If you’re self-employed or running a small business, one of the trickiest financial decisions can be this: how do you pay yourself?
It might seem easier to dip into the business account when you need it, or to wait until there’s “enough” left over. But treating your income as an afterthought creates uncertainty for both your personal and business finances.
At PTP, we work with business owners every day who are navigating this exact challenge. Here’s what we recommend:
- Separate Your Finances
Your business is not your wallet. Keeping your personal and business finances separate is the first step to understanding how your business is really performing. It also makes tax time a lot less painful.
- Set a Salary
To work out what to pay yourself, ask this: what would it cost to replace me?
Think about what someone else would earn doing your role, based on the industry, location, and workload. This gives you a starting point for your own wage. Then check your business’s profitability to make sure it can sustain that amount while still covering essential costs.
- Cover the Essentials First
Before locking in your wage, your business first needs to cover:
- Operational expenses
- Tax obligations
- Future growth plans
Your salary should fit comfortably within the financial structure of your business, not strain it.
- Build a Regular Payment Habit
Paying yourself on a regular schedule creates financial discipline. It also makes personal budgeting and financial planning far more predictable.
Just like you’d pay an employee, paying yourself consistently reinforces the mindset that your time and effort have value. And when your business grows, there’s a clear framework to increase your wage sustainably.
Final Thoughts
Paying yourself is not just about cash in your pocket. It’s about building a business that supports you — not the other way around.
Need help working out how to pay yourself properly? Chat to our advisory team at PTP. We’ll help you structure a wage that works for your business, your goals, and your peace of mind.
