Now that Quickbooks has a built in function to help us implement Mike Michalowicz’s “Profit First” formula we have come up with 4 reasons why not paying yourself first is wrong.
1. You don’t make enough money
Make a plan – as brief or as detailed as you want – as long as you have a good idea of your monthly expenses and income. Perhaps there’s an opportunity to eliminate certain expenses you pay but have forgotten about, or to limit expenses you overspend on.
2. There is no impact to paying yourself first
When you choose to pay yourself first, you are wiring your brain that your greatest financial priority is your financial future.
3. Paying yourself first is too complicated
The answer is just to start somewhere. With a fluctuating income, you might decide to set aside 10% of client deposits or your paycheck before paying any bills.
4. You don’t have the discipline
A major part of financial success depends on doing things that aren’t fun. There are plenty of tools that can help alleviate some of the burden. For W2 earners my favorite tip is automate by splitting a direct deposit across multiple accounts .
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