While this list may seem intimidating, let me help you simplify this. As a starting point, here are some general rules of thumb below:
1) Emergency Fund - Save a minimum of 3 months for both your business and personal expenses. The number of months depends on what you feel comfortable with. As you reach this number, you'll become more confident about paying yourself and fully embodying an entrepreneur.
2) Taxes - Put away at least 30-35% of your business profits, this is fairly conservative when you’re just starting out. Tracking your business and personal expenses diligently is the best way to ensure you are maximizing your writeoffs. If you're just starting out, my course biz money 101 breaks down the basics. Once you're ready, invest in a tax strategist.
3) Health Insurance - Mark your calendar for open enrollment, this normally happens between Nov 1 and Dec 15. Check out healthcare.gov for coverage options. For a 29-year-old in AR, premium plans range from $300-400. Shop around to make sure your health insurance plan best suits your needs.
4) Retirement - As you get comfortable with paying yourself, start with putting away 20% of what you pay yourself and increase from there. The SECRET SAUCE is $500 invest per month over 30 years makes you a millionaire. If you want to learn the steps and how to accelerate this, consider joining @theinvestherclub to learn about investing.
💸 It is YOUR time to accomplish all of your financial goals! Comment down below a goal you want to be able to financially support!
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