711: Income Allocation
Talking numbers with Jake Conway
One of our most frequently asked questions is, “What do I do with this money?” Once clients have gotten their overhead down and the practice is cash flowing nicely, they want to know what do to with the cash. Well, today Jake and I sit down and discuss the four accounts you need to make this a very simple process. Grab a pen, because this one is extremely tactical.
The four accounts you need:
- Operating account: 1-1.5X MBE
- Business safety net: 1-3X MBE
- Tax account: 20-25% monthly profitability
- Personal safety net: monthly spending + 5%