Why I only pay myself $36k from my $300k+ business
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- čas přidán 26. 07. 2024
- Create a video membership platform with Uscreen:www.uscreen.tv/?... 📹 I've talked about how much gross profit my business makes, and what my typical monthly business expenses are; but I haven't talked about how much money I personally make - until now. I wanted to explain the rationale behind what I choose to pay myself, in case you're also on the journey of learning to balance business finance and personal finance. Hopefully this can give you some insight and ideas of where to get started if you're trying to figure all of this out too (I know it too me a long time to get a handle on it)
📕 TABLE OF CONTENTS 📕
00:00 so yeah, this is how much I pay myself 💵
01:39 let’s talk about profit vs revenue vs personal income
03:06 how to decide what you’re going to pay yourself…
03:46 how I spent my business’s profit
06:39 why do I only pay myself $36K when my business makes so much more?
07:23 I split life expenses with my partner
09:05 I want to avoid lifestyle creep
11:10 The creator economy can be a little uncertain tbh…
12:10 you gotta diversify your income as well as saving aggressively
12:51 what would you want to see in a membership with me?
13:32 creators need reliable, recurring revenue streams
14:15 money discussions can be shrouded in mystery, but they shouldn’t be
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Hey, I'm Katie! I make videos about social media strategy and content creation. In addition to being a CZcamsr, I also run a small digital creative agency that produces content for all kinds of creators! We edit podcasts, produce CZcams channels, develop online branding and Instagram strategies and more! If you want our help or just want to learn more, check out www.creatorlymedia.com
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Hey Katie. I want to thank you for your honesty here. I've been an entrepreneur/content creator for 12 years and if I had only done this in a viral moment seven years ago when I was flush, I would have been prepared for even something like a global pandemic. You're helping a lot of folks manage the unexpected by sharing this.
Also, your point about not supporting a household is super key. As a single mom of two kids, my numbers might look different, but the planning aspect is even more critical.
yes totally! i know i'm in a super lucky position to not be supporting a household with my income, it allows for that aggressive saving that not everyone has access to. Also rock on single mom + entrepreneur! i can't imagine everything you're balancing, you're amazing 👏🏻
@@katie thanks! It's a wild ride.
Girl, I love talking about money and love this video! Really appreciate your transparency. I don't pay myself a lot (at least in terms of what I could pay myself from my business) because I'm trying to grow and reinvest in my business as much as possible. I totally relate to everything you're saying here and love the clear decision making that's gone on to get to these numbers for yourself.
I started my small business recently and have a question about this all the time! this helps so much! I love your videos because I feel like you're the one of the few who actually talk about the true fact. Thank you Katie!
I really appreciate that!! thank you 🥹🥰
I never comment but this is important for me to say. Katie, huge thank you for this healthy information, crazy how much in common we have and to hear someone else go through the same things is such a big validation. Best feeling. You are making such important and right choices about your life and am proud to see your growth!! You’d love the book Profit First- highly recommend.
thank you!! I will have to check that book out, thanks for the recco :)
Thank you for being so honest!
I really hate the fact that money is considered a topic one should never talk about, even though it is sometimes pretty important to know about those things to get a realistic view on certain jobs etc.
Self-employment is getting romanticized a lot, because people never really talk about the struggles and how much money you actually pay yourself at the end of the month.
I also think that there is a big difference between open up about your income to educate others and open up about it just for the sake of bragging.
Very good and helpful video (as always :D) !
thank you for creating this video and being so transparent about your goals and business allocations!! it's very awesome to hear people talking about finances, we need to be more literate about it in general - not speaking about it is why i think most don't understand it. i'm 44, and still grappling with my lack of education/understanding surrounding it, and its not because it wasn't a scholastic endeavor. continue being awesome!! xx
i totally agree - I think transparency and talking about these things is so helpful, because otherwise you can never learn about it 🙏🏻
Such an interesting and important conversation. As an entrepreneur myself, I focus on always returning a good amount of my wins to the business. That's how you can keep expanding it !
