Looking to implement Profit First while also increasing revenue and spending less time in the business? Check out our group mentoring program here: adventuretoprofit.com/
Hi -- this is very interesting. How do you deal with credit cards? For instance, what happens if you purchase groceries with credit? How do you account for that? Thank you
I highly recommend credit unions for that. They usually don't have fees. Just speak with one of their bankers ahead of time to make sure there are no fees and that they will support multiple accounts.
For my personal finances I have 30% go into my "daily" expenses account, and 30% go into my "monthly" expenses account. The rest is divided up to make debt payments, set aside for taxes (my husband is an independent contractor) and savings. I have no idea what is "normal" for everyone else, but I just took my bills and divided it by my income to see what I needed in each account.
Matterhorn Business Development Thanks!! I would definitely agree that percentages are going to be different for everyone depending upon salary and cost of living. I was just curious what percentages you were allocating! Much appreciated!
Your expenses for each account divided by your income will give you a percentage. You will probably have to play with it for the first 90 days to get it right.
Hi! This is great, thank you. How do you determine what percentages to allocate your accounts after the monthly bills are paid? Or even before? In PF, Mike sets the fixed percentage for Op Ex and you have to fit your monthly expenses into that budget. Do you do it the same way? If so would like to hear about it. Thanks.
For my personal finances I did it a little backwards. I first created my monthly budget, since most of my expenses are already fixed: car, rent, insurance, etc. I looked at what I was spending on other things or course too, groceries, eating out, etc. Then I figured out the percentage of those expenses based on my income. Then like I said in the video, I have my “monthly” account with a certain percentage and my “daily” account with a certain percentage.
Im happy see this video , I was just thinking about this. Can I Make my household profit? Maybe its not profit, Maybe its save using the profit first system. So before I even watch the video,,, Im just happy to know people are thinking about it.
These are going to be personal to you and your finances! Start by writing down all expenses that fall into the categories mentioned in the video, then figure out your average monthly income and what percentage each category is. If you have specific goals, for example you want to be saving 5% into a house fund but are only saving 1% right now, slowly build up to that goal percentage!
Looking to implement Profit First while also increasing revenue and spending less time in the business? Check out our group mentoring program here: adventuretoprofit.com/
Thx I was wondering about applying these concepts to my personal accounts as well to keep track of expenses.
Thanks for the video! Would credit card payments and student loan payments fall into debt or monthly?
I would put them in the debt category!
Hi -- this is very interesting. How do you deal with credit cards? For instance, what happens if you purchase groceries with credit? How do you account for that? Thank you
I do that to get points from my credit card, but pay it off in full from my “daily expenses” account.
What bank (s) work best for multiple individual personal bank accounts without all the fees? Thanks and thanks for the video too.
I highly recommend credit unions for that. They usually don't have fees. Just speak with one of their bankers ahead of time to make sure there are no fees and that they will support multiple accounts.
Curious to know your allocation percentages if you’re willing to share!
For my personal finances I have 30% go into my "daily" expenses account, and 30% go into my "monthly" expenses account. The rest is divided up to make debt payments, set aside for taxes (my husband is an independent contractor) and savings. I have no idea what is "normal" for everyone else, but I just took my bills and divided it by my income to see what I needed in each account.
Matterhorn Business Development Thanks!! I would definitely agree that percentages are going to be different for everyone depending upon salary and cost of living. I was just curious what percentages you were allocating! Much appreciated!
how do you figure out the percentages? for each account?
Your expenses for each account divided by your income will give you a percentage. You will probably have to play with it for the first 90 days to get it right.
Hi! This is great, thank you. How do you determine what percentages to allocate your accounts after the monthly bills are paid? Or even before? In PF, Mike sets the fixed percentage for Op Ex and you have to fit your monthly expenses into that budget. Do you do it the same way? If so would like to hear about it. Thanks.
For my personal finances I did it a little backwards. I first created my monthly budget, since most of my expenses are already fixed: car, rent, insurance, etc. I looked at what I was spending on other things or course too, groceries, eating out, etc. Then I figured out the percentage of those expenses based on my income.
Then like I said in the video, I have my “monthly” account with a certain percentage and my “daily” account with a certain percentage.
There are no fixed percentage ranges for divvying up your personal income.
I always struggle with the fun account, debt, financial goals. How do you work that out?
@@Starz09 thanks so much for your reply! How do you figure out the percentages for each when it is personal income not business income?
this is awesome!
Awesome breakdown! Been trying to figure this out and this is a great explanation. Thank you!
Glad it was helpful!
Im happy see this video , I was just thinking about this. Can I Make my household profit? Maybe its not profit, Maybe its save using the profit first system. So before I even watch the video,,, Im just happy to know people are thinking about it.
That’s great! Using it in my personal finances has really helped.
Thank you for the video. This is a helpful start. I'm a little unclear on this: are you using %'s or ##s?
%'s are better if your income is irregular. Larger income weeks will then make up for lower income weeks.
Nicole Ayers
0 seconds ago
love all the account ideas! But what % of your income to you allocate to each of the other 5 accounts?
These are going to be personal to you and your finances! Start by writing down all expenses that fall into the categories mentioned in the video, then figure out your average monthly income and what percentage each category is. If you have specific goals, for example you want to be saving 5% into a house fund but are only saving 1% right now, slowly build up to that goal percentage!
Thanks for sharing!
You’re welcome! Thanks for watching!
Savings Account ??
Abby, great info.
Thanks!
From which do you pay your existing debt?
I have a specific account just for debt, with a certain percentage going there to make minimum payments but also pay it down faster.
@@MatterhornBusinessDevelopment I see. So that’s part of your 40%?