How "The 30% Rule" Changes Your Business Finances
I was terrified to save 30% of my profit when I started my landscaping business just to pay for taxes. That seemed impossible. I was worried that I would be left with nothing. However, my friend, Scotty, pointed out that the consequences of not paying my taxes would be much worse. So, I had to increase my prices to be able to pay it and still have some money to save.
Today, let me share a few things I did to be able to afford my obligations without breaking my bank account in this episode. My life was literally altered by it, so I'm here to share it in the hope that it will change yours.
“Save 30% of all gross profits, because saving 30% of all gross revenue, that’s insane. Because what if you have a business that’s only a 20% gross profit margin? You have so much overhead and so many materials. That doesn’t even make any sense. So, 30% of gross profits makes more sense.”
– Keith Kalfas
Why do you have to listen to today’s episode.
00:13 – Here, I share the story of my first encounter with the 30% rule. Tune in to know how it changed my life.
04:16 – I used to work for 80-90 hours a week so that I could save. I ended up over-saving, and then it became a habit.
06:15 – I was supposed to save 30% of the gross profits, but I realized I saved 30% of my gross revenue. So hear me out as I talk about the 50% rule.
11:40 – Open up another bank account for your business savings, and remember to save 30% of all your gross profit.
13:02 – I’ll be having a new program called Business Money Basics. Visit this link to know more.
Key Takeaways
“This habit of just obsessively saving – sad and embarrassed to say – out of fear made me always have way more money than I ever needed.”
Connect with Keith
Resources/People Mentioned:
My Website: Official Site Keith Kalfas
My Podcast Page: The UNTRAPPED Podcast
My New Course: Business Money Basics
Lowe’s Home Improvement: website
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