770: How To Allocate Profit
It can be easy to feel guilty about spending money on ourselves. Today’s show is about eliminating that feeling of guilt by proper cash flow management. In this quick episode, I walk through the four accounts we recommend, the purpose of each, and how they should be funded. The peace of mind that it creates is well worth it.
The four accounts we recommend:
- Operating account: 1-1.5X MBE
- Business safety net: 1-3X MBE
- Tax account: 20-25% monthly profitability
- Personal safety net: 6 x monthly spending + 5%