Money has always been a struggle for me.
It’s likely something I’ll be mastering for the rest of my life.
While I’ve increased my capacity to earn over the years [from my own hands, tears, and heart], hanging onto it has been a different beast entirely.
It’s easy for me to experience feast or famine in my business—to create large sums, reinvest them, and deplete to the point of pain before replenishing again.
In November, I had a powerful insight followed by an even more powerful question:
💭 How can I relate to money as a circle instead of a pendulum?
A circle has no edges. It’s infinite. It travels around and around and around. How could I create an experience of a circle, regardless of circumstance?
I laughed aloud the other day when I realized the answer had come and now, I’m living it. Isn’t it funny how you can set an intention, forget about it, and wake up one day to remember that it came true? If that isn’t magic, I don’t know what is.
In March, I was really sick and craving something to occupy my mind, so I picked up a book I bought the previous year called, Profit First by Mike Michalowicz, to learn about the profit first method.
It took me two days to devour the entire thing.
What I love about the profit first method is that it’s based on the “envelope method.” Every dollar that comes through your business or your personal income is divided based on percentages and placed into separate accounts. Each account is specifically FOR something and for that thing only.
For example, the accounts I have for my business include profit, taxes, income, and expenses. The accounts I have for my personal finances include savings, bills, debt destroyer, and life.
Each month, I pull a set amount of money from my income account to pay myself. If I happen to have a higher-than-average month in my business, I still pay myself the set amount, while the overflow remains in the account. That way, if I happen to have a lower-than-average month, I can still pay myself what I normally would.
The experience of a circle, regardless of circumstance.
On the flip side, if I blow through my life account early in the month, I’m forced to get creative, rather than pull from other accounts.
💰 The profit first method is an exercise in discipline and structure.
And while it might feel constricting, this structure is setting me free.
For the first time in my life, I’m having a powerful experience of being with money. I’m watching my accounts grow every month! On a small scale, I’m experiencing what it’s like to “have it all.” I’m saving and paying off debt. I have trips planned for the summer and fall. I have a huge chunk of the deposit I’ll be putting down to work with my next coach.
Before, I was living by the either/or method. I was putting all of my money into traveling OR investing in myself. I was putting all of my money into saving OR paying off debt. And while the either/or method allowed me to live a pretty cool life, it triggered constant feelings of survival.
💰 The profit first method creates feelings of stability.
It’s a foundation on which I can expand into the next level of my soul-led life because as my business grows, so too will my experience of “having it all.” I’ll pay myself more, save more, pay off larger chunks of debt, go on cooler trips, or invest in myself more quickly and readily.
Like blowing a bubble, the more air that passes through the wand, the bigger the bubble becomes.
I wanted to share this with you even though it feels uncomfortable because my intuition is screaming that someone needs to hear it. I want to show you that you can find a system that will work for you.
I remember feeling so hopeless—like I’d never nail this money thing. Other systems I’d try would fail, leaving me feeling like a failure.
There is a system out there that will work for you.
And if you don’t have one already, check out the profit first method in Profit First by Mike Michalowicz.
With love & money,
-Kayla
What are your thoughts on the profit first method? Have you read the book? How’s it going for you? Share your answers in the comments ⬇️
And if you need support with raking in more cash in your business so that you can put the profit first method into practice, check out How I Manifested My First $5K Month.
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