Kathi Lipp and business/life partner Roger Lipp return for part 3 of this series about Profit First, and how the system has brought peace to their financial lives. Last week, the couple described the framework of the Profit First financial system and explained what role each of the five accounts serve. Today, they are here to tell you how their own Profit First system is set up. Roger and Kathi reveal the specific percentages of their income that they distribute to the prescribed accounts (profit, operating expenses, taxes, and owner’s draw), and give some insight into what their goal percentages are, and how they plan to achieve them. They also talk about benefits of establishing a system right from the beginning of your career such as:

 

• Legitimizing what you’re doing
• Giving you records to look at and make decisions based on
• Establishing healthy financial habits

 

Plus, the pair offers valuable advice about how to plan for unusual financial income sources like speaking deposits or book advances; or expenses like replacing a computer or attending a conference.

 

If you’re tired of finances being a source of stress, you can’t afford to miss this series. Make sure you listen in to episode 1 for an overview of the Profit First system, and episode 2 to learn more about the framework.

      Links and Resources:

Profit First

Tonya Kubo

Cheri Gregory

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