You Made $1 Million Last Year. So Why Is Your Savings Account Empty?

Today, we're talking about why you are not saving if you have a million dollar business.

And this can happen.

You know, certain people are just natural entrepreneurs.

That's all they do.

That's all they know.

They can only work for themselves.

And it doesn't mean that they're trying to be the billionaire next door.

Instead, they're trying to build a business that fund their lifestyle and whatnot.

And they've always done that, worrying about the business as opposed to their long term needs.

It's a very common concern among those who are really interested in building businesses is one I see a lot.

And so today I want to talk about sort of how it happens and why it happens.

And one of the first reasons that it happens is because basically the business owner hasn't separated their income or their finances from the business.

Instead, it's one in the same.

So if you're running everything through the business as if it's your own personal account, it's easy to do really well in the business, but really look like it's nothing's happening on the personal finance front because it's all held within the business.

If you have not built a system to move things from one side of the ledger to another, then it's always going to be in the business and you're always going to be operating through the business.

And that's fine and dandy in the early stages.

But at some point, you need to be able to actually grow your personal wealth because you don't know what's going to happen the next day in that business.

You know, something could change dramatically from a technology improvement, a competitor improvement, whatever, that could leave you in a much more difficult situation.

And this is even true among those who are more service oriented.

And so we need to make sure that we are actually creating the business that's thriving, which is done, but then making sure that you are actually benefiting from that on the personal side.

The second thing that often results from this is that the business owner is not creating a salary.

And so because there's no salary, there's no like budgeting, there's no savings habit, and it's harder for them to move from just operating within the business to operating within personal wealth as well.

And, you know, you don't see this among employees, right, because they're getting salaries, they're getting a set amount every month or every two weeks and taxes are being taken out, savings are being taken out and things are just automated for them.

But as a business owner, you have to automate that process yourself.

First of all, as a salary, especially if you're going into sort of the S-corp design, you really should have a salary of some sort.