How Business Owners (or anyone really) Can and Should Pay Themselves First
Alright, let’s get real. Being a business owner can feel like a constant balancing act. You’ve got bills to pay, employees to manage, clients to serve… and somehow, through all of that, you’ve got to figure out how to take care of yourself financially. The solution? Pay yourself first. You’ve probably heard that phrase tossed around, but what does it actually mean? And how do you make it work when your business demands every last bit of your time, energy, and money?
Let’s break it down.
What Does “Pay Yourself First” Even Mean?
Think of it like this: before you pay anyone else—whether it’s your vendors, your rent, or even your team—you’re going to make sure a chunk of your income goes straight into your savings or investments. I know, I know—it sounds easier said than done. But stick with me here because this is the key to building real, lasting wealth.
Most people run their businesses like this: hustle, make money, spend money, repeat. And somewhere in there, they hope there’ll be a little left over for savings. Spoiler alert: there usually isn’t.
But when you prioritize yourself, when you treat your savings like a non-negotiable bill you have to pay every month, that’s when things start to shift. Your savings grow. Your stress shrinks. You start building wealth without even thinking about it.
Why You, as a Business Owner, Need to Pay Yourself First
Let’s talk about the elephant in the room: being a business owner feels like you're always reinvesting everything you make back into the company. And while that can help the business grow, what happens to you? What happens when an unexpected expense comes up, or you hit a slow month? If you haven’t prioritized your personal savings, you’re left scrambling.
Here’s why the pay yourself first method is so important:
Financial Security: Think of it as your safety net. No matter what happens in your business, you’ve got your own back.
Wealth Building: You didn’t start a business just to get by, right? You want to thrive. And thriving means growing your wealth alongside your business.
Peace of Mind: When you know you’re saving consistently, you don’t have to stress about the "what ifs."
How to Pay Yourself First (Without Feeling Guilty)
Let’s get into the nitty-gritty. Here’s how to actually do it—because knowing what to do and actually doing it are two different things (you know this).
Step 1: Know Your Numbers
You’ve gotta know what’s coming in and what’s going out. Seriously. Look at your monthly income after all your business expenses are covered. That’s your net income—the amount that’s actually yours to work with.
Step 2: Set a Percentage or Fixed Amount
Here’s where it gets real. Decide how much you’re going to pay yourself—every single month. I recommend starting with a percentage, like 10% of your net income. So, if your business brings in $10,000 after expenses, you’re paying yourself at least $1,000 first. That’s your money—set it aside for your future self.
If percentages aren’t your thing, pick a fixed number. Whatever feels doable, but make sure it’s non-negotiable.
Step 3: Automate It Like a Boss
Automate your savings so you don’t even have to think about it. Seriously, this is the secret sauce. Set up an automatic transfer from your business account to your personal savings or investment account. The less you have to think about it, the more consistent you’ll be—and consistency is what builds wealth over time.
The Benefits of Paying Yourself First?
So why is this such a big deal? Let me hit you with the highlights:
You’ll Actually Save: When you make savings your first move, you’re way more likely to actually do it.
You’ll Spend Smarter: When you’ve already paid yourself first, you’ll be more mindful of how you use the rest of your business income. Trust me, you’ll start looking at those “must-have” expenses a little differently.
You’ll Have More Freedom: The more you save, the more options you have—whether it’s taking a vacation, investing in your business, or handling unexpected life events without breaking a sweat.
Why People Don’t Pay Themselves First (and Why It’s All in Your Head)
Let’s be real—most people don’t do this because they think they can’t afford to. You’re probably thinking, “I can barely keep up with my business expenses, how am I supposed to save too?” But here’s the thing: if you don’t make it a priority, there’ll never be enough. It’s all about making the mindset shift.
And I get it—you feel guilty. Like if you take money out for yourself, you’re somehow taking away from your business. But guess what? That’s just a limiting belief. You deserve to build your wealth while building your business.
Pro Tips for Leveling Up Your Savings Game
Track Your Progress: Grab my free Wealth Tracker (linked below) to stay on top of your goals. Seeing those numbers grow will motivate you to keep going.
Increase Over Time: Start small if you need to, but aim to up the amount you pay yourself as your business grows.
Resist the Urge to Dip Into Savings: No matter how tempting, don’t borrow from your savings unless it’s an absolute emergency.
You didn’t start your business just to stay stuck in survival mode. By adopting the pay yourself first strategy, you’re setting yourself up for financial freedom. You’re not just investing in your business—you’re investing in yourself and your future. And that’s how real wealth is built.
So, what’s next? Are you ready to make this move and start prioritizing YOU?
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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