Thank you for the info. I have 4 accounts but I need to tighten up on allocating. Do you use the same bank for all 5 accounts? Also which account do you pay yourself from?
Hey! Thanks so much for watching! So the revenue account holds all of the income until it’s time to distribute it. Then I would pay myself a set %age from that account and put it into my personal account not connected to the business. I do all of my banking at one bank but if you have a hard time with controlling spending, a lot of people put some of their savings accounts in a local bank with no mobile app 🙂
Hey! Thanks so much for watching! So the revenue account holds all of the income until it’s time to distribute it. Then I would pay myself a set %age from that account and put it into my personal account not connected to the business. At first you may start by paying yourself 99% that’s ok, just work to increase the percentages for your savings accounts little by little!
I don't see how this make practical sense. Each bank account has fees associated with them. Not to mention the time for the bookeeping of 5 separate accounts. You also didn't mention payroll/commission payout. Do they come from a 6th account, or the account for rent? I just don't see how this would work from a practical sense especially for a small startup salon. I guess it's something to aspire.
If you have to start with $5 every month to allocate do it...you can push yourself more and more as you have success with putting money aside! But don’t not do it because it feels daunting to save. Everyone can force themselves to save just a tiny amount!
Once you start and it gets rolling, you almost compete with yourself to put more in each week or month and it’s kinda fun AND rewarding. You see that account number go from two digits to three and then you get close to four digits and it becomes a race. Start small and build up to your Four accounts over a set time, like a year to acquire all. Good luck!!
Saving doesn't need to start out as this big amount, even if it's just a dollar, save it! it all adds up. As your income goes up you'll be able to afford to save more! Cut out unnecessary expenses too if you have any, and this will give you more money to work with. I have a coin jar that counts as I put coins into it, with just saving my change I'm surprised at the little chunk I end up with at the end of the year. Never underestimate the power of coin saving! Cheers!
This is awesome. I'm not a stylist but I am looking into buying a salon. I won't be doing hair, just running the business side. Do you think most stylists prefer paying rent or earning commissions?
Depends on your goals. I would highly recommend going to cosmetology school or hiring a very experienced chief manager. Salons with owners who are not in the hair industry already have a reputation for not doing well.
Hey! That is totally up to you but you can start with most of it going to you and every few months re-evaluate and try to increase the %age that goes to your different savings accounts little by little!
Everyone’s goals are different but I when i start a new venture I usually start by paying myself at least 40% or even less 🙂 sometimes when you first start, you have to put more money into the business than into your income. But everyone is different. Some people have a husband who makes a good income so they can grow the business without paying themselves much at first. So I would start with something that is reasonable for your current revenue. Then set goals for yourself and slowly change those %ages🙂
Great info! Capital One 360 is great for setting up sub accounts like you mentioned. No fees. Easy to navigate.
Awesome Lauren! This is great advice. You always have a great content!
Going from commission to indecent next month, I’m not scared just worried about where to put money at. So I need to get thing together.
so so so good. thank you !!
Brilliant advise!
This is helping me start my journey thank you. I have so much work to do
Love your info!!
Love your channel babe ❤🧡💛💚💜💙✂️🔴
Very sweet thank you krystal! ❤️
Great tips!
Definitely have different account but love the idea of saving first then spending what’s left over
Great info Lauren!
Can you talk about what percentages of your sales you should spend on supplies/rent/payroll
Yes please would love to know what percentages
Thank you
Thank you for the info. I have 4 accounts but I need to tighten up on allocating. Do you use the same bank for all 5 accounts? Also which account do you pay yourself from?
Hey! Thanks so much for watching! So the revenue account holds all of the income until it’s time to distribute it. Then I would pay myself a set %age from that account and put it into my personal account not connected to the business. I do all of my banking at one bank but if you have a hard time with controlling spending, a lot of people put some of their savings accounts in a local bank with no mobile app 🙂
So important
Great info! Thank you. Can you tell us which account you use to pay yourself. Also, how do you suggest paying yourself? Thank you.
Hey! Thanks so much for watching! So the revenue account holds all of the income until it’s time to distribute it. Then I would pay myself a set %age from that account and put it into my personal account not connected to the business. At first you may start by paying yourself 99% that’s ok, just work to increase the percentages for your savings accounts little by little!
I don't see how this make practical sense. Each bank account has fees associated with them. Not to mention the time for the bookeeping of 5 separate accounts. You also didn't mention payroll/commission payout. Do they come from a 6th account, or the account for rent? I just don't see how this would work from a practical sense especially for a small startup salon. I guess it's something to aspire.
But I don’t have all the money to put in all those 4 bank accounts 😩 How do you save when you bearly starting ?
If you have to start with $5 every month to allocate do it...you can push yourself more and more as you have success with putting money aside! But don’t not do it because it feels daunting to save. Everyone can force themselves to save just a tiny amount!
Once you start and it gets rolling, you almost compete with yourself to put more in each week or month and it’s kinda fun AND rewarding. You see that account number go from two digits to three and then you get close to four digits and it becomes a race. Start small and build up to your Four accounts over a set time, like a year to acquire all. Good luck!!
Saving doesn't need to start out as this big amount, even if it's just a dollar, save it! it all adds up. As your income goes up you'll be able to afford to save more! Cut out unnecessary expenses too if you have any, and this will give you more money to work with.
I have a coin jar that counts as I put coins into it, with just saving my change I'm surprised at the little chunk I end up with at the end of the year. Never underestimate the power of coin saving! Cheers!
This is awesome. I'm not a stylist but I am looking into buying a salon. I won't be doing hair, just running the business side. Do you think most stylists prefer paying rent or earning commissions?
Depends on your goals. I would highly recommend going to cosmetology school or hiring a very experienced chief manager. Salons with owners who are not in the hair industry already have a reputation for not doing well.
So if you make 600 a week how much do you pay ur self to be able put something in to this other 3 accounts to be able to pay ur regular living bills?
Hey! That is totally up to you but you can start with most of it going to you and every few months re-evaluate and try to increase the %age that goes to your different savings accounts little by little!
Thanks For this video! What is the percentage that you use for each account? What percentage do you pay yourself?
Everyone’s goals are different but I when i start a new venture I usually start by paying myself at least 40% or even less 🙂 sometimes when you first start, you have to put more money into the business than into your income. But everyone is different. Some people have a husband who makes a good income so they can grow the business without paying themselves much at first. So I would start with something that is reasonable for your current revenue. Then set goals for yourself and slowly change those %ages🙂
Do you recommend using the same bank for all the accounts?
What account u use to pay bills
I label one checking account “bills”
Thank you