Living your dream lifestyle is not as far off as you think. One of my favorite things about Profit First is the quarterly bonus you get to pay yourself when you set money aside consistently in your profit allocation. Depending on the amount the size of your bonus it could equal a lifestyle upgrade.
Maybe you want to take a couple of months off from cleaning the house or start punching out early on Friday’s for a massage. Regardless of how you want to spend it, it’s almost the end of the quarter and if you’ve implemented Profit First into your business, that means it’s time to take your Quarterly Profit Distribution.
Your Quarterly Profit Distribution
This will be 50% of the balance of your Profit Account. The remaining 50% is left in the Profit Account to build a rainy day fund.
Depending on when you started Profit First, and your level of revenue, you may have a large balance or a smaller one. Either way, this distribution is meant to be a CELEBRATION and in no way should be “plowed back” into the business.
Recommendations on How to Use YOUR Profit First Quarterly Profit Distribution
There is really no right or wrong way to use your Quarterly Profit Distribution (unless of course, you are trying to use it for business needs!). Here are 8 of my favorite ways some of my clients have used their Profit Distribution in case you need some inspiration, but I am sure you can easily come up with a few others on your own!
Get a Massage
We all deserve a little relaxation and rejuvenation after all of the hard work we do, so indulge a little and get that massage you have been wanting forever! This can become a regular part of your celebration every quarter if you choose to add it to your list of things to do every time you receive your bonus.
Fall Mountain Retreat
There is nothing wrong with having a little space to retreat to during your favorite times of the year. Whether this is a home in the mountains for the fall season or somewhere on a sandy beach during the spring or summer, your dreams can all come true when you choose to use your quarterly profit distribution for them.
We all spend a ton of time in our kitchens, whether we are preparing meals or simply hanging out with family and friends. Turn this space into the one you have been dreaming of for years with the extra money you receive each quarter.
Giving to Charity
There is nothing more important than supporting causes that are near and dear to your heart, so spread the love by donating a portion of your quarterly profit distribution. You can choose the same charity every quarter or you can mix things up, so multiple charities receive a little of your good fortune.
Going to concerts can be a lot of fun, but paying for the tickets can take quite a chunk out of your regular paycheck. Splurge a little with this extra money and buy those concert tickets for that group you have been wanting to see for years!
Traveling to destinations near and far can be quite exciting and it is something you deserve to do after putting all of the hard work into your business. You may not be at a point where you can take weeks off at a time yet, but you should be able to sneak away for a long weekend or even a weeklong celebration of the success of your business.
Okay, not everyone loves football, but that doesn’t mean that you cannot use this quarterly profit to purchase baseball, basketball, or hockey tickets instead. Simply use this one as inspiration, so you can choose which sporting event sounds good to you. Heck, you can even use this money to pay for those greens fees if you love playing golf!
Pay Off Debt
This one should be first if you still have business debt. But even then, we only allocate 45% of your Profit balance to debt and 5% is to be used for a CELEBRATION! Yes, you won’t be able to do as much with that 5%, but it won’t be long before the entire 50% is yours and your business is debt-free!
You may have been thinking that your dream lifestyle would be out of your reach for your entire life, but I want you to see how wrong you are! Now that you have the Profit First system implemented within your business, you are going to finally have the money to make those dreams come true! Choose something fun to do with your quarterly profit distribution or save it up until you have enough to make your biggest lifestyle dream come true!
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Shannon Simmons, a 10-year business owner, and 5-year Profit First Coach is the owner of Netbooks Accounting Services, LLC. She is one of the original Profit First Professionals when the concept was created by Mike Michalowicz.
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