It’s very common in today’s business world to hear: Pay yourself first.
Logically, it makes sense, but the reality is if you don’t have any extra money in the business how in the world are you actually going to pay yourself first?
The easy answer to this question is cut your expenses. If you reduce overhead you’ll free up the resources to pay yourself. The hard part is figuring out the how behind cutting expenses, especially if you are already running lean in your company.
This is not something you just get to overnight. It’s not like today I wasn’t paying myself and tomorrow I am. What you want to do is take it in incremental pieces. So for example, let’s say you’re not paying yourself at all. Take a look at your overhead, take a look at what in your business that you could automate, and do that work to reduce the overhead to automate something so that you’re saving some money. Then, take that money and use it to pay yourself.
I’ve had clients who cut themselves a pay check and then they don’t deposit it. Or, they cut the check and deposit it, then turn around and put the money right back in the business account. This is NOT paying yourself.
It’s much better to have a smaller amount of money you actually deposit in your personal checking account, than trying to pay yourself this huge amount of money that you end up just having to put right back in your business.
Do what you can to be more efficient, to automate, to reduce expenses so that you have a little extra money to play with, and then start paying yourself first in small amounts. Small steps are the key to success here.
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