Thank you so much for being transparent about all this! This is very realistic and relatable and I enjoyed it so much more than the similar videos I've seen from others. I'd love more of these from not only you but others!
Katie I am so looking forward to your membership!
Thanks for being so vulnerable! It's refreshing for someone to be so honest and considerate about other's varying circumstances at the same time. Sometimes it feels like the only creators that share are the ones who are making amounts that seem so out of reach! As a freelancer producer I fully appreciate the struggle bus of 20K years and find your trajectory both relatable and inspiring :)
Love ALL of this! It is so refreshing to see someone so much younger than me (I'm #old 😅) with such a level-headed approach to money and "stuff".
Thanks for making this video!
I’m #old too!!😂
This has been really valuable. Thank you so much for sharing this!!!🥰💗
Thank you so much for your transparency on this!!
Your integrity is so intact, Katie! Thank you for sharing this part of yourself with us. Lots of great points here.
This is so insightful, thanks so much for sharing!
This was so helpful! Thanks
I understand you feeling this vulnerable Katie ❤ thanks SO much for sharing, it's so valuable to so many of us
Love this, Katie!! Good business decisions!
Great video! I love that you pointed out that people online can really represent their earnings in different ways. An interesting membership idea that I’d be interested in is the system you use to run your content creation business.
Honestly, THANK YOU SO MUCH for sharing! I can only imagine how vulnerable you must have felt making the video and pressing publish. But it’s this kind of honesty that we need around money because this openness brings the change. We should be able to talk freely about money and it makes me sad that you feel not good sharing because that’s what we as society have taught.
Definitely loved the insights. Thanks so much for another great video.
Thanks for being so transparent and I’m about to start my social media journey!
Great video, Katie! Thank you for your transparency! At the end of the day... you're happy no matter how much money you pay yourself 💜
Thank you for your transparency!
Great video and very helpful. Thank you for sharing!
thanks, Daena!
Thank you so so much Katie for being so honest and breaking it all down ! I’m really inspired by your content and amazing growth !
Thanks so much for this! Your content is dope and incredibly instructive. Big fan!
This was an amazing video. Showing your vulnerability while also teaching us new business owners an interesting perspective. I will definitely be implementing this
And I REALLY appreciate all your transparency and honesty. I just love your content. Thank you!
I wish I could do this. But I live in a HCOL area, the SF Bay Area and I’m unemployed. 😅 $36K can’t get you nothin here. I grew up and still live in deep poverty, so I have to use most of my business income. I also live at home with my mom and brother who don’t have jobs, so I have to pay for everything. The only thing I can do is diversify my income. The stress of not having a financially supportive family, not able to secure a full-time job, and building a business is so hard.
Love your transparency and honesty here. Thank you for sharing this! 🤍
Love love this money series you've been putting out there. And, you're absolutely right; you have to find what works for you. We're all different and have different goals so how we manage our money will look different. But, it's brave creators like yourself that show and teach others that there's more than one way to do it.
I love watching your videos. You are so relatable and you explain and share everything. Thank you for all the informative videos you post. You asked what kind of videos we would want to see on your video membership and I personally like all the behind the scene knowledge. I would love insight on how to navigate brand deals, what do you offer and charge when you are starting out, I love watching videos on how you film and create your CZcams videos. That is the sort of stuff I would join to watch.
thank you so much for always being so open and honest about how you run your business!! your videos have been such a great resource to me over the last few months! You're helping so many small business owners and entrepreneurs 😊
LOVED this video Katie - Thank you for sharing!
This is SO helpful! Thank you for being so transparent, vulnerable and generous! We need more women speaking about money in a positive & confident way!🙌🙌👏✌
Katie!! Thank you for this video! I was having a lot of trouble finding tax info in the blogger/social media content creator world. This was so helpful ❤ pay transparency for the win!
