How to Create Your Own Paycheck Using a Money System

 

I know you like being your own boss, but do you ever have paycheck envy? Do you ever wish you could get a paid vacation? Do you get tired of the feast or famine in your personal income? Especially with creative or freelance work, this can be a real issue for some of us. Fortunately, when you create money systems around your business income, you can create a solopreneur paycheck, by paying yourself first.

The System

Setting up a paycheck for yourself is simple. Every time you collect income, set aside a portion in a separate account just for your pay. Then pay yourself out of that account, but leave a portion in the account. The balance in this account will build over time so that you eventually have a cushion built up to even out dips in income, or even pay yourself while you take a holiday.

Determining Amounts

How much should you pay yourself each round? A good place to start is keeping track of your personal expenses and ensuring you cover those every month. After that, it’s a simple question of what to do with any extra income you may have made that month. You may choose to leave it all in the account to build up your balance, or take out an extra allowance if you’ve earned a reward. Setting up reward systems for yourself can be another motivator to keep your money systems consistent, organized, and ensure they meet your needs.

More in-depth information on creating a solopreneur paycheck can be found in my money mapping series. Part II discusses setting up a solopreneur paycheck in the context of your larger money system.

If you liked reading this, you might enjoy my free eBook, the Cash Flow Reboot Guide. This resource gives you a bunch of actionable steps to take to ensure that your business can thrive through times of financial uncertainty. Click below to grab your free copy!

By |2022-04-11T12:05:06-07:00April 11th, 2022|Categories: Profit First, Small Business, solopreneurs|Tags: , , , , , , , , , , |0 Comments
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3 Tips to Financially Prepare Your Small Business for the Holidays

It’s important to be proactive when it comes to the holidays. They bring a host of financial challenges and opportunities for small businesses. Let’s talk about three ways you can prep your business for the holidays, so that you’re able to have a profitable and satisfying holiday season, without stressing out.

Reflect on This Time In Past Years

Look back to your records to see what happened in your business in past holiday seasons. Which events, specials or sales, and products were the most profitable? If something didn’t go the way you planned, how can you improve on what you did the last few years? This will give you good data to help you focus your offerings this season.

If your business is relatively new, you can simply reflect on the past year and what’s been most profitable for you. Chances are you know what your best-selling products or services are. How can you make sure you have the resources to sell a lot of them? What strategies do you want to use to promote that offering during the holiday season?

Having access to clear financial records is extremely helpful when you’re doing business planning like this.

Plan Sales and Specials

Small Business Saturday and Cyber Monday are coming up soon, as well as a host of other times when businesses typically offer sales or specials with their products. Consider whether you’d like to participate in these dates, and how your business is best suited to do that. Perhaps you can focus on promoting packages to up the dollar amount spent by each customer, or offer a deal on your bestselling offering.

Alternatively, you may decide not to participate in these dates, or to do so in a different way. Some small business owners choose not to take part in these events, because it doesn’t feel right to them, or because they choose to celebrate Buy Nothing Day. Even some larger businesses opt out, or take a different path. Deciem, a large skincare brand, holds an annual sale for the entire month of November, to discourage “hyper-consumerism.”

The choice is ultimately yours. Whatever sales schedule you decide to follow, you will also want to take into account your production timeline. Right about now is when many product-based businesses start beefing up their inventories. Here’s an article I wrote for product-based businesses on how to financially survive this process.

If you’re a service-based business or selling digital products, there may still be some considerations for you around your schedule during the holidays. If you’re providing 1-to-1 services, for example, how will your availability change during the holiday season? How can you allocate your resources to ensure you’re able to deliver and make a profit?

Prep for Events

You’ve likely signed up for whatever craft shows, expos, or web events you’ll be participating in during the holidays (or maybe you haven’t yet and now is a good time to think about that!). Now is the time to think strategically about what you can do to get the most out of these events. I wrote an article on upping your profit during holiday events which you can read here.

If this post was helpful for you, you might like checking out my free eBook, The Cash Flow Reboot Guide. This 9-page resource can help you brainstorm to get prepped for a profitable holiday season. Download it for free here.

