How Business Owners Should Pay Themselves First
Let’s get real: being a business owner often feels like juggling a dozen plates at once. You’ve got bills to pay, employees to manage, clients to impress… and somewhere in that chaos, you’re supposed to take care of yourself financially.
The solution? Pay yourself first.
You’ve heard the phrase, but what does it actually mean? And how do you make it work when your business seems to demand every last bit of your time, energy, and money?
Let’s break it down..
What Does “Pay Yourself First” Mean?
Picture this: before you pay your vendors, your rent, or even your team, a portion of your income goes directly into your personal savings or investments. Sound impossible? I promise—it’s not.
Here’s the problem with the usual approach: most people hustle to make money, spend it, and hope there’s some left to save. Spoiler alert: there rarely is.
When you flip the script and treat your savings like a non-negotiable bill, everything changes. You grow your wealth, reduce stress, and start building financial security automatically.
Why You, as a Business Owner, Need to Pay Yourself First
I get it—running a business feels like pouring every dime back into growth. But what happens when unexpected expenses pop up or your income takes a dip?
Here’s why paying yourself first is a game-changer:
Financial Security: It’s your safety net, giving you stability no matter what your business throws at you.
Wealth Building: You didn’t start a business to scrape by. Paying yourself helps you grow your wealth while your business grows.
Peace of Mind: Consistent savings mean fewer sleepless nights and more confidence in your financial future.
How to Pay Yourself First (Without Feeling Guilty)
Knowing what to do is one thing; making it happen is another. Here’s how you can start paying yourself first:
1. Know Your Numbers
Figure out what’s coming in and going out. Your net income—what’s left after covering business expenses—is what you can work with.
2. Decide on a Percentage or Fixed Amount
Start by setting aside a percentage of your net income, like 10%. For example, if you earn $10,000 after expenses, save at least $1,000. If percentages feel tricky, set a fixed amount you’re comfortable with.
3. Automate Your Savings
Automation is your best friend. Set up an automatic transfer from your business account to your savings or investment account. The less you have to think about it, the more consistent you’ll be—and consistency is the key to building wealth.
The Benefits of Paying Yourself First
Why is this strategy so transformative? Let me break it down:
You’ll Actually Save: Prioritizing savings guarantees it happens, no matter what.
You’ll Spend Smarter: With savings already taken care of, you’ll be more thoughtful about how you spend the rest of your income.
You’ll Gain Freedom: Growing savings give you options—whether it’s reinvesting in your business, taking a well-earned break, or handling life’s curveballs with ease.
Why People Don’t Pay Themselves First (and Why It’s All in Your Head)
The biggest roadblock? The belief that you "can’t afford" to save. If you’re thinking, “I can barely cover my business expenses—how can I save too?” I hear you.
But the truth is, if you don’t prioritize savings, there will never be "enough." It’s about shifting your mindset.
And let’s talk about guilt. You might feel like taking money for yourself robs your business. But here’s the thing: building your personal wealth doesn’t mean neglecting your business—it means ensuring you’re financially healthy enough to keep growing it.
Pro Tips for Leveling Up Your Savings Game
Track Your Progress: Use tools or trackers (like my free Wealth Tracker!) to watch your savings grow and stay motivated.
Increase Over Time: Start small, but aim to increase the amount you save as your business scales.
Don’t Dip Into Savings: Treat your savings as untouchable—except for true emergencies.
You didn’t start your business just to survive—you started it to thrive. Paying yourself first is how you ensure financial freedom, build real wealth, and create a future you’ll love.
Now’s the time. Start paying yourself first, because you’re worth it.
Comment below and let me know your thoughts! Be sure to check out my YouTube channel for the video version of this blog post and if you're ready to take your financial wellness journey to the next level, then look below for additional coaching services and resources that can help you build lasting wealth and abundance.
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