How To Calculate Your Ideal Income: How Much Money Is Enough? | 078

Jon discusses how much money is enough for both you and your architecture business. Jon guides listeners through a step-by-step exercise to calculate personal and business income requirements, dispels common myths, and offers practical advice to maintain profitability. He emphasises the importance of considering both short-term needs and long-term financial goals. Additionally, Jon introduces the Profit First method for allocating business revenue. Tune in to gain clarity on your financial targets and ensure your business's financial health.

Episode Highlights...

00:00 Introduction

01:38 Understanding Your Financial Needs

03:56 Calculating Your Monthly Income

05:08 Planning for Annual and Unexpected Expenses

07:03 Setting Long-Term Financial Goals

08:50 Determining Your Business Revenue Needs

09:50 Profit Allocation and Business Expenses

12:08 Conclusion and Next Steps

Key Takeaways...

Know how much money you need

You need to be clear on how much money you need to live and run your business. This means knowing what you need to take home each month, as well as saving for once-a-year bills and surprise costs. It helps you stay on top of things and avoid money stress.

Set money goals for your business

Break your income into steps. Start with what you need each month to get by. Then look at your yearly costs. Finally, think about what you want in the future. These steps make it easier to plan your business income and keep things growing.

Split your money the smart way

One way to manage your money is from the book Profit First. You split what your business earns like this:

💸 50% for paying yourself

🏢 30% for running the business

💰 15% for tax

📈 5% for profit

This helps you make sure everything is covered — and that you’re not just working, but earning too.

—--

Want to explore podcasting for your business?

👉 Book a chat with Jon to explore working with him 📞

Interested in joining our membership community?

👉 Click here to JOIN THE WAITLIST 😀

Resources…

👉 Grab the Architecture Business Blueprint 🎁

It’s the step-by-step formula to freedom for architects, architectural technologists, and architectural designers. Get it today (without any charge).

👉 Follow or Connect with Jon on LinkedIn 🤝

👇 And if you enjoyed this episode…

Please leave a 5-star review or rating wherever you listen to podcasts, and don’t forget to hit the subscribe button so you never miss an episode.

In The Next Episode...

Next time, Jon chats with architect Joe Wright about his changing approach to business.