☮

Angela

Photo by Kira auf der Heide

By |2021-10-15T11:43:38-07:00October 15th, 2021|Categories: Cash Flow, Small Business, solopreneurs|Tags: , , , , , |0 Comments
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To Find Clarity and Focus, Do a Mid-Year Review Pt. II

This is part two of a two-part series on doing a mid-year review of your business! You can find part one here. 

So, now that you’ve reviewed your work so far and adapted your strategies and goals appropriately, it’s time for the next few steps. These are intended to really up the feeling of getting a fresh start, while enjoying your business for what it is: a way to meet your life goals.

Refresh

For an extra dash of clarity and focus, include a refresh in your review process! Now is the time to do whatever necessary maintenance you might need to grease the wheels of your business. You might clean your workspace, clear your inbox, or centralize your passwords. Attend to your physical and digital spaces. Check in with your finances, and schedule an appointment with a bookkeeper. 

This is usually my favorite part of the review process, because I make time to do all the little things that have been nagging me, like scheduling lower priority appointments, finding that one piece of paper, and sometimes making a new goal chart for myself. Giving yourself the time and space to get organized can save you time and effort down the road. It can also add ease to your everyday business functions – which is an added bonus!

Celebrate

Go back to step one, and take stock again of all you’ve done this year, including this review process. Chances are, you will find you’ve done quite a bit of work towards your goals, no matter how close you might be to completing them! Take some time to celebrate all the work you’ve done. Treat yourself to an afternoon off, a fun or inspiring event, or whatever you’d like to do to celebrate your achievements so far! Being a self-starting solopreneur is hard work. If you’ve done the work, you deserve to cheer yourself on once in a while.

If you busted through this whole review process, congratulations. I’d love to hear from you about how your business functions going forward, or if there are any little things you’ve added to the process. Just leave a comment below or shoot me an email at angela {at} atpeacewithmoney.com. If you think you could benefit from working through this process with an accountability partner, you know where to find me – just check in on my Services page.

☮

Angela

Image Source: Emma Matthews

By |2019-06-27T20:35:35-07:00June 27th, 2019|Categories: Financial Clarity, Money Mindset, Profit First, Small Business, solopreneurs|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , |0 Comments
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To Find Clarity and Focus, Do a Mid-Year Review

Goal motivational quote

We’re six months down the line. How are you doing with your goals? Have you totally crushed them, worked on them bit by bit, or are you not sure? In the thick of things, sometimes our focus on our goals can get a little murky. Here’s the first two steps of a two part series on doing a mid-year review (steps 3 & 4 can be found here). Let’s jump in:

Review

Step one in a mid-year review is the review, of course! When you take a look at the goals you’re working towards, it’s easy to get bogged down by focusing on what you still need to do. Instead, train your focus on what you’ve already done.

Start by making a list of milestones you’ve hit or steps you’ve completed. Rifle through your day planner or old to-do lists if you need a refresher. Go back through the year, month by month.

Now, it’s time for a little introspection. Take stock of all the actions you’ve taken towards your goals, and then ask yourself a few questions: How do I feel about this goal? Do I still want to achieve it by the end of the year? Is that feasible? At what pace have I been able to work toward this? What’s my capacity been like?

Don’t be afraid to drop things or add new things. Some goals may simply no longer excite you, or you may have realized that another achievement is more important or time sensitive.

During this review process, it’s also helpful to take a look at the systems and work routines you have in place for your business. For example, you may have set an intention to review your numbers once a week, or you may be trying out the Profit First system. Evaluate the effectiveness of your systems and routines. Are they working for you? Do you have time to do these things? Are you consistent? You may find that your routines need to be simplified or tweaked to be more pleasant. Or, you might find that your systems and routines are working just fine! Both are vital evidence when checking in on your business.

Learn and Adapt

Next, it’s time to use all of that evidence you’ve gathered to adapt your goals and practices. First, notice if you have any goals that you are either discarding or adding. Next, examine the pace at which you’ve worked on your goals. These pieces are important when it comes to planning out the rest of your year.

