It's difficult to plan your personal finances as you begin to grow your business, especially when it's irregular or severely impacted by outside forces (*cough* COVID-19 Pandemic)!
Here are a few tips to smooth out your personal finances even though you might experiences valleys and peaks in your business income.
- Plan out how much money you need to live off of for one month, it is important to include items such as rent, food, utilities, etc.
- Setup a pay day where you pay yourself, and transfer this amount to your personal checking from your business account
- Take a look at your net profit, and put 30% into savings for taxes
- The balance stays in your business account to cover business expenses and a slow month's pay day
