Hi - I'm a newbie and I'm curious how everyone figures out what to keep for themselves as a paycheck and what to put into your business. Any suggestions?

Thank you so much.

P.S. I have read many posts here since joining today and I look forward to getting to know everyone. Everyone here seems like such nice people!

Thanks again.

Cherrie

Hi Cherrie, lovely to see you here. I just took out what I used to give myself when I was working a corporate job and then the rest was ploughed back into my business. Eventually I was able to increase the equipment in my office, and my family benefitted from other things too. I still take out today (14 years later) the same weekly amount for myself. Don't forget to put away for things like taxes, insurances, etc - these are all business expenses.

Originally Posted by Clee6372

Hi - I'm a newbie and I'm curious how everyone figures out what to keep for themselves as a paycheck and what to put into your business. Any suggestions? Thank you so much. P.S. I have read many posts here since joining today and I look forward to getting to know everyone. Everyone here seems like such nice people! Thanks again. Cherrie

I guess it depends on where you are in your business. Right now for me every penny goes back into the business because I still have a 9-5. I use the money to update software, pay for certifications, take classes on things I want to learn more about etc. This is probably because I only have 3 clients right now. As the money flows, I will need to consider how much to take for myself as well as I plan to do this and not the 9-5.

I pretty much put everything back into the business too. Having said that, if my family or I need something and our family budget won't cover it, then I take out enough to cover that expense only. I could take out a weekly drawings amount but my cashflow is still all over the place.

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Kylie Short
Tilda Virtual Services - Making virtual personal

I'll be starting out part-time, but I plan on splitting mine about 50/50 because I don't make that much at my 9-5 (enough to live on but not a whole lot for extras like shopping and vacations). Most of that 50% though will go into savings for school, moving expenses (I hope to move within the next couple of years) and savings so that I can build up a little nest egg for when I do go full-time. My hope is that I'm making enough by the time I move to FL that I can just about go full-time with my business and maybe only have to work part-time or as a temp to make up the difference.

The other 50%, of course, will go back into my business and I'd like to divide that even further to create budgets for marketing, training, networking events, software, etc. (like maybe 10% towards each or different percentages depending on what costs more or what I'd like to get sooner)

Keeping in mind, of course that this 50/50 is after I cover the necessities like taxes and membership fees.

Guess I'd better get cracking. I have a lot of money to make....lol

I think it all depends on your situation. Is your VA business currently your only source of income? Do you have retained/monthly clients? How quickly are you looking to develop your business? What are your overall needs?
As a business owner there are several financial sacrifices you make, such as skipping a pay check.

Personally, I pay myself my living expenses plus 25% more. The rest goes back into the business or an interest bearing account. I try to use as many free resources as I can find to keep business costs to a minimum.

I plan on putting 25% aside for taxes and then splitting the remainder 50/50 for the time being. I still work a JOB and make pretty good money but my kids seem to get more expensive by the day, and I'm a single mom so money is always an issue in my house.

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Deb Frawley
Gem's Virtual Office

this is how I aim to split my $XX per hour rate charge:

* I pay myself a set amount - this less any tax due is my take-home (I will prob. be putting 25% of that in the business)
* I put about 60 cents (per hour) towards any phone bills (i.e. cell and broadband) - this will depend month-to-month depending whether how much top-up i use for my phone!
* About $1.60 (per hour) will go towards any computer equipment and new programs (yes, that's right, I'm thinking about getting a PC... but it won't be until mid-summer when I have finished taking leave as I won't be able to get to PC world til end of june :s)
* 46 cents (per hour) will be put aside for any incidentals (if there's none, then profit!)

Remember that I also have a JOB part time - that is why I will be doing my take-home at a Per hour rate

Don't forget that there is a calculator on this - http://freelanceswitch.com/rates/ it is a great tool that you just fill in!

I created a monthly budget for Goddess: utilities, website, marketing, etc. I then totaled the quarterly (taxes), and annual costs (domain, licenses, insurance, etc.) and divided them by 12 listing them as a 'amortized annual' expense on the monthly budget. Annual expenses from the monthly budget are placed in a savings account at the end of each month until they come due, then transferred to checking to pay them. Any income over the monthly budget goes to the household as a supplement (since I still work a 9-5).

I will continue this method even after Goddess goes full-time as all income for a llc is considered personal, anyway.

Originally Posted by Lia-VSS

this is how I aim to split my $XX per hour rate charge: * I pay myself a set amount - this less any tax due is my take-home (I will prob. be putting 25% of that in the business) * I put about 60 cents (per hour) towards any phone bills (i.e. cell and broadband) - this will depend month-to-month depending whether how much top-up i use for my phone! * About $1.60 (per hour) will go towards any computer equipment and new programs (yes, that's right, I'm thinking about getting a PC... but it won't be until mid-summer when I have finished taking leave as I won't be able to get to PC world til end of june :s) * 46 cents (per hour) will be put aside for any incidentals (if there's none, then profit!) Remember that I also have a JOB part time - that is why I will be doing my take-home at a Per hour rate Don't forget that there is a calculator on this - http://freelanceswitch.com/rates/ it is a great tool that you just fill in!

love that site. thanks for the link!