I recommend drawing or writing out a map for the next six months. Include any events relevant to your business, like conferences, trade shows, or gallery openings. Then, begin to write in milestones you hope to meet in the next six months. Make sure these are realistic! Don’t pressure yourself to level up in three months if it took you six to get where you are now. Instead, allow yourself the space and time to achieve things incrementally.

When you’re making your plan, be sure to adapt your goals to what’s worked so far this year. If you really love a certain routine or feel fired up to keep working toward a certain goal, go for it. If you’ve stalled on a project because you need to do more research, carve out some time to go back to the drawing board. When charting your course, keep your own needs and preferences in mind.

The next two steps will coming out in part two of the series, but I think this gives you enough to chew on for now! If you haven’t yet set goals for your business, or would like some more help thinking them through, check out my article Set Informed Income Goals. And of course, I am happy to walk through the goal setting process with you. All three of my service packages are focused on helping you set, work towards, and achieve goals. If you find you might appreciate some accountability or guidance, head on over to my Services page and schedule a curiosity call. 

☮

Angela

Image Source:  S O C I A L . C U T

By |2022-05-12T13:55:30-07:00June 20th, 2019|Categories: Financial Clarity, Money Mindset, Profit First, Small Business, solopreneurs|Tags: , , , , , , , , , , , , , , , , , , , , , |0 Comments
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Getting Health Insurance If You’re A Solopreneur

Health insurance is often one of the biggest reasons people cite when they talk about why they don’t leave their job to start something of their own. Having your basic health needs covered contributes to the peace of mind and focus you need to really run a business. Figuring out health insurance on your own might seem scary, but it’s not impossible. In fact, about 18 million people buy health insurance on their own. So how can a solopreneur find health insurance that works for them?

Well, I did a little digging and came up with a couple ideas, plus a lot of resources. Here are my findings:

Don’t Freak Out About Numbers

If the sheer cost of health insurance is what scares you, this might calm your nerves. According to the Department of Health and Human Services, in 2016, the average American holding a federal Marketplace plan paid $106 per month, after subsidies. Of course your individual costs will differ depending on your situation, but I like to throw out a statistic just to help us all relax.

Assess Your Situation

Now it’s time to get into the nitty-gritty. What is your situation, and what are your needs? Are you able to qualify for subsidies through the ACA? Do you qualify for COBRA coverage? Do you qualify for Medicaid and CHIP programs in your state? (Note: These are all links to Healthcare.gov which you can click on for more info on each type of coverage)

How many people are you trying to insure? If you have a spouse, can you get on their plan at low or no cost? Determine what your needs are, what you qualify for, and any special concerns you have. Once you’ve got that information, you can begin the next step.

Shop Around

Once you’ve established your needs and what you qualify for, it’s time to shop around. There are an incredible amount of options when it comes to solopreneur healthcare. If you’ve explored the marketplace options above and found none of them work, it’s worth looking into the various group options available to you. These include the Freelancers Union, which offers a range of plans. There are also some religious groups who have ventured into buying group insurance through a money pooling system. If you’re interested in this option, check out the Alliance of Health Care Sharing Ministries, Health Share, and Samaritan Ministries. There are also often local professional groups or organizations that offer group health plans. It’s worth looking into any local options that might exist in your area. Finally, you can get healthcare as a business, if you are a legally registered business.

Another option to compare is taking a high deductible plan that includes a health savings account, or HSA. HSAs allow you to put money away in a tax-sheltered account, meaning you can save up for medical emergencies without being penalized come tax time.

Sometimes it can be helpful to talk to an insurance broker who represents various companies and go through all the different options with you. As you can see, there are quite a few. The more you look and compare, the more likely you are to find an affordable plan that works best for you.

