How To Use The Profit First System For Freelancers (FBP 181) 6z2h6r

It’s a common story. Day One: You get paid. Day Two: All your money is gone due to payments made for bills and debt. It’s a problem for both employees and freelancers. We all can’t seem to save, let alone enjoy, the fruits of our labor. This creates even more stress to the freelancer whose income is already irregular and fluctuating. Is there a better way? Serial entrepreneur Mike Michalowicz says, there is, and it involves a behavioral shift. He said that instead of following the conventional ing formula of “Sales – Expenses = Profi,” we need to adopt a different formula: “Sales – Profit = Expenses.” In this episode of the Freelance Blend Podcast, I explain in detail Mike Michalowicz’s “Profit First” system and how I applied it in my own life as a freelancer and business owner. KEY TAKEAWAYS In this episode, we talk about: Why it’s more challenging to protect your money (from yourself!) when you’re a freelancer Why you need to fix profit first before growth The new ing formula: Sales – Profit = Expenses How dieting is similar to budgeting Why online banking is ideal for the “Profit First” system THREE STEPS ON HOW TO APPLY THE PROFIT FIRST SYSTEM 1.     Set up at least five s: Income, Profit (1%), Operating Expenses (70%), (Tax 3%) and Owner’s Pay (26%) 2.     Make your first distribution (once or twice a month). 3.     Transfer to Tax and Profit to Hold s. QUOTE FROM THE BOOK “Profit must be baked into your business. Every day, every transaction, every moment. Profit is not an event. Profit is a habit.” LINKS Profit First by Mike Michalowitz To watch other useful Facebook Live replays please visit our Facebook page at www.facebook.com/freelanceblend. To be notified when I do another Facebook Live call, don’t forget to like the page. Watch more freelancing tips and tricks at Freelance Blend TV·      Connect with hundreds of Filipino freelancers and learn more insights at www.freelanceblenders.com The post How To Use The Profit First System For Freelancers (FBP 181) appeared first on Freelance Blend. 1r3q53