How Much Should I Pay Myself as a Web Designer
- Keep business and personal accounts separate 01:16
- We talked about this in yesterday’s Episode 277.
- This is the first step before determining how to pay yourself as a web designer.
- How much do you pay yourself? 02:12
- So now that you have separate accounts… do you just pay yourself everything?
- No. Because you want to keep money in there to pay your expenses.
- It depends on what your financial situation and what your expenses are.
- If this is your sole source of income, then you’ll want to take more out of the business account.
- If you have more room to save, it’s better to keep some funds in the business account to help grow the business (scaling with employees, buying software, etc).
- When you have historical data 04:34
- Then, you can make more educated decisions on what you are able to take out of the business account to pay yourself because you will have a estimate of your revenue and expenses from the past.
- Try to create a salary that will pay you enough when business is slow and then continue to pay yourself that when you get extra projects. When you have extra money in the account, then you can take some out to pay yourself more.
- Final thoughts 05:50
- Pay yourself as much as you can, while still leaving money in the business account to invest back into the business.
- It’s better to pay yourself as much as you can, and then invest that money for yourself than let it sit in your business account.
- Get a CPA or financial advisor 07:34
- Even if it is just a one time consultation. Get professional advice and then decide how much to pay yourself.
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