How To Get Health Insurance As A Solopreneur: At Peace With MoneyFurther Reading

For further reading on the topic of health insurance, I recommend a couple articles. “Health Insurance For Freelancers: 12 Viable Options,”“How To Save On Health Insurance as a Freelancer in the Trump Era”, “Health Insurance for the Self-Employed”, “Health Insurance for Creatives”, “5 Places to Find Health Insurance for Freelancers and the Self-Employed” and HealthCare.gov are all current, helpful resources. They contain even more information about unions, group plans, short term plans, and the particulars of the ACA. If you feel like you need a broad explanation, check out the videos “Health Insurance Terms You Need to Know (In The U.S.)” and “The Structure and Cost of U.S. Health Care”.

Phew! Well, I hope that’s enough information to get you started. There’s certainly a lot to know about the ins and outs of health insurance, but that shouldn’t stop you from pursuing the solopreneur life you dream about. If you’re interested in talking to me about the financial particulars of your business, check out my Services page and schedule a call! I hope these resources empower you to shape your life the way you want to.

☮

Angela

Image:  Rodion Kutsaev

By |2019-04-13T21:13:34-07:00April 13th, 2019|Categories: Small Business, solopreneurs|Tags: , , , , , , , , , , , , , , , |0 Comments
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Artists Define Their Own Business Success

Artists Define Their Own Business Success: At Peace With Money

Have you ever noticed that a lot of business advice focuses on how to get wealthy, fast? It’s as if many people view business as a pathway to the motherlode, and little else. But not everyone wants to be the CEO of the next Fortune 500 company. And that’s ok! It just means we need to turn somewhere else for our business advice.

The conversation I had with Megan Auman a few weeks ago was all about another kind of business mindset – seeing your business as a way to sustain your artistic pursuits. Instead of the end goal being amassing the world’s wealth in your bank account, Megan talked about small business as a strategy for fueling an artist’s livelihood. Here are a couple of my favorite points she raised during our chat.

Find Advice that Speaks to Your Vision

So much business advice speaks to people who want to run a million dollar company. Megan indicated that the prevalence of this point of view in business circles could often be hurting artists or driving them away from business altogether. For this reason, it is so important that we start talking about different goals and models for business.

In my last post, I mentioned that artists often want to spend more time doing their creative work, and the best path towards making that time is to make more money! Even if artists don’t want to be a CEO at a computer all day, there is still an incentive to run a profitable business. The key is finding voices who understand and respect what artists need.

The Profit First model and Megan’s courses are two great resources for an alternative view of business. Rather than seeing business as a race to amass capital, both sources look at business as a way of meeting the owner’s needs and sustaining the work they enjoy doing.

Business Automation

While we were talking, Megan brought up the 4-Hour Work Week, the hugely popular book by Tim Ferriss. She mentioned how the book highly encourages business automation, so that business owners can spend more time lounging on the beach. Business automation can also be a great tool for artists and makers, according to Megan. However, instead of beach bumming, artists can use the time freed up by automation to spend more time working in the studio, doing the things they really love.

Artists Define their Own Success: At Peace With MoneyOverall, Megan stressed the importance of understanding what you really want from your business and your life, and structuring it to include more of what you want. Whether this is more time in the studio, more time with your family, or less time spent on certain tasks, automation helps creatives focus on the work they really want to be doing. I have written a little bit about how automation can also be great for your finances, have a look if you like!

I hope you enjoyed these nuggets of wisdom from our conversation. If you haven’t already, definitely check out the full interview posted on Facebook. Megan is a wonderful person with lots of good insights into creative business, which you can look into here. And of course, please don’t hesitate to schedule a call with me if you’d like to talk more about Profit First and setting up your business to meet your needs and desires.

☮

Angela

Image Source: Joshua Coleman

By |2018-12-10T16:29:34-08:00December 10th, 2018|Categories: Money Mindset, Profit First, Small Business, solopreneurs|Tags: , , , , , , , , , , , , , |0 Comments
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Create Your Own Paycheck

A Solopreneur's Paycheck: At Peace With Money

I know you like being your own boss, but do you ever have paycheck envy? Do you ever wish you could get a paid vacation? Do you get tired of the feast or famine in your personal income? Especially with creative or freelance work, this can be a real issue for some of us. Fortunately, when you create money systems around your business income, you can create a solopreneur paycheck, by paying yourself first.

The System

Setting up a paycheck for yourself is simple. Every time you collect income, set aside a portion in a separate account just for your pay. Then pay yourself out of that account, but leave a portion in the account. The balance in this account will build over time so that you eventually have a cushion built up to even out those rough patches and even pay your self while you take a holiday.

Determining Amounts

How much should you pay yourself each round? A good place to start is keeping track of your personal expenses and ensuring you cover those every month. After that, it’s a simple question of what to do with any extra income you may have made that month. You may choose to leave it all in the

Create Your Own Paycheck: At Peace With Moneyaccount to build up your balance, or take out an extra allowance if you’ve earned a reward. Setting up rewards systems for yourself can be another motivator to keep you money systems consistent, organized, and ensure they meet your needs.

More in-depth information on creating a solopreneur paycheck can be found in the Profit First Book. The first 5 chapters are available to download here on my website. If you’re intrigued by this idea and think you might benefit from a consultation with me, don’t be afraid to reach out and book a discovery call!

☮

Angela

Image Sources:  Cody Davis,  rawpixel

By |2018-11-08T19:58:06-08:00October 4th, 2018|Categories: Profit First, Small Business, solopreneurs|Tags: , , , , , , , |0 Comments
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Check In With Your Goals – Time for a Review

Check In With Your Goals: At Peace With Money

Time to review your goals.  Only four months left in 2018, can you believe it? It’s certainly flown by for me, which is why this week I want us to take some time to reflect on our goals. Many of us set goals at the beginning of each year.  You may have set some goals for your business that you have since been working towards. It’s been a while since January, so now’s the time to check in!

The Review

Review your goals and begin to reflect on your progress for each one. Now, here’s the tricky part: don’t get caught up in what you still need to do. Instead, it’s important to spend a good chunk of time reviewing what you’ve already done to reach your goals. If you feel like you can’t remember everything, try going back month by month. If you use a day planner, flip through it and scan your old to-do lists. Chances are, you will find you’ve done quite a bit of work towards your goals, no matter how close you might be to completing them! Take some time to reflect on the work you’ve done, and congratulate yourself on this work. Celebrate your achievements so far! Being a self-starting solopreneur is hard work. If you’ve done the work, you deserve to cheer yourself on once in a while.

While you’re having this victory party for yourself, now may also be a good time to map out what you hope to get done during these last three months of 2018. By reflecting on what you’ve done up to this point first, you are able to clearly see the pace you work at. With this in mind, you can set realistic expectations for the next three months, rather than trying to cram in too much work.

My Check-In

You may remember that I set a goal earlier this year to be mindful by enjoying what’s right in front of me. I want to share a little check-in of my own on this goal. That way, you can see how it’s going and be inspired to reflect on your own goals.

I’ve been doing a couple things throughout this year to stick with this goal. Every weekday, for 10-15 minutes each morning, I’ve been writing in my little gratitude journal. During my morning walk, when I reach the top of our road, I cross the street to take in the view of the Monterey Bay for a few minutes. In this way I’ve been able to appreciate the place I live more fully. I also notice changes in the season and the forest, and even the subtleties of the fog cover.

Check In With Your Goals: At Peace With MoneyI’ve also been trying to practice a technique for grounding my memories. The way this works is, when having a good experience, you try to capture the memory by taking in all the sensory details. Notice how your surroundings smell, feel, sound, and taste. Paying attention to these details has helped me appreciate them more. I learned this technique from Lucky Bitch by Denise Duffield-Thomas. It’s a great read, and I hope to do a book review on it soon!

For more resources on reviewing your goals, I recommend this video series by Muchelle B. on Youtube. I hope this post inspires you to check in with your goals, celebrate your hard work, and be mindful of your capacity as you finish out the year. Remember to enjoy your business, and your life! If you find you need some help setting goals, especially for your business, check out my services page or set up a discovery call with me!

☮

Angela

Image Sources: Brooke Lark, Amy Shamblen

By |2018-11-08T20:14:03-08:00August 28th, 2018|Categories: Financial Clarity, Money Mindset, Small Business, solopreneurs|Tags: , , , , , , , , , |0 Comments
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The Possibilities of Rejection Therapy

The Possibilities of Rejection Therapy: At Peace With Money

Everyone dislikes rejection. So the thought of “rejection therapy” may seem less than enticing at first. But when I came across this idea, I immediately thought of how useful this could be for solopreneurs. How so? By helping us learn to make the big asks!

Learning to Love “No”

In a recent podcast episode, Hillary Hendershott featured Alex Grodnik, an investment banker turned entrepreneur  who discussed “Rejection Therapy”.  His therapy practice is simple: every day he asks for something and tries to get a “no” answer. This regular practice desensitizes him to rejection, and makes it easier for him to ask for what he wants. I think this is a great exercise for any of us: we all need a little help in asking for what we want!

Make the Ask

Rejection therapy is really about encouraging you to make the ask, and remember that the worst case scenario is hearing “no”. Once you’re desensitized to that outcome, it doesn’t feel nearly as scary as it used to! What are some things related to your business that you’ve been wanting to ask for? Maybe this issue comes up for you when you’re negotiating your rates, or looking for new clients, or cutting a deal with someone. Think about the big asks you’ve been needing to make. What if you just made them?

My best ask ever was getting to visit bead makers in Murano, Italy, when I was running my jewelry business. I was planning a trip to Italy, when I realized I would be very near the studio that the beads I used to make my jewelry came from. I had practiced bead making for a little while at that point, and my heart leapt at the thought of getting to visit and observe master bead makers. Before the trip, I reached out to them and they enthusiastically encouraged me to come to their studio. I even got to use their equipment and make beads along with them! If I hadn’t asked, I wouldn’t have had that experience. Making the ask made all the difference.

Can you think of a time when you made a big ask that worked out well? Think of the positive impact it made on your life. Asking is important! I encourage you to try out rejection therapy and work on asking for what you want and need. It will only help your business, and help you achieve your dreams! If you find you need some guidance or coaching, check out my packages under my Services page.

☮

Angela

Image Sources:  Katerina Radvanska, Jeremy Galliani

By |2018-11-08T20:18:40-08:00August 14th, 2018|Categories: Small Business, solopreneurs|Tags: , , , , , , , |0 Comments
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How to Get The Most Value From Your Bookkeeper

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

As a business owner, every time that you outsource a task for your business, you want to make sure you are getting the highest value out of that task. Particularly if you are hiring a professional for services, such as a CPA or bookkeeper, they should not only provide the service you need to keep your financial records up to date. They should also be able to provide you with insight or advice into your business finances. They regularly see all the financial facts of your business right in front of them. If they aren’t interpreting and discussing with you the trends they see in your business,  or they aren’t talking about or making suggestions to support the health of your business , they are actually doing you a disservice. Financial professionals can easily access that information. Making sure you hire someone who is willing to talk to you about those things and provide information that will provide you with much greater value from this professional service. If you are able to apply these financial insights, your business will benefit greatly in the long run.

This point also illuminates the value of hiring a professional in the first place. Hiring someone who knows what they’re doing to both keep your books in order and analyze financial trends is important. Paying a professional a higher wage for a better quality work, rather than hiring someone who doesn’t do the job well, will greatly benefit you and your business. Someone who can provide you with valuable information about expenses, cash flow, profit margins, and other financial inner workings of your business can prove invaluable in the long term. Think of hiring a talented professional as an investment in your business’s financial wellbeing.

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

When you are looking to hire a CPA or bookkeeper, inquire whether their services include providing these insights and consultations. If you are already working with a particular professional, ask them if they are willing to start discussing their financial findings with you. If not, maybe it’s time to find someone else – because that valuable financial knowledge of your business is absolutely worth it. If you’d like to speak with me about my financial services, schedule a discover call!

☮

Angela

Image Sources: Sergey Shmidt , Sharon McCutcheon

By |2018-11-08T20:26:38-08:00August 6th, 2018|Categories: Bookkeeping Business, Cash Flow, Small Business|Tags: , , , , , , , , , |0 Comments
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