This was so interesting! Thank you for sharing with us. Also, I love how comforting your videos feel - your personality is really welcoming and warm, and it always feels like a relief to watch ur content and get that positive energy!! thanks for creating ❤
I’ve subscribed to you recently-thank you for being such an awesome CC. You are hella authentic, informative and honest.. thankful for what I learn from you 🥰
aw thanks May, that's so kind! 💕
Thank you Katie ❤ this is realistic I love to see these kind of videos. ❤❤
I LOVED this video. Thank you for being open with us. I admire how humble and down to earth you are despite how successful you’ve become. I feel so inspired by you and now im ready to continue on my own creator journey 😤
Thank you so much Katie! I appreciate this video and how you explained the breakdown of what you pay yourself. It really helps me understand a bit better how I want to do that for myself, too! Cheers!
thanks so much for watching, I'm glad it could help!
Thanks for sharing ❤
Love this!!
You are an absolute QUEEN for making this video, Katie! Thanks for being so vulnerable bc this is a topic that definitely needs to be talked about.
This is amazing Katie, thank you so much for sharing! So much wisdom and I completely agree with the part of not upping your expenses (car and house) when it's not needed just to fit the "influencer" world. So good, such a breath of fresh air!
I loved your vulnarabilty and totally transparency in this video Katie! 🔥
thanks, Manny! i appreciate that :)
Thanks so much for outlining how you pay yourself and why you chose those numbers! You handled a hard topic with grace and clarity. I wish there was more discussion among digital entrepreneurs about money and the practical back end of running a business. And good job addressing lifestyle creep and the volatility of this industry. Both of those items need more discussion, too.
This was such a lovely video, thank you for having the courage to share this because as someone trying to pave their own path, this makes me feel I can achieve what you make and are doing, rather than what people are flexing left and right. I don’t need to be a millionaire, but I want to be able to live.
You deserve every penny and success that you’re receiving! Thanks for all the work you put into helping so many. I love your levelheaded wisdom and insight around this topic.
Thank you for sharing
This is really helpful to see. When I first started my business 8 years ago, I thought it I made $300, $300 went into my personal bank account. That was a big learning lesson. It's all baptism by fire and once I better understood the money side of the business I was able to focus on the biggest impact for my clients as well as best ROI to grow and scale!
Thank you!
such an important topic to talk about!
Such a great video. How to structure things always comes to mind right after tax season. ALSO, I was considering uscreen a while back and happy to see that you support them. Since I got serious about YT this year, making more money here is top of mind.
Hi Kellie, Rob here from the Uscreen team - glad that you had considered Uscreen previously. Let us know if there's anything we can help with down the road :)
@@robbalasabas258 Thanks so much!!
@@kellienasser you're welcome! :)
I would totally pay to learn how you edit with Premier Pro. Can't wait to see your video membership launch!
Can we be best friends?? 😂 I love this!! You did such a great job with explaining this and I love how down-to-earth and real you are. I know this was vulnerable and scary for you but you made an amazing video!
I want to switch over to Premiere Pro, so I would definitely pay for a membership for those tutorials bc I love the way you explain things, Katie!
I really appreciate you shared this. Right now my partner is a freelancer online English teacher and I’m starting out my online health coaching business. Although my partner’s income fluctuate, it’s really helpful to have a partner who earns income plus we moved somewhere where the living cost is way lower than where we used to live
You’re one of the best content creators I’ve experienced on CZcams, and I’ve seen a lot. I’m glad I found you, as I’m trying to learn the ins and outs of getting myself situated on CZcams, since I’m now retired and want to create a better retired lifestyle. I appreciate your success and wish you continued success and happiness. Lastly, I also appreciate your regular person approach to your content. You don’t begin your videos with a pretentious Hollywood set up and waste time putting on a persona. Thank you for your content ❤.
Thank you so much. I love your work. So honest, so smart. Keep up the great work. I’m your new best friend. Nana😊
Plus this has been very helpful, had no,idea you could make so much.
Thank you for your vulnerability Katie!!
Thanks so much for being honest and open. I would love to hear how you deal with taxes as a Canadian working in a worldwide market!
Appreciate the transparency Katie. My experience in business is very similar to yours and having a partner with a high paying job absolutely affords me a privilege that I know many people don’t have. I think these conversations are vitally important in an industry full of so many secrets.
I’m slowly getting my UScreen course up. My techy skills are definitely NOT stellar. I have affiliate marketing in place but need to do more than just crafting supplies. Like stuff I use in my day to day. This was absolute 🏆🏆🏆!!
This was an amazing breakdown! 🚀
Having the mindset to separate your business and personal finances when you're a freelancer is sometimes too difficult, but once you start, specially by giving yourself a salary, it only goes uphill 🔥💛
Yes thank you Katie, my problem is I don't know what my niche is😮
For Uscreen I’d definitely want to see premiere pro tutorials!
That membership sounds good
This was very helpful and easy to understand for a newbie thinking about this.
Is there a reason why you didn't do an LLC vs Inc?
Inc. is basically the Canadian version of LLC! We don’t have “LLCs” here 🙏🏻
I haven’t check to see if you’ve started getting stuff up on uScreen yet but one of the things I’d really be interested in more insight from you is: What are some of the most important shifts (either personal or professional) you made that you feel directly contributed to you going from making $20K a year to $300K?
I too pay myself a similar salary on a business generating 6 figure gross income. As an incorporated business most of the net revenue stays in the business, and I am taxed a lower bracket on personal income tax of a $35,000 CAD and I do just fine on that. Also in Ontario :)
Editing would be very helpful, I’m going to be starting a you tube, and the thing that stops me the most starting is editing, it scares me as all you hear from you tubers is the hours spent on editing and getting videos out. So any help,in that would be great, I better add I’m 64 years old, so this is a very new thing to me and hubby.
I always find it confusing when ppl say "pay yourself 1st" and you broke it down easily and in a strategic way where it's already automated. So important so 1 less thing to worry about. And living within your means no matter what life style you can have is a good point to get in to the habit already.
out of curiosity, why youscreen over youtube memberships? Or have you done a video on this?
I glad you always mention your partner's role in your finances, but I have to admit that I'm a bit disappointed in the lack of transparency here because you do have a gross taxable income greater than the $3000/month with the other investments mentioned. I have some experience with bookkeeping in another industry, so I understand what you're saying here, but I think it lacks clarity for people who don't do business or aren't based in Canada. ❤
Rather than throw your money into a coffee business like Emma Chamberlain, you are SAVING it. I admire what you have been able to do with your resources and that you are being mindful of lifestyle creep. Bravo to you, Katie.
Well, this is the most healthy appropach to life we can imagine. I d' rather sleep calm knowing I can afford food and accommodation the next day than stressing out about maitaning my leased super car.
😍😍😍😍
Taxes baby. She building wealth
Canadian creator talking about money 🙌🏻🙌🏻🙌🏻🙌🏻 thank you!!!
You mentioned your partner. It’s none of my business but I wonder if it ever bothers you that you’re not married? Sounds like you’re stable and he has supported you through the start of your business. I suppose I enjoy the stability that marriage creates especially with finances. In my marriage, our money is our money philosophically and legally.
haha we are married! i just use the term partner sometimes bc its gender neutral 🤷♀️ and we have the same approach, all finances are shared and we have a joint acct etc
@@katie ohhh got it!! Thanks!
wow!!!!!!!!!
Yeah cause she makes bank from other income streams
Watch out Bill Gates
Considering how costly mortgages can be over time why did you decide not to really aggressively pay off as much of that as you could at first? You could always cut back down once that was done.