Today I’m answering the question. . . “How do I pay myself?”
This question comes from a photographer who is in her 2nd year of business. The first year was all about getting her business running and getting clients, and now that she’s starting to make some money she wants to know how to start paying herself.
Maybe you’re in a similar place, there are clients coming in and some months are good, while others are a little scary. The money isn’t steady yet, but you’re feeling good about the progress you’re making.
And now, you’re wondering how to start paying yourself in a way that feels good, especially during the early years when there seems to be more going out (in expenses) that is coming in (in income), I’ve got you, sis! That’s exactly what this video is about!
Manifestation is always working. The question is: Are you focused enough to make it work in your favor?
I get it, paying yourself can be hard, at first. But here’s the thing:
At the end of the day, you are the most important employee in your business, whether you are working solo, or whether you have a team, your business cannot function without you, you are the heart and soul of it. You have to start making yourself a priority and taking care of yourself financially!
When you pay yourself, even if it’s just a little bit at first, you will have an entirely different mindset that you carry with you and you’ll show up in your business with a different energy. You’ll show up feeling valued, respected, and more confident in the work you do.
When you value yourself, you’ll send out that “I’m worth it” vibe, and others will value you, too. You’ll own your worth, stand confident in your pricing, and attract clients to you who also value your work and are willing to invest in the services you offer.
What is the “Right Way” to Pay Myself?
The right way is the one you’re most comfortable with. People often ask me, is there a formula to use so that I know how much to pay myself? And when you start to become profitable, there are formulas we can use to ensure that you’re setting aside enough for expenses, taxes, emergencies, and so on (I teach this in my coaching programs). When you’re new to paying yourself, though, the formula isn’t as important as the habit.
First Things First. You Need a Separate Bank Account!
If you haven’t already, you’ll want to open a dedicated checking account for your business. This is where all of your income from clients will be deposited. This is also the account you’ll use to pay all of your business expenses, including writing yourself a paycheck (or transferring money from this account to your personal account, which is the same concept).
How to Start Paying Yourself
- Every time you collect money from a new client, give. write yourself a check. Even if it’s just 10%, it’s something! And it will feel so good to be compensated for the work you’re doing! It will transform your money mindset, I promise!
- Give yourself incremental raises over time. After you’ve developed the habit of giving yourself 10% of the income you receive from each new client, bump it up to 15% and then 20%. Who doesn’t love a raise? And the increase in “salary” will help you to energetically align with your increasing value. After all, the more experience you gain, the more valuable you become right? And at some point, you’re going to want to raise your prices. This practice of giving yourself a raise will get you into the habit of incremental increases which will make raising your rates a whole lot easier when the time comes!
How to Pay Yourself What You Actually Need
In other videos, I’ve talked about using the Good-Better-Best Formula to set money goals. This is the best way to determine how to price your services so that you can get out of financial freak-out mode and into a place of financial ease and abundance so much faster!
In a nutshell, your “good” money goal is the amount of money you need to survive month to month. Your “better” money goal is the amount of money you need to breathe easily. And your “best” money goal is the one that makes you dance like nobody is watching! 🙂
Once you’ve got those money goals set, all you have to do is create a solid strategy and action plan to hit ’em, which means selling your value-based offers to the amazing clients who are ready to work with you! And boom! You’ll be hitting those badass money goals before you know it!
The Bottom Line?
You absolutely need to take care of yourself first. You need to value yourself as an employee and as an important part of your business. You need to honor and respect the work you do. And when you do, you’ll become a magnet for the people who value and respect you, too.
It’s both a mindset shift and a mental habit that takes a bit of time to master. But it’s worth the effort. You’re worth the effort! If you’d like a little accountability and help to work through your money mindset blocks, owning your worth, and learning how to package your value into premium offers that sell. . . check out my private and group coaching programs!
And, if there is anything I can do to support you, I’m always here! xo
Ready to get your Pricing on Track?
Pricing Calculator Workbook
More Awesome Resources Related to this Episode. . .
Mindset Switch Book. I wrote this book to simplify the Law of Attraction process and give you a step-by-step guide to leveling up your thoughts, transforming limiting beliefs and manifesting anything you want into your life, including clients and money!
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Love you to pieces,