39. Managing Your Personal and Business Cash Flow with Profit First

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I discuss the 'Profit First' system by Mike Michalowicz, which helps business owners and individuals manage their finances effectively. The concept involves setting predetermined and strategically assigned percentages for various financial categories such as profit, operational expenses (OPEX), taxes, and owner’s compensation. I explore how to apply 'Profit First' principles to both business and personal finances, including setting up automation to manage cash flow efficiently. I outline my own financial framework and share practical tips for merging business and personal finances to achieve financial goals. I encourage listeners to be intentional about their financial management to ensure security in their future.

Key Takeaways & Timestamps:

• (00:00) Introduction to Profit First
• (01:15) Understanding Profit First from a Business Lens: Profit, OPEX, Tax, Owner’s Compensation
• (04:44) Applying Profit First to Personal Finances: Savings, Fixed Spending, Flex Spending, Non-monthly Spending
• (07:44) A Personal Example of How Profit First Works in our Business Income
• (09:02) A Personal Example of How Profit First Works in our Personal Budget
• (11:18) Concluding Thoughts
• (13:09) Download the Ultimate Military Finance Checklist

Mentions:

⁠Profit First⁠

More of Baskin Financial Planning:

⁠Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠⁠Book an intro call⁠ with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: ⁠erik@baskinfp.com⁠

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