EEW Rule #1
Following it will transform your Sole Prop
Everything Every Week Rule #1:
Pay yourself, pay your taxes, and pay your bills 1 time each week.
1 time means ONCE.
No more, no less.
How does a Sole Prop like me follow Rule #1?
Pick a day of the week. This is payday.
On that day, send all the money in your INCOME account over to your OPEX account1.
Next:
Pay Yourself: Take money out of your OPEX account and transfer it to a personal account.
Pay Your Taxes: Send money out of your OPEX account to a savings account that you’ll build up over time to pay for federal taxes.
Pay Your Business Bills: Leave enough in your OPEX to autopay any bills due in the next 7 days.
Do it all again next week. And the week after that.
The most important part of Rule #1 is not how much you send to where, but that you actually follow the rule.
If you follow Rule #1 and change any habits that hinder your ability to follow it, you will completely transform your business.
How much money do I transfer each week?
I tell my clients how much money goes where, each week, based on their prior week’s income. But you can figure that out really easily yourself.
The exact numbers aren’t half as important as the actual doing it part.
Actually doing it once a week, every week.
Following Rule #1—that’s what matters.
How do I know if I am breaking Rule #1?
You are breaking Rule #1…
If you pay yourself more than once a week. You must live off the amount you paid yourself for one week.
If you purchase a personal coffee with your OPEX account. That is not a business expense, and you have then paid yourself twice in one week.
What if I don’t want to follow Rule #1? Or what if I literally can’t do it?
If you are unwilling or truly unable to follow rule #1 beginning now, ask yourself what stands in your way? Understand: This is how your business is broken.
Make correcting that issue your top strategic priority, or go out of business.
Because if you’ve tried, and you really cannot possibly follow Rule #1—that means you don’t have a business. You have an expensive hobby.
So time to stop lying to yourself… which brings me to Rule #3, coming next week!
See EEW RULE #2: USE TWO CHECKING ACCOUNTS