Learn and apply the 10/25 rhythm
from Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
How to Apply This
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Deposit all revenue into your Operating Expenses account.
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Every 10th and 25th day of the month, transfer deposits to each different account.
For example, if you have $10,000 in total deposits, 43% of that goes to the Operating Expenses account, 15% goes to the Tax account, 30% is for Owner’s Pay, and 12% goes to the Profit account. -
Transfer the total account balances for Tax and Profit accounts to ‘’no temptation’’ accounts.
Those are the accounts that are not easily accessible. -
Take only what you have allocated as your biweekly salary from the Owner's Pay account.
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Pay your employees from the Employee Pay account.
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Pay bills from the remaining balance in the Operating Expenses account.
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