Hello, gorgeous Lucky Bee.
Today we’re talking about paying yourself a salary in your business:
Why you should do it,
When you should do it, and
How much you should pay yourself?
It’s going to be a really juicy conversation, and by the end of it – and hopefully by the end of today – you’ll take action that will revolutionize your business.
Prefer to listen? Press play below.
Lucky Bitch Video Transcript – Should You Pay Yourself a Salary?
Before we start, here’s my disclaimer: I’m not an accountant. I do not know your business. Please make sure you talk to your accountant before you make any tax or investment decisions because I’m not a financial advisor.
Why should you pay yourself a salary?
You might think, “I’m just a small business. I’m not making much at the moment.” Or, “I can take money out of my business whenever I like. Why should I pay myself a salary?”
Paying yourself is incredibly symbolic
Because when you’re in business, have you noticed that you’ll move heaven and earth to pay your suppliers?
You pay other people – sometimes on the day you get their invoice. You make sure those people are taken care of.
But guess who comes last?
That’s not a good message to send out to the Universe:
“Everyone else gets paid and I don’t get paid.”
It also underpins the money block I see all the time from women in business.
That is: “I don’t care about the money, I just want to help people.”
It’s like; if you don’t pay yourself a salary, then you don’t even have to acknowledge the fact that you do get paid from helping people.
You can ignore the salary and pretend you’re doing it for free and the money is only a nice little bonus, but you’re actually not going to take any of it.
Again, that’s hugely symbolic – you will work, work, work without any reward back to yourself.
Your business is its own entity, just like anything else.
Learn to give AND receive
You have to pay yourself, otherwise you’re stagnating the growth of your business.
Is this you? You’re always giving, giving, giving, and you’ll receive a little bit from clients, but you won’t truly, fully receive it.
What are you telling the Universe?
That’s why paying yourself, as the leader of your business, is such a highly symbolic thing and it will honestly grow your business.
Make your salary automatic and non-negotiable
Paying yourself a salary will encourage you to make more money because you’ll know that it’s one of the non-negotiable expenses of your business.
Have you noticed that when you have something that’s non-negotiable, you always figure it out?
You always find a way
But, if it’s not a non-negotiable, you think, “Oh, I’ll just pay it if there’s money there.”
And that’s how women pay themselves, only if there’s money left over.
There’s never spare money there for you, right?
And there won’t be until you make it a non-negotiable.
If you want to set up any healthy money habit, whether it’s savings or paying off debt, you have to take yourself out of the equation and make it automatic. Then you don’t have to rely on behavior change and most of the time, you don’t even notice.
That’s why you have to make your salary an automatic expense (even if it’s just a small amount but I’ll talk about that in a second).
It’s an action that will change your business.
Trust me, even if you do it for only a couple of months you’ll see what I mean. You’ll always find money for it, and you’ll grow your income to cover all your expenses.
You’ll see it as a non-negotiable expense, and you’ll figure it out.
You’ll find a way to make enough money
You’ll also change your belief about what you deserve to receive in return for your hard work.
“I get paid for what I do. I serve, I deserve.”
It will expand the energy of your business because your clients will feel it.
It will come out in everything you do, that you are someone who truly deserves the fruits of your success and the fruits of your labor.
It will inspire other people in your life, without them even realizing what you’ve done.
How much should you pay yourself?
Again, talk to your accountant if you have one because sometimes it depends on your business structure, and the tax brackets of your state and country.
I’ve set up my business as a limited company, and so I pay myself a tax-efficient salary, which isn’t a huge amount, but it’s tax-efficient according to my revenue and I take money out of the business in other ways. (Company tax is less than the highest personal tax bracket.)
Talk to your accountant and see what makes sense for your situation.
You can also simply choose an amount, depending on how much you’re making in your business.
Start with a small amount and it will still be symbolic
Don’t think it has to be this huge amount. Even if you just start with $50 a week and you put it on automatic transfer so it comes out at the start of every week. Start with a small amount and then give yourself a pay increase when you do great work until you’re earning a great salary.
Start low if you have to, but start somewhere.
The last thing to do is really look at your resistance around this.
What are you telling yourself about paying yourself a salary?
Are you getting into a lack mode, thinking there’s not going to be enough?
“If I pay myself, I won’t have any money in the business!”
See what else is coming up for you.
It’ll be really interesting.
Now is the time to explore some of your money blocks because when you clear those – especially the unacknowledged ones you don’t even know about yet – it will give you permission to earn more, to pay yourself more, to expand your business and to receive more into your business.
I have a great resource for you if you haven’t listened to it yet.
Actually, if you’ve already listened, go and revisit it because I’ve revamped it recently.
It’s my free Money Blocks Mini Class.
You can get that at www.LuckyBitch.com/Blocks.
It won’t take you long to go through it, but it will give you some of those aha-s around why you might be resisting accepting money for what you do; why you might be resisting getting paid for your work; why you might be resisting money in your business completely, so you don’t even have money to pay yourself yet.
It will give you those aha-s to go to the next level, start paying yourself and start receiving in return for the great work you put out.
Again, that’s at www.LuckyBitch.com/Blocks.
Download it today, tell me what you think in the comments and tell me what resistance is coming up for you around paying yourself a salary.
It’s your time, and you’re absolutely ready for the next step.
Did you miss last weeks video? Check it out here: Over-Delivering Mistakes Of Female Entrepreneurs