I Made 100K and Still Felt Broke—Where Did All The Money Go? | (Profit First Explained) PART ONE

Mar 3

I made 100K... and still felt broke. 💸

When I hit my first six-figure year in business, I thought I had made it. But when I looked at my bank account, I had one big question… Where did all my money go?!

I realized I wasn’t alone in this. Most entrepreneurs focus on making more money, but they don’t have a system for keeping it. That’s why this year, I’m doing something different: I’m testing the Profit First method for a full year.

🎧 In this week’s episode of Living Your Daydream, I’m breaking down:

✔️ What the Profit First system is & why I’m testing it
✔️ The 4 essential bank accounts every business owner needs
✔️ My exact revenue breakdown & allocations
✔️ What I expect to change by using this system

If you’ve ever felt like you’re making money but never seeing it, this episode is for you!

or listen here on apple

Today’s Topics:

📌 00:00 – Intro: Why I’m doing a Profit First experiment

📌 02:12 – The problem: Why making 100K didn’t mean financial security

📌 03:23 – What is Profit First? Breaking down the system

📌 03:49 – The 4 essential accounts & how they work

📌 5:27 – Please leave a comment or 5-star review!

📌 6:22 – My revenue goals & Profit First allocations

📌 07:22 – How you can start implementing Profit First today

What Is Profit First (And Why Am I Testing It?)

Most business owners follow this formula:

💰 Revenue - Expenses = Profit

But in reality, that usually means we spend first and hope there’s money left over. And let’s be real—there never seems to be enough left for ourselves.

Profit First flips this equation:

✅ Revenue - Profit = Expenses

Instead of paying yourself last, you pay yourself first, setting aside money for profit, taxes, and owner’s pay before covering business expenses.

This ensures:
🔹 You always pay yourself consistently
🔹 Your business remains profitable from day one
🔹 You stop overspending on things that don’t actually grow your business

How I’m Implementing Profit First in My Business

I’m restructuring my business finances using these 4 key bank accounts:

💰 Owner’s Compensation (50%) – This is my paycheck—no more paying myself last!
🏢 Operating Expenses (30%) – Covers software, marketing, subscriptions, and business tools
📊 Taxes (15%) – Automatically set aside so tax season doesn’t sneak up on me
🎉 Profit (5%) – This is my quarterly bonus + a financial safety net

With this system, I’ll finally be able to see where my money is actually going and build a business that pays me consistently.

What I Expect to Change Over the Next Year

This experiment isn’t just about tracking numbers—it’s about changing how I think about money as a business owner.

💡 More financial clarity – Knowing exactly where every dollar is going will eliminate so much stress.
💡 Consistent paychecks – No more “I’ll pay myself if there’s money left” nonsense.
💡 Better spending habits – Instead of running my business on everything I make, I’ll operate within 30% of my revenue.

I’ll be tracking my progress for the next 12 months and sharing quarterly updates to see if Profit First actually works! 🚀

🔥 ACTION ITEM:

Want to get your business finances under control? Start by setting up a separate account for taxes and move 15% of your revenue into it today. Future you will thank you!