If you run a home-based business, there are a few easy principles that you should remember. One of them: give yourself a salary.
When running your own business, it’s common to get caught up in the ordeal and just funnel a great deal of the profit from your work back in to the company. Buying new equipment, upgrading infrastructure, etc. Running a business isn’t easy, but it is easy to overlook the need to pay yourself.
Hopefully your business makes enough money to support you and itself, and while the business is young it may be best to keep the funds right where they are in a company bank account, you also need to know when to pay yourself. I’m not talking buying lunch or dinner occasionally, I mean literally giving yourself a bit of money to live on or have fun on. If all your business is doing is paying it’s own bills, you’ll get really sick of doing the work for nothing eventually. So leave yourself some breathing room. Don’t plan every penny to go back to the company.
Of course, paying yourself at the cost of missing a bill payment isn’t really the way to go.