How to Pay Yourself First (Even When Your Revenue Fluctuates)
Summer is coming to a start and for a lot of people that means a slower business season - but expenses are higher than ever. Kids are home, you're planning (or paying for) that vacation, and somehow your grocery bill doubled overnight because everyone's eating at home.
Meanwhile, your client inquiries have slowed to a trickle because everyone else is in vacation mode too. You’re probably wondering how you’ll ever be able to pay yourself first.
Sound familiar? 😉
Here's the thing - I see this ALL the time with my clients. They'll have a $15k month followed by a $3k month, and suddenly they're back to ramen noodles and crossing their fingers that next month will be better.
But here's what I want you to understand: paying yourself consistently isn't just possible with fluctuating revenue - it's absolutely essential.
The Problem with Taking Money Whenever You Want It
Here's what I see ALL the time: you have a great month, so you pay yourself $8k. Then you have a slow month and suddenly you can't cover your basic business expenses because you took too much out when times were good.
Sound familiar?
When you don't have a system for paying yourself, you're essentially gambling with your business's survival. You take money based on emotions (celebration after a big month, panic during a slow one) instead of strategy.
This feast-or-famine cycle has to stop.
The Simple “Pay Yourself First” System That Actually Works
Here's how to make paying yourself first work, even when your income looks like a rollercoaster:
Step 1: Build Your Emergency Foundation
Before you even think about paying yourself consistently, you need 2-3 months of business expenses saved in a separate emergency account. This covers true emergencies and unexpected expenses.
If your monthly business expenses are $1,500, you need $3,000-$4,500 sitting in emergency savings.
Step 2: Create Your Slow Income Month Fund
This is separate from your emergency fund (or just a minimum for your checking account). This account specifically covers those predictable slow months when revenue dips below your floor.
Depending on your business structure, the amount you need to keep in there will be different! If you have 2-3 slow months in the summer then aim for that in this account, if you have 4 main months that fund 8 slow months, then this account should have enough to get you through those 8 months.
*Note: this account SHOULD go down during your low cash flow months, so don't stress - that's the point!
Step 3: Calculate Your Base Monthly Salary To Pay Yourself First
What's the absolute minimum you need to live each month? Not your dream lifestyle - your basic survival needs. Rent, groceries, insurance, etc.
Let's say that number is $3,000. You'll pay yourself this amount EVERY month, no matter what.
NOTE: As time goes on and your income becomes more reliable you can increase this amount to more than just the bare minimum!
Step 4: Build Your Slow Month Fund First
Each month after paying yourself your base salary and covering business expenses, transfer any excess profit into your slow income month fund until it's fully funded (This varies based on your business structure).
Once that fund is maxed out, THEN you can start setting aside excess profits for quarterly bonuses.
Step 5: Pay Monthly Base + Quarterly Excess
Every month, pay yourself your $3,000 base salary first. Then at the end of each quarter, look at your quarterly bonus account and pay yourself 60-70% of what's accumulated there.
If you have a slow month and can't cover your base salary from current revenue, use your slow income month fund to pay yourself, not your emergency fund.
This gives you consistency month-to-month AND rewards for good performance.
Step 6: Plan for Your Predictable Slow Seasons
If you know certain quarters are historically slow, build up your slow income month fund during good periods.
Before summer hits and you know client work slows down, make sure that fund is fully loaded. Same for holiday seasons or any other predictable dips.
This is how you create consistency AND growth in an inconsistent business.
Why This Works When Other Methods Fail
Most people take money out of their business whenever they feel like it. Big month? Take a big chunk. Slow month? Panic and take nothing (or worse, take money you don't have).
This creates a dangerous cycle where your business can't build the reserves it needs to weather slow periods.
Instead, you're creating a systematic approach that protects your business's cash flow while ensuring you get paid consistently. You're no longer making emotional money decisions - you're making strategic ones.
The Real-World Example
Let me show you how it looks to pay yourself first when you're building your slow month fund:
In this business, we are assuming that on average there are 3 “slow months” that do not fund themselves, so the “slow month fund” is set at $9,000.
January: $8k revenue, $1,500 expenses = $6,500 profit
Pay yourself: $3,000 base salary
Excess profit: $3,500 → goes to slow month fund (now at $3,500)
February: $3k revenue, $1,500 expenses = $1,500 profit
Pay yourself: $3,000 base salary (using $1,500 from slow month fund)
Slow month fund: now at $2,000
March: $12k revenue, $1,500 expenses = $10,500 profit
Pay yourself: $3,000 base salary
Excess profit: $7,500 → $1,000 goes to top off slow month fund (now maxed at $9,000), remaining $6,500 available for quarterly bonus
End of Q1: Available for bonus = $6,500
Quarterly bonus to you: $4,550 (70%)
Stays in business: $1,950
Your slow month fund is now fully funded AND you got a quarterly bonus!
Paying yourself consistently actually helps your business grow faster because you're making decisions from abundance, and systems.
Your Next Steps
Build that emergency fund first (2-3 months business expenses)
Create your slow income month fund (2-3 months of your base salary)
Calculate your base monthly salary to pay yourself first
Figure out your revenue floor
Start paying yourself that base amount every single month
Track excess profits quarterly and pay yourself bonuses
Replenish your slow income month fund during good periods
Remember: your base salary isn't negotiable. Your business needs to support YOU first, then everything else comes second.
And if you want to see exactly how your business finances are performing month over month, check out our ProfitWay Dashboard. It's designed specifically for business owners who want to visualize their cash flow and make strategic decisions like a real CEO.
No more guessing. No more hoping. Just clear numbers that help you build the wealthy life you deserve.
Ready to stop working for everyone else and start working for YOU? 💸
The Profitway Dashboard
This digital dashboard makes it easier than ever to visualize your business finances, set financial goals, and stay on track. Bonus: no expensive software or numbers knowledge required.
More Financial Resources for Entrepreneurs:
Estimated Tax Payments For Small Business: How To Calculate Your Quarterly Payments
Why Reading Your Tax Return (& Not Just Signing It) Is Crucial For Small Business Owners
Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified financial professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.
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