Welcome to Part 2 of this 4 part blog series all about money! If you missed Part 1, I highly recommend you go back and do that first before moving on. It will support you to lay the foundation and help you get really clear on the WHY behind your business and determine how much revenue you need to support that.

The video below will walk you through this week’s steps, or if you prefer to read the transcript can be found underneath.


** When you open the Google Worksheet please make a copy of it for yourself to work with, instead of entering your numbers into this master copy. If you aren’t sure how to make a copy of and save this sheet to your personal drive, watch this short tutorial video.

BONUS: Download Airtable Money Organizer

Getting Real About Your Expenses

This post is all about personal expenses. Everyone  is going to have a different personal expense number. So the very first thing I want you to do is take a moment and give yourself a vow of grace; allow yourself to do this completely in a non-judgmental space, and just be really kind to yourself as you go through this process. This is where you want to be really honest with your numbers. You want to honestly look at what it is that you want to pay for, what it is that you have to pay for, and what it is that you want your business to be paying for on an ongoing monthly basis.

Access the Google sheet here that is really easy for you to fill out (be sure to save a copy of the sheet for yourself, if you aren’t sure how to do it watch this short tutorial video). Feel free to do this though on a piece of paper; you do not need to use this sheet. This is a nice way to just have everything calculate for you. But if you are completely allergic to spreadsheets, don’t worry, a lot of my clients say they are when I first start working with them.. And if you have a beautiful fountain pen and a nice notebook, that’s totally fine too.

Working Through the Spreadsheet

Watch the video above as I walk you through the spreadsheet and how to start using it for yourself.

Here are some tips to keep in mind:

  • I have some suggested categories for you. Over the years, these are very common categories that I come across as I work with entrepreneurs. And that doesn’t mean that any of these categories will be relevant to you, so feel free, especially with the yellow fields, to write over it.
  • The only thing that you need to keep aware of is the type of expense. It is a drop-down menu. So most of your expenses are going to be monthly
  • Don’t change the monthly equivalent box; that’s going to do an automatic calculation for you
  • The actions field is included because you may come across an expense that either you want to cancel, or you want to look for something cheaper, or perhaps you want to ask if that’s actually the right number. Use this to write those things down for you and highlight them in your favorite color so that you can come back and make sure that you add them to your to-do list.

Don’t Underestimate Your Expenses

A lot of us actually underestimate the amount of money we need in our personal lives because we don’t think of the annual or semi-annual expenses. You may have car insurance that’s billed every six months for example, or you have summer camp expenses for the kids or are saving up for Christmas.

When filling out the spreadsheet make sure you account for these types of expenses as well as the more regular monthly kinds. This will help eliminate any future surprises that you have when bills come up.

How to Pay Yourself

Once you’re finished filling out the spreadsheet, you’re going to get a monthly amount, and that is going to be your paycheck that you can start paying yourself. But before you do that, I want you to add at least 5% to that number.

The reason I want you to add the 5% is because I want you to have some automatic savings when you are doing this because you always want to have a bit of a buffer for a few reasons: One, if you have any debt at all, you want to be able to have extra money available to pay down that debt. Second, if you don’t have debt but you don’t have three to six months of savings, you will also want to have some money each month going towards that. So it’s a good idea to add in this buffer now.

Next Steps

So there you have your monthly budget! In part 3 we’ll be looking at your business expenses, and this is just finding out what your investments currently are in your business and what you want to be able to pay for. It will be totally just about your business and you want to make sure that everything that you are paying for on your business is actually separated out and not being paid for on a personal card. So if you know of anything right now that you’re still paying for on a personal card, it’s a really good idea to start thinking about which ones you’re going to want to be switching over, and we’ll talk more about why that’s so important in the next blog post.

Until then, go ahead and work through this process to, get a really clear number. It’s a good idea to involve your family and do it together.


About the Author: Amber Dugger, founder of Profit for Keeps, helps health coaches and service-based online entrepreneurs sort their money headaches and increase their profit potential. She thrives on encouraging and empowering others in achieving clarity with their numbers and discovering the true purpose behind their money goals. She is a certified health coach from IIN and worked in corporate finance for 15 years before venturing out on her own in 2015. She is a mastery level Profit First Professional and loves reverse engineering the Profit First system and combine it with a powerful cash flow tool called YNAB (You Need a Budget) to make it easy to understand and implement for solopreneurs.  

Amber is a featured speaker at The Wellness Business Summit being held in Toronto in June 2019. Be sure to grab your tickets for this life changing event here.

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