I’ve been running my solo gig for a while now, but I’m still not sure I’ve got the whole ‘paying myself’ thing down. Sometimes I just transfer whatever’s left after expenses, other times I try to stick to a fixed amount.
Curious how other freelancers handle this. What’s your approach to owner’s draw or salary?
Look, here’s how I do it:
Set a basic draw that covers my living expenses. Transfer that monthly, no matter what. It’s like paying myself first.
Everything else stays put in the business account. That’s for slow periods, equipment, or growing the business.
Keep good records. Know your expenses cold. Set aside money for taxes as you go, or you’ll get burned.
Bottom line: keep it simple, consistent, and make sure you’re covered. Fancy methods aren’t worth the headache.
I’ve tried a bunch of ways over the years. Now I keep it pretty straightforward.
I pay myself a set amount every month. It’s not huge, but it covers my bills and a bit extra. The rest stays in the business account.
At first, I’d just grab whatever was left after expenses. Bad idea. Some months were great, others I was scraping by. Made personal budgeting a nightmare.
Now, I look at my average income over 6 months, subtract regular expenses and a buffer for surprises. That’s my monthly pay. It goes into my personal account automatically.
If there’s extra at the end of the quarter, I might take a bonus. But mostly it stays put for slow times or buying new equipment.
Oh, and I learned to set aside money for taxes every single month. Trust me, you don’t want to get caught short when tax time rolls around.
I just take what’s left after bills. Not fancy, but it works. Some months are better than others. Gotta keep enough in there for supplies and gas.
I keep it simple. Set a fixed amount each month based on average income and expenses. Transfer that to my personal account.
Any extra stays in the business account for slow months or unexpected costs. Helps with budgeting and keeps things steady.
Always set aside money for taxes too. Learned that one the hard way.
I just take what’s in there after jobs.
Don’t think much about it really.
Whatever’s left is mine I guess.
Been there, done that. Figuring out pay as a solo business owner is tricky.
Here’s what works for me:
Anything extra? I leave it in the business account. It’s my rainy day fund or reinvestment cash.
This method helps me:
Took me years to get here. Started with random transfers too. This feels more stable and professional.
What about taxes and stuff? I set aside a percentage each month. Learned that lesson the hard way.