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Paying yourself a salary when income changes every month

The four-account method our coached members use to stop spending a good month and panicking the next.

Paying yourself a salary when income changes every month

Mr. Doc Doc6 min read

The real problem is not the amount, it is the variability

Earning $1,200 one month and $300 the next is harder to manage than earning $700 every month. The brain adjusts to the best month, never to the worst. So the method consists of hiding your own money from yourself.

The four accounts

A collection account where everything arrives; an operating account for business expenses; a provisions account for tax and surprises; a personal account where your salary lands. No personal spending ever leaves the first three.

Set the salary on the low average

Take your last six months, drop the best and the worst, average the remaining four and pay yourself 60% of that. It is a small figure; that is precisely the point. Surpluses accumulate and smooth the lean months without you having to think about it.

When to raise that salary

When your provisions account covers three full months of costs, raise your salary by 15%, no more. Repeat every six months. Within two years most of our coached members pay themselves more than an employee in their sector — without ever having been afraid at month end.

Turn reading into doing

Our tracks take these methods into guided cohorts, with assignments reviewed by a mentor.