Erica talks through the often-ignored issue of why business profits don't always translate into personal take-home pay. She introduces the 50/25/25 Rule to help consultants achieve financial stability, explaining how to divide profits into owner distributions, tax liabilities, and business reserves. Erica also discusses the nuances of tax planning based on location and household income.

00:00 Intro

00:51 The Profit and Paycheck Disconnect

01:27 Introducing the 50-25-25 Rule

02:53 Breaking Down the 50-25-25 Rule

05:28 Implementing the Rule with Rolling Averages

06:36 Adjusting for Taxes

08:03 Creating Financial Stability and Confidence

08:48 Final Thoughts

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Resources Referenced:

103. Forecasting for Real Life | https://www.ericagoode.com/podcast/ep103

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