Few Tips to Pay Yourself a Fair Wage.
Businesses take money to run and if owners aren’t willing to reinvest, then it becomes hard for them to see returns. Commonly, owners will only take what they need to pay household bills, preferring to leave everything else to the company to cover employee salaries as well as finance updates. While this is altruistic in thought, this leaves owners with no capital to invest in themselves. This is the thin line walked every day by smaller operations. How, then, does one find a good balance for between putting money back into the company and paying yourself a decent wage?
Even if it is only enough to pay your personal bills and keep the lights in your house on, be sure to pay yourself something at the end of every pay period. Don’t let this continue without planning for change, though. With your company in a heavy growth phase, it may be necessary to put every cent back into the business. However, you should have a financial plan in place so that, as the company grows, you are rewarded for all of the hard work you’re putting in now.
Instead of using the extra money at the end of the week to pay yourself, change that to the end of the month. This will guarantee that when it’s time to review your financial statements that your company’s bills have been paid in full while also giving you a decent way to track just exactly how much growth or loss the business experienced, giving you a good perspective on how to face the next month.
As an alternative to sacrificing it all for the cause, turn your salary into a personal objective. Determine exactly how much your time is worth and base your salary on that. Though you may fall short some months, this is an excellent strategy for pushing yourself to meet numbers so that you can earn what you deserve.