with the kids this year but I don’t need to. Once you are clear on both those numbers – you add them together and that makes your overall financial goal for your business. Then – you pay yourself the personal piece from the business accounts each month. (assuming that you have a separate account for business and personal – which is a must)
Thank you Tina for sharing how you make your spreadsheet. Simple and doable. I’m doing it right now and can already feel the impact it has on me (and my business) to see the specific numbers and categories!
Good point. We begin thinking about this mentally then move into structurally setting it up. This is a great topic that I personally would love to hear more about. Thanks Tina for creating this video. I’ll keep an eye out for more.
so important to start to think this way, I agree
Great perspective…it’s really important to invest in the business as it grows. I’m thinking about this in terms of development and establishing a foundation.
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