Creating your Personal Budget First
As an entrepreneur, especially, a solo-entrepreneur, it’s important that you account for your personal desired outcome of the business venture. You might not be able to take this salary straight away, but it is good to build this in when you are calculating your business budget and your sales goals.
To start this process, you will want to first analyze your personal expenses and back in from there to create your monthly income.
To start this process, break out your downloadable tool and start building out your personal budget.
I like to break down a personal budget into different categories:
Taking all of these factors into account you should have your goal income.
You’ll need to account for self-employment taxes and your personal income taxes. I apply a 35% percent estimated tax.
You will want to then divide the total amount in your personal budget by the decimal or percentage of 35% to arrive at what your total gross personal income is. This is an estimation!
This monthly and annual number will be used in your business budget.