How to withdraw income on a regular schedule?
Many business owners ask me how they can pay themselves so that there is consistency and certainty.
Too often, a business owner will make withdrawals from company accounts whenever they have a specific personal requirement. The amount fluctuates depending on the amount owing on a credit card or when there is a large purchase to be made or even an annual payment for which no savings were set aside. There are also times when cash is withdrawn simply because it is available.
If you run a business, you already know that there can be a lot of volatility in revenue from one month or quarter to the next. The bottom line is that taking out cash in an inconsistent way can not only make it very difficult for your business to make spending and growth plan but also you personally because you don’t know how much money you have to live on!
How do you manage this to take away some of the stress? I suggest making consistent withdrawals. Take the time to set a budget for both your company and yourself. Then, create automatic (semi-monthly) payouts from your business to your personal bank account that are consistent with your needs and lifestyle. This way, you will avoid overextending yourself personally and you will help your business plan operational expenses that are also within its budget.
If you feel like this is all easier said than done, you’re not alone. Many business owners struggle to find this balance and it can be a work in progress if you’re just starting out. Remember that you are not alone. Know that I have gone through this very journey myself and that’s why I’m passionate about helping other business owners. In fact, I have a dependable system for doing this that I’d be happy to share with you. Would you like to find out more?
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