Pay yourself first, then expenses from "summary" of Profit First by Mike Michalowicz
The core principle of Profit First is to prioritize paying yourself first before allocating funds for expenses. This may seem counterintuitive, as traditional accounting practices advocate covering expenses first and then taking whatever is left as profit. However, by flipping this approach, you ensure that you are actually profiting from your business. When you pay yourself first, you are acknowledging the value of your hard work and dedication. It shifts your mindset from viewing profit as an afterthought to recognizing it as a fundamental aspect of running a successful business. This simple adjustment can have a profound impact on your financial well-being and overall business sustainability. By setting aside a predetermined percentage of your revenue as profit, you are creating a safety net for your business. This profit allocation acts as a buffer